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Welcome to: Operator Information Meeting Thursday 25 th June 2009 EU Tenders for Local Bus Service Contracts PowerPoint Presentation
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Welcome to: Operator Information Meeting Thursday 25 th June 2009 EU Tenders for Local Bus Service Contracts. Introductions Chris Saffell Team Leader – Contracts Arnold Lupunga Procurement Officer – Corporate Resources. Agenda How will EU tenders work? What will be different?

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Presentation Transcript
slide1
Welcome to:

Operator Information Meeting

Thursday 25th June 2009

EU Tenders for Local Bus Service Contracts

slide2
Introductions

Chris Saffell

Team Leader – Contracts

Arnold Lupunga

Procurement Officer – Corporate Resources

slide3
Agenda

How will EU tenders work?

What will be different?

Award Criteria

De Minimis exceptions

Conditions of Contract

Forthcoming tenders

Questions and Answers

slide4
How will EU tenders work?

Not a Framework

Open procedure for each contract

Business as usual

Existing standing list

slide5
So what will be different

OJEU notice for each tender process

ITT within 4 days of notice

Minimum 36 days to return tenders

Notification of Intended Award

10 day standstill period before contract award

Award notice in OJEU

slide6
Award Criteria

Must publish award criteria in tender

Lowest price vs. Most Economically Advantageous Tender (MEAT)

Current Practice

Transparency, fairness

So what will the Council go for……

slide7
………MEAT

Standard Method to determine MEAT

Award to lowest price for vehicle option 3

If difference between lowest price for vehicle option 3 and 2 is less than 15% of revenue, award for vehicle option 2

If difference between lowest price for vehicle option 2 and 1 is less than 10% of revenue, award for vehicle option 1

Higher quality vehicle generates extra revenue. Is it enough to cover extra cost?

slide8
Example (standard method)

Lowest tender vehicle option 1: £85k

Lowest tender vehicle option 2: £75k

Lowest tender vehicle option 3: £71k

Revenue: £30k

Difference between lowest price for vehicle options 3 and 2 is

£4K

But option 2 will generate 15% revenue (£4.5k)

Therefore option 2 is better value

Difference between lowest price for vehicle options 2 and 1 is

£10k

But option 1 will only generate 10% revenue (£3k)

Therefore award contract for vehicle option 2

slide10
But there is an exception

For an existing contract awarded for vehicle option 1

Publish current contract price in tender

Award criteria – lowest price for vehicle option 1 if not more than 3% greater than current contract

If more than 3%, use standard method to determine MEAT

Some protection against reduction in vehicle quality

slide11
Example (current vehicle option 1 contract)

Lowest tender vehicle option 1: £85k

Lowest tender vehicle option 2: £75k

Lowest tender vehicle option 3: £71k

Current contract price (vehicle option 1): £83k

Lowest tender vehicle option 1 only 2.4% more than current price

Therefore award contract for vehicle option 1

If lowest tender vehicle option 1: £90k

Use standard method

Award for vehicle option 2

slide12
De Minimis

Exemption from need to tender

EU overrides UK

1st test - EU exempt

Total contract value less than £54,327 (no more than 20% of all LBS contracts) or

Passenger fare income is greater than the subsidy provided under the contract

2nd test – UK TA85 exemption

Contracts with any operator not exceed 25% of value all LBS contracts

slide13
Contract Procedure Rules (CPR)

Contract value >£1k and <£50k over full life

Exempt where:-

Service can only reasonably be provided by varying or extending route of existing commercially operated service or

Early morning, evening or Sunday service required to supplement daytime commercially operated service and commercial operator provides best value for Council and passengers

Contract value >£50k

No standing exemption

Any case where contract awarded without inviting tenders needs Cabinet approval

slide14
Conditions of Contract

EU tenders – new C of Cs (Schedule 2)

Already consulted

Existing contracts – retrospective sign up to new C of Cs

slide15
And Finally

OJEU notice placed for 1st EU tenders

Tenders go out this week

CircleLine, 45, 99

Contracts start end October 09

Further tenders (148, CH/Racecourse P&R)

OJEU, ITT mid/late Sept

Start end Jan 10