Network Rail announces £1.5bn framework agreements
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Network Rail announces £1.5bn framework agreements
type Press release
date Friday 13 Jan 2012 00:01
source Network Rail
Network Rail has today announced new framework agreements of up to seven years to deliver railway signalling projects worth approximately £1.5bn – part of wider reforms to Network Rail’s infrastructure business, with a greater focus on partnership with suppliers and a restructuring of the way the company delivers capital projects.
Network Rail intends to award framework agreements to Invensys Rail, Signalling Solutions and Atkins, which cover the majority of signalling renewals and enhancements across England, Scotland and Wales. The agreements, which are expected to commence on 2 April, will operate for the remaining two years of control period 4 and can be extended by Network Rail to cover the whole of control period 5 (2014-19).
The new framework agreements form the backbone of Network Rail’s programme to modernise and maintain safety-critical railway signalling systems and are designed to deliver the efficiency savings required across the company’s signalling work bank over the next seven years through further reductions in unit costs.
Simon Kirby, Network Rail managing director, infrastructure projects, said: “Network Rail is continuing to drive down the costs of Britain’s railway and is committed to meeting tough efficiency targets. As the number of passengers and companies that rely on Britain’s railway continues to rise, the safety-critical systems we use to run a safe and efficient railway are more important than ever.
“These new frameworks represent a seven-year commitment by suppliers, allowing us to work closely with them to develop long-term plans for work to be carried out more quickly and efficiently. The length of the agreements, coupled with a visible workload, will provide much-needed stability throughout the supply chain and drive further cost savings and innovation across our signalling renewals and enhancements activities.”
In line with Network Rail’s new approach to supplier engagement, the frameworks incorporate collaborative working in order to deliver the necessary efficiencies. Integrated design teams and a reduction in man-marking will remove costly duplication of effort, while smoothing of peaks and troughs in Network Rail’s work bank will allow better use of suppliers’ resources.
Nick Crossfield, Invensys Rail’s UK president, said: “We are delighted to have been successful in the tendering process for these framework contracts. Key to our tender submissions were innovative approaches to both technology and project delivery, together with a further continuation of unit cost reductions.
"In addition to our absolute focus on safety, we strive to achieve excellence in technology, innovation, delivery and value and we look forward to working in close partnership with Network Rail to continue to deliver projects that provide safe, sustainable and reliable solutions."
Steve McLaren, managing director of Signalling Solutions Ltd, said: "The award of these large volume frameworks confirms Network Rail's confidence in Signalling Solutions and brings both security and growth to our company.
"The visibility and long-term work bank allows Signalling Solutions to continue to invest in people and technology to achieve the necessary cost reduction targets for the future. We look forward to building on our strong relationship with Network Rail to achieve our collective goals."
Uwe Krueger, Atkins’ chief executive, said: "This is a notable win for our UK region and a credit to the excellent long term relationship that our rail business has built up with Network Rail. We pride ourselves on being an engineering partner that understands the challenge of maintaining one of the world’s busiest and most complex rail networks and this new signalling programme is a critical element of that.
"The contracts give us the opportunity to demonstrate the breadth and depth of our rail business’ signalling expertise, sharing international best practice and innovation and delivering the management rigour that will bring value for money for one of the public sector’s most important players. The move to longer term contracts will also allow us to plan with greater confidence and deliver further efficiencies for Network Rail as a result."
The new frameworks appoint both a primary and secondary supplier for each area. This provides the flexibility needed to meet the significant increase in volumes required over the life of the framework and provides an alternative in each area if the primary supplier does not have the capacity. The agreements also provide the option to competitively tender up to 20% of the predicted workload each year.
Notes to Editors:
These framework agreements are expected to be effective from 2 April 2012 to 31 March 2014, with an option for Network Rail to continue on an annual basis for a further five years to the end of control period 5 in March 2019. This brings future framework agreements in line with the regulatory control periods on which funding for Network Rail is based.
Proposed route-based framework areas:
Wales & West
Great Western (inner)
Great Western (outer)
Anglia & Kent
Sussex & Wessex
About Invensys Rail
With over 140 years’ experience, Invensys Rail is a multinational leader in signalling and train control solutions. Employing over 3,250 employees worldwide, the company operates through a network of regional offices across the world, drawing on global expertise to deliver tailored solutions that meet the needs of each individual market.
The company designs, manufactures, supplies, installs, commissions and maintains a broad range of safety-related systems and equipment from some of the most famous names in the rail industry - Westinghouse Rail Systems, Dimetronic Signals and Safetran Systems. Its range includes highly complex integrated control centre solutions; sophisticated train based systems that automate train operation and protection; interlocking systems that ensure safe running across a network and a complete range of trackside products.
Invensys Rail is a division of the global technology group Invensys plc – for more information visit www.invensysrail.com
About Signalling Solutions Ltd
Signalling Solutions Ltd is a 50-50 joint venture company formed by Alstom Transport and Balfour Beatty Rail. Launched in October 2007, Signalling Solutions is the UK and Ireland’s sole channel for signalling products and systems previously supplied by the parent companies. Signalling Solutions’ collective in-house expertise offers a complete range of capabilities including planning, design, product supply, installation, testing and commissioning for all types of railways.
Atkins (www.atkinsglobal.com) is one of the world's leading engineering and design consultancies*, employing some 17,700 people across the UK, North America, Middle East, Asia Pacific and Europe. It has the breadth and depth of expertise to plan, design and enable some of the world's most technically challenging and time critical infrastructure projects.
*It is the largest engineering consultancy in the UK (New Civil Engineer Consultants File 2011) and the 13th largest global design firm (Engineering News-Record 2011).
Atkins is the official engineering design services provider for the London 2012 Olympic and Paralympic Games.
Railhub Archive ::: 2012-01-13 NET-001