INVITATION TO TENDER LOCAL BUS CONTRACTS (REF: CU2497)

Transcription

1 Wards Affected: All Wards ITEM 5 PROCUREMENT AND COMMISSIONING 18 AUGUST 2015 INVITATION TO TENDER LOCAL BUS CONTRACTS (REF: CU2497) Responsible Cabinet Member: Report Sponsor: Author and contact: Councillor Matthew Clifton (Cabinet member for Economic Growth and Inward Investment) Mike Hainge (Service Director Public Realm) Andrew Coleman (Passenger Transport Manager) Tel: Executive Summary: This report is seeking approval to commence the tender process for local bus contracts (up to 5 in total) to start in April 2016 for a period of up to eight years. 1. Recommendation(s) 1.1 That the commencement of an open tender process for the procurement of local bus contracts be approved. 2. Background 2.1 The procurement is needed in order to secure local bus contracts to meet Milton Keynes Council s obligations to provide new bus services to development sites. (For proposed existing contracts to be re-tendered and new contracts proposed to be tendered see Annex A.) 2.2 This report requests approval to obtain tenders for the provision of local bus contracts (up to 5 in total), all of which will be funded by developer contributions. A list of the proposed services/contracts is attached at Annex B. 2.3 Consultation: The draft specifications will make use of the specification already developed for these contracts but will be reviewed in partnership with the Milton Keynes Bus User Group. It is intended that specification options will include options for higher quality (eg new vehicles). A review of the current / previous contracts identified the following: (i) Lessons learned - while the current model of provision usually results in a number of bids for each contract, it does not result in the delivery of higher quality operation across the borough. However, while greater weight could be given to the quality aspects of operating bus contracts, it is proposed to give a greater weight to the price aspect reflecting the continuing pressure on budgets. The quality aspects within the MEAT criteria will concentrate on compliance with the specification and experience in delivering promotional initiatives. P&C ITEM 5 18 AUGUST 2015 PAGE 1

2 (ii) Areas of change / improvement needed have been highlighted by operational experience in relation to punctuality, and the management/supervisory systems in place, especially in response to passenger and Council complaints/comments. 2.4 Specification: The procurement seeks to deliver the following service objectives: (i) Provision of subsidised bus services which meet the Council s obligations to ensure the provision of public transport services to development sites. The standard Specification for vehicles is attached as Annex B. The specification for each contract also includes route and timetable information which varies depending on the individual contract. Public Services (Social Value) Act Officers have reviewed this opportunity and believe that is appropriate to include specific Social Value requirements within the evaluation. These are detailed in the section below. 2.5 Evaluation Criteria and Panel The MEAT evaluation of the tender includes the following tender specific requirements, which are listed below: Area Criteria Level 1 Question Weighting Weighting 1 Tender Price 80% 2 Evidence of arrangements for maintaining services at the standard expected, including procedures for record keeping 2.1 Provide a statement showing how you will comply with the specification by providing a reliable and punctual service. 50% 2.2 Provide sample records showing vehicle and staff allocation, and 10% staff duty sheets. 30% 2.4 Provide details of your enquiries and complaints procedures, including specifically how and when you can be contacted by 20% passengers to discuss issues with the contracts. 3 Marketing and Promotion Please provide examples of projects or services where you have 3.1 undertaken marketing and promotional activities which, if implemented in Milton Keynes, will provide better value to the 5% 100% Council and deliver increased patronage. 4 Social Value 4.1 What additional Social Value outcomes will you bring to the borough of Milton Keynes? These benefits could be social, economic or environmental. 5% 100% Tenders submitted will be evaluated by a panel comprising officers from Client Groups and IPTU staff. Colleagues within Finance and Legal and Corporate Procurement will be engaged to support the tender process. 2.6 Contract Terms and Conditions For the developer funded service to the Western Expansion Area, tenders will be sought for a contract period starting on 1 April 2016 for a P&C ITEM 5 18 AUGUST 2015 PAGE 2

