Specialists International
This Knowledge Check examines Transport for London's application to lift the automatic suspension that prevented entry into its new revenue collection contract. The court had to decide whether Cubic Transportation Systems Limited should remain protected by interim relief while its procurement challenge awaited trial.
Cubic was the unsuccessful tenderer for the Proteus Contract, a seven-year contract worth about £800 million, with a five-year extension option. Transport for London selected Indra Sistemas S.A. after conducting a competitive procedure with negotiation under regulation 29 of the Public Contracts Regulations 2015. Cubic challenged the tender evaluation, and the claim triggered the automatic suspension under regulation 95(1).
The court applied the American Cyanamid test. Transport for London conceded a serious issue to be tried for this application. The judge held that damages would adequately compensate Cubic if it later succeeded, while delay to passenger benefits and operational risks could not readily be compensated. The automatic suspension was lifted.
- The parties, the Proteus Contract and the procurement outcome
- The revenue collection services and the existing contract's expiry
- The competitive procedure under regulation 29 of the 2015 Regulations
- The automatic suspension under regulation 95(1) and the application under regulation 96(1)(a)
- The American Cyanamid questions applied by the court
- The burden on an unsuccessful tenderer when damages are said to be inadequate
- The evidence required for alleged reputational and future-contract losses
- The effect of downsizing and workforce losses on adequacy of damages
- The delay and operational risks relied upon by Transport for London
- The balance of convenience and the order lifting the suspension