Network Rail (High Speed) High Output Midlife Ballast Refurbishment

Scope, procedure and submissions

Id

ocds-h6vhtk-04d66e

Status

complete

Procurement Method

limited

Main Procurement Category

services

Procurement Method Details

Award procedure without prior publication of a call for competition

Why this procedure was chosen

Network Rail (High Speed) Limited (NRHS) intends to enter into this contract with Network Rail Infrastructure Limited (NRIL) on the basis of Regulation 28(2) of the Utilities Contracts Regulations 2016. This provides that a contract falls outside UCR2016 where a controlled legal person which is a contracting authority awards a contract to its controlling contracting authority provided there is no direct private capital participation in the contracting authority being awarded the contract. NRIL is a contracting authority; it is ultimately owned by Network Rail Limited, a company limited by guarantee, of whom the Secretary of State for Transport is the sole member. NRHS is a wholly owned subsidiary of NRIL. NRHS considers that it is a contracting authority on the basis of the general test set out in Regulation 4, UCR2016. NRHS has legally personality as it is a private company limited by shares, incorporated in England and Wales. NRHS is subject to administrative, managerial and supervisory control by NRIL for the purposes of part (c)(ii) and (iii). NRHS's memorandum and articles of association provide for the appointment of directors to the board by ordinary resolution. NRHS's directors have the usual duties in the direction and management of its affairs as required of the directors of a limited company under UK company law. As NRIL is the sole shareholder of NRHS, its ability to make appointments to the board of directors means part (c)(iii) of the test is met. NRHS also considers it was "established for the specific purpose of meeting needs in the general interest" i.e. its activities were intended to and continue to almost entirely consist of services in relation to the High-Speed 1 line for HS1 Limited (under the long-term Operator Agreement between NRHS and HS1 Limited) including u, the provision of maintenance and renewals services and that those services should be regarded as meeting needs in the general interest. Activities of NRIL's subsidiaries are also constrained by Condition 16.1 of its Network Licence. NRHS further considers that it does not have an industrial or commercial character on the basis that it is strongly arguable that it does not operate in normal market conditions and that it is not clear that it would ultimately require to bear all risks associated with exercise of its activities. For these reasons, NRHS considers that it is a contracting authority and is entitled to make use of the exception from UCR2016 set out in Regulation 28(2). The contract to be awarded will place an obligation upon NRIL to carry out works relating to the cleaning and partial replacement of ballast materials forming part of the structure of the High Speed 1 railway line which NRHS is responsible to HS1 Limited for the maintenance of.

Lots and requirements

Items and delivery

Buyer, suppliers and contacts

Award information

Contracts and changes

Recorded locations

• Buyer location · London · UK · SE1 8SW · United Kingdom
• Delivery location · UK