Financing of new rolling stock and associated equipment (including simulators, spares and tooling).

Description

The objective of this procurement is for Northern Trains Limited (NTL) to enter into financing arrangements with one or more financiers in relation to new rolling stock and associated equipment (including simulators, spares and tooling) which is being procured under a parallel manufacture and supply of rolling stock procurement. The Contract Notice related to the parallel procurement is 2024/S 000-015055. The parallel manufacture and supply of rolling stock procurement will establish a framework with three lots, one lot for each of: multi-mode multiple units (MMU); electric multiple units (EMU) and battery electric multiple units (BEMU). NTL anticipates calling off its Phase One and Phase Two rolling stock requirements from such lots. These framework agreements are for multi-mode multiple units (MMU); electric multiple units (EMU) and battery electric multiple units (BEMU). This finance procurement is solely for the Phase One requirements which are expected to be: • EMU: 12 units x 3 vehicles and expected to be in passenger service in 2029-30. • MMU: 48 units x 3 vehicles and 63 units x 4 vehicles and expected to be in passenger service in 2030-31. • BEMU: 8 units x 4 vehicles and expected to be in passenger service in 2032. Lot 1: Electric Multiple Units Lot 1: Electric Multiple Units This finance procurement solely relates to financing the Phase One rolling stock and associated equipment (including simulators, spares and tooling). Lot 1 is the financing of the estimated requirement of 12 x 3-vehicle Electric Multiple Units (EMUs). During the procurement process, tenderers will be requested to provide Indicative Lease Rates for these EMUs. The purpose of these rates is to support the evaluation of the manufacturer tender on a Whole Life Cost basis. These Indicative Lease Rates can be submitted on the basis of either an 8 plus 8-year lease and/or a 10 plus 10-year lease for the various EMU Manufacturers. No other Lease terms or combination of Lease terms will be accepted at this or any following stage. These Indicative Lease Rates for the EMUs will be evaluated based on the assumed useful life of the units (being 35 years). The Residual Lease Term will be calculated as an average of the Initial Term Lease Rate (first eight or ten years) and the Extended Term Lease Rate (years 9-16 or 11-20) and this will be used to determine the lease rate for the residual life of the asset (being years 17-35 or 20-35). It is reiterated that these Indicative Lease Rates are to support the evaluation of the manufacturer tender by enabling the lease cost associated with that manufacturer's solution to be included in the Whole Life Cost analysis. Later in the procurement process NTL will issue an Invitation to Submit a Final Tender (ISFT) and all tenderers will have opportunity to provide a Combined Proposal (i.e. a potential 'winner takes all proposal' where a tenderer bids to finance all of the units under Lots 1, 2 and 3 for the relevant manufacturers). The Combined Proposal can be submitted on the basis of either an 8 plus 8-year lease and/or a 10 plus 10-year lease. In addition, the three tenderers who provided the lowest Indicative Lease Rates for the preferred EMU Manufacturer will have the opportunity to submit a Final Tender Response in respect of the EMUs, on the basis of either an 8 plus 8-year lease and/or a 10 plus 10-year lease, in respect of that preferred Manufacturer. As described above, these responses to the ISFT can be submitted on either the basis of an 8 plus 8-year lease and/or a 10 plus 10year lease. Following the submission of responses to the ISFT, NTL will evaluate the Combined Proposal responses and the responses to the various preferred Manufacturer / Lot combinations. These evaluations will be based on the total of the Initial lease Term Lease Rate (first eight or ten years), the Extended Term Lease Rate (years 9-16 or 11-20) and the average of these two rates will be used to determine the lease rate for the residual life of the asset. NTL will then compare the best value Combined Proposal against the aggregated best value Manufacturer / Lot combinations to determine which solution has provided the best overall value for money to determine the successful tenderer(s). NTL is procuring on its own behalf and will enter into the relevant contract documents where such contracts are awarded. However, the contract documents also permit the transfer of the contracts to Transferee Train Operating Companies who in future may either (i) operate over any part of the Northern network and/or (ii) lease or sub-lease the rolling stock. In the event that such provisions are utilised, this procurement is also to be for the benefit of the Transferee Train Operating Companies in accordance with regulation 55 of the Utilities Contracts Regulations 2016. However, NTL is responsible for the conduct of the procurement throughout and all correspondence and communication from financiers is to be solely with NTL. The meaning of Transferee Train Operating Companies includes all those train operating companies who, currently or in the future, provide services for the carriage of passengers by railway: a) under a franchise agreement with the Secretary of State within the meaning of section 23(3) of the Railways Act 1993 or b) under, or secured under, the Secretary of State's duty in section 30(1) of the Railways Act 1993; or in accordance with legislation which supersedes or amends the powers referred to in a) and b), including where such powers are transferred from the Secretary of State to another body. Additional information: The maximum contract term is 240 months i.e. if the lease is let on a 10 plus 10 years basis and it runs for the full 20 year term. As described in this contract notice three other lease terms are possible: a/. 