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Services - 137452-2017

12/04/2017    S72

United Kingdom-Birmingham: Real estate services

2017/S 072-137452

Contract notice


Legal Basis:
Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses
Official name: Secretary of State for Transport (SoS) and Network Rail Infrastructure Limited (NR)
Postal address: High Speed Two (HS2) Ltd, Two Snowhill, Queensway
Town: Birmingham
Postal code: B4 6GA
Country: United Kingdom
Internet address(es):
Main address:
Address of the buyer profile:
The procurement documents are available for unrestricted and full direct access, free of charge, at:
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be submitted electronically via:
Tenders or requests to participate must be submitted to the abovementioned address
Electronic communication requires the use of tools and devices that are not generally available. Unrestricted and full direct access to these tools and devices is possible, free of charge, at:
I.4)Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local subdivisions
I.5)Main activity
Other activity: transport

Section II: Object

II.1)Scope of the procurement

Euston Station Over Site Development (OSD) — Master Development Partner (MDP).

II.1.2)Main CPV code
70000000 Real estate services
II.1.3)Type of contract
II.1.4)Short description:

HS2 Ltd, on behalf of the Contracting Authorities (SoS and NR) is procuring an MDP to lead the regeneration of the Euston Estate, a 22 hectare site consisting of SoS and NR owned land above and around Euston Station.

The MDP will (as set out in Procurement Documents):

— develop and promote a Masterplan vision for the Euston Estate, in partnership with stakeholders;

— ensure that development is integrated and value is optimised without compromise to HS2/NR station operation/delivery;

— promote and secure planning permissions;

— have the option to fund and deliver the construction of buildings and associated amenities; and

— establish the management arrangements for the completed Euston Estate (excluding railway property).

Applicants should note that the NR station redevelopment is in early planning phases and is not yet funded.

For clarity, this opportunity does not involve the design or construction of any railway infrastructure or stations.

Please see II.2.4 and VI.3 for more information.

II.1.5)Estimated total value
Value excluding VAT: 4 000 000 000.00 GBP
II.1.6)Information about lots
This contract is divided into lots: no
II.2.2)Additional CPV code(s)
45213350 Construction work for buildings relating to various means of transport
45211350 Multi-functional buildings construction work
71400000 Urban planning and landscape architectural services
45213150 Office block construction work
70120000 Buying and selling of real estate
71310000 Consultative engineering and construction services
71240000 Architectural, engineering and planning services
70111000 Development of residential real estate
71500000 Construction-related services
71200000 Architectural and related services
45213300 Buildings associated with transport
71221000 Architectural services for buildings
71410000 Urban planning services
45211360 Urban development construction work
45211340 Multi-dwelling buildings construction work
71420000 Landscape architectural services
45211000 Construction work for multi-dwelling buildings and individual houses
45211341 Flats construction work
45213100 Construction work for commercial buildings
45213320 Construction work for buildings relating to railway transport
45213000 Construction work for commercial buildings, warehouses and industrial buildings, buildings relating to transport
70123000 Sale of real estate
71210000 Advisory architectural services
70110000 Development services of real estate
45000000 Construction work
45200000 Works for complete or part construction and civil engineering work
45215214 Residential homes construction work
70112000 Development of non-residential real estate
71222000 Architectural services for outdoor areas
71300000 Engineering services
45210000 Building construction work
71220000 Architectural design services
II.2.3)Place of performance
Main site or place of performance:

Above and around Euston Station in London.

II.2.4)Description of the procurement:

The Secretary of State for Transport (SoS) is delivering a new terminus station for High Speed 2 at Euston Station. Network Rail (NR) are owners of the adjacent ‘Conventional Station’ and surrounding lands. SoS and NR will bring together their land holdings at Euston to create an estate capable of accommodating significant commercial and residential development and are preparing a Masterplan to quantify the development potential of the Euston Estate. SoS and NR (together, the Contracting Authorities) will, by the date of Contract Award, have entered into a Collaboration Agreement to effectively pool their respective ownerships in the public interest and also to streamline decision making between the Contracting Authorities.

The Overarching Objectives of the Contracting Authorities are to: create significant economic and social benefits for the local, regional and national economy; and maximise financial returns from a development of the Euston Estate.

The Contracting Authorities are jointly procuring a MDP to support the delivery of the Overarching Objectives. The Contracting Authorities will enter into a Contract with the MDP (the MDP Development Agreement) to govern the terms of the development of the Euston Estate.

