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London Underground saves more than £100m through streamlined maintenance contracts

2 March, 2010

LU’s Maintenance section has let four new main service contracts following the restructure and rationalisation of nearly 100 separate contracts.

The directorate, which carries out all routine maintenance across the Bakerloo, Central, Victoria, Waterloo & City, Circle, Hammersmith & City, District and Metropolitan lines, has let the contracts after a full-scale review of procurement from third-party suppliers.
 
Previous procurement of goods and services had meant that 56 suppliers were engaged by the Maintenance directorate, with 99 individual contracts.
 
The new Total Purchased Services (TPS) contracts will enable greater economies of scale to be achieved, along with standardisation of service levels and consistent contract management. Over the course of the contracts – an initial period of five years with the option for LU to extend for an additional two years – it is estimated that TPS will save LU more than £100m.
 
Covering track, fleet, stations and depots, the contracts are for the provision of planned maintenance and repair services, building services, track plant hire and track labour supply 24 hours a day every day of the year.
 
In addition, four multi-provider framework agreements for additional remedial and ad-hoc works have been entered into.
 
Phil Hufton, London Underground’s Chief Maintenance Officer, said: “By bundling our maintenance requirements into four service packages and awarding each lot to a single supplier through a tendering process, we’ve been able to get more bang for our buck and achieve significant savings across the contracts.
 
“By streamlining our contracts in this way, we can ensure that we continue to put the much-needed investment into the Tube while delivering the best possible value for London’s fare and tax payers.”

telent, in a consortium with MJ Quinn, has been selected to deliver two of the service packages for the maintenance of electrical, mechanical, fire, and communications equipment. We will provide LUN with an integrated service as a single delivery partner, branded as tQ.

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