Connect Radio and Transmission Services Contract: RON Variation

Description

LUL and Citylink Telecommunications Limited (CTL) entered into a 20-year PFI contract on 19 November 1999 (Connect PFI Contract) for a digital radio and transmission system (Connect System). In 2018, LUL entered into a contract with Ground Transportation Systems UK Limited (GTS) (f.k.a. Thales Transport and Security Limited), a CTL shareholder, for continuation of the Connect Services after 2019 (GTS Contract). TfL now wishes to (a) engage GTS to renew the existing data transmission networks to deliver a single multi-service network (called MSN2) (Renewed Operating Network or RON) under the GTS Contract (Proposed RON Appointment) and (b) extend the term of the GTS Contract for 12 months beyond its current anticipated expiry on 21 November 2026 (with an option for further extensions of up to 2 years) (Proposed RON Extension)(collectively, the Proposed RON Variation). As explained at II.2.4 and IV.1.1, LUL considers that the Proposed RON Variation is permitted under Reg. 88 of the Utilities Contracts Regulations 2016 (UCR). TfL intends, and is already in the process of preparing, to re-procure the management of the Connect System competitively upon the expiry of the GTS Contract as varied by the Proposed RON Variation. TfL considers that implementation of the Proposed RON Variation, as described below, will enable it to hold a more attractive and more effective competition for the management of the Connect System after expiry of the GTS Contract. Lot 1: The Connect System uses digital terrestrial trunked radio (TETRA) technology which, alongside other features, is highly reliable and ensures security and confidentiality of operational communications. The Connect System is critical to the operation of the LU railway, as it provides: (a) mission-critical voice radio between LUL control centres and train drivers; (b) mission-critical voice and safety alarms for train drivers and other railway staff; (c) fixed cable voice and data connections between stations; and (d) other signalling links and other links for a range of operational railway applications. GTS is responsible for the operation and maintenance of the Connect System. The TETRA radio system used for the Connect System was supplied by Motorola, using its Dimetra product, and is supported and maintained by Motorola as a contractor to GTS. The Connect System also comprises other elements of hardware and software, including both commercial off-the-shelf products and bespoke equipment or software designed specifically for the Connect System. The data transmission networks used in the Connect System include: a multi-services network (MSN) carrying IP-based applications, including radio data traffic, a data network based on asynchronous transfer mode transmission (ATM) carrying the CCTV data, and a data network based on synchronous digital hierarchy transmission (SDH) carrying various types of data such as telephone voice and text, radio data traffic and customer service information. These three data transmission networks are based on legacy technology. They have already, or are about to, become obsolete, meaning that it will no longer be possible to secure spares and the associated equipment and software ceases to be patchable or upgradeable. This obsolescence introduces risks which LUL has concluded must be mitigated given the operationally critical nature of the Connect System. TfL needs to address the obsolescence of the legacy data transmission networks, following its decision to continue to use the TETRA radio system until the mid-2030s, because the TETRA radio system requires a modern data transmission network with adequate bandwidth. That recent decision was based on TfL's own analysis and that of external consultants, which concluded that the alternatives to TETRA radio will not become available until the late 2020s and that, even after alternatives become available, TfL would need a number of years to migrate to the alternatives and mitigate the associated transitional risk. The GTS Contract contemplates some upgrades of the legacy data transmission networks as part of the pre-agreed upgrade works, as further detailed at paragraph Section VI below: however, such currently contemplated upgrade work is insufficient to mitigate these obsolescence risks. Therefore, to address the obsolescence of the legacy data transmission networks, TfL now wishes to carry out a renewal of the existing data transfer networks to deliver a consolidated multi-services network for the transmission of data between London underground sites (including stations, depots and control centres) (the MSN2 network). The renewed data transfer network will be constituted by a combination of existing, upgraded and refreshed network assets. This will require GTS to work with TfL, and with GTS' sub-contractors, to design, develop, build, migrate, commission and manage the Renewed Operating Network (RON) works to deliver the MSN2 network. By carrying out the RON works, TfL will be delivering on its established strategy of, wherever possible, adopting a multi-service approach, minimising the number of data networks it uses and ensuring that these data networks are designed and built so as to support multiple different use cases and have a much wider utility to TfL, both now and in future. The RON works are required to achieve this objective. Another important reason to carry out the RON works at this time is to ensure that upon expiry of the GTS Contract, LUL will have a more modern, functioning data network asset that is in-support. This will help TfL to re-procure the services to manage the associated assets after the expiry of the GTS Contract. TfL now wishes to (a) engage GTS to design, develop, build, migrate, commission and manage the RON work under the umbrella of the GTS Contract (Proposed RON Appointment) and (b) extend the term of the GTS Contract for 12 months beyond its current anticipated expiry on 21 November 2026 (with an option for further extensions of up to 2 years) to allow sufficient time for the delivery of the RON works (Proposed RON Extension) without first holding a new competitive bidding process. TfL wishes to implement the Proposed RON Appointment and the Proposed RON Extension as a single variation under the GTS Contract (collectively, the Proposed RON Variation). GTS has carried out a competitive procurement for all additional third-party equipment and support services required to deliver the RON works. GTS has reported to TfL on a transparent basis in relation to that procurement and GTS's proposed award of the contracts for the purchase of that equipment and support. Finally, TfL intends, and is already in the process of preparing, to re-procure the management of the Connect System competitively upon the expiry of the GTS Contract as varied by the Proposed RON Variation. TfL considers that implementation of the Proposed RON Variation, as described above, will enable it to hold a more attractive and more effective competition for the management of the Connect System after expiry of the GTS Contract.