3 period of 60 months, with the option to extend by up to three further periods of 12 months (ending on 31 March 2024) in order to give continuity during the buildout period of the site. (d) For the developer funded service to the Oakgrove site, tenders will be sought for a contract period starting on 1 April 2016 for a period of 18 months (ending on 31 October 2017) in order to tie in with the other subsidised bus service in the same area. The Council s standard Terms and Conditions for contract for Services will be used, together with the Special Conditions for Passenger Transport Services already developed by the Integrated Passenger Transport Unit (IPTU) in conjunction with legal and procurement. Upon approval of this report we will liaise with the legal department to have the Terms and Conditions issued as a formal contract which will then be sealed and stored in the deeds room. The Council s Constitution further requires that all contracts in excess of 100,000 are sealed as deeds with the legal department agreeing contract terms with the client department and making the arrangements for sending out final Terms & Conditions to Contractors and sealing and storage of the final contract in the deeds room. 2.7 Project Management The Council s Project Manager for the procurement is the Passenger Transport Manager. The Council s Senior Client Officer for the procurement and management of these contracts is the Service Director (Public Realm). 3. Alternative Options 3.1 The following options appraisal has been conducted: (d) (e) Do nothing, i.e. cease to provide the services these services are required to meet the Council s obligations to ensure the provision of public transport services to development sites.. Open (single stage) tender this is the preferred option, because historically this method has resulted in a number of bids for each contract, it also gives the opportunity to encourage additional interest from other bus operators. Restricted (two stages - shortlist and then tender) this option does not offer any advantages over the open (single stage) tender process.. Use of an MKC Framework or externally let Framework there are no appropriate frameworks in place. Extending the current contracts this would be possible within the terms on which the previous ones were awarded, but a complete retender gives the opportunity for alternative timetable and route options to be considered. P&C ITEM 5 18 AUGUST 2015 PAGE 3

4 4. Implications 4.1 Policy The procurement seeks to implement / apply the Council s policy for public transport as set out in the Local Transport Plan ( ) adopted by Council in June 2011, and the Bus Strategy adopted by Cabinet in December The award of this contract will progress the following priorities/outcomes within the Corporate Plan : Corporate Plan Priority 29 - Deliver quality and sustainable public transport initiatives and information 4.2 Resources and Risk The costs of these contracts will be met from developer funding. The costs identified within this exercise will be contained within the agreed budget. The Risk Assessment for this contract is available if requested or directly via Members access to GRACE. In summary: The key OPPORTUNITY secured by these contracts is the continued provision of bus services to maintain/improve the accessibility of Milton Keynes residents in those areas where commercial bus services are not being provided to employment and education opportunities and other facilities. The key THREATS for this contract have been assessed as: Risk Likelihood Mitigation Impact after mitigation Total bids may exceed budget available Emphasis on price results in poor quality of operation Medium At the award stage, contracts would only be let within the budget available Medium Robust contract management procedures in place. No bids received for individual contracts Operators will be made aware of the tender round The governance measures set out in 2.7 above provide a basis to conclude that these threats, properly managed represent a MEDIUM likelihood with a LOW Impact. N Capital Y Revenue N Accommodation N IT N Medium Term Plan N Asset Management P&C ITEM 5 18 AUGUST 2015 PAGE 4

5 4.3 Carbon and Energy Management 4.4 Legal The enhancement of local bus services fits in with the Carbon & Energy Management policy which includes an action (9) Use vehicles with low fuel consumption and pollution-reducing technology and ensure their regular servicing and energy conscious operation. Promote and facilitate the use of alternative modes of transport. The Council is exercising its powers under the Transport Acts 1985 and 2000, and the Local Transport Act 2008, to secure bus services in order to meet public transport requirements within the Milton Keynes Council area that would otherwise not be met; to meet the requirements of the Local Transport Plan, which includes targets for bus patronage and the Bus Strategy. The Council is exercising its powers under the provisions of the Road Traffic Regulation Act 1984 (Section 55) as amended by the Traffic Management Act 2004 (section 95) in applying revenue from parking charges to support public transport. 4.5 Other Implications Failure to secure an adequate local bus service network will have a direct impact on the ability to deliver sustainable growth, and will result in increased carbon emissions from private car use. The provision of local bus services seeks to address equalities and diversity issues by ensuring that all people can afford to move around conveniently and safely regardless of their circumstances. All buses new since 2001 have to be compliant to the disability aspects of the Equality Act 2010, but other improvements that might be desirable (such as on-bus audio announcements) cannot reasonably be included in the tender specification. Y Equalities/Diversity Y Sustainability N Human Rights Y E-Government Y Stakeholders Y Crime and Disorder Y Carbon and Energy Policy Background Papers: Local Transport Plan ( ) and Appendices Bus Strategy (December 2008) Proposed re-tendering existing/new contracts (Annex A) Standard Specification (Annex B) P&C ITEM 5 18 AUGUST 2015 PAGE 5