Transitio - A new agreement for heavy maintenance is expected to save millions
Heavy maintenance of rail vehicles is expensive and lead times are often relatively long. In a market with few suppliers it can be a difficult task to maintain a competitive climate and control costs without sacrificing quality. This was the challenge Transitio faced when Systecon was awarded the responsibility for procuring a multi-year heavy maintenance frame agreement for the Regina and Itino vehicles.
The project was conducted according to plan, and Transitio was very satisfied with Systecon's efforts, partly because of our independent approach to managing the project, also because of the confidence that the participating heavy maintenance suppliers placed in Systecon's consultants. The procurement is expected to save Transitio millions compared to previous procurements undertaken with a very limited number of suppliers.
The project was conducted in four steps: drafting RFP specifications, advertising, negotiations and call-offs.
Drafting RFP specifications
Because the purchase was performed in compliance with the law on supply sector procurement, significant attention was paid to creating complete and accurate RFP specifications. The technical scope of the procurement was developed in close collaboration with Transitio's vehicle managers and with the support of Systecon's Opus Suite software. Meanwhile, the specifications for quality control and delivery processes were established and combined with the commercial terms in a draft agreement.
It was important to make the procurement sufficiently attractive to entice all potential suppliers to submit a proposal. The procurement was advertised in both European and national databases; following the supplier certification, it was clear that there was great interest in bidding. A comprehensive round of Q&A followed, which clarified issues concerning technical specifications and processes prior to the proposals being made.
The submitted proposals were evaluated according to a previously established evaluation model. In order to ensure respect for the principle of equal treatment, all bidders were invited to negotiate, enabling detailed clarifications and the negotiation of finalized frame agreements.
With several frame agreements in place, and using negotiated price and lead-time threshold-values, the first call-offs were prepared. The selected call-off volume was heavily based on criteria related to component and vehicle availability, and conditions were optimized to provide the suppliers an opportunity to offer their highest quality at the best price. In terms of procurement procedure, the call-off was executed in a second competitive procurement entirely in line with the regulations of the law on supply sector procurement.