Agenda item

            The Sub Committee received a report of the Strategic Director, Environment of the decision taken by the Operational Director (Highways, Transportation and Logistics) to award local supported bus Contract Number 232 to a non lowest price tenderer in line with the requirements of Procurement Standing Order 4.2.

It was noted that Halton Borough Council was empowered under the Transport Act 1985 to provide supported local bus services, serving communities which were not served adequately by commercially operated bus services.

Members were advised that the Council had set aside £789,340 from the corporate revenue budget for the provision of socially necessary bus services, which were typically procured through the standard competitive tendering approach.

It was noted that included within the network of supported local bus services, was a long established contract jointly funded by both Halton Borough Council and Warrington Borough Council for the provision of an hourly Monday to Saturday evening service between Widnes Town Centre and Warrington Town Centre via Halton View and Penketh. The costs of the contract were shared by both authorities in proportion to the share of operated mileage of the contract through each local authority area. In this instance the share of costs attributable to Halton Borough Council was 38%. Also in the case of this contract, Halton Borough Council was the lead tendering authority, and was responsible for managing the tendering process and contract quality assurance.

Members were further advised that as the existing Contract number 232 was due to expire on the 31^st January 2009, tenders were invited from local bus companies on a standing list of bus operators, who had previously expressed their interest in undertaking local supported bus contracts. Within the tender documentation it was made clear to the tenderer that the Council would not be obliged to accept the lowest cost tender, but would also consider other quality criteria, such as – age, make and type of vehicle when assessing tenders.

The Council received valid returned tenders from eight separate bus companies. Having reviewed the tenders received, the Operational Director (Highways, Transportation and Logistics) decided to award Contract Number 232 for a period of five calendar years to Halton Borough Transport Ltd on the basis that its tender included the operation of a fully accessible low floor bus. One of the tenders who submitted a lower price than the accepted tender was disqualified, due to reported problems of vehicle maintenance and operational difficulties, when operating supported bus service contracts on behalf of a neighbouring local authority. These issues only came to light during the tendering exercise. The second lowest tenderer only offered the provision of a high step entrance bus within its submission.

In addition a summary of the costs of the submitted tenders were outlined in the report and it was noted that Halton Borough Transport had submitted the third lowest tender.

This therefore meant that the cost of the new replacement Contract Number 232 was £36,443 per year. The current cost of the contract with the incumbent operator was £34,048. Although there had been a small increase in the contract cost as a result of the tendering exercise, the new contract, which would take effect from 2^nd February 2009, would include the provision of a new low floor fully accessible bus which was fitted with CCTV for passenger safety and security. These features were not provided by the existing operator.

There would be a small change to the route of the supported 110 service, which operates Monday to Saturday evenings within Warrington Town Centre as a result of this re-tendering exercise. Due to the increased size of the vehicle to be used, by the successful tenderer, the new contract would have to operate via Priestley Street and Froghall Lane in Warrington Town Centre (serving Warrington General Hospital’s Guardian Street entrance), instead of the existing route which serves the Hospital via Lovely lane. This change in route would be publicised extensively to existing passengers.

            RESOLVED: That the decision by the Operational Director (Highways, Transportation and Logistics) to award local supported bus Contract Number 232 to a ‘non lowest’ price tenderer (Halton Borough Transport Ltd), in line with the requirements of Procurement Standing Order 4.2 be endorsed.