05.01.2021

Successful completion of contract award procedure: BVG awards a tram contract worth several hundred million euros

Berlin – Shortly before the end of last year, Berlin’s public transport company BVG (which is short for Berliner Verkehrsbetriebe) awarded a 10-year framework contract for the procurement of trams. For the whole procurement project, which lasted several years and comprised several steps, BVG was advised by Luther Rechtsanwaltsgesellschaft, from the preparations up to the award of the contract.

The minimum volume of the contract is around EUR 350 million. In addition, it has been agreed that the manufacturer of the vehicles will supply replacement parts during the entire lifetime of the vehicles.

As a result, BVG can now order up to 117 new bidirectional vehicles from the manufacturer Bombardier Transportation.

The new trams will have innovative undercarriages, they will make less noise and be more energy-efficient than the vehicles in the existing fleet. In this way, the procurement of the new vehicles will contribute not only to more mobility in the growing city but also to the development of a sustainable and climate-friendly traffic system.

“The framework supply contract that has been developed is an important milestone in the mobility turnaround”, said Ute Bonde, Head of Legal at BVG, adding that: “The course for sustainability and climate protection must be set already at the procurement stage.”

At the end of 2016, as part of the “Futureproof procurement of vehicles” programme, BVG had organised an invitation to tender for the supply of vehicles and of the relevant replacement parts during the lifetime of the vehicles.

Because of the importance of the transaction for local transport in Berlin, the law firm Müller-Wrede, Berlin, was instructed additionally in 2019 at the request of BVG’s Supervisory Board. The further procedure was then handled by the two law firms jointly on behalf of BVG.

On behalf of Berliner Verkehrsbetriebe (BVG):

Luther, Public Procurement Law: Ulf-Dieter Pape (Partner), Dr Rut Herten-Koch (Partner)

Luther, Commercial and Distribution Law: Jens-Uwe Heuer-James (Partner)

Müller, Wrede & Partner: Malte Müller-Wrede (Partner), Dr Melanie Plauth (Associate)

Berliner Verkehrsbetriebe: Ute Bonde, Head of Legal