Withdrawal of Tube maintenance contract

Meeting: 
MQT on 2009-11-18
Session date: 
November 18, 2009
Reference: 
2009/3289
Question By: 
Caroline Pidgeon
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor

Question

How do you defend London Underground's recent announcement that they are withdrawing the £300 million civil maintenance framework contract and issuing a revised contract within the next six months ?

Answer

Answer for Withdrawal of Tube maintenance contract

Answer for Withdrawal of Tube maintenance contract

Answered By: 
The Mayor

It is imperative that London Underground (LU) contracts provide and demonstrate value for money. This is even more important given the pressures on TfL's finances resulting from the economic downturn and the financial impact of Metronet's collapse.

As part of LU's continuous review of its contracts with this objective in mind, it became clear that a service contract, as opposed to a framework contract, could deliver significant efficiencies in civils maintenance. LU has had recent success in delivering efficiencies in this way in related areas. In the light of this decision, it was necessary to withdraw the framework contract notice, and a revised contract notice will be issued within the next six months.

This will have no impact on any current or upcoming works which can be procured using the existing framework contracts.