Connect Radio and Transmission Services Contract: RON Variation

LUL and Citylink Telecommunications Limited (CTL) entered into a 20-year PFI contract on 19 November 1999 (Connect PFI Contract) for a digital radio and transmission system (Connect System). In 2018, LUL entered into a contract with Ground Transportation Systems UK Limited (GTS) (f.k.a. Thales Transport and Security Limited), a CTL shareholder, for continuation of the Connect Services after 2019 (GTS Contract). TfL now wishes to (a) engage GTS to renew the existing data transmission networks to deliver a single multi-service network (called MSN2) (Renewed Operating Network or RON) under the GTS Contract (Proposed RON Appointment) and (b) extend the term of the GTS Contract for 12 months beyond its current anticipated expiry on 21 November 2026 (with an option for further extensions of up to 2 years) (Proposed RON Extension)(collectively, the Proposed RON Variation). As explained at II.2.4 and IV.1.1, LUL considers that the Proposed RON Variation is permitted under Reg. 88 of the Utilities Contracts Regulations 2016 (UCR). TfL intends, and is already in the process of preparing, to re-procure the management of the Connect System competitively upon the expiry of the GTS Contract as varied by the Proposed RON Variation. TfL considers that implementation of the Proposed RON Variation, as described below, will enable it to hold a more attractive and more effective competition for the management of the Connect System after expiry of the GTS Contract.