5.4.2.24 Only the following rolling stock may be proposed by Bidders for inclusion within the TPE Train Fleet:
i. The class 185 and class 350 multiple units that are currently comprised within the TPE Train Fleet (subject to the requirement to sub-lease Class 185 units to the Northern Franchise for an initial period until December 2017);
ii. Diesel multiple units that are not Class 14x, Class 15x or Class 17x and that are currently leased by a relevant operator other than the current TPE and Northern franchisees, but that will be demonstrably surplus to the requirements of that operator, either because new rolling stock is being procured to replace it, or because it is diesel stock that will be displaced by committed electrification schemes, or because other rolling stock is due to be cascaded in to replace it;
iii. Up to four 2-car diesel multiple units of similar characteristics to TPE’s Class 170 units must be assumed for bid purposes to be leased until December 2017, as a proxy for the arrangements that the Department envisages will be put in place with the incumbent operator to mitigate the transfer of these units to the Chiltern Franchise with effect from February 2016;
iv. Vehicles of Class 442 following their release from the TSGN franchise; and
v. Any new-build rolling stock that the Bidder commits to procure.
In addition, Bidders may include existing locomotives and/or coaching stock within their Bids (apart from those that are to be leased to the Northern franchisee during the term of the current Northern franchise and for the initial part of the next Northern franchise), but only if either Condition 1 or Condition 2 or Condition 3 below is met.
Condition 1 is that the Bidder sets out a fall-back strategy to lease alternative rolling stock which will deliver the same or better quality and capacity as their preferred rolling stock, to the same timescales, and which they will implement at no additional cost to the Department.
Condition 2 is that the Department has indicated in a response to a BCQ that the Bidder may include such rolling stock, and that the Bidder complies with any conditions outlined in that response. Such a BCQ must be raised by the Bidder no later than 5.00pm on Friday 13 March 2015, and must set out the following information:
i. The painted numbers of the locomotives and/or carriages in question, or identification of the pool of locomotives and/or carriages from which they would be drawn;
ii. The identity of their owner or owners, and any current lessee (and if currently on lease, the Bidder’s reasons for considering that they will be surplus to the requirements of the current lessee);
iii. The period for which the Bidder would wish to lease them;
iv. Details of any modifications that they would require;
v. The route or routes on which the Bidder is proposing to operate them;
vi. The passenger benefits that the Bidder considers it would be able to deliver by leasing and operating that rolling stock;
vii. What alternative options the Bidder considers would be available if the rolling stock in question were not available to them; and
viii. Any other information that the Bidder considers may be relevant to the Department’s consideration.
If no Northern bidder has proposed to lease the same rolling stock during the same period as the Bidder, then the Department will inform the Bidder that they may assume that no Northern bidder will be permitted to do so. Such a determination would serve only to confirm that the Bidder may assume that the rolling stock will not be required by any Northern bidder, and is not to be taken as any endorsement by the Department that it considers the rolling stock to meet the requirements set out in the ITT.
If one or more Northern bidders has proposed to lease the same rolling stock during the same period as the Bidder, then the Department will:
i. Either inform the Bidder who raised the BCQ that they may assume that no Northern bidder will be permitted to include the rolling stock within their bid, and accordingly the Bidder who raised the BCQ may include that rolling stock within their Bid without the requirement to outline a fall-back strategy of the kind envisaged under Condition 1. Such a determination would serve only to confirm that the Bidder may assume that the rolling stock will not be required by any Northern bidder, and is not to be taken as any endorsement by the Department that it considers the rolling stock to meet the requirements set out in the ITT; or
ii. Inform the Bidder who raised the BCQ that they may not rely on the availability of the rolling stock in question. In this eventuality the Bidder may still propose to include the rolling stock within their Bid, but only if Condition 1 above or Condition 3 below is met.
In reaching a determination, the Department may at its sole discretion consult such persons as it considers appropriate and/or request the Bidder to provide further information in order to inform its determination. The Department’s determination will take into account the following factors:
i. The Department’s view of which franchise the rolling stock might be more suitable for, taking account the needs of passengers on the services in question;
ii. The number of bidders on each competition who have expressed interest in the rolling stock;
iii. The likely availability of alternative options for bidders on each competition to secure rolling stock to deliver the intended passenger benefits; and iv. The views of any persons whom the Department has consulted.
Condition 3 is that the Bidder demonstrates to the Department’s satisfaction that it has received an unconditional offer for the rolling stock in question (i.e. the owner of the rolling stock has given a clear and unequivocal written undertaking that it will not offer the rolling stock to any Northern bidder or that, if it does, the offer to the Bidder will take priority over any offer made to any Northern bidder).
