Stadler challenges award of $2 billion SBB contract

STADLER announced on 28 November that it had launched a legal challenge the previous day in Switzerland against the award of a large fleet order by the Swiss Federal Railways (SBB).

Earlier this month, SBB selected Siemens Mobility as the preferred bidder for a framework contract for up to 200 six-car double-decker EMUs for deployment on Zürich S-Bahn services and in French-speaking Switzerland. A core order for 116 trains worth US$2.48 billion has been confirmed at the same time, with CMUs scheduled to be delivered from the Siemens Krefeld plant in Germany from 2031.

Stadler initially described SBB’s decision to accept a bid that was only partially higher than that of a rival company that would build the trains outside Switzerland as “disappointing”. She said that the price difference between the two offers was only 0.6%.

After detailed analysis of the tender documents, Stadler says she is unable to explain how SBB reached its conclusions. “After thoroughly examining the award decision, we still cannot understand the valuation,” says Peter Spoehler, Chairman of the Board of Management of Stadler. “For this reason, we have decided to file an appeal with the Federal Administrative Court, as stipulated in the award procedure. The court, as an independent judicial authority, should review the award decision to ensure its validity.”

Stadler expressed dissatisfaction with the choice of Siemens trains, which are of a new design and not yet in production, instead of the proven Kiss platform that includes double-decker trains, noting that 153 Kiss EMUs are in use daily with SBB with an average availability of 99%.

The Swiss manufacturer is particularly concerned because it received only half the number of points as the winning bidder in the sustainability category. Since it claims to have been the only bidder to produce the new fleet entirely in Switzerland using aluminum profiles and other components from Swiss suppliers, it says this assessment does not make sense.

Stadler rejects suggestions that it is looking to protect its workforce in Switzerland. “Stadler does not want protectionism and has never called for it,” the company said in a statement. It adds that the company “does not resort to legal remedies except in exceptional cases.”

SBB responds

Before the legal challenge, SBB said it had awarded the contract to Siemens in accordance with the provisions of the Public Procurement Law. According to SBB, “Siemens Mobility submitted the most advantageous offer under the Procurement Code and ranked first in terms of investment costs, operating expenses (energy/maintenance) and sustainability criteria.”

Following Stadler’s latest announcement, SBB issued a statement on November 28, stating that “the award of the main contract was carried out according to a clearly defined process.”

“The tender criteria and requirements were transparently presented and communicated to all bidders. No objection was received. All service providers agreed to the criteria and requirements.”

SBB responds to Stadler about the alleged minimum spread between the two offers by saying: “The spread quoted by Stadler only refers to the cost of capital. Over the full service period of 25 years, the spread between the two offers amounts to a three-digit million sum.”

Regarding the broader context of the contract award, SBB emphasizes: “The decision was based on the objective and independent assessment of individual criteria by approximately 100 SBB professionals. The contract award was not based on a close result. Siemens Mobility’s progress was clear.”

SBB says it cannot determine what impact, if any, the legal challenge will have on the delivery schedule for the new trains, but both parties say they will not comment further while the legal challenge continues.

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