TfL begins procurement on £1.4bn LoHAC 2

25/06/2019
Dominic Browne

Transport for London (TfL) has launched a £1.42bn procurement for its second generation London Highways Alliance Contracts (LoHAC) covering highways maintenance and construction works.

The latest LoHAC divides the capital into three rather than the previous four area-based contracts, with the total amount advertised falling from £2bn in 2012 to £1.4bn for the four years from April 2021.

The frameworks can be extended at TfL's discretion and winning bidders will be able to carry out works for TfL as well as being 'called off' the framework by local boroughs.

”Local

The news of the release of the second generation of LoHAC will attract interest as well as caution from the sector, with the first generation having fallen into difficulties.

In 2018, Transport Network's sister site Highways revealed through a Freedom of Information request that only half of the forecast spending from LoHAC had materialised as TfL faced extensive cuts to maintenance budgets and London boroughs shunned the framework and procured contracts individually.

The contracts works notice published on Tuesday (25 June), states: 'TfL is establishing 3 single supplier frameworks for highway maintenance and capital renewals and enhancements and associated works and services... across London for use by TfL and other Contracting Authorities identified.'

These other authorities cover an extensive list of London boroughs.

'Each framework will represent different geographic areas as its ‘core area’ across London. The intended start date of the frameworks is October 2020 to allow mobilisation in order to commence service delivery in April 2021.

'Bidders should note that estimated values in this Notice do not include works that may be instructed by private developers. Economic operators (EO) will be permitted to submit tenders for 1 or more lots, but if 1 EO is successful in more 1 lot, the award of the 3 frameworks will be based on the most economically advantageous solution across the 3 lots as detailed in the procurement documents.'

Lot 1 - Central Area, value £551m

This framework relates to the delivery of core services and any task orders instructed and has a core area covering the Central Area of London covering:

  • London Boroughs of Camden,
  • Hackney,
  • Hammersmith and Fulham,
  • Islington,
  • Kensington and Chelsea,
  • Lambeth,
  • Southwark,
  • Tower Hamlets,
  • Wandsworth,
  • Westminster and the City of London
  • and such contiguous areas in London, which have assets which TfL is responsible for as a ‘Highway Authority’ pursuant to relevant highways legislation

Lot 2 - Northern Area, value £501m

This framework relates to the delivery of core services and any task orders instructed and has a core area covering the North Area of London covering:

  • Barking and Dagenham,
  • Barnet,
  • Brent,
  • Ealing,
  • Enfield,
  • Haringey,
  • Harrow,
  • Havering,
  • Hillingdon,
  • Hounslow,
  • Newham,
  • Redbridge
  • Waltham Forest
  • and such contiguous areas in London, which have assets which TfL is responsible for as a ‘Highway Authority’ pursuant to relevant highways legislation

Lots 1 and/or 2 also includes core services and the ability to instruct Task Orders on other TfL owned assets currently being delivered under other contracts, following their expiry or termination. This includes the A13 road currently being maintained under Design, Build, Finance and Operate (DBFO) arrangements due to expire in 2030.

Lot 3 - South Area, value £371m

This framework relates to the delivery of core services and any task orders instructed covering the South Area of London, including

  • Bexley,
  • Bromley,
  • Croydon,
  • Greenwich,
  • Kingston upon Thames,
  • Lewisham,
  • Merton,
  • Richmond upon Thames
  • Sutton
  • and such contiguous areas in London, which have assets which TfL is responsible for as a ‘Highway Authority’ pursuant to relevant highways legislation.
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