1 introduction

1 Introduction

1.1 This Prequalification Document describes the A249 Stockbury (M2) to Sheerness Design, Build, Finance and Operate (DBFO) Project (the "Project") as currently envisaged and sets down the requirements and information needed for prequalification.

1.2 The Secretary of State for Transport, Local Government and the Regions is the Highway Authority and is ultimately responsible for the management, maintenance and improvement of the Trunk Road network. The Highways Agency (the "Agency") is an Executive Agency of the Department of Transport, Local Government and the Regions. It has executive responsibility for the delivery of the Secretary of State's highways functions including DBFO road procurement.

1.3 The Agency retains the following central advisers for DBFO:

AreaAdviser
Financial:PricewaterhouseCoopers
Legal:Denton Wilde Sapte
Technical:Halcrow Group Ltd

The Design Agent for this Project is Mott MacDonald.

1.4 A Contract Notice has been published by the Agency in the Official Journal of the European Communities inviting requests from interested parties ("Candidates") to be selected to negotiate with a view to entering into a DBFO contract in respect of the Project. This Prequalification Document provides additional information and describes the procedure ("prequalification") for selection of Candidates with whom the Agency intends to negotiate. It should be read in conjunction with the Public Works Contract (Negotiated Procedure) Notice published in the Official Journal.

1.5 Requests to prequalify must be received by midday on 17 May 2002. No requests will be accepted after this time.

1.6 The DBFO Contract will be awarded under the negotiated procedure applicable to Public Works Contracts under the Public Works Contract Regulations 1991 (SI 1991/2680) (the "Regulations") which implement the EC Works Directive (93/37/EEC). If there is a sufficient number of suitable Candidates, the Agency intends to invite up to four Candidates (the "Tenderers") to negotiate.

1.7 The payment mechanism is dealt with in Section 4 and Appendix B.

1.8 In order to initiate the negotiations, the Agency intends to send to Tenderers a set of tender invitation documents (the "Tender Invitation Documents") including a draft of the DBFO Contract. The draft DBFO Contract has been developed and refined in light of the negotiations on the earlier DBFO contracts. The Agency therefore expects negotiations to move rapidly and to focus on the project specific issues.

1.9 The Tender Invitation Documents will set out an opening position for negotiations on the definition of obligations and the allocation of risk. In order to provide a benchmark for negotiations, Tenderers will be required to submit a tender on that basis (the "Standard Bid"). The Agency will also invite variant bids, subject to compliance with specified core requirements (a "Variant Bid").

1.10 Following an analysis of the various proposals, the Agency will negotiate as necessary to refine and finalise the definition of obligations, the allocation of risk and the attendant payments to be included in the DBFO Contract. At the conclusion of the negotiations, the Agency will select the successful Tenderer (the "DBFO Co") on the basis of the most economically advantageous offer. Further details of the procedure are given in Section 6.

1.11 The information in this document is preliminary only and will be superseded by the Tender Invitation Documents. The information provided, together with that in the Appendices, is offered in good faith for the guidance of Candidates, but no warranty or representation is given as to the accuracy or completeness of any of it. The Department of Transport, Local Government and the Regions, the Agency and their advisers shall not be under any liability for any error, mis-statement or omission. None of the information shall constitute a contract or part of a contract. The Agency reserves the right not to follow up this invitation in any way. In the event that the Agency decides not to proceed to invite tenders, Candidates will not be reimbursed any costs.

1.12 Requests for clarification should be directed to the Agency as detailed at Section 9.


1 introduction

3 the principles of the dbfo contract

A249 Stockbury (M2) to Sheerness DBFO

2 The DBFO Project

2.1 Candidates are invited to make a prequalification submission in respect of the Project, which includes about 17km of Trunk Road and a Firm Scheme. Details of the Project are contained in Appendix A.

2.2 The A249 Iwade Bypass to Queenborough Improvement within the Project was subject to the Strategic Roads Review in 1997, upon which the Department of Environment, Transport and the Regions' "A New Deal for Trunk Roads in England" reported. The five criteria of assessment were environmental impact, safety, economy, accessibility and integration, and this scheme was identified in the Targeted Programme of Improvements (TPI) as delivering clear benefits against these criteria.

2.3 Policy Initiatives

2.3.1 Tenderers shall familiarise themselves with the documents referenced in Appendix C.

2.4 General

2.4.1 Specific details of the new scheme within the Project, including key features and primary objectives, will be set out in the Tender Invitation Documents together with details of the extent of the related existing roads which the DBFO Co will manage and maintain. These details will be supplemented by information deposited in a data room, which will be made available on CD-ROM or an extranet web site.

2.4.2 The DBFO Co shall prepare rolling 5 Year Management Plans which set targets for improving performance in the management and operation of the Project Road and in the level of service provided to users. It should also take into account any subsequent schemes. These plans shall reflect contemporary policy and objectives in respect of the Trunk Road network and be in accordance with contemporary good industry practice.

2.4.3 The DBFO Co shall be required to include proposals for Sustainable Development in its 5-Year Management Plan, as follows:

2.4.4 The Agency wishes to encourage innovation by the DBFO Co in the formulation of its proposals for design and construction. The DBFO Co will be encouraged, over the life of the DBFO Contract, to submit proposals for cost-effective schemes, which offer an increased level of service to the public and assist in the achievement of policy objectives. Such proposals are expected to be wide-ranging. These may, for example, offer improvements in noise pollution levels or promote integration between different modes of transport.

2.5 Design Aspects

2.5.1 Where there is an existing design for a new section of road prepared by agents for the Agency, this will be provided to Tenderers. The Agency's standards and third party requirements, existing at the time the design was prepared, have been used in preparing any such existing design. Geological information used in design development so far has been collated from site investigations and Tenderers will be given access to all such available information.

2.5.2 The design adopted for the DBFO Contract will be the responsibility of the DBFO Co. The DBFO Co will be responsible for developing this design in accordance with current Agency standards or their equivalent. The DBFO Co will be responsible for carrying out the required third party consultations and developing the design to comply with their reasonable requirements.

