Department for Transport

DfT statement [[East Midlands franchise award]]
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date 2 May 2019
source Department for Transport
type Statement

A DfT spokesperson said:

“Abellio were awarded the franchise after presenting the strongest overall bid which delivers the best deal for rail passengers. Stagecoach submitted non-compliant bids for the East Midlands Railway franchise and all current competitions, repeatedly ignoring established rules by rejecting the commercial terms on offer. In doing so, they are responsible for their own disqualification.”

“An expert third-party investigation established conclusively that Abellio did not access any information relating to any other bidders that affected their bid. There was no effect whatsoever on the outcome of the bid process.”

Background
o A standstill is a short-term period in which final signature of a contract is paused to allow unsuccessful bidders to consider their position.
o This is standard procurement practice. Answering unsuccessful or disqualified bidders’ questions within standstill periods enables them to reconsider any legal action they may be proposing and is intended to avoid the need for proceedings to be issued.
o We have previously agreed to such requests when successfully awarding the West Midlands and South Western franchises in 2017.
o The Government wants train operator sections of the Railways Pension Scheme (RPS) that are fair, affordable and sustainable for a diverse range of employees, employers, taxpayers and farepayers. There are no additional demands for operators to take risk in relation to the Railways Pension Scheme.
o There has never been a Crown Guarantee on TOC sections of the Railways Pension Scheme. In the vast majority of franchises, franchisee have been on full risