London Cycle Hire Scheme

Description

Transport for London (TfL) is seeking to undertake a procurement of services comprised in the London Cycle Hire Scheme (the "Scheme"). Delivery of the LCHS consists of bicycle supply, management, repair, maintenance; docking station supply, installation, operation, management, repair and maintenance; revenue collection and payment; and various front and back-office IT services (including provision of the mobile app for the Scheme). The duration of the contract will be for an initial term of five (5) years with the option at TfL's sole discretion to extend for one or more periods up to a maximum of a further five (5) years. Lot 1: The London Cycle Hire Scheme (currently known as "Santander Cycles") was established in 2010 and covers 13 London boroughs with 815 docking stations, 21,500 docking points and 12,237 bikes. 500 e-bikes were introduced into the scheme in late 2022. Usage of the Scheme has grown steadily, with 11,827,013 bicycle hires in the financial year 2021/22. This procurement is for a contract to supply, operate (including redistribution) and maintain classic (mechanical) bicycles and e-bicycles and associated on-street docking stations. The procurement also includes the development, delivery and maintenance of all systems (including IT) necessary to operate the London Cycle Hire Scheme, customer-facing systems (including payment and the mobile app), and interfaces with TfL systems. Currently the delivery of the London Cycle Hire Scheme is split over multiple operators. This procurement will re-aggregate the requirements for the Scheme under a single contract with a single provider. A key objective of the procurement is an improvement in the customer offering across all customer interfaces, particularly via digital platforms, as well as the provision of an on-street asset (bicycle docking station) refresh/replacement programme. TfL is also seeking a solution that offers the flexibility to evolve as the market and technology develops, to expand the Scheme into wider London and incorporate market-driven innovations. Transport for London wishes to procure a single supplier to provide the following services for the Scheme under a bespoke services contract: Asset Provision, Operation and Maintenance The design, supply, installation, operation, maintenance and disposal of all existing and future scheme assets as required for the delivery of the Scheme, including (without limitation): - bicycles, both classic (mechanical) and electric, including all associated component parts and spares; - GPS technology on all new bikes introduced to the Scheme; - supporting infrastructure, including: • docking stations (including In Dock charging) • power infrastructure and installation for docking stations; • foundations for docking stations; • installation/construction of Scheme on-street infrastructure. The development of tools, procedures, processes and systems for strategic asset management. Day-to-Day Scheme Management The strategic real-time deployment (including use of additional hub locations) and redistribution of bicycles, including (without limitation): - preventative and reactive maintenance, of both bicycles and on street assets including use of scheduling; - bicycle tagging and tracking; - incident management; - retrieval of abandoned/found bicycles; - design, build and/or source, testing and commissioning of the next generation of bicycles; - cleaning of docking stations and bicycles; - performance monitoring and reporting. The management and maintenance of scheme assets and associated power and infrastructure. The provision of, and management of, operational premises in London to support the operation of the Scheme. Customer Interface The design, development, maintenance and delivery of all user interface software, including (without limitation): - mobile app; - website; - terminal user interfaces; - user payment systems; - customer accounts; - generation of promotional codes; - responsive customer reward system Systems The design, development, maintenance and delivery of all required front and back-office systems infrastructure and associated management activities for the delivery of the Scheme, including (without limitation): - revenue collection and payment systems; - gathering and reporting of management information; - the ability for back-end system management for authorised users; - effective operation and integration with all TfL and partner interfaces (as required); - console requirements as detailed in the tender documentation; - all required data management and processing, with the ability to integrate; - the transition from the existing systems. Details of the existing systems and the transition from current systems are further described in the procurement documents. Additional Requirements Additional services that may be required to be delivered by the successful supplier during the contract term include: • Increasing the number of assets used by the Scheme, such assets to be provided by the supplier. • Managing required changes in the numbers of different types of assets, such as different types of bicycle or docking stations. • Introducing new sites. • Expanding the geographical operating area of the Scheme. • Developing the Scheme to incorporate other projects, services and assets including (but not limited to) infrastructure, charging arrangements, assets, operation, maintenance and support. • Upgrades in technology. • Enabling "Hybrid Parking", that is, establishing bicycle parking and hiring outside of existing docking points. • Introducing new micromobility vehicle types to the scheme, e.g. electric scooters. • Connecting the service system to additional interfaces. • Adding safety features for bicycles and/or cyclists. • Implementing requirements resulting from a change of sponsor (e.g. change in livery, addition of sponsor accessories). • Operating similar, separate projects or initiatives as required by TfL. • Updating, enhancing and/or expanding the services, systems and/or IT infrastructure used in any of the service requirements and/or for any additional schemes, operations for similar projects or initiatives. • Implementing amendments to the services and the service systems to support new customer charging methods such as, but not limited to, time-based or demand-based customer charging mechanisms. • Reflecting general advances in technology in the Scheme infrastructure including in respect of Scheme assets and service system design. • Introduction of on street card readers that are compatible with TfL payment Gateway at any terminal. Additional information: The value stated in Section II.1.5 and Section II.2.6 represents the maximum estimated value of works, services and/or supplies anticipated across the ten (10) year period (should TfL choose to extend beyond the initial five (5) year period). The estimated total value range may be 400,000,000 to 500,000,000 GBP. TfL is conducting this procurement pursuant to the PCR 2015. TfL will be using its SAP Ariba portal to manage communication with suppliers who express interest in this procurement in response to this contract notice. Expected Process TfL will use the Standard Selection Questionnaire (SSQ), which can be accessed via the SAP Ariba portal. Following assessment of SSQ submissions, TfL intends to invite a maximum of five (5) candidate suppliers to participate in the tender process and submit initial tenders, based on the highest scoring SSQ submissions which achieve the minimum quality threshold applicable to the SSQ as set out in the procurement documents. However, in the event of a tie between the 5th placed candidate and the 6th placed candidate, both candidates will be invited to participate and submit initial tenders. After the submission of initial tenders, TfL intends to invite a maximum of three (3) tenderers whose tenders achieve the highest scores to participate in the dialogue phase and to submit final tenders following close of dialogue provided they achieve the minimum quality thresholds applicable to the ITPD, as set out in the procurement documents. TfL, at its sole discretion, may invite the fourth placed tenderer to participate in the dialogue phase and submit a final tender only in the event that the fourth placed tenderer's combined initial tender score is within one scoring mark of the third placed tenderer. Further information on the expected tender process is set out in the procurement documentation. Tenders must remain capable of acceptance for a period of twelve (12) months from the submission of tenders. While TfL is seeking to award the contract to a single contractor to undertake all the works detailed in the procurement documents, interested parties are encouraged to engage and utilise SMEs within their supply chain.