2.6 Safety

2.6.1 The Agency has published its strategic plan for safety, "Making the Network Safer". This is to contribute to the Government's target of reducing casualties on the road network. The DBFO Co will be responsible for developing and promoting ways of reducing accidents and improving safety for all road users within the Project.

2.7 Environmental Aspects

2.7.1 The Agency has developed its own Environmental Plan 'Towards a Balance with Nature', within the framework of the Government's Integrated Transport Policy as set out in the White Paper "A New Deal for Transport: Better for Everyone". The Strategic Aim of the plan is to contribute to Sustainable Development by maintaining, operating and improving the Trunk Road network in support of the Government's integrated transport and land use policies. The specific key environmental objective is to minimise the impact of the Trunk Road network on both the natural and built environments.

2.7.2 The DBFO Co will be required to develop and implement management, maintenance and improvement plans that contribute to the Agency's Environmental Plan objectives.

2.7.3 Extensive environmental appraisal has been undertaken by the Agency and incorporated in the Environmental Statement submitted to Public Inquiry. The scheme has been authorised in the light of this Statement.

2.7.4 The DBFO Co will have to ensure that its proposals for the environmental aspects of the design and its implementation have been reviewed and dealt with appropriately thereby discharging both itself and the Agency of all legal requirements concerning these issues.

2.8 Liaison with Third Parties

2.8.1 The Agency considers the manner in which the DBFO Co deals with affected parties and the travelling public to be of key importance. The DBFO Co will be required to liaise with numerous third parties that may be affected by the construction of the new road and its offsite facilities and by the operation of the whole Project.

2.8.2 The DBFO Co shall liaise with the operators of the National Road Telecommunication Services Project, responsible for the operation, maintenance, modernising and extending of the motorway and Trunk Road telecommunications network in England. The DBFO Co shall also liaise with Traffic Information Services Ltd, the company awarded the contract for the National Traffic Control Centre Project, to deliver accurate and relevant traffic information services for road users and traffic operators.

2.8.3 The DBFO Co will need to work with the police and Relevant Third Parties to ensure that traffic management schemes incorporate effective measures to reduce associated traffic delay, traffic congestion and improve road safety.

2.8.4 During the Tender Period, the Tenderers will be required to meet all costs associated with meeting with, and obtaining information from, third parties. Following Contract Award, the DBFO Co will be responsible for further liaison with such parties throughout the life of the DBFO Contract and all associated costs.

2.9 Statutory Matters

2.9.1 An Order under Section 1(5) of the Local Authorities (Goods and Services) Act 1970, the Local Authorities (Goods and Services) (Public Bodies) (Trunk Roads) Order 1996 - SI 1996 No 342, classifies DBFO contractors as public bodies capable of employing a local highway authority, provided that the proposed sub-contract is competitively awarded and has a duration not exceeding five years.

2.9.2 The Draft Agreement has been prepared on the basis that the DBFO Co will be authorised pursuant to the Contracting Out (Highway Functions) Order 1995 to exercise certain of the functions of the Secretary of State which are set out in that Order.

2.9.3 The current maintenance arrangements for the existing road will be specified in the Tender Invitation Documents. These arrangements will be terminated when the DBFO Co becomes responsible for the operation and maintenance of the Project Road. It is for Tenderers to assess what, if any, consequences this may have under the Transfer of Undertakings (Protection of Employment) Regulations 1981. The DBFO Co will be entirely responsible for bearing any costs, expense or liability which may arise as a result of the application of these Regulations.

2.9.4 SI 1996 No 342 has been amended by SI 1997 No 849 which came into force on 8 April 1997. The effect for future DBFO contracts is the widening of the definition of DBFO contractors, allowing a local highway authority to sub-contract with a DBFO contractor's own sub-contractor.

2.9.5 SI 1997 No 850, which also came into force on 8 April 1997, allows similar sub-contracting arrangements for Litter Authority Duties.


3 the principles of the dbfo contract

3 the principles of the dbfo contract

3 The Principles of the DBFO Contract

3.1 The Private Finance Initiative ("PFI") was launched in 1992. It is intended to facilitate closer co-operation between the public and private sectors and introduce private sector skills and disciplines into the delivery and management of projects and services traditionally undertaken by the public sector. The Government is committed to these principles through the Public Private Partnerships initiative (PPP).

3.2 The main principles of PPP evident in DBFO contracts are:

3.2.1 The Transfer of Risk
The allocation of risk and reward between the contracting parties should be clearly defined and private sector returns should be genuinely subject to risk. The DBFO Co will be expected to assume the majority of the risks associated with design, construction, maintenance, operation and financing of the new road and the maintenance and operation of the Project Road. These risks will include the risks of construction to time and to budget and making whole life cost judgements.

3.2.2 Value for Money
The Agency will establish whether the proposed levels of payment are justified by the benefits of the Project. Part of the assessment of whether the Project constitutes value for money involves using a public sector comparator which makes allowance for risk transferred.

3.2.3 Managerial Responsibility
The Secretary of State is the Highway Authority for the motorway and Trunk Road network. The managerial, operational and maintenance responsibility for the Project Road will be undertaken by the DBFO Co.

3.2.4 Payment for a Service
The Agency will make payment in relation to the receipt of a service, namely, asset enhancement, use and handback as described in more detail in Section 4 and Appendix B.

3.2.5 Incentives for Better Performance
The DBFO Co will be incentivised to provide high levels of service quality throughout the life of the DBFO Contract. There will also be specific incentives for better performance in congestion management and improving safety.

3.2.6 Partnering
The Agency considers that the DBFO Contract is more likely to be successfully delivered if the Agency and the DBFO Co agree their common objectives and adopt a co-operative attitude. The Agency intends to promote and encourage a partnering style relationship with the DBFO Co.

It is recognised that successful partnering requires considerable efforts by the parties, especially in the initial stages when it is likely to be necessary to employ facilitators to assist in developing the right relationship.

