Public procurement notice: Contract Award Notice
Published: 2020-08-21
Buyer: Highways England
Country: UK
Contract type: Works
Procedure: Competitive procedure with negotiation
CPV classification: 45000000: Construction work | 45100000: Site preparation work | 45233000: Construction work for highways and roads | 45233100: Construction work for highways | 45233130: Road works
Estimated value: 4500000000 GBP
Award criteria: The most economic tender

Technical requirements: Highways England has appointed six partners to create the Smart Motorways Alliance (‘SMA’) over a 10.5 year period, including a mobilisation and a further period to complete outstanding works.
One partner shall provide production management services (Lot 1), two partners shall be digitally enabled designers (Lot 2) and three partners shall undertake on-site assembly and construction role (Lot 3). The alliance will develop, design and build multiple road schemes under a single alliance contract. Partners will operate from a centralised production hub to co-ordinate delivery.
The alliance will increase lane capacity on all parts of the strategic road network through embedding technology and converting hard shoulders to all-lane running. Where required, the alliance will also deliver associated works to co-ordinate wider HE programme of works. The alliance may also support HE deliver the wider autonomous and connected vehicles road implementation strategy.
Highways England has appointed a partner to be accountable for the programme-wide management activities within the production hub function over the term of the Alliance Agreement (10.5 years) and thereafter to oversee completion of works called off under lots 2 and 3. Such works expected to complete within 2 to 3 years of expiry of the term of the Alliance Agreement.
The production management partner will act as a catalyst for integration and collaboration between all seven alliance members (six partners and Highways England) within the production hub while providing capability in the service areas specifically related to delivery control and coordination and investing in the capability and competence development of Highways England to enable a programmatic approach that supports realisation of the intended benefits of an Alliance Model. The outcomes of the production hub function include the following, as a minimum:
1) business integration — managing and integrating resources from multiple companies to create and sustain effective and efficient programme delivery;
3) Programme Management Office to enable delivery plan to be successfully delivered safely, to time, cost and quality and with robust change control;
4) supply chain management strategy — facilitate delivery of collaborative procurement hub, category management and wider supply chain performance;
5) technology and information strategy — facilitate and deliver technology architecture strategy to enable efficiency single source of the truth;
6) logistical management and scheduling — facilitate delivery of strategic co-ordination of plant material and resources across inventory storage and manufacturing assembly to smooth resource levels and effective sequencing;
7) people strategy — support alliance board and develop recruitment, skills and retention strategy to drive high performing culture;
8) continuous improvement, innovation and best practice identified at the scheme level and shared across the programme to support consistently high performing and continuously improving teams in both design areas and in all three construction areas;
9) commercial management — facilitate delivery of effective cost, commercial and financial management function to the alliance;
11) governance and risk management — provide effective risk controls to facilitate operational and strategic delivery;
12) quality management and assurance — provide an effective quality management system and controls to maximise operational efficiency;


Winner: Fluor Ltd
Award value: 4500000000
Number of bids: 4