The Euston Development Board will ensure a streamlined process for interfacing between the Contracting Authorities (as a single decision making entity) and the MDP.

The parties shall at all times act collaboratively in the pursuit of the Overarching Objectives.

The MDP shall have the right to acquire a leasehold interest in land (between 150 and 300 years over the Phase, with a ground rent payable to the Contracting Authorities) and undertake development activity on it. The length of lease will be determined by the use to which the land is put and its location above operational property or not. This will be subject to the satisfaction of specified draw down pre-conditions including the completion by the Contracting Authorities of specified OSD Enabling Works. The Enabling Works together with other land already held by the Contracting Authorities will comprise the Euston Estate. The OSD Enabling Works will be paid for by Government and delivered by HS2 Ltd as part of the Station design and construction contracts. Delivery of the OSD Enabling Works are not part of this procurement opportunity.

The terms of the commercial deal with the MDP will be set out in the Procurement Documents and will be developed further during competitive dialogue to secure the delivery of the Overarching Objectives and other key deliverables. The MDP Development Agreement together with an agreed form of the Business Plan will embody these deliverables and will together be the key documents for judging the performance of the MDP. They will contain performance criteria against which the MDP will be measured across the life of the scheme.

The commercial deal with the MDP is proposed to be as follows:

Stage 1 — Masterplanning and Stations Interface,

Stage 2 — Outline Planning Application,

Stage 3 — Plot Progress,

Stage 4 — Estate Management.

The details of the above stages, and the scope of the opportunity within each stage is detailed in the Procurement Documents.

It is envisaged that the Contract will extend for a period of 25 years unless terminated earlier in specified circumstances. It may be extended by agreement between the parties (up to a total duration of 40 years).

Interested parties should note that whilst a vision and development is sought for the whole Euston Estate, detailed work has so far been confined to areas above and around the HS2 Station. Further work will be required to define the scope of the future development opportunity on the NR owned land above and around the existing Conventional Station.

II.2.5)Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6)Estimated value
Value excluding VAT: 4 000 000 000.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 480
This contract is subject to renewal: yes
Description of renewals:

It is envisaged that the Contract will extend for a period of 25 years unless terminated earlier in specified circumstances. It may be extended by agreement between the parties (up to a total duration of 40 years).

II.2.9)Information about the limits on the number of candidates to be invited
Envisaged minimum number: 6
Maximum number: 7
Objective criteria for choosing the limited number of candidates:

Applicants are referred to the Pre-Qualification Pack (PQP) and the Pre-Qualification Questionnaire (PQQ) provided in Appendix C for information on the objective criteria for choosing Applicants to be invited to participate in dialogue.

It is envisaged that the top 6 (six) scoring Applicants will be invited to participate in dialogue, commencing with an outline dialogue stage. HS2 Ltd, in its role as Agent on behalf of the Contracting Authorities, reserves the right in its absolute discretion to invite fewer than 6 (six) Applicants or to invite 7 (seven) Applicants to participate in dialogue, on the basis set out in PQP Section 4.3.

II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: yes
Description of options:

(I) Option to drawdown development plots and develop OSD; drawdown process is set-out in Procurement Documents, to be developed in dialogue.

(II) Option to develop above/around the NR Conventional Station, pending funding for station redevelopment.

(III) Option to extend contract for total duration of 40 years, if agreed by all parties.

II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information

The estimated Gross Development Value range is 2 000 000 000 GBP — 4 000 000 000 GBP depending on the options that may be exercised (See II.2.11) and other factors including and not limited to: location/number of plots; market conditions; planning requirements; and/or funding for the Conventional Station redevelopment. If none of the development options are exercised see VI.3 for further explanation.

Section III: Legal, economic, financial and technical information

III.1)Conditions for participation
III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
List and brief description of conditions:

HS2 Ltd reserves the right to require deposits, guarantees, bonds and/or other forms of appropriate security including parent company guarantees. Applicants are referred to the PQP and PQQ for further information about conditions for participation.