Tenderers will be required to submit proposals on how, in addition to the Network Board (see below), partnering with the Agency and Interested Parties could be successfully introduced and the extent to which other interested third parties should be involved.

Such proposals should also:

The Network Board is a strategic partnering forum to be established and maintained in respect of the Project Facilities by the Agency and the DBFO Co.

The Agency and the DBFO Co shall each appoint two senior members (director level or equivalent) of their organisation to the Network Board. The appointees to the Network Board shall have delegated powers through their respective organisations to ensure that decisions can be made to improve the operational efficiency of the DBFO Contract and the services that are to be delivered. Tenderers shall identify their proposed appointments to the Network Board when submitting tenders.The Network Board will wish to seek input from the Agency's Performance Review and Improvements Delivery (PRIDe) team.

The PRIDe team operates outside formal contractual arrangements. PRIDe audits and monitors the performance across many of the Agency's long-term works and maintenance contracts. In addition, PRIDe will analyse performance and establish benchmarks for future performance based on its experience and observation of industry best practice.

3.3 Under the terms of the DBFO Contract the DBFO Co will be

3.4 A summary of the main terms of the Draft Agreement is set out in Appendix D.


3 the principles of the dbfo contract

4 payment mechanism

4 Payment Mechanism

4.1 The payment mechanism for the Project is currently under development. However, it is expected to be congestion-based, and that the DBFO Co will be entitled to receive payments from the Agency in the form of a unitary congestion management payment. There will also be a safety performance adjustment.

4.2 Tenderers will be required to submit their projections of the payment factors and cashflow during the Contract Period in a financial model. The financial model may be used to determine adjustments to the DBFO Payments under the change mechanism in the DBFO Contract.


4 payment mechanism

5 technical requirements

5 Technical Requirements

5.1 The DBFO Co will be required to design, construct, maintain and operate the works to a standard no less than that normally associated with major road building, maintenance and operation in the UK, or its equivalent.

5.2 The Agency's Technical Requirements comprise Core and Illustrative Requirements.

5.3 Core Requirements define the standards of safety, planning undertakings and essential levels of service to be delivered and must be complied with. Examples include compliance with:

5.4 The Illustrative Requirements describe to the Tenderer the acceptable order or standard of provision and means of achieving certain requirements or obligations set out in the DBFO Contract.

The Illustrative Requirements define standards and criteria, which provide one way of satisfying the Core Requirements. Examples include:

5.5 Tenderers are encouraged to propose alternatives to the Illustrative Requirements, which are no less effective in satisfying the Core Requirements than the Illustrative Requirements would be. Tenderers are advised to consult the Agency during the Tender Period to establish that their proposals are acceptable.

5.6 Where design work has already been undertaken, this existing information will be made available for Tenderers to adopt or use otherwise as they wish. Where no existing design is available, or if a Tenderer wishes to propose an alternative, it will be required to submit an outline design with its tender.

5.7 The DBFO Co will be required to design, construct, maintain and operate the works in accordance with the principles of Sustainable Development (see paragraph 2.4.3.)

5.8 The DBFO Co will be required to operate a Quality Management System acceptable to the Agency to ensure that the required quality is delivered. Detailed requirements will be set out in the Tender Invitation Documents.

5.9 The Agency will appoint representatives to act on its behalf to ensure that contract requirements are met throughout the DBFO Contract Period.

5.10 The DBFO Co will be required to co-ordinate its work with that of third parties such as local authorities and utilities.

5.11 The DBFO Co will be required to co-operate with, and respond to, requests for assistance from the police and other emergency services. To assist in this process the DBFO Co will be required to enter into liaison procedures with such parties and to maintain suitable capability to provide appropriate assistance in the event of an emergency. A detailed quality plan will be required for this aspect of operating the Project Road.

5.12 The DBFO Co will respond to enquiries from the public in a manner consistent with the Agency's standards and enter into liaison procedures with the Agency's public relations staff.


5 technical requirements

6 timetable and procedure

6 Timetable and Procedure

6.1 Twenty weeks will be allowed for the return of tenders. Proposals for the Project will be assessed and negotiations will be held, with the objective of concluding the DBFO Contract with the successful Tenderer as soon as possible.

6.2 The Agency aims to award the DBFO Contract within twelve months of receipt of tenders.

6.3 The indicative dates for the Project are:

StageDate
Select TenderersSpring 2002
Invite TendersSummer 2002
Tenders ReturnedAutumn 2002
Select Preferred BidderWinter 2002/03
Contract AwardAutumn 2003

6.4 Tender Procedure

6.4.1 The Agency intends to award the DBFO Contract in accordance with the procedure set out in Section 1. Further details of the procedure are given below.

6.4.2 At tender stage, a substantial amount of information will be made available to the Tenderers, including any existing design for the scheme within the Project. Tenderers will be encouraged to propose their own designs for the Project, incorporating innovative ideas, which deliver good value for money for the Agency. During the Tender Period, Tenderers will be required to agree, in principle, with the Agency any significant departures from standard, outline proposals for structures and any proposals for new or alternative standards.

6.4.3 In addition to their technical proposals, Tenderers will be required, in their Standard Bid, to stipulate the amount of DBFO Payments which they propose on the basis of the obligations and allocation of risk as set out in the Tender Invitation Documents. This proposal must be supported by cash flow projections, which include forecast cost, revenue data and financing proposals.

6.4.4 Tenderers will also be encouraged to propose alternative definitions of obligations or allocations of risk as Variant Bids. They will be requested to state the amount of DBFO Payments on the basis of such Variant Bids. All Variant Bids must be defined to the same level of detail as for the Standard Bid and comply with the Core Requirements as referred to in paragraph 5.3.

6.5 Contract Award

The basis for the award of the DBFO Contract will be the most economically advantageous offer. The criteria to be considered will be set out in the Tender Invitation Documents. Value for money achieved by minimising cost and optimising the nature and extent of risk remaining with the public sector will be a key factor in the Agency's evaluation.

