The New Metro is developing its procurement processes

Quality, delivery capability and credibility are given greater emphasis when the Administration for the Extended Metro selects contractors.

Bergarbete under jord

Bild: Region Stockholm

The purpose for these changes is to ensure that the right contractor is awarded the contracts. By encouraging the contractors with strong execution capability, high credibility and good opportunities, there will be more successful contracts.

The goal: Selecting the right contractor

The Administration has identified six areas considered critical for selecting the contractor best suited to successfully conducting the contract. These areas form the basis for both qualification and the evaluation model:

  • Delivery capability
    Documented ability to execute complex contracts with high quality, safety and progress.
  • Organisation and competence
    Access to the right expertise, an appropriate organisation and experienced key personnel suited to the specific challenges of the contract.
  • Management and control
    The ability to plan, manage and follow up operations in a structured and efficient manner.
  • Collaboration
    The ability to cooperate, build trust and handle challenges together with the client and other stakeholders.
  • Accountability
    The ability to take responsibility for the contract’s objectives, risks, quality and commitments throughout the contract period.
  • Responsible pricing
    Pricing that is competitive, realistic and consistent with the proposed execution.

Developed evaluation model

To ensure that quality carries greater weight in procurements, the Administration has implemented several changes to the evaluation model:

  • Greater weight on quality
    Qualitative added values are given increased importance and may correspond to 40–60 per cent in relation to price.
  • Enhanced grading scale
    The scoring scale has been expanded with additional rating levels and a more differentiated weighting system to better distinguish between different levels of quality.
  • Rejection of tenders due to insufficient quality
    Tenders that do not reach an acceptable level across all added values will be rejected.
  • Case exercise
    To test and verify the tenderer’s capability and strengthen the credibility of tenders, tenderers must present a solution to a fictitious scenario.
  • Further developed added values
    The added value are refined to better reward the qualities that contribute to a successful contract execution.

Five added values that strengthen quality evaluation

An important part of the development has been to refine the added value used to assess quality. These cover the following five areas:

  1. Organisation and competence
    A robust organisation adapted to the contract’s complexity, with experienced key personnel and relevant expertise.
  2. Contract execution
    Planning, resource utilisation and management of design, costs, work environment and subcontractors.
  3. Collaboration
    The ability to create and maintain a good collaborative environment.
  4. Impact on surroundings
    Management of environmental impact, accessibility and traffic flow.
  5. Climate footprint of materials
    The level of climate impact from materials.

When evaluating added values, the tenderer’s credibility and insight are assessed. The tender must demonstrate in a credible way that the contractor understands the conditions and complexity of the contract and has the capability to execute it.

The developed evaluation model is already being applied in procurements for rock and civil engineering contracts for the Yellow Line. The model will serve as a basis for future procurements and may be adapted to the specific conditions of each contract where necessary.

Stronger compliance – tender commitments become binding

The Administration is also strengthening the link between what is evaluated in the tender and what is delivered during the contract period:

  • The tender becomes a contract document
    The tender will form part of the contract documents and rank fifth in the order of precedence.
  • Follow-up of promised added values
    If the contractor does not fulfil the added values commitments that where evaluated as a part of the tender, the client may require corrective action. If corrective action is not undertaken within the specified timeframe, liquidated damages shall be imposed.
  • Continuity in key roles
    To ensure that the evaluated competence remains in the contract, liquidated damages shall be imposed if named key personnel are replaced without the client’s approval.

Changed conditions for participation in procurements

Changes in the global context, new EU case law and new legislation mean that the conditions for participating in public procurements have changed.
The Administration considers and applies applicable regulations in areas such as security protection, foreign direct investment, foreign subsidies and suppliers’ access to the EU procurement market.

These new legal conditions also include the handling of suppliers from countries outside the EU/EEA (third countries). Following rulings by the Court of Justice of the European Union, contracting authorities may, after a case-by-case assessment, limit the participation of such suppliers in procurements.

Prior to each procurement, the Administration will therefore carry out a specific assessment of the conditions for participation. This assessment will consider factors such as whether the nature of the contract is critical, potential security aspects, effects on market competition, cost implications and other relevant factors.

Overall: Improved opportunities

Together, these changes will strengthen the opportunities for better selection, better tenders, better contractors and better delivery – thereby improving the conditions for successfully delivering future metro projects with high quality, good progress and long-term sustainable results.