96 months, i.e. if the lease is let on a 8 plus 8 years basis, but is terminated after the initial 8-year term; b/. 120 months, i.e. if the lease is let on a 10 plus 10 years basis but is terminated after the initial 10-year term; and, c/ 192 months, i.e. if the lease is let on an 8 plus 8 years basis and runs for the full 16 year term. Lot 2: Multi-mode Multiple Units (MMU) Lot 2: Multi-mode Multiple Units (MMU) This finance procurement solely relates to financing the Phase One rolling stock and associated equipment (including simulators, spares and tooling). Lot 2 is the financing of the estimated requirement of 48 x 3-vehicle and 63 x 4-vehicle Multi-mode Multiple Units (MMUs). During the procurement process, tenderers will be requested to provide Indicative Lease Rates for these MMUs. The purpose of these rates is to support the evaluation of the manufacturer tender on a Whole Life Cost basis. These Indicative Lease Rates can be submitted on the basis of either an 8 plus 8-year lease and/or a 10 plus 10-year lease for the various MMU Manufacturers. No other Lease terms or combination of Lease terms will be accepted at this or any following stage. These Indicative Lease Rates for the MMUs will be evaluated based on the assumed useful life of the units (being 35 years). The Residual Lease Term will be calculated as an average of the Initial Term Lease Rate (first eight or ten years) and the Extended Term Lease Rate (years 9-16 or 11-20) and this will be used to determine the lease rate for the residual life of the asset (being years 17-35 or 20-35). It is reiterated that these Indicative Lease Rates are to support the evaluation of the manufacturer tender by enabling the lease cost associated with that manufacturer's solution to be included in the Whole Life Cost analysis. Later in the procurement process NTL will issue an Invitation to Submit a Final Tender (ISFT) and all tenderers will have opportunity to provide a Combined Proposal (i.e. a potential 'winner takes all proposal' where a tenderer bids to finance all of the units under Lots 1, 2 and 3 for the relevant manufacturers). The Combined Proposal can be submitted on the basis of either an 8 plus 8-year lease and/or a 10 plus 10-year lease. In addition, the five tenderers who provided the lowest Indicative Lease Rates for the preferred MMU Manufacturer will have the opportunity to submit a Final Tender Response in respect of the MMUs, on the basis of either an 8 plus 8-year lease and/or a 10 plus 10-year lease, in respect of that preferred Manufacturer. As described above, these responses to the ISFT can be submitted on either the basis of an 8 plus 8-year lease and/or a 10 plus 10year lease. Following the submission of responses to the ISFT, NTL will evaluate the Combined Proposal responses and the responses to the various preferred Manufacturer / Lot combinations. These evaluations will be based on the total of the Initial lease Term Lease Rate (first eight or ten years), the Extended Term Lease Rate (years 9-16 or 11-20) and the average of these two rates will be used to determine the lease rate for the residual life of the asset. NTL will then compare the best value Combined Proposal against the aggregated best value Manufacturer / Lot combinations to determine which solution has provided the best overall value for money to determine the successful tenderer(s). NTL is procuring on its own behalf and will enter into the relevant contract documents where such contracts are awarded. However, the contract documents also permit the transfer of the contracts to Transferee Train Operating Companies who in future may either (i) operate over any part of the Northern network and/or (ii) lease or sub-lease the rolling stock. In the event that such provisions are utilised, this procurement is also to be for the benefit of the Transferee Train Operating Companies in accordance with regulation 55 of the Utilities Contracts Regulations 2016. However, NTL is responsible for the conduct of the procurement throughout and all correspondence and communication from financiers is to be solely with NTL. The meaning of Transferee Train Operating Companies includes all those train operating companies who, currently or in the future, provide services for the carriage of passengers by railway: c) under a franchise agreement with the Secretary of State within the meaning of section 23(3) of the Railways Act 1993 or d) under, or secured under, the Secretary of State's duty in section 30(1) of the Railways Act 1993; or in accordance with legislation which supersedes or amends the powers referred to in a) and b), including where such powers are transferred from the Secretary of State to another body. Additional information: The maximum contract term is 240 months i.e. if the lease is let on a 10 plus 10 years basis and it runs for the full 20 year term. As described in this contract notice three other lease terms are possible: a/. 