National Highways has announced it intends to sign its £775m National Roads Telecommunications Service (NRTS) 3 contract with Telent Technology Services through a direct award, following the withdrawal of a competing tender.
Initially tendered as a competitive, flexible procedure, the contract was changed after 24 October, when one of the two tenders was withdrawn by the competing supplier.
The earliest date the contract will be signed is 15 September 2027.
Under the Procurement Act 2023, a public sector client is allowed to switch to a direct award in certain circumstances, however, Whitehall guidance generally suggests that five suppliers are involved in the tender for a straightforward award with no dialogue or negotiation, and three are invited 'where the procedure is more complex'.
As the contractor assigned to the NRTS 2 contract, which expires in 2028, Telent is set to continue its work operating and maintaining the trunk road network, as well as delivering connectivity services to schemes, on behalf of the national road authority.
As part of the new contract, the company will be expected to develop a ‘sustainable, affordable and cost-effective' NRTS equipment renewal strategy that focusses on ensuring the current services are adequately supported. Along with this, it will also have to renew some legacy equipment and continue to support the existing connectivity to legacy roadside devices, including the development of replacement devices.
The contract is expected to run for a maximum of nine and a half years; initial dates will be from 16 September 2027 to 15 March 2035, but the deal allows for a possible extension until 15 March 2037.
National Highways said it reserves the right to abandon or terminate the direct award process at any stage prior to contract award. In the event National Highways does not proceed to award, it will publish a Procurement Termination Notice pursuant to section 55 Procurement Act 2023.
However, in the event that National Highways successfully completes this direct award process and proceeds to make an award to Telent, it will publish a Contract Award Notice under section 50 of the Procurement Act 2023.
Full details of the contract can be found here.