6.6 The DBFO Contract

The successful Tenderer will be required to enter into a DBFO Contract with the Secretary of State. The DBFO Contract will set out the agreed obligations and allocation of risk between the Secretary of State and the successful Tenderer.


6 timetable and procedure

7 prequalification assessment

7 Prequalification Assessment

7.1 The Agency will wish to be satisfied that each Tenderer selected to negotiate in respect of the Project has the appropriate qualities and resources available to it to undertake the tasks required of the DBFO Co. Candidates for prequalification will be selected as Tenderers in accordance with Negotiated Procedure and on the basis of the following criteria:

7.1.1 Financial and economic standing, including:

  1. financial/economic record;
  2. the capability to secure appropriate financing to meet fully the Agency's requirements for the Project; and
  3. the capability to secure appropriate financial and legal advice for negotiating and finalising the DBFO Contract,

7.1.2 Ability and technical capacity, including:

  1. proven experience and expertise in undertaking or procuring and managing the design, planning, construction, maintenance and operation of similar projects, including in urban areas;
  2. capacity and capability to design, construct, manage, maintain and operate a safe and environmentally and aesthetically acceptable Project in accordance with the principles of Sustainable Development;
  3. capability to manage all aspects of the Project in accordance with acceptable Quality Management Systems;
  4. an acceptable approach to liaison with third parties, quality management, design, planning, construction, management, maintenance and operation of the Project including safety, environment and aesthetics;
  5. evidence of a successful approach to partnering; and
  6. evidence to demonstrate full compliance with Health and Safety requirements.

7.1.3 Avoidance of arrangements which could constitute a conflict of interest.

7.1.4 The absence of any ground specified in Regulation 14(1) of the Regulations.


7 prequalification assessment

8 information required from candidates for prequalification

8 Information Required from Candidates for Prequalification

8.1 In order to assist the Agency in evaluating the extent to which Candidates meet the criteria set out in Section 7, Candidates are requested to state why they consider that they meet those criteria. The Candidates' submissions must include the information set out in paragraphs 8.4, 8.5 and 8.6 below.

8.2 Where a Candidate has prequalified in any of the Agency's earlier DBFO projects it may elect to rely on information of the kind set out in paragraphs 8.4 and 8.5 previously provided to the Agency and give the following statement in writing to the Agency:

"All information supplied, and statements made by [Candidate] or any of its agents to the Agency in relation to [Candidate's] application to prequalify in relation to [name of most recent DBFO project where Candidate prequalified and the date prequalification information was supplied] remains true, accurate and complete and any statement would be true, accurate and complete if made in relation to the circumstances existing at the date of this statement [except for; (specify:

  1. any additional or replacement information supplied with the statement;
  2. any change in statements made;
  3. how any information supplied or changes in statement relate to information or statements required in 8.4, 8.5 and 8.6)]"

Acceptance of such a statement will not result in automatic prequalification by a Candidate making the statement. The Agency will assess the merits of each Candidate's application based on the criteria set out in Section 7.

8.3 It is expected that, in order to offer the resources and the range and depth of skills required, companies may wish to collaborate to form consortia ("groups") which will then apply as Candidates for prequalification. Each Candidate, whether a group or a single entity must supply the requested information.

8.4 Candidates are requested to supply the following information relevant to their financial and economic standing:

8.4.1 In the case of a Candidate which is a group, the name of each member of the group and a description of the relationship between the group participants including, where relevant:

  1. the approximate likely shareholding of each member of the group in the DBFO Co; and
  2. details of how the internal relationships between the members of the group may change during the design, construction and operational phases of the DBFO Contract.

8.4.2 Financial/economic record

  1. For the Candidate and each member of a group, the following or equivalent evidence:
    1. the latest audited accounts;
    2. a statement of overall turnover and the turnover on road projects and DBFO-type projects (shown separately) for the previous three financial years;
    3. a statement of turnover on long term operation or facilities management contract for the previous three financial years;
    4. a statement, as at the last reporting date, of any contingent liability or loss which would require disclosure in accordance with International Accounting Standard 10; and
    5. a statement of any material pending or threatened litigation or other legal proceedings.
  2. Similar information (regarding paragraph 8.4.2(i)) in relation to the ultimate holding company of any Candidate or member of a group which is a subsidiary company;
  3. For the Candidate and each member of a group, a statement of any contracts where there has been a failure to complete the contract, or where there have been claims for damages or where damages have been deducted or recovered, within the last five years and where the value of such a contract or amount of damages is greater than £5 million.

8.4.3 A description of the arrangements proposed to separate the financial interests of any contractor and any designer involved on the Project.

8.4.4 A preliminary indication as to how the Candidate would go about securing finance. Candidates are not expected to submit a financing plan. They are asked, however, to indicate what the contribution of the Candidate and each member of the group is likely to be and the willingness of each to put capital into the Project; the readiness, if appropriate, of the parent company to guarantee the obligations of a subsidiary; and the likely sources of funds (ie bank debt, institutional finance or equity).

8.4.5 A separate fact sheet should be included, supplying:

  1. the name of the Candidate;
  2. in the case of a Candidate which is a group, the members of the group;
  3. the name of a contact for the Candidate with address, telephone and fax numbers; and
  4. the identity of principal advisers, or if not appointed, likely advisers, which must include financial and legal advisers.

8.5 Candidates are requested to supply the following information relevant to their ability and technical capacity:

8.5.1 A description of the major projects of a similar nature, undertaken or procured and managed by the Candidate and each group member over the past five years (including DBFO type projects and concession projects), together with, where relevant, certificates of satisfactory completion for the most important of the works, indicating, in each case, the value of the consideration received, when and where the works were carried out and whether they were carried out according to the rules of the trade or profession and properly completed. Such description shall include, for each such major project, the extent of the design or construction work for which the Candidate or its group member was responsible;

8.5.2 Previous experience during the past five years in the operation and maintenance of highways, including roads in urban areas, in the UK or elsewhere;

8.5.3 For the Candidate and each member of a group a list of the educational and professional qualifications of the firm's managerial staff together with copies of the curricula vitae (CV) of those key staff who would be responsible for carrying out the Project under the DBFO Contract (Limited to a maximum of two sides of A4 paper for each CV);

8.5.4 A description of the anticipated management structure (including job descriptions) that will be adopted to manage the Project; and

8.5.5 A statement of the design and other technical services which the Candidate may call upon for the carrying out of the work under the DBFO Contract, whether or not the persons providing the design and other technical services are independent of the Candidate. Such statement should include, but not be limited to, services associated with design, archaeology, landscaping, aesthetics, Quality Management Systems, environmental management and safety. The statement should include details of Quality Management Systems currently in operation.

