Fresh hope for Bombardier
Troubled Derby trainmaker Bombardier has been thrown a potential lifeline as Crossrail announced it would delay its tendering process for the supply of rolling stock until 2012. The move has sparked hopes that the £1bn contract for 60 new trains could be awarded to a UK-based firm. The Derbyshire and Nottinghamshire Chamber of Commerce told Insider the move was "encouraging".
Crossrail’s official reason for delaying the process is to save public money, but it said it would also allow "the conclusions of the government's review of public procurement to be taken into account".
The government said it was committed to reviewing the Department of Transport’s procurement process after Bombardier lost out on the £1.4bn Thameslink contract earlier this year.
Crossrail said: "Crossrail now expects tender documents to be issued in 2012 to ensure that the bid period is not extended unnecessarily resulting in increased costs to bidders. Crossrail had previously indicated that the tender would be issued in late 2011 with contract award in late 2013.
"The review of public procurement is examining whether the UK is making best use of the application of EU procurement rules, as well as the degree to which the government can set out requirements and evaluation criteria with a sharper focus on the UK’s strategic interest and how the government can support businesses and ensure that when they compete for work they are doing it on an equal footing with their competitors."
Bombardier recently announced plans to axe more than 1,400 jobs in Derby after Siemens was selected as preferred bidder in the Thameslink process. The Canadian-owned company is currently conducting a review of its UK businesses that could result in the closure of the Derby plant.
Bombardier said: "The fact that the Crossrail rolling stock procurement is to be rescheduled is welcome news in the light of recent events. The rescheduling will give time to ensure that the invitation to tender will allow the results of the government's review of procurement to be included."
Four companies have been shortlisted for the Crossrail contract: Bombardier, Construcciones y Auxiliar de Ferrocarriles SA (CAF), Hitachi Rail Europe and Siemens, which won the Thameslink deal.
The £16bn route will link Berkshire and Essex to central London and will open in May 2017.
Scott Knowles, the chamber of commerce's deputy chief executive, told Insider that "clear changes" now needed to be put in place after Derby-based Bombardier lost out on the Thameslink deal.
He said: "Whilst this decision won't have any bearing on the Thameslink situation regarding Bombardier, it is encouraging to see that the government has finally acknowledged how flawed its procurement process is and is reviewing its procedures before awarding any more major contracts."
"What we need to see now are clear changes put in place to ensure that the way the government awards such contracts in the future does not automatically put UK business at a disadvantage. Protecting UK businesses, jobs and skills should be at the very heart of this process."
