Bombardier Transportation (BT) are internationally renowned as experts in building and maintaining trains. In 2010, the UK Government made a change in policy by deciding that the manufacturer of a train should also be responsible for its maintenance during its life-span of 30 years.
Consequently, the Invitation to Negotiate issued in 2012, required BT to finance the whole procurement and 30 year term and also had to develop depot (service and maintenance) facilities along with the trains. The project would include every aspect from site layout, to design and build and on-going asset management of the depot. Although only accounting for a small percentage of the initial Capex costs, the 30-year term implications of poor decision-making at the start of the project were considerable. Equally, for strategic reasons the tender was considered a ‘must-win’ by Bombardier Transportation Ltd.
In November 2012, TenBroekeCo were appointed to lead the Depot part of the project and oversee all the finance negotiations through to the full set up and taking possession of the site in April 2014. The company’s role was then finalised as Technical Adviser on all aspects of the site including any changes required as the project progresses.
Results & Benefits
Balancing the need to win whilst protecting BT’s future cost exposure, we undertook a strategic risk assessment and proposed a fixed price contract. This has brought a high degree of certainty to future financial planning through the adoption of a ‘right first time’ set of controls for fulfilment of the plan without exceptions. It also provides protection for the company over the 30-year life of the project.