8.6 In addition to the foregoing information, each Candidate is requested to provide the following information:

8.6.1 A description of the management structure and responsibilities within the Candidate for the Tender Period (including an organisation chart) and to nominate a contact point within the Candidate's organisation.

8.6.2 A statement of the Candidate's expected approach to design, planning, construction, management, maintenance and operation of the Project to accord with the principles of Sustainable Development.

8.6.3 A statement of the Candidate's expected approach to design, construction and management of the Project to accord with the Construction (Design and Management) Regulations (CDM).

8.6.4 A detailed statement of the Candidate's expected approach to the design, planning, construction, management, maintenance and operation of the Project, illustrated where appropriate with details of relevant experience, with particular emphasis on the following:

  1. liaison with third parties;
  2. partnering;
  3. public relations;
  4. Quality Management Systems;
  5. safety;
  6. environment; and
  7. aesthetics

8.6.5 Identification of any conflicts of interest which might arise if the Candidate were selected (taking into account, where the Candidate is a group, the members of the group);

8.6.6 Confirmation that none of the grounds for rejection specified in Regulation 14 (1) of the Regulations (for example a breach of Sections 2-7 of the Health and Safety at Work etc. Act 1974) is available to the Agency in relation to the Candidate, or where the Candidate is a group, in relation to any member of the group.

8.7 Where copies of original documents are provided in languages other than English, a certified English translation must be provided.


8 information required from candidates for prequalification

9 responses and enquiries

9 Responses and Enquiries

9.1 Ten hard copies of prequalification submissions, in English, must be delivered by midday on 17 May 2002 to:

The Highways Agency,
Room 3/66,
St Christopher House,
Southwark Street,
LONDON.
SE1 0TE.

For the attention of Graham Taylor

9.2 The Agency reserves the right to request Candidates to attend interviews. If this is necessary, Candidates will be informed as soon as possible after receipt of prequalification submissions.

9.3 The membership of any prequalified group, and the principal relationships between the members, may be changed only with the prior written consent of the Agency.

9.4 All prequalification submissions will be treated confidentially by the Agency and its advisers.

9.5 All enquiries at prequalification stage should be sent in writing to the following address and contact:

The Highways Agency,
Federated House,
London Road,
DORKING.
RH4 1SZ.


For the attention of Peter Minshull

Tel:     UK: 01306 878134    International: + 44 1306 878134
Fax:    UK: 01306 878366    International: + 44 1306 878366

9.6 A written response will be sent to enquiries and may be supplied to all Candidates. Subject to the above, it will be a requirement that all exchanges shall be kept confidential by the parties and their advisers and consultants.

9.7 Surveys may only be undertaken by prior arrangement with the Agency.


9 responses and enquiries

Appendix a a249 stockbury (m2) to sheerness dbfo project

APPENDIX A A249 Stockbury (M2) to Sheerness DBFO Project

1 Description of Project

1.1 The Project Road comprises the A249 Trunk Road from its junction with the M2 near Stockbury in Kent to Sheerness on the Isle of Sheppey. The DBFO Project also includes a Firm TPI Scheme, the A249 Iwade Bypass to Queenborough Improvement.The A249 and the A249 Iwade Bypass to Queenborough Improvement are shown in Figure 1 of this appendix.

1.2 The A249 Trunk Road runs from junction 5 of the M2 to the docks entrance at the Port of Sheerness and forms the only road link between the mainland and the Isle of Sheppey.

The extent of the Project Road excludes the roundabout at junction 5 of the M2 but includes the roundabout at the entrance to the Port of Sheerness.

The southern portion of this road, from the M2 to the crossing of The Swale at Kingsferry, comprises a dual 2 lane carriageway road, which was relatively recently constructed, being first opened to traffic in 1996. This section of road is of concrete construction.

This newer portion of the road passes under the M2 Stockbury viaduct, just to the north of a roundabout connecting the M2 slip roads to the A249. It then passes through two grade separated interchanges, one at the A2 crossing, and the second just north of this at Bobbing. This second junction forms a link into the industrial area to the north of Sittingbourne.A further grade separated junction is located at the crossing of the B2005 near Iwade, before the newer construction terminates at a roundabout on the south side of The Swale crossing at Kingsferry. The total length of this 'new' dual carriageway road is approximately 9km.

Beyond this roundabout, the road crosses The Swale on a lifting bridge, which also carries the only railway link from the mainland to the Isle of Sheppey. It then crosses open marshland for a distance of some 2.5km to a roundabout at the junction of the B2231 at Cowstead Corner. This section of road is single 2 lane carriageway with hard strips.From Cowstead Corner, the road becomes single 2 lane carriageway with no hard strips connecting with a further roundabout at the southern Queenborough junction.

From this roundabout to a point on the outskirts of Sheerness, a new alignment was constructed in approximately 1982 (the Queenborough Bypass). This is again a single 2 lane carriageway with hard strips, passing over the railway line on a long viaduct.

Beyond the roundabout at the northern link to Queenborough, the road returns to a single 2 lane carriageway without hard strips, on an original alignment through the semi-urban outer industrial area of Sheerness. The A249 terminates at a roundabout at the entrance to Sheerness Docks.

The total length of the A249 Trunk Road is approximately 17km.

1.3 The A249 Iwade Bypass to Queenborough Improvement is the last of four schemes to improve the A249 between the M2 and the port at Sheerness. The improvement will provide a new dual carriageway road 5 km long between the end of the Iwade Bypass and Queenborough and will include a new high level crossing of The Swale.