96 months, i.e. if the lease is let on a 8 plus 8 years basis, but is terminated after the initial 8-year term; b/. 120 months, i.e. if the lease is let on a 10 plus 10 years basis but is terminated after the initial 10-year term; and, c/ 192 months, i.e. if the lease is let on an 8 plus 8 years basis and runs for the full 16 year term. Lot 3: Battery Electric Multiple Units (BEMU) Lot 3: Battery Electric Multiple Units (BEMU) This finance procurement solely relates to financing the Phase One rolling stock and associated equipment (including simulators, spares and tooling). Lot 3 is the financing of the estimated requirement of 8 x 4-vehicle Battery Electric Multiple Units (BEMUs). During the procurement process, tenderers will be requested to provide Indicative Lease Rates for these BEMUs. The purpose of these rates is to support the evaluation of the manufacturer tender on a Whole Life Cost basis. These Indicative Lease Rates can be submitted on the basis of either an 8 plus 8-year lease and/or a 10 plus 10-year lease for the various BEMU Manufacturers. No other Lease terms or combination of Lease terms will be accepted at this or any following stage. These Indicative Lease Rates for the BEMUs will be evaluated based on the assumed useful life of the units (being 35 years). The Residual Lease Term will be calculated as an average of the Initial Term Lease Rate (first eight or ten years) and the Extended Term Lease Rate (years 9-16 or 11-20) and this will be used to determine the lease rate for the residual life of the asset (being years 17-35 or 20-35). It is reiterated that these Indicative Lease Rates are to support the evaluation of the manufacturer tender by enabling the lease cost associated with that manufacturer's solution to be included in the Whole Life Cost analysis. Later in the procurement process NTL will issue an Invitation to Submit a Final Tender (ISFT) and all tenderers will have opportunity to provide a Combined Proposal (i.e. a potential 'winner takes all proposal' where a tenderer bids to finance all of the units under Lots 1, 2 and 3 for the relevant manufacturers). The Combined Proposal can be submitted on the basis of either an 8 plus 8-year lease and/or a 10 plus 10-year lease. In addition, the three tenderers who provided the lowest Indicative Lease Rates for the preferred BEMU Manufacturer will have the opportunity to submit a Final Tender Response in respect of the BEMUs, on the basis of either an 8 plus 8-year lease and/or a 10 plus 10-year lease, in respect of that preferred Manufacturer. As described above, these responses to the ISFT can be submitted on either the basis of an 8 plus 8-year lease and/or a 10 plus 10year lease. Following the submission of responses to the ISFT, NTL will evaluate the Combined Proposal responses and the responses to the various preferred Manufacturer / Lot combinations. These evaluations will be based on the total of the Initial lease Term Lease Rate (first eight or ten years), the Extended Term Lease Rate (years 9-16 or 11-20) and the average of these two rates will be used to determine the lease rate for the residual life of the asset. NTL will then compare the best value Combined Proposal against the aggregated best value Manufacturer / Lot combinations to determine which solution has provided the best overall value for money to determine the successful tenderer(s). NTL is procuring on its own behalf and will enter into the relevant contract documents where such contracts are awarded. However, the contract documents also permit the transfer of the contracts to Transferee Train Operating Companies who in future may either (i) operate over any part of the Northern network and/or (ii) lease or sub-lease the rolling stock. In the event that such provisions are utilised, this procurement is also to be for the benefit of the Transferee Train Operating Companies in accordance with regulation 55 of the Utilities Contracts Regulations 2016. However, NTL is responsible for the conduct of the procurement throughout and all correspondence and communication from financiers is to be solely with NTL. The meaning of Transferee Train Operating Companies includes all those train operating companies who, currently or in the future, provide services for the carriage of passengers by railway: e) under a franchise agreement with the Secretary of State within the meaning of section 23(3) of the Railways Act 1993 or f) under, or secured under, the Secretary of State's duty in section 30(1) of the Railways Act 1993; or in accordance with legislation which supersedes or amends the powers referred to in a) and b), including where such powers are transferred from the Secretary of State to another body. Additional information: The maximum contract term is 240 months i.e. if the lease is let on a 10 plus 10 years basis and it runs for the full 20 year term. As described in this contract notice three other lease terms are possible: a/. 96 months, i.e. if the lease is let on a 8 plus 8 years basis, but is terminated after the initial 8-year term; b/. 120 months, i.e. if the lease is let on a 10 plus 10 years basis but is terminated after the initial 10-year term; and, c/ 192 months, i.e. if the lease is let on an 8 plus 8 years basis and runs for the full 16 year term.