Tube bosses create new frameworks outside PPP

London Underground (LUL) is to speed up the delivery of its £2.8bn capital works programme by creating nine new supplier frameworks, a database of potential suppliers and regular updates on its pipeline of works, CJ can exclusively reveal.

The measures make up LUL’s new Vendor Capital Programme (VCP), launched last week. It aims to ensure sufficient capacity to deliver LUL’s future capital works over the next five years, including its preparations for the London 2012 Olympics. The works are extraneous to LUL’s Public Private Partnership (PPP) contract but will be used to benchmark the PPP Infracos’ performance.

The first tranche of VCP works, due to be procured between April 2007 and December 2008, is already available to view on Transport for London’s (TfL) website. Worth £460m, it covers four areas: congestion relief, operational accommodation, step free access and tunnel cooling. Contract values range from £250,000 to £60m. Subsequent tranches will be published at least twice a year.

LUL made clear this week that the new supplier frameworks, once created, will get the lion’s share of the capital work programme. It stated: “LUL will utilise the supplier frameworks wherever possible and with the establishment of more frameworks and an ever-increasing supplier base, most requirements are likely to be covered.”

The first two new supplier frameworks, covering major building and civil engineering works, will be advertised next month. They will run for five years. The other seven will be tendered over the next 18 months. These will include minor construction and civils works, building refurbishment and a range of project management, commercial and engineering consultancy services. Each framework will have between eight and 16 suppliers. Interested bidders must first register with LUL’s potential supplier database via TFL’s website.

The frameworks are modelled on LUL’s five year Alternative Provider (AP) framework, set up in 2005 to deliver capital works outside the London Underground Public Private Partnership (PPP) contract and to provide a benchmark for LUL’s PPP contract. The AP framework contractors are Taylor Woodrow Construction, Birse Metro and Morgan Est (formerly Gleesons MCL). The work packages, which range in value from £100,000 to £100m, include station expansions and improvements, line enhancements and extensions, staff accommodation and major works such as the Croxley Rail Link.

Launching the VCP last week, London Underground managing director Tim O’Toole said LUL wanted to attract world-class suppliers to help transform the Tube. He said the measures would help suppliers better prepare their bidding resources, as well as creating greater competition.

The Construction Confederation welcomed the improved deal flow and the new frameworks, but warned: “It’s important to encourage the involvement of organisations of all sizes to ensure the long-term sustainability of employment and corporate opportunities.”