2. New Construction

2.1 Estimated Cost

The estimated construction costs of the A249 Iwade Bypass to Queenborough Improvement are given in Table 1 and are based on the level of design work completed to date.

Table 1: Estimated Construction Costs of the A249 Iwade Bypass to Queenborough Improvement at Q1.01 prices.

Construction £m
Works 70
Statutory Undertakers 5
Total 75

Figures exclude VAT and land costs

2.2 Scheme History

The identified scheme has been prepared to the timetable given in Table 2

Table 2: Timetable for the A249 Iwade Bypass to Queenborough Improvement

Milestone Date
Entered programme 1989
Public consultation 1993
Preferred route announcement 1994
Draft Order Publication 1997
Public Inquiry 1999
Decision Letter 2000
Final Decision Letter 2001
Orders made 2001

2.3 Design Agent

The Agency's Design Agent for the A249 Iwade Bypass to Queenborough Improvement is Mott MacDonald

2.4 Scheme Specific Information

2.4.1 The main engineering and environmental constraints and features of the existing design are set out in the following sections. Additional information is included in the deposit documents.

2.4.2 A list of agreements and commitments to third parties for the scheme will be included in the Tender Invitation Documents.

2.5 A249 Iwade Bypass to Queenborough Improvement.

Refer to Figure 2 of this appendix.

The proposed scheme provides a limited movement two level junction at the northern end of the Iwade Bypass from where the dual carriageway is to extend over a new fixed bridge crossing of The Swale.

The new bridge, which will be 1.27 km long, will rise to a height of 34.7m above The Swale. This will provide 29m clearance for shipping above high water level and also give the required clearance over the existing approach to Kingsferry Bridge on the south side and the railway on the north.

The route then joins the line of the existing A249 as far as the junction with Ferry Road, before moving away to a new roundabout at Cowstead Corner. A section of new local road will be constructed alongside the new Trunk Road to maintain a link between Kingsferry Bridge, which will be retained, and Cowstead Corner for local traffic movements. This link road will provide for pedestrians and cyclists, as they will not be permitted to use the new bridge crossing. The new A249 dual carriageway will then continue to the south of Queenborough Road, via a roundabout at Neatscourt to cater for a proposed development, to a new signal controlled junction with Main Road at Queenborough. From here, the Trunk Road will narrow to a single carriageway to tie into Brielle Way.

Design speed for the dual carriageway will be 120kph, speed limit 70mph. The Trunk Road between Neatscourt roundabout and Brielle Way will have a design speed of 85 kph, 50 mph speed limit.

The proposed scheme has been designed to:

To the knowledge of the Agency, there are no known archaeological sites of national or regional significance within the road corridor, however, it is intended that further investigative work will be undertaken by the DBFO Co.

The proposed scheme is within the North Kent Marshes and encompasses three Sites of Special Scientific Interest: South Thames Estuary and Marshes; Medway Estuary; and The Swale. The North Kent Marshes have been identified as being of national and international importance as a habitat for birds, plants and invertebrates, and have accordingly been designated as a Special Protection Area (SPA) and a Ramsar wetland site.

In order to minimise landtake within the SPA between the Iwade Bypass and Cowstead Corner, narrower verges and central reservation are proposed on the new dual carriageway, and the existing road corridor will be used.

Other measures proposed to restore the ecological value will include the use of special grass seed mixes on the verges and embankments and the creation of open water ditches.

The new drainage will be kept completely separate from the sensitive marshland system, with outfalls into West Minster Drain in the north and The Swale in the south via suitable pollution control measures and valves.

All the public utility services to the Isle of Sheppey cross The Swale at or close to Kingsferry Bridge, and thus any new road connection is likely to have a significant effect on existing services.

A decision as to whether the existing A249 and Kingsferry Bridge will be detrunked when the new bridge is complete has yet to be made.

3 Operation and Maintenance

3.1 The DBFO Co will be responsible for all maintenance operations on the Project Road. This includes capital, routine and winter maintenance on the A249 from the M2 to Sheerness. This is shown in Figure 1 of this appendix. The Agency's requirements will be set out in the Tender Invitation Documents.

3.2 The existing Maintenance Agent for the Project Road is W S Atkins Transport Engineering and the Term Maintenance Contractor is Carillion.

3.3 Currently, the Project Road is the responsibility of the Kent Police based at Maidstone.

3.4 Details of the existing road are as follows:

Section Standard Length
A249 (M2 J5 Stockbury - Kingsferry) D2 9 km
A249 (Kingsferry to Sheerness) S2 8 km

The A249 from the M2 and including the Iwade Bypass is subject to national maximum speed limit but northwards of this the speed limit varies between 50 mph and 30 mph.

3.5 The following table, Table 3, lists both Agency structures on the Project Road and structures on the Project Road that are the responsibility of others.

Table 3: Structures on the A249

Structure Agency Others
Culverts 4 1
Walls 4 1
Overbridge 5 -
Underbridge 8 1

The junctions on the A249 are grade separated between the M2 junction 5 and the roundabout on the south side of Kingsferry Bridge and are at grade between Kingsferry and Sheerness.

3.6 There are no communications on the Project Road.

3.7 There are three Sites of Special Scientific Interest through which the Project Road passes.

4 Traffic Data

The existing traffic flows on the Project Road are shown in Figure 3 of this appendix. Where scheme forecasts are available the information is included with the Environmental Statement, see deposit documents.

