CVU and TfL Parting Company

The request was partially successful.

Dear Transport for London,
All information about CVU and TfL deciding to part company by mutual consent during a meeting and the appointment of another to address the contract
Yours faithfully,
Peter Anderson

FOI, Transport for London

Dear Mr Anderson

 

TfL Ref: FOI-2335-1819

 

Thank you for your email received by Transport for London (TfL) on 3
December 2018.

 

Your request will be processed in accordance with the requirements of the
Freedom of Information Act and TfL’s information access policy. 

 

A response will be provided to you by 4 January 2019.

 

We publish a substantial range of information on our website on subjects
including operational performance, contracts, expenditure, journey data,
governance and our financial performance. This includes data which is
frequently asked for in FOI requests or other public queries. Please check
[1]http://www.tfl.gov.uk/corporate/transpar... to see if this helps you.

 

In the meantime, if you would like to discuss this matter further, please
do not hesitate to contact me.

 

Yours sincerely

 

Eva Hextall

FOI Case Officer

 

FOI Case Management Team

General Counsel

Transport for London

 

 

 

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FOI, Transport for London

2 Attachments

Dear Mr Anderson

 

TfL Ref: FOI-2335-1819

 

Thank you for your email received by Transport for London (TfL) on 3
December 2018.

 

Your request has been considered in accordance with the requirements of
the Freedom of Information Act and our information access policy.  I can
confirm we hold some of the information you require. You asked for:

 

All information about CVU and TfL deciding to part company by mutual
consent during a meeting and the appointment of another to address the
contract.

 

In response to significant budgetary pressures, TfL decided to reduce
expenditure on highway capital renewals and maintenance. As a result, it
was projected that there would be a significant decrease in the volume of
services required to be delivered through the London Highways Alliance
Contract (LoHAC). Following meetings between TfL and all the LoHAC
contractors, this was projected to result in negative impacts on the
contractors’ ability to sustain the services. Accordingly, TfL and CVU
(the central area contractor) agreed to vary the central area contract so
that from 21 May 2018, CVU would no longer provide TfL core highways
maintenance services, but would continue to provide the services for
relevant London boroughs. CVU continues to deliver capital works. Ringway
Jacobs, the north east area contractor, is providing core highways
maintenance services in the central area until the LoHAC framework
expires. In the meantime, TfL has begun the process of re-procuring the
highways maintenance and capital renewals services. TfL published a Prior
Information Notice on 4 May 2018 to commence market engagement on the
future suite of highways maintenance, capital delivery and associated
assets contracts. TfL is intending to commence the formal procurement
process for these suite of contracts in June 2019.

 

Please find attached a letter that was sent to CVU (and the LoHAC
contractors) last year.

 

Please note that in accordance with TfL’s obligations under Data
Protection legislation some personal data has been removed, as required by
section 40(2) of the FOI Act. This is because disclosure of this personal
data would be a breach of the legislation, specifically the first
principle which requires all processing of personal data to be fair and
lawful. It would not be fair to disclose this personal information when
the individuals have no expectation it would be disclosed and TfL has not
satisfied one of the conditions which would make the processing ‘fair’.

 

We don’t hold any minutes from the meetings we had with the LoHAC
contractors. The outcome of the negotiations was documented in a paper,
however the paper is exempt from disclosure under section 43(2) –
commercial interests.

 

In this instance the section 43(2) exemption has been applied to the
document as its disclosure would be likely to prejudice our commercial
interests, as well as those of the companies concerned. Prejudice would be
likely to occur when we go out to tender for this and similar services in
the future. Disclosing this information could also be harmful to CVU’s
ability to compete for tendering opportunities with other companies in the
future, as their competitive edge would inevitably be prejudiced by
disclosure of the outcome of the commercial negotiations.

 

The use of this exemption is subject to an assessment of the public
interest in relation to the disclosure of the information concerned. TfL
recognises the need for openness and transparency by public authorities,
particularly where the expenditure of public money is concerned, but in
this instance the public interest in ensuring that CVU’s ability to
compete for tendering opportunities haven’t been put at risk and that TfL
is able to obtain the best value for public money with regards to the
highways maintenance services, outweighs the general public interest in
increasing transparency of TfL’s processes.

 

If this is not the information you are looking for, or if you are unable
to access it for some reason, please do not hesitate to contact me.

 

Please see the attached information sheet for details of your right to
appeal as well as information on copyright and what to do if you would
like to re-use any of the information we have disclosed.

 

Yours sincerely

 

Eva Hextall

FOI Case Officer

 

FOI Case Management Team

General Counsel

Transport for London

 

 

 

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Dear Transport for London,

Please pass this on to the person who conducts Freedom of Information reviews.

I am writing to request an internal review of Transport for London's handling of my FOI request 'CVU and TfL Parting Company'.

You have supplied 2 pages of a TfL letter. I am seeking all exchanges.

All information about CVU and TfL deciding to part company by mutual consent during a meeting and the appointment of another to address the contract

A full history of my FOI request and all correspondence is available on the Internet at this address: https://www.whatdotheyknow.com/request/c...

Yours faithfully,

Peter Anderson

FOI, Transport for London

Thank you for your request for an internal review which was received on 8 February 2019

You have stated that you are dissatisfied with the handling of your request for information under the Freedom of Information Act.

The review will be conducted in accordance with TfL’s Internal Review Procedure, which is available via the following URL:

http://content.tfl.gov.uk/internal-revie...

