London Underground Radio Contract

Descriptions

(1) Overview

London Underground Limited (LUL) (a subsidiary of Transport for London (TfL)) intends to directly award a contract (London Underground Radio Contract) to Motorola Solutions UK Limited (Motorola) for the provision of essential hardware and software services in respect of the London Underground digital radio system (LU Radio System). Substantive service provision under the London Underground Radio Contract will not commence until November 2029.

However, LUL requires the London Underground Radio Contract to be entered into in advance of the launch of TfL's Networks and Telecommunications Procurement Project (NTPP) in order to provide continuity and security of service and to support a level playing field for NTPP (as further explained in section 4 below).

(2) Background

In September 2018, LUL entered into a contract (Connect Contract) with Thales Transport and Security Limited (now Hitachi Rail UK Limited (Hitachi)) for the provision of services to support the operationally critical digital radio and transmission system (Connect System) following expiry of the 20 year Connect PFI Contract. The Connect Contract is due to expire in November 2029.

Under the Connect Contract, Hitachi has a subcontract with Motorola for the provision of essential hardware and software support and updates for Motorola's proprietary products, which ensures continuity and safe operational service from the LU Radio System. As owner of the intellectual property rights in the Dimetra product, only Motorola can provide the necessary maintenance support and software upgrades of the Dimetra product.

(3) LU Radio System

In line with industry-wide standards, the LU Radio System uses digital terrestrial trunked radio (TETRA) technology which, alongside other features, ensures security and confidentiality of sensitive data/voice communications. TETRA is a recognised standard and is used extensively around the world for railway and airport operations. The TETRA system used in the LU Radio System is supplied by Motorola using its proprietary Dimetra product.

The Connect System, including the LU Radio System, is critical to the operation of the LU railway. The LU Radio System provides voice radio services between staff, trains and control, and operational data networks services, such as data connectivity for video. Without a fully supported radio system, it would not be possible to ensure the safe, secure, and reliable operation of the LU railway.

TfL's analysis shows that a suitably developed and mature alternative to the TETRA radio system does not currently exist and that it is likely that such an alternative will not be available to deploy throughout the LU network until at least the mid-2030s. Once available, TfL anticipates that it will then take a sizeable capital investment and several years to test such an alternative to ensure that it is suitable for operations on the LU network and then to deploy it across the LU network.

TfL has already made a series of investments, via the existing Connect Contract arrangements, to refresh various hardware and software components of the LU Radio System to keep it operationally stable and secure. Further upgrades to and ongoing maintenance and support of the LU Radio System beyond the expiry of the existing Connect Contract arrangements will need to continue to be delivered by Motorola as it owns the exclusive IP rights for the Dimetra product and these services can only be delivered by Motorola.

(4) Networks and Telecommunications Procurement Project (NTPP)

TfL's Telecommunications and Data Network Strategy (T&D Network Strategy) sets out the long-term approach to rationalising and consolidating TfL's data networks to deliver organisational benefits. As part of the T&D Network Strategy, TfL is currently planning a combined re-procurement of the Connect System services and its commodity networks contract (Access & WAN Contract) as part of the NTPP. NTPP will potentially be based around a three-lot procurement, comprising:

• Lot 1: Connectivity Services;

• Lot 2: LU Operational Radio; and

• Lot 3: Commoditised Connectivity Services.

(5) LU Operational Radio Contract

A significant proportion of the requirement for the LU Operational Radio contract (Lot 2) is overlaid on the LU Radio System, meaning that this requirement needs to be supported by Motorola through the provision of essential hardware and software support services and updates for its Dimetra product within the LU Radio System. As set out in section 3 above, TfL's analysis shows that this support will be needed until at least the mid-2030s.

To facilitate a fair, transparent and non-discriminatory competition for the NTPP LU Operational Radio contract, TfL therefore intends to enter into the London Underground Radio Contract to secure the provision of critical support services for the LU Radio System beyond the expiry of the Connect Contract in November 2029 and to enable the NTPP Lot 2 bidders to prepare their bids based on the same underlying radio system support arrangement.

TfL considers this approach to be the best way of maximising competitive tension for the NTPP Lot 2 procurement and ensuring a level playing field for all bidders. The London Underground Radio Contract will be made available to the Lot 2 bidders during the procurement for this purpose. The London Underground Radio Contract may then be novated to the successful Lot 2 bidder (at which point it will become a sub-contract to the 'prime' contract between the successful Lot 2 bidder and TfL), or the successful Lot 2 bidder may be appointed by TfL to act as TfL's managing agent.