National Rail National Electrification Programme

Situation & Approach: Deecon was engaged to run the procurement of National Rail’s National Electrification Programme (NEP). This required Deecon to source and manage the supply chain for the national rollout of electric railway, including developing a pricing model and running the tender process to award recommendation. Deecon developed a commercial model linked to the Rail Market Monitoring (RMM) work breakdown structure, to be used as an estimating and target cost build-up tool across for all future projects under NEP. The model included a detailed specification for each activity (direct and indirect), enabling analysis of the activity-based rates from all tenderers down to labour, plant and material level. To ensure a robust base for rate build-up, we created visibility of the activity rates for multiple possession lengths and varying delivery methods across NEP’s regions. Having launched the tender, we implemented and managed a three-step technical assessment strategy to ensure that contractors met Network Rail’s requirements: individual scoring, regional peer review and national review. We ran multiple clarification rounds with tenderers to achieve sustainable and competitive commercial rates for all lots. Results: Deecon’s tender approach enabled us to successfully reduce management fees received from major contractors. Our commercial model increased the accuracy and visibility of rates, whilst also stimulating informed discussions across the regions.