Every effort will be made to provide you with a response by 8 March 2019. However, if the review will not be completed by this date, we will contact you and notify you of the revised response date as soon as possible.

Yours sincerely

Emma Flint
Principal Information Access Advisor
FOI Case Management Team
General Counsel

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Dear FOI,

When will you provide the review?

Yours sincerely,

Peter Anderson

FOI, Transport for London

Dear Mr Anderson

Thank you for your email. I am still liaising with the appropriate business area regarding your internal review appeal, I apologise for the delay. As soon as I am able to provide a response I shall.

Yours sincerely

Emma Flint
Principal Information Access Adviser
Transport for London
[TfL request email]

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FOI, Transport for London

4 Attachments

Dear Mr Anderson

 

I am contacting you with regards to your request for an internal review
appeal concerning the response provided to FOI-2335-1819. I apologise for
the delay in responding.

 

During the course of this review I have liaised with the Lead Commercial
Manager for Procurement and LoHAC and he has provided the additional
information below and attached. It is clear that not all information
caught within the scope of you request was identified and fully considered
for disclosure when you first made your request, please accept my
apologies for any inconvenience this may have caused.

 

The LoHAC contract for each of the 4 areas was awarded in 2012 and
commenced in April 2013. As a consequence of being tendered during the
economic recession, contract rates were relatively low in common with many
construction contracts let at that time. As the UK climbed out of
recession, contractors experienced an increasing challenge to deliver the
services while faced with increasing industry costs. Moreover, TfL was not
able to instruct the volumes of work the contractors had anticipated at
the time of tender. This was compounded by the HTMA 2010 series
inflationary index in the contract increasing at a lower rate than
industry costs. However, the contractors undertook a number of initiatives
to maintain their contractual commitments and deliver the services,
including re-structuring internally. From time to time, TfL experienced a
marginal reduction in quality in some areas although performance was
generally stable but there was a growing list of contractual claims being
raised, totalling tens of million pounds in quantum (as raised). One such
claim in relation to restricted working was taken to the Technology and
Construction Court in 2017, which TfL subsequently won. In conclusion, the
contract was operating in an air of challenging circumstances prior to TfL
having to reduce budgets in 2017.

 

Below is a timeline of actions:

 

•November 2017 – In response to financial challenges, TfL decided to make
budgetary cuts to highways spending. The cuts were significant, and was
reported at the time to be in the region of 20% cut to maintenance work,
and a 100% cut on capital renewals. Due to the structure of the LoHAC
contracts, TfL was concerned about the financial impact on contractors, as
well as potential deterioration in the services performed.

 

•November 13, 2017 – TfL met with and subsequently wrote to all LoHAC
contractors (already provided) notifying the cuts and asking for their
views on potential impact.

 

•November 24, 2017 - CVU responded by letter (attached) setting out the
options they consider appropriate.

 

•November 27, 2017 – CVU presented detailed impacts on their operations to
TfL (by slide deck not handed over to TfL).

 

•December 12, 2017 – TfL wrote to CVU (attached) responding to the
letter/presentation, responding to some key points raised, and shared the
proposals made by the remaining three contractors.

 

•December 15, 2017 – TfL met with CVU on Dec 14 and discussed the options
in further detail, confirming in writing intentions to enter into further
discussions on Dec 15 (attached).

 

•December 15, 2017 – CVU response (attached).

 

•December 2017 to February 2018 – TfL and CVU entered into a series of
discussions and negotiations, which concluded in a mutual agreement for
CVU to end their provision of the core maintenance services on 31 March
2018, due to lack of sustainability following TfL’s reduction of budgets.
These discussions included arrangements for CVU to move out of the depot
at Armada Way (constructed by CVU on TfL land), dispose of plant and
fleet, cessation of physical works, cessation of design services,
resolution of network defects, final accounts for works completed since
contract commencement up to that point, volume rebates etc. CVU remained
on the framework agreement however to complete their commitments with
London Boroughs and TfL with regards the other capital enhancement
projects..

 

•In parallel with the CVU discussions, TfL had entered discussions with
the other three LoHAC contractors (Ringway Jacobs, Kier and Conway AECOM).
The circumstances of each contractor was different, and TfL’s
conversations with the others were limited to:

- mitigating the impacts;

- settlement or withdrawal of outstanding claims; and

- settlement of final accounts.

 

•TfL entered into a separate agreement with Ringway Jacobs to deliver the
reduced highway maintenance services in the central area vacated by CVU,
while TfL started to implement plans to re-tender the contracts.

 

•The authority paper (previously sent) set out the outcome of the
discussions.

 

Please note that in accordance with TfL’s obligations under Data
Protection legislation some personal data has been removed, as required by
section 40(2) of the FOI Act. This is because disclosure of this personal
data would be a breach of the legislation, specifically the first
principle which requires all processing of personal data to be fair and
lawful. It would not be fair to disclose this personal information when
the individuals have no expectation it would be disclosed and TfL has not
satisfied one of the conditions which would make the processing ‘fair’.

 

I hope the above information provides satisfactory clarification, however
if you are dissatisfied with the internal review actions to date you can
refer the matter to the independent authority responsible for enforcing
the Freedom of Information Act, at the following address:

 

Information Commissioner’s Office

Wycliffe House

Water Lane

Wilmslow

Cheshire SK9 5AF

 

A complaint form is also available on the ICO’s website
([1]www.ico.org.uk).

 

Yours sincerely

 

Emma Flint

Principal Information Access Adviser

FOI Case Management Team

Transport for London

[2][TfL request email]

 

 

 

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References

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