Sub-Lease of Class 156 Diesel Multiple Unit

Northern Trains Limited requires the temporary lease of additional rolling stock to support passenger rail operations on the Northumberland line as requested and funded by North East Mayoral Strategic Authority (NEMSA).

The arrangement comprises the sub-lease of one Class 156 two-car diesel multiple units from ScotRail Trains Limited.

The lease makes provision for sub-leasing of the rolling stock to other operators in specified circumstances under the lease, either on a short-term basis (under 48 hours) or on a longer term basis with consent. The lease also permits the assignment, transfer, novation or disposal of all of rights and obligations of the lessee under the lease (a "Transfer") to a public sector company who will also operate the rolling stock on the Northern Network. The lease also contains mechanisms which allow for modification of the rolling stock provided under the lease at the request of either Northern or the lessor, including where this is required by law ("the Modification Provisions"). In the event that the rolling stock is let to a third party, the lease is subject to a Transfer or any of the Modification Provisions are engaged, it is considered that these would be permitted modifications provided for in the contract.

Reason for Direct Award

Single supplier - technical reasons

Having undertaken a review of available rolling stock options and considered operational, technical and deployment requirements, Northern has identified the proposed Class 156 unit (156492) as the only option of meeting its requirements within the necessary timeframe.

The proposed unit is immediately available for transfer from ScotRail Trains Limited and is technically compatible with Northern's existing Class 156 fleet. Introduction of this unit enables Northern to utilise existing operational, maintenance, training and engineering arrangements, thereby minimising implementation risk and ensuring continuity of service provision.

Northern has not identified any reasonable alternative rolling stock solution capable of delivering the required operational benefits within the required timescales. Furthermore, the identified Class 156 unit is available only from ScotRail Trains Limited under the proposed sub-lease arrangement.

Northern has identified that for technical reasons, competition is absent and the contract can be supplied only by the identified supplier. Northern intends to direct award on this basis in accordance with paragraph 6 of Schedule 5 of the Procurement Act 2023.