5 Deposit Documents

Deposit Documents are available on CD ROM from the address at Section 9.5

  1. A249 Iwade Bypass to Queenborough Improvement - Environmental Statement
    • Volume 1 Statement and Non-Technical Summary
    • Volume 2 Part 1 Air Quality
    • Part 2 Cultural Heritage
    • Part 3 Ecology and Nature Conservation
    • Part 4 Landscape Effects
    • Part 5 Agriculture
    • Part 6 Traffic Noise and Vibration
    • Part 7 Pedestrian, Cyclist, Equestrians and Community Effects
    • Part 8 Water Quality and Drainage
    • Part 9 Policies and Plans
    • Addendum to Environmental Statement

  2. A249 Iwade Bypass to Queenborough Improvement - Scheme Orders
    1. The A249 Trunk Road (Iwade Bypass to Neatscourt Roundabout and Bridge) Order 2000
    2. The A249 Trunk Road (Iwade Bypass to Neatscourt Roundabout) (Side Roads) Order 2000
    3. The A249 Trunk Road (Iwade Bypass to Neatscourt Roundabout) (Side Roads) (No. 2) Order 2000
    4. The A249 Trunk Road (Iwade Bypass to Queenborough Improvement) (Slip Roads) Order 2000
    5. The A249 Trunk Road (Iwade Bypass to Queenborough Improvement) (Detrunking) Order 2000
    6. The A249 Trunk Road (Iwade Bypass to Neatscourt Roundabout) Compulsory Purchase Order (PS No. 21) 2000
    7. The A249 Trunk Road (Iwade Bypass to Neatscourt Roundabout) Supplementary Compulsory Purchase Order (PS No. 22) 2000
    8. The A249 Trunk Road (Neatscourt Roundabout to Queenborough Improvement) Order 2001
    9. The A249 Trunk Road (Neatscourt Roundabout to Queenborough Improvement) (Side Roads) Order 2001
    10. The A249 Trunk Road (Neatscourt Roundabout to Queenborough Improvement) Compulsory Purchase Order (PS No. 4) 2001
    11. The A249 Trunk Road (Neatscourt Roundabout to Queenborough Improvement) Supplementary Compulsory Purchase Order (PS No. 5) 2001
    12. (DRAFT ONLY) The A249 Trunk Road (Iwade Bypass to Queenborough Improvement) Prohibition of Certain Classes of Traffic and Pedestrians Order 2000
    13. (DRAFT ONLY) The A249 Trunk Road (Neatscourt Roundabout to Queenborough Improvement) 50 Miles Per Hour Speed Limit Order 2001 & Prohibition of Left and Right Turns Order 2001

  3. A249 Iwade Bypass to Queenborough Improvement - Public Local Inquiry Document (Inspector's Report)
  4. A249 Iwade Bypass to Queenborough Improvement - Secretary of State Decision Letters

Figure 1: A249 Stockbury (M2) to Sheerness DBFO - Extent of Project Road

Figure 2: A249 Iwade Bypass to Queenborough Improvement

Figure 3: Existing Traffic Data


Appendix a a249 stockbury (m2) to sheerness dbfo project

Appendix b payment mechanism

APPENDIX B Payment Mechanism

1.1 The Agency intends to employ a payment mechanism that assists in the achievement of its objectives, set by Ministers. These are to reduce congestion, increase the reliability of journey times, improve safety for all road users, develop the Agency's role as network operator and generally to take steps to improve the level of service to the public.

1.2 To assist the Agency in its role as network operator, the DBFO Co will be encouraged, over the life of the DBFO Contract, to submit proposals that offer an increased level of service to the public. The Agency intends to enable suitable proposals to be implemented. Such proposals, which are expected to be funded through the payment mechanism, could be wide-ranging.

1.3 The Agency is considering applying the principles behind the congestion - based payment mechanism, first developed for the A1 Darrington to Dishforth DBFO project, to this project. This will involve a regular unitary payment calculated by reference to the following factors:

1.4 The Agency has not yet reached a final view on the precise constituents or the relative importance of such factors. The current thinking on the factors set out in 1.3 above is:

The mechanism may provide appropriate incentives for the DBFO Co to minimise congestion. Such a mechanism would:

A congestion - based mechanism would not attempt to differentiate between the various causes of congestion but would simply relate payments to the effect on the travelling public.

The regular unitary payment would be adjusted by reference to a measure of the level of congestion and the volume of traffic on the Project Road over the relevant payment period. Congestion is likely to be measured by reference to the time periods during which the average traffic speed on sections of the road falls below threshold speeds.

The Agency has a strong preference for a congestion - based component of the payment mechanism having a significant influence on the DBFO Co's revenue.

The regular unitary payment may be adjusted by a lane availability factor which would reflect the availability or otherwise of limited sections of the Project Road during specified time periods. A lane will be deemed to be unavailable if, for example, roadworks are present rendering part of the carriageway unusable.

The regular unitary payment will be dependent on the carriageway continuing to meet minimum road - condition performance criteria. If any part of the carriageway fails to meet specified minimum performance criteria, payment will be adjusted accordingly. This condition will be applied across the whole Project Road.

To encourage the DBFO Co to address road safety issues a proportion of the payment will relate to road safety. The regular unitary payment will be subject to an annual adjustment, which could be positive or negative, depending on the overall safety performance of the Project Road when compared with an appropriate benchmark.

1.5 The Agency welcomes comments and suggestions regarding the proposed payment mechanism outlined above. Such comments and suggestions should be provided as a separate submission to the contact given in Section 9.5. Candidates should be aware that any information supplied may be used by the Agency in preparing the Tender Invitation Documents. Any such information will not, however, be taken into account in evaluating the extent to which Candidates meet the criteria set out in Section 7.


