Supply of Long and Short Rail and Ancillary Services

Concepts

• network rail
• railway track construction materials and supplies
• network rail infrastructure ltd
• short rail
• rails
• supply of steel rail
• supply of long
• network rail high speed
• network rail’s rail delivery fleet
• rail

Location

North and North East Lincolnshire: The Supplier will weld steel rail at its plant located in Great Britain

Description

The Supply of Steel Rail and ancillary services to Network Rail (NR) for a period of up to 8 years. The scope for supply of steel rail within this notice includes the potential to include all of Network Rail and its subsidiaries, including but not limited to Network Rail Infrastructure Ltd and Network Rail High Speed and also to those organisations covered by our external business framework including Transport for Wales and as an occasional joint procurement with HS2 Ltd.

Total Quantity or Scope

The Supplier shall provide 108m/216m rail in 56E1 and 60E2 profiles and in both R260 grade and Premium grades. The Supplier shall provide the above with corrosion resistant coating when requested by Network Rail. The minimum order quantity shall be one rail. Up to a Supplier-defined maximum volume, the Supplier shall fulfil standard (ie non-coated R260 grade) requirements within a 24 hour lead time. The Supplier shall fulfil coated rail and premium requirements within a 70-calendar day lead time. Goods shall be delivered onto Network Rail’s Rail Delivery Fleet. Network Rail shall commit a Minimum Volume Commitment of 250,000t Long Rail and additionally 50,000t Short Rail over the initial 5 year term of the Agreement. Supplier Premises - To secure the Minimum Volume Commitment from commencement of the Agreement, the Supplier shall be able to provide compliant, suitable premises in Great Britain to Weld Goods into 216m Long Rail and 182.88m Conductor Rail in the volumes described. The Supplier shall load Network Rail’s Rail Delivery Fleet with rail lengths from 91.44m to 216m The Supplier shall have facilities to enable contractors to undertake light maintenance on Network Rail’s Delivery Fleet. To note, the maintenance activity itself will be undertaken by Network Rail’s appointed maintainer and not the Supplier. The Supplier shall store in excess of 20,000t of long rail. The Premises shall be based in central England to enable optimisation of Network Rail’s Rail Delivery Fleet. Following call-offs, the Supplier shall hold capability to deliver the following Services at a location in central England - Drilled and Cold Bolt Hole Expansion, with drilling at either or both ends of the rail. Ability to cut rail into defined lengths.

Award Detail

Renewal Options

Option 1: Green Steel The Buyer elects that the Supplier shall meet the following targets (and for the avoidance of doubt, such targets shall be elected independently of each other): (a) From 1 January 2031, An incremental increase in call-off against committed volumes being Green steel by the end of the agreement at 30 September 2032. Option 2: Closed Circular Economy The Buyer elects (in its sole discretion) that to support continuity of supply of Green Steel, the Buyer may decide to sell scrap rail to the Supplier. All scrap rail is to be re-processed and not re-sold. Options may be exercised by the Buyer upon it giving at least six months written notice in accordance with the terms of the contract.

CPV Codes

• 34946000 - Railway-track construction materials and supplies
• 34946110 - Rails
• 45262680 - Welding
• 76300000 - Drilling services

Indicators

• Options are available.

Legal Justification

The basis of the direct award to British Steel is Regulation 50(1)(c)(ii) UCR2016 on the grounds that competition is absent for technical reasons. Network Rail has undertaken market engagement which has confirmed there is no other supplier with a long-rail welding facility in Great Britain or who has indicated that they would be prepared to construct one at present or in the foreseeable future. Network Rail will shortly be undertaking an openly advertised competition for certain steel products including volumes of steel rail where the market engagement has indicated that access to NR's own welding facility is such that there is likely to be at least a degree of competition.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** … Network Rail reserves the right to flex volume commitments and related advertised value ranges between lots covered by this notice and the Contract Notice for Lots 2-6 in the circumstance described in the documentation at Schedule 11 Financial Difficulties.