Work by Price Waterhouse, and subsequently by PricewaterhouseCoopers included the following:
- review with London Underground of the procurement options open to London Underground and detailed presentation of alternative models to Government;
- providing input to the overall design of the PPP;
- development of the PPP structure, including design of the Infracos and LUL interfaces;
- supporting LUL in reorganising into four separate businesses and the preparation of information to support the bid process;
- development of the London Underground output requirements and performance measurement regime;
- continual updates on LUL performance and determining benchmark levels of performance;
- review of the PFI arrangements and their interfaces with the PPP;
- supporting negotiations with Railtrack;
- supporting the tender process and LUL's negotiations with all bidders;
- financial review of bids in conjunction with LUL bid evaluation team; and
- assisting LUL with financial close and interest rate risk management.
Table 2 OTHER FIRMS USED BY LONDON UNDERGROUND
Company | Spending levels |
| Activity |
Up to £100,000 |
|
|
|
Arnold & Boston | £20,000 |
| Architects |
Symonds | Over £20,000 |
| Project management-Windsor House |
"Mystery shopper" | £30,000 |
| Setting up and testing ambience measurement |
Cazaley | £30,000 |
| Construction work-Windsor House |
Dearle & Henderson | £50,000 |
| Cost management (asset knowledge) |
Aslan | Over £50,000 |
| Support on engineering standards work |
Kvaerner | Over £50,000 |
| Engineering support (asset knowledge) |
Eurica consulting | £60,000 |
| Consulting |
Touchstone Renard | £60,000 |
| Technical review of asset data |
Soil Mechanics | Over £80,000 |
| Survey information |
Between £100,000 and £1 million |
|
|
|
Harris & Porter | Over £100,000 |
| Project management-accommodation |
Haswell | Over £100,000 |
| Bid evaluation-technical support |
Kennedy & Donkin | Over £100,000 |
| Engineering support (asset knowledge) |
Mellish & Lynch | Over £100,000 |
| Quantity Surveyor-support on cost databases |
Osprey | Over £100,000 |
| Project management |
Steer Davies Gleave | Over £100,000 |
| Customer survey |
TFPL Ltd. | Over £100,000 |
| Reorganisation of deeds room, etc |
William Dick Partnership | Over £100,000 |
| Commercial managers-Windsor House |
WS Atkins | Over £100,000 |
| Eng support (asset knowledge) |
Bacon & Woodrow | £150,000 |
| Pensions services and advice |
Nigel Rose and Partners | Over £150,000 |
| Bid evaluation-quantity surveyors |
Decision Focus | Over £170,000 |
| Modelling early PPP structural options |
Slaughter and May | Over £200,000 |
| Legal services |
Royal Bank of Canada/ | Over £200,000 |
| Advice on interest rate hedging strategy |
Ernst & Young |
|
|
|
Opteama | Over £200,000 |
| Engineering consultants (process mapping) |
Metro Consulting | Over £250,000 |
| Bid evaluation-train operations |
Computercenter Limited | Over £300,000 |
| Computers and accessories |
ITNET | Over £400,000 |
| IT services |
Cap Gemini | Over £400,000 |
| Information technology services |
AEA (and Risk Solutions) | Over £500,000 |
| Design/test safety management structure |
Marsh (formerly Sedgwick) | £520,000 |
| Insurance services and advice |
Hobley Nesbit | Over £570,000 |
| Commercial/management support to H&H |
PML Ltd. | Over £700,000 |
| Bid preparation and checking |
Field, Fisher, Waterhouse | £750,000 |
| Legal advice to LRT on transfer to TfL |
Over £1 million |
|
|
|
Bank and legal fees | Over £1 million |
| PPP interface with Northern Line PFI deal |
Richard Ellis | Over £1 million |
| Property services and advice |
ICL (and others) | Over £1 million |
| IT services |
Overbury | Over £1.2 million |
| Office refurbishment |
Pugh Roberts (to end March 2001) | £2,200,000 |
| Dynamic Simulation Modelling |
KPMG | £2,400,000 |
| Audit and review of Public Sector Comparator methodology |
Hornagold & Hills | Over £2.5 million |
| Project management and related services |
Source:
Project records provided to the NAO support the stated estimates. Precise figures could be compiled, but only after confirming the amounts with each individual firm to eliminate errors in data interpretation, such as possible double counting.
Table 3 UNSUCCESSFUL BIDDERS COSTS
£ million | Tuberail (JNP) | LINC (BCV and SSL) | Tube Lines SSL Group (SSL) |
Internal costs | 4.9 | 10.9 | 5.4 |
External costs-legal | 3.7 | 2.0 | 1.2 |
External costs-other | 2.4 | 6.9 | 1.5 |
Total Bid | 11 | 19.8 | 8.1 |
Total Paid | 11 | 14 | 7 |