III.1.2)Economic and financial standing
Selection criteria as stated in the procurement documents
III.1.3)Technical and professional ability
Selection criteria as stated in the procurement documents

Section IV: Procedure

IV.1.1)Type of procedure
Competitive dialogue
IV.1.3)Information about a framework agreement or a dynamic purchasing system
IV.1.4)Information about reduction of the number of solutions or tenders during negotiation or dialogue
Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated
IV.1.8)Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: yes
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure
Notice number in the OJ S: 2017/S 025-043906
IV.2.2)Time limit for receipt of tenders or requests to participate
Date: 17/05/2017
Local time: 12:00
IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates
Date: 03/07/2017
IV.2.4)Languages in which tenders or requests to participate may be submitted:
IV.2.6)Minimum time frame during which the tenderer must maintain the tender
Duration in months: 6 (from the date stated for receipt of tender)

Section VI: Complementary information

VI.1)Information about recurrence
This is a recurrent procurement: no
VI.2)Information about electronic workflows
Electronic invoicing will be accepted
Electronic payment will be used
VI.3)Additional information:

1) The GDV range estimated in II.2.14 is based upon the options and other prevailing conditions as set out in that section. Should the development options not be realised the MDP will only be eligible for fees/costs incurred as per the agreed cost sharing mechanism as set out in any Contract awarded.

2) It is estimated that the cost of the services which the MDP will be required to provide during Stages 1 and 2 could be in the region of 20 000 000 GBP — 40 000 000 GBP. The Contracting Authorities may contribute to a proportion of these MDP costs and, if so, the mechanism for sharing these costs will be specified by the Contracting Authorities.


1) Terms with an initial capital letter used in this Contract Notice, the PQP and PQQ have the meanings given in PQP Appendix B.

2) To express interest in the Contract, Applicants must complete the PQQ on the HS2 eSourcing portal strictly in accordance with the submission deadline for PQ Applications stated in the PQP (PQ Application Deadline).

3) All Applicants are required to express an interest by registering on the HS2 eSourcing portal ( Registering is only required once.

4) Please note the deadline for completion, this is a precise time and the eSourcing portal will reject the PQQ if it is submitted after this time.

5) For further assistance contact the BravoSolution helpdesk which is available Monday to Friday (8:00-18:00) GMT on:

Email — or Telephone +44 8003684850.

6) A response to this Contract Notice does not guarantee that an Applicant will be invited to tender. The award process may be terminated or suspended at any time without cost or liability to HS2 Ltd, SoS or NR or its agents and consultants. HS2 Ltd, SoS and NR does not bind itself to enter into any Contract(s) arising out of the procedures envisaged by this Contract Notice. No contractual rights express or implied arise out of this Contract Notice or the procedures envisaged by it. Any Contract(s) let by HS2 Ltd, on behalf of the Contracting Authorities, may provide that the scope or duration of the Contract may be extended at the discretion of the Contracting Authorities. HS2 Ltd, on behalf of the Contracting Authorities, reserves the right to vary its requirements and the procedure relating to the conduct of the award process. HS2 Ltd, on behalf of the Contracting Authorities, reserves the right to disqualify any Applicants on terms set out in the PQP.

7) Applicants submitting a PQ Application for this Procurement are advised that they will also be at liberty to participate in future procurements for the HS2 Euston station construction contract as and when it is advertised, and on the terms as set out in those Procurement Documents, in due course. For the avoidance of doubt, entities/economic operators that choose not to participate in this procurement will not be precluded from future procurements for the HS2 Euston station.

8) Applicants and Tenderers shall be solely responsible for and liable for all costs associated with and arising out of or in connection with responding to this Contract Notice and any PQQ and with submitting any tender, howsoever incurred.

9) HS2 Ltd and the Contracting Authorities will actively promote sustainable procurement throughout its supply chain and welcomes PQ Applications from economic operators committed to the principles of reducing, reusing and recycling resources and to the practices of buying responsibly.

10) HS2 Ltd and the Contracting Authorities reserves the right to disqualify any Applicant/ tenderer who provides information which later prove to be untrue or incorrect, does not supply the information required by this notice or as otherwise directed by the HS2 Ltd, on behalf of the Contracting Authorities, during the procurement process.

11) Any resulting Contract(s) will be considered contracts made in England according to English law.

VI.4)Procedures for review
VI.4.1)Review body
Official name: High Court
Postal address: Royal Courts of Justice, Strand
Town: London
Postal code: WC2A 2LL
Country: United Kingdom
Telephone: +44 20794760000
VI.4.3)Review procedure
Precise information on deadline(s) for review procedures:

Part 3 of the Public Contracts Regulations 2015 (PCR) addresses the remedies available to economic operators. The Authority will incorporate a minimum of ten (10) calendar day's standstill period in accordance with Regulation 87 of PCR. In the first instance, potentially aggrieved economic operators should notify the Authority of an appeal.

VI.5)Date of dispatch of this notice: