Stockholm Metro gives quality greater weight in tenders

Region Stockholm is changing how contractors are selected for upcoming metro construction contracts. The revised approach is intended to improve the chances of awarding contracts to companies that can demonstrate strong delivery capability, suitable expertise and a credible plan for completing complex infrastructure works. Under the new model, price will remain important, but contractors will also be assessed more extensively on how they intend to organise, manage and deliver the work. The administration responsible for the Stockholm Metro expansion wants tender evaluations to reflect the contractor’s actual capacity to meet requirements relating to quality, safety, progress and long-term performance. Six areas will influence contractor selection Six central areas will be considered during qualification and evaluation. These cover the bidder’s ability to deliver complex projects, provide an appropriate project organisation, manage and monitor the contract, cooperate with the client and other parties, accept responsibility for risks and commitments, and submit pricing that is both competitive and realistic. The intention is to distinguish between bidders not only through their proposed price, but also through the credibility of their organisation, working methods and implementation plan. Quality may represent up to 60 percent of the evaluation Qualitative added value will receive a significantly larger role in the assessment and may correspond to between 40 and 60 percent in relation to price. The grading system will also include more levels and a more differentiated weighting, making it easier to identify meaningful differences between tender submissions. A tender may be rejected when it does not reach an acceptable level in every evaluated quality area. Bidders may also be asked to complete a case exercise in which they present their proposed response to a fictional project event. This is intended to test whether the competence and methods described in the tender can be applied in practice. Five quality areas receive particular attention The evaluation of added value will focus on five main areas: Organisation and competence: whether the proposed organisation and key personnel are suitable for the complexity of the contract. Contract delivery: how the bidder plans resources, design management, cost control, work environment responsibilities and subcontractor coordination. Collaboration: the ability to establish and maintain effective cooperation throughout the project. Impact on the surroundings: how environmental effects, accessibility and traffic conditions will be managed. Material climate impact: the proposed level of greenhouse-gas impact associated with materials. The bidder must demonstrate both insight into the specific conditions of the contract and a credible ability to deliver what is promised. Tender commitments become contract obligations Region Stockholm is also strengthening the connection between the quality commitments presented during procurement and the contractor’s obligations during delivery. The successful tender will be included as a contract document with a higher position in the order of precedence. If evaluated added values are not delivered, the client may require corrective measures. Financial penalties may apply when deficiencies are not resolved within the stated period. Penalties may also be imposed if named key personnel are replaced without the client’s approval. Participation requirements will be assessed for each procurement The administration will also consider current rules relating to protective security, foreign direct investment, foreign subsidies and access to the European Union procurement market. The participation of suppliers based outside the EU and EEA may be limited following an assessment of the individual procurement. Factors such as the strategic importance of the contract, security considerations, market competition and cost effects may influence that assessment.