Extension of Revenue Collection Contract ("RCC") with Cubic

CPV: Automatic fare collection · Computer equipment and supplies · Database and operating software package · IT services: consulting, software development, Internet and support · Information systems · Maintenance and repair of ticket-issuing machinery · Miscellaneous software package and computer systems · Sales, marketing and business intelligence software package · Transaction-processing software package

Procedure method

Award procedure without prior publication of a call for competition

Legal basis

CELEX · 32014L0025 Utilities Contracts Regulations 2016 (Directive 2014/25/EU)

Procurement category

Services

Notice status

Awarded without competition

Procurement threshold

Unspecified in notice

Regulatory regime

Standard

Commercial structure

Stand-alone contract (no framework)

Competition type

Direct award (no call for competition)

GPA / WTO covered

Unspecified in notice

Recurring procurement

Unspecified in notice

First published

23 Jun 2022, 17:02 BST

Last source update

23 Jun 2022, 17:02 BST

FTS notice number

2022/S 000-017243

Classification (CPV)

Automatic fare collectionComputer equipment and suppliesDatabase and operating software packageIT services: consulting, software development, Internet and supportInformation systemsMaintenance and repair of ticket-issuing machineryMiscellaneous software package and computer systemsSales, marketing and business intelligence software packageTransaction-processing software package

Delivery area

London (UKI)

Official registry OCID

ocds-h6vhtk-034a00 Find a Tender

Why no open competition

The procurement falls outside the scope of application of the directive

Published justification

TfL considers that the Extension benefits from the exemption in Reg. 88(1)(b) UCR, for the following reasons.

The Extension has become necessary in order for TfL to:

(i) demonstrate to newcomer bidders that there is a working card reader which the successful bidder can inherit and operate;

(ii) deliver an appropriately structured and planned Project Proteus re-procurement programme based on a level playing-field where newcomer bidders are given the necessary information, reading-in time and opportunities to discuss the replacement services with TfL; and

(iii) ensure a smooth and risk-mitigated transition from Cubic to any new contractor.

It would be very difficult to bring in a different contractor on a short-term basis in a way that safeguarded the continued operation of TfL's revenue collection system and achieved value for money for TfL.

Running a competitive tender for a short-term extension ahead of the larger Project Proteus tender process would also involve substantial duplication of costs for TfL and could delay completion of the Proteus tender process.

The 12-month duration of the Extension is reasonable and necessary, given the following factors:

• due to various factors (including the component supply difficulties arising from the war in Ukraine) TfL has concluded that targeting July 2025 for completing the deployment of the new bus readers is not achievable, and, after taking into account recent input from Cubic, TfL is now working with a revised programme targeting June 2026;
• the complexity of the services and the need for newcomer bidders to immerse themselves in information so that they can submit compliant and competitive proposals;
• the inherent advantage held by Cubic, which may only be mitigated via the provision of adequate time and information to newcomer bidders during the procurement process;
• the complexity of transitioning from Cubic to a new supplier, where the new supplier is likely to require significant handover and early life support from Cubic, and recent market feedback about the likely timeline required for that transition; and
• the need to allow for potential delays arising from contingencies such as (i) possible force majeure events resulting from a resurgence of the pandemic, (ii) bidders needing more time during the procurement process due to the factors described above; (iii) transition or handback issues or delays; and (iv) the potential for further delays to the replacement card reader roll-out.

Publisher note: TfL considers that the Extension benefits from the exemption in Reg. 88(1)(b) UCR, for the following reasons. The Extension has become necessary in order for TfL to: (i) demonstrate to newcomer bidders that there is a working card reader which the successful bidder can inherit and operate; (ii) deliver an appropriately structured and planned Project Proteus re-procurement programme based on a level playing-field where newcomer bidders are given the necessary information, reading-in time and opportunities to discuss the replacement services with TfL; and (iii) ensure a smooth and risk-mitigated transition from Cubic to any new contractor. It would be very difficult to bring in a different contractor on a short-term basis in a way that safeguarded the continued operation of TfL's revenue collection system and achieved value for money for TfL. Running a competitive tender for a short-term extension ahead of the larger Project Proteus tender process would also involve substantial duplication of costs for TfL and could delay completion of the Proteus tender process. The 12-month duration of the Extension is reasonable and necessary, given the following factors: • due to various factors (including the component supply difficulties arising from the war in Ukraine) TfL has concluded that targeting July 2025 for completing the deployment of the new bus readers is not achievable, and, after taking into account recent input from Cubic, TfL is now working with a revised programme targeting June 2026; • the complexity of the services and the need for newcomer bidders to immerse themselves in information so that they can submit compliant and competitive proposals; • the inherent advantage held by Cubic, which may only be mitigated via the provision of adequate time and information to newcomer bidders during the procurement process; • the complexity of transitioning from Cubic to a new supplier, where the new supplier is likely to require significant handover and early life support from Cubic, and recent market feedback about the likely timeline required for that transition; and • the need to allow for potential delays arising from contingencies such as (i) possible force majeure events resulting from a resurgence of the pandemic, (ii) bidders needing more time during the procurement process due to the factors described above; (iii) transition or handback issues or delays; and (iv) the potential for further delays to the replacement card reader roll-out.

1 further award records carry no date or value.

No document links were published on the notice.