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Issue

Issue - decisions

Portsmouth Supported Bus Services

08/12/2022 - Portsmouth Supported Bus Services

Peter Shelley, Transport Development Manager, PCC Regeneration introduced the report.

 

Members Questions

In response to Members questions, officers clarified:

 

·         The contracts were due to be renewed in December 2020 but due to the pandemic this was not considered appropriate timing.  Procurement advised that, until now, it would not have been possible to obtain realistic responses from a range of operators thereby obtaining best value for Portsmouth residents.

 

·         The money drawn from the parking reserves takes into account inflationary pressures and includes a contract uplift from July through to October.

 

·         The Department for Transport (DfT) required all authorities across the country to undertake a network review when DfT were planning to cease their bus recovery grant funding at the end of September.  During this review, First Bus advised they could no longer continue to run some services and requested funding for the 22 and 13/14.  They were following the Department for Transport formula that all bus operators across the country should work with their local authority.

 

·         Potential legal challenge may come from other bus operators who feel they have been excluded from the opportunity to bid.  Working with procurement, it wasn’t considered that this was a substantial risk due to the state of the bus supply market.

 

·         BSIP money can not be used to subsidise services but can be used to enhance services.

 

·         The 13/14 service would be run on an enhanced basis through to October.  The service was engaging with all the current operators and new potential bidders, giving opportunity for the service to be properly planned by them to run from the end of October.  BSIP money would be used prior to this to improve the service offer.

 

·         The Service had met with Legal Services and Procurement to consider all legal implications and the balance of risk.  Procurement advice was that there would be a danger going out to tender now as the incumbent operator may be the only bidder and therefore the Council would not have a fair market exploration.  The tender process will commence early in 2023 allowing potential bidders time to consider their bids and have new services in place from the end of October.

 

Members Comments

·         Members considered this should be the last time the contract is extended, and that the tender process must now commence.

·         Members supported the bus improvement plans.

 

 

Decision

The Cabinet Member for Traffic and Transportation:

1.    Approved to extend the current supported bus service contracts from 31 July 2023 to 28 October 2023 with delegated authority to the Director of Regeneration in consultation with the Cabinet Member for Traffic and Transportation and Section 151 Officer to complete the extension.

2.    Noted that wavier approval will need to be sought from Procurement and Legal Service in respect of the proposed extensions to the contracts set out above, in accordance with the Council's Contracts Procedures Rules.

3.    Approved the development and implementation by the Transport Service supported by Procurement and Legal Services, of a procurement strategy to re-tender the bus contracts.  This procurement strategy will be informed by demand, developing local and national policy, peer review and soft market testing with bus operators.

4.    Approved the use of Portsmouth Bus Service Improvement Plan (BSIP) expenditure to enhance the services 13,14 and 25 following investigation of options as detailed in the Portsmouth BSIP.  To delegate authority to the Director of Regeneration in consultation with the Cabinet Member for Traffic and Transportation and Section 151 Officer to procure contracts on the above supported bus routes to enhance services.

5.    To procure any necessary local bus services following the ending of Bus Recovery Grant in March 2023 to 28 October 2023 with delegated authority to the Director of Regeneration in consultation with Cabinet Member for Traffic and Transportation and Section 151 Officer.

6.    Noted that a paper will be brought back to a Traffic and Transportation Cabinet meeting following the completion of the procurement process to re-tender the contracts and recommend awards.  This paper would also deal with any short-term procurements following the cessation of Bus Recovery Grant in March 2023.