1. How many London Boroughs have used the LoHAC contract in each of the following years? Please break this down into the four regions of LoHAC: North West, North East, Central & South. 2013/14 2014/15 2015/16 2016/17 2. Hope many contracts have been let in each of these years and what is the estimated spending expected to go through these contracts over their full duration? Please explain if this includes extensions or not? Please break this down into the four regions of LoHAC: North West, North East, Central & South. 2013/14 2014/15 2015/16 2016/17 3. What are the estimated aggregate savings from using LoHAC in each of these years? Please break this down into the four regions of LoHAC: North West, North East, Central & South. 2013/14 2014/15 2015/16 2016/17 4. Why has no LoHAC annual report been published since 2013/14? 5. How many contracts have resigned form LoHAC since it started?

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Our Ref:          FOI-4892-1718

Thank you for your request received on 16 March 2018 asking for information about the operation of the London Highway Alliance Contract (LoHAC).

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:

1. How many London Boroughs have used the LoHAC contract in each of the following years? Please break this down into the four regions of LoHAC: North West, North East, Central & South.
• 2013/14
• 2014/15
• 2015/16
• 2016/17

LoHAC is a framework of collaborative highways services contracts. Authorities can form individual call-offs with no loss of sovereignty. Developed jointly by London boroughs and TfL, it enables them to carry out a wide variety of tasks using four area-based contractors. The contract framework covers a full range of highways services to both local and TfL road maintenance and improvement works. There is considerable flexibility in the contracts. Participants can take the whole range of services or simply choose the elements that offer the greatest benefits. It is free to join. There are no membership or usage fees and there is no obligation on any participant to use it exclusively.

The contract commenced on 1 April 2013 and aims to improve consistency in the quality of works and materials used, and to minimise disruption by sharing best practice and coordinating works.

LoHAC can be used by any organisation requiring highways-related services within London. This includes the boroughs, utility providers, TfL and any other highway authority.
The contracts and agreements with the four suppliers will run until 2021. New clients can join at any time, up to the end of Year 7.

Borough’s using/signed up to use LoHAC from:

2013/14
North West – Brent
North East – Haringey, Waltham Forest
Central – Islington, Lambeth, Wandsworth
South – Bromley, RB Kingston upon Thames, Lewisham, Sutton

2014/15
North West – Barnet, Harrow
North East – Enfield, Havering, Newham
Central – Camden

2015/16
North East – Redbridge
South – Bexley

2016/17
-

2017/18
North East – Barking & Dagenham
Central – City of London
South – RB Greenwich

We do not record which London Boroughs have used the LoHAC contracts for the four years as each London Borough enters in to their own contract with the LoHAC contractor under the framework.

2. Hope many contracts have been let in each of these years and what is the estimated spending expected to go through these contracts over their full duration? Please explain if this includes extensions or not? Please break this down into the four regions of LoHAC: North West, North East, Central & South.

2013/14 – 11 contracts commenced
(2 in North West; 3 in North East; 3 in Central; 4 in South)

2014/15 – 5 contracts commenced
(1 in North West; 3 in North East, 1 in Central)

2015/16 – 2 contracts commenced
(1 in North East; 1 in South)

2016/17 – 0 contracts commenced

2017/18 – 2 contracts commenced
(1 in North East; 1 in Central)

The answer is based on what year each Borough signed contracts up or started using LoHAC. As stated above, we do not have a record to confirm if the LoHACs did work for each of the Boroughs for each year. The LoHACs Contractors or the Boroughs would need to be asked for estimated spending as the contracts are between those two parties and not with TfL. TfL has used all four LoHAC contractors in all of the years; below is the total spend per year for each contract area for TfL’s call off contract:

  13/14 14/15 15/16 16/17  Total
  App 1-12 App 13-24 App 25-36 App 37-48  
NE RJ     17,722,804.01      26,691,396.20      57,840,829.78      27,305,970.29     129,561,000.28
Central CVU     35,316,024.48      42,667,637.15      67,190,363.12      42,106,361.90     187,280,386.65
South Kier     24,461,106.82      38,705,521.91      42,711,240.44      31,418,374.36     137,296,243.53
NW CA     32,175,734.42      41,107,850.29      64,853,011.42      51,800,962.21     189,937,558.34
       
 Total   109,675,669.73    149,172,405.55    232,595,444.76    152,631,668.76     644,075,188.80

To optimise contractor investment cycles and maximise efficiency the LoHAC framework is in eight years duration with no extension clause. The length of each call off contract is determined between the authority and the contractor. As part of the original procurement process, an OJEU notice was published with estimates for the value of work by areas, as below estimates were:

Area Value
Lot 1 – North East £119,480,000 - £515,380,000
Lot 2 – North West £134,400,000 - £462,000,000
Lot 3 – Central £268,730,000 - £924,870,000
Lot 4 – South £223,950,000 - £742,250,000

3. What are the estimated aggregate savings from using LoHAC in each of these years? Please break this down into the four regions of LoHAC: North West, North East, Central & South.
• 2013/14
• 2014/15
• 2015/16
• 2016/17

As part of the original procurement process, it was estimated that the over the eight years of the framework, the London boroughs and TfL could together save up to £450m.

4. Why has no LoHAC annual report been published since 2013/14?

An annual report was produced after year 1 and year 2 to promote the LoHAC Framework and its benefits to local authorities. From year 3 (2015/16) it was decided not to produce an annual report due to the cost and time associated with producing the document

5. How many contracts have resigned form LoHAC since it started?

No LoHAC contractors have resigned.

If this is not the information you are looking for please feel free to contact me.

Please see the attached information sheet for details of your right to appeal.

Yours sincerely

Gemma Jacob
FOI Case Officer
FOI Case Management Team
General Counsel
Transport for London

[email protected]

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