The Southern Integrated Delivery alliance, or SID, will be part of a new enterprise model based on the Project 13 Principles, developed following significant cross-industry consultation over the last two and a half years, including as part of the Project 13 Adopter Community.
Four partners have been selected to join Network Rail’s Works Delivery team in forming an innovative, performance-based alliance to deliver the Southern Region's up-to £9bn estimated renewals portfolio over the next ten years.
The partners will be VolkerFitzpatrick for Buildings and Civils, Octavius for Electrification and Plant, VolkerRail for Track and Atkins for Signalling, and will cover Control Period 7 (2024-2029) and Control Period 8 (2029-34). Work is underway deciding the renewals budget for CP7 as Network Rail works to agree a final settlement with the regulator.
With the SID, the Southern Region seeks to make a transformational change in how renewals work is delivered by merging the capabilities of Network Rail and its supply chain to develop an integrated and coordinated approach to delivery.
Through tying efficiency savings found by partners to increasing the workbank, and linking profit to extra work delivered, the SID will make the best use of resources, maximise efficiencies and be collectively incentivised to deliver value for taxpayers and the right outcomes for passengers, freight and railway funders.
What is the model and how will it work?
The model for CP7 and CP8 will be based around three distinct entities: the Capable Owner, Southern Integrated Delivery (SID) and the Eco-System. The model will replace the existing Regional Asset Management and Capital Delivery operating structure and will require a fundamental shift in leadership, governance, behaviours, and skills.
The Capable Owner will provide strategic direction and leadership and oversee the delivery of the overall enterprise. The focus will be on the delivery of outcomes, meaning a significant change in expressing what we wish to achieve, rather than how it should be done or how it should be delivered.
Southern Integrated Delivery (SID)
The SID will be a fully-integrated team that will bring together the strengths, capabilities, and knowledge of the Supply Chain and Network Rail. It will own the renewals work bank, manage it at the portfolio level and drive a transition to a production management ethos. The SID will be commercially aligned and jointly incentivised - win together / lose together - to create a ‘share in success’ environment.
Business partners within the SID will generate profit through performance against the Final Determination rather than work-done and turnover.
The Eco-system will consist of both strategic and tactical suppliers, to be split depending on the level of influence they may have on final outcomes. Recognising that the key to unlocking efficiencies lies with the SME community, strategic members will be incentivised along similar lines as the SID. Initially the eco-system will be formed of Network Rail and Supplier Frameworks. However, as the Enterprise matures, we intend for the SID to collectively develop a new set of contracting arrangements that will complement the capabilities held within the SID.