Appendix b payment mechanism

Appendix c

APPENDIX C

Reference Documents

  1. A New Deal for Transport: Better for Everyone. A New Deal for Trunk Roads in England, July 1998 DETR
  2. Road Users Charter, November 2000 HA 385/00
  3. Making the Network Safer, Highways Agency
  4. Towards a Balance with Nature, Highways Agency
  5. Trunk Road Maintenance Manual, Highways Agency
  6. Design Manual for Roads and Bridges, TSO
  7. Manual of Contract Documents for Highway Works: Specification for Highway Works, TSO
  8. Public Works Contract Regulations 1991 SI 1991/2680
  9. EC Directive 93/97/EEC
  10. Local Authorities (Goods and Services) Act 1970
  11. Local Authorities (Goods and Services) (Public Bodies) (Trunk Roads) Order 1996 SI 1996 No 342 amended by SI 1997 No 849
  12. Transfer of Undertakings (Protection of Employment) Regulations 1981
  13. SI 1997 No 850 (Litter Authority Duties)
  14. Health and Safety at Work Act 1974
  15. Construction (Design and Management) Regulations 1994
  16. CIRIA report C563 Sustainable Construction; Company Indicators

Appendix c

Appendix d draft agreement summary

APPENDIX D Draft Agreement Summary

1 Introduction

The Tender Invitation Documents will include a Draft Agreement between the Secretary of State and the DBFO Co. The Tender Invitation Documents will also contain a note of scheme specific contract terms indicating how certain scheme specific details will be completed in the Draft Agreement. The principal terms of the Draft Agreement are outlined below. The Agency reserves the right to make amendments to the Draft Agreement at any time prior to contract signature, including during the Tender Period and subsequent negotiations.

2 Contract Period

The Draft Agreement provides for a Contract Period of 30 years from the commencement date (subject to extension as a result of force majeure). A Tenderer may submit a Variant Bid for an alternative finite Contract Period.

3 The Project

3.1 The Draft Agreement will require the DBFO Co to design, construct and finance the new or improved sections of the Project Road and related off-site facilities and to operate and maintain both the existing and new or improved sections of the Project Road.

3.2 The DBFO Co must design and construct the new sections of road and off-site facilities in accordance with agreed construction requirements. Detailed development of the design must be conducted in accordance with a design and certification procedure. There will also be procedures for changes to the construction requirements initiated either by the DBFO Co or by the Agency.

3.3 The operation and maintenance of the existing sections of road (and of the new sections of road after the issue of the permit to use) must be in accordance with the operation and maintenance (O&M) requirements. The DBFO Co may propose changes to the O&M requirements following execution of the DBFO Contract, but any changes must be to a standard at least equivalent to the O&M requirements which are to be changed and must be at least as effective in satisfying the core O&M requirements as the O&M requirements before change.

4 DBFO Payments

The Draft Agreement will entitle the DBFO Co to receive payments from the Agency which are expected to be calculated by reference to the degree of congestion, lane availability and safety performance on the Project Road. In calculating payments, these factors may be accorded differing levels of importance according to the nature of each relevant section of the Project Road.

5 Risk

The Draft Agreement will define certain limited types of risk which the Secretary of State is willing to retain or share. All other risks will be borne by the DBFO Co.

6 Monitoring and Liaison

6.1 A nominee of the Agency will act as the Secretary of State's agent in relation to the DBFO Co's design and construction on the new sections of road. A nominee (which may be the Agency itself) will also act as the Secretary of State's agent in respect of other aspects of the operations, in particular the operation and maintenance of the Project Road. Their functions will be set out in the Draft Agreement, but their essential task is to monitor the DBFO Co's performance of the contracted service.

6.2 Defaults in performance by the DBFO Co may lead to the award of points under a penalty points system or, in the case of material breaches, warning notices, which may trigger increased levels of monitoring at the DBFO Co's cost and certain other sanctions.

6.3 The DBFO Co will be responsible for liaison with all affected or interested third parties. Liaison procedures must be developed by the DBFO Co and agreed with relevant parties before operations commence.

7 Quality Management

The DBFO Co, its designer, its main contractor, its operator and its other contractors and sub-contractors will be required to have in place (and operate in accordance with) a Quality Management System complying with the relevant part of the BS EN ISO 9000 series. The DBFO Co will also be required to appoint a project quality director to exercise overall responsibility for quality management. The Secretary of State will have a right of audit and inspection to ensure that the contract terms are being met.

8 Additional Works and Subsequent Schemes

8.1 The Secretary of State may require additional works, not covered by the agreed construction requirements, to be carried out on the Project Road, and may require the DBFO Co to act as its managing agent in procuring those works.

8.2 The DBFO Co may itself propose, for approval by the Secretary of State, further schemes affecting the Project Road.

9 Delay, Compensation and Force Majeure

9.1 In certain circumstances, including the failure by the Secretary of State to issue the certificate of commencement or a breach of his obligation to give access to the Site, the DBFO Co may be entitled to compensation.

9.2 Where a force majeure event (such as war, rebellion, or nuclear explosion) has delayed the completion of a new section of Project Road, the DBFO Co may be entitled to an extension of the Contract Period. Where the force majeure event has damaged the Project Road the Secretary of State will reimburse the DBFO Co for the cost of agreed rectification work. Where the force majeure event has a material effect on the performance of the agreement for longer than an agreed period, either party may terminate the DBFO Contract.

10 Change

The Draft Agreement will define possible events or changes which may have an impact on the DBFO Co's costs and/or revenues and which could lead to an adjustment in DBFO payments (or, in some circumstances, a one-off compensatory payment). Changes which may be judged eligible for compensation include:

11 Termination

The Secretary of State may terminate the DBFO Contract on the occurrence of defined events of default by the DBFO Co. The DBFO Co may also terminate the DBFO Contract in limited circumstances, including the sequestration of the Project Road, and the transfer of the Secretary of State's obligations under the DBFO Contract to a non-Governmental person other than a successor highway authority. Either the Secretary of State or the DBFO Co may terminate the DBFO Contract in the event that a force majeure event occurs and continues beyond an agreed period.

12 Handback

12.1 On the expiry of the Contract Period, the Project Road and its associated facilities must be handed back to the Agency and must satisfy handback requirements, which will largely be defined by reference to the residual life of the various elements.

12.2 Joint inspection of the pavement, structures and all other elements of the Project Road will be carried out before the end of the Contract Period. The works needed to return the Project Road to the required handback standard and the programme for, and estimated cost of, those works will be agreed or, if necessary, determined by a disputes resolution procedure, which will be detailed in the DBFO Contract. A proportion of DBFO Payments payable after the joint inspection will be retained as security for the performance of those works.


Appendix d draft agreement summary