Supporting Transport for Wales in its innovative approach to rail service

Steer is currently supporting Transport for Wales (TfW) in the procurement of an Operator and Development Partner (ODP) to manage the Wales and Borders and South Wales Metro rail services under a 15-year contract.

The procurement has involved a considerable level of complexity: part of the rail network around Cardiff is to transfer from Network Rail to TfW and the ODP will be responsible developing and maintaining this rail infrastructure as well as operating passenger services throughout Wales. Furthermore, the procurement is being managed through a competitive dialogue process.

Our role

Steer supported the client in multiple ways, including advising on the transfer of powers from the Department for Transport and assets from Network Rail, developing the contract requirements through detailed option analysis (e.g. to optimise system capacity), and playing a critical role in the competitive dialogue and evaluation process. Critical to the competitive dialogue process has been maintaining consistency across all bidders and a rigorous and transparent record keeping of all meetings and communications with the bidders.

Success and outcomes

On 4 June 2018, TfW announced the award of the ODP contract worth £5bn to KeolisAmey. The key outcomes of the procurement will include a new and expanded rolling stock fleet, faster and more frequent trains, a 29% increase to almost 1,300 daily services, extensive station improvements, construction of 4 new stations and enhanced passenger information and communications connectivity.

Our team has helped shape this outcome through developing the specification and supporting TfW through the extensive dialogue and tender evaluation phases. As the first major devolvement of rail services from central government to a regional authority and the first application of competitive dialogue in rail services procurement within the UK, this project sets a new benchmark for the industry.