National Highways Operational Technology Commercial Framework

Tender description

The Operational Technology Commercial Framework (OTCF) is a commercial vehicle to support the delivery of the National Highways operational technology pipeline and to meet the strategic aims of National Highways. The OTCF is comprised of five Lots and National Highways awarded it on 10 January 2022 and published a Contract Award Notice on 26 January 2022. This notice concerns the proposed extension of the OTCF from 9 January 2026 to 9 January 2028 pursuant to Regulations 72(1)(e) and/or 72(1)(c) Public Contracts Regulations 2015 (PCR). For further information, please see the "Explanation" section, and other sections, of this notice. Lot 1: The OTCF is a commercial vehicle to support the delivery of the National Highways operational technology pipeline and to meet the strategic aims of National Highways. National Highways awarded the OTCF on 10 January 2022 and published a Contract Award Notice on 26 January 2022. The Contract Award Notice explained that the OTCF: 1. has an estimated value of £500 million; 2. has an initial term of two years, expiring on 9 January 2024, with the option to extend for an additional two years to 9 January 2026; 3. comprises 61 suppliers across five lots; and 4. is the primary commercial vehicle to support the delivery of the RIS2 (and beyond) technology goods and services pipeline and to meet the strategic aims of National Highways. National Highways is considering a modification to the OTCF to extend the expiry date from 9 January 2026 to 9 January 2028. As a result of this extension in term, National Highways estimates that the estimated value of the OTCF would increase by 20% from the £500 million (plus VAT) specified in the Contract Award Notice to £600 million (plus VAT) for the full six-year term. This extension is required as: 1) when the new Government came into office in 2024, it conducted a review of the NH funding settlement for the five-year Roads Investment Strategy (RIS3) and introduced a one-year funding settlement, delaying RIS3, creating uncertainty in respect of NH planning for future procurements. 2) Under such circumstances including the uncertainty regarding the future demand for operational technology in the RIS3 settlement, NH was unable to procure all requirements to meet the critical operational roadside technology needs of its function for the near future. 3) NH must therefore rely on its existing supply chain through the OTCF to meet the immediate needs of RIS3. This does not provide sufficient time to set up new arrangements, so the proposed extension to the OTCF will allow NH sufficient time to develop and procure measures to meet the requirements of RIS3 following a funding settlement being agreed . No other modifications are being considered, so the terms and scope of supplies/services of the OTCF would remain the same for the extended period. However, bidders should also note that the initial estimated Lot values cited in the Contract Award Notice as the best estimates at the time of publication have been re-considered, based on data from the lifecycle of the framework agreement, and are revised as follows as a more accurate representation of the estimated value of contracts awarded under the lots for the full duration of the framework agreement (including the proposed extension to 9 January 2028). The changes have arisen due to alterations in procurement approach such as sourcing similar services from elsewhere or establishment of longer-term contracts than originally envisaged; changes in expected demand; and additional demands of major projects unforeseen at the time of publication of the Contract Award Notice. Interested organisations will note that despite changes to the individual lot values, the total overall value of the framework agreement is £600 million (plus VAT): Lot 1- Detector Systems (Goods, Services and Maintenance) – estimated £70 million figure in the contract award notice revised to £190 million; Lot 2 - Informing Systems (Goods, Services and Maintenance) – estimated £80 million figure in the contract award notice revised to £180 million; Lot 3 - Passive Systems (Goods, Services and Maintenance) – estimated £70 million figure in the contract award notice revised to £40 million; Lot 4 - Operational Systems (Services) – estimated £220 million figure in the contract award notice revised to £40 million; and Lot 5 - Operational Technology Consultancy Support (Services) – estimated £60 million figure in the contract award notice revised to £150 million. Lot 2: (Operational Technology Commercial Framework Lot 2) - Operational Technology - Informing Systems (Goods, Services and Maintenance). Lot 3: (Operational Technology Commercial Framework - Lot 3). Operational Technology - Passive Systems (Goods, Services and Maintenance). Lot 4: (Operational Technology Commercial Framework - Lot 4). Operational Technology Operational Systems (specialist products, support services and solutions). Lot 5: (Operational Technology Commercial Framework - Lot 5). Operational Technology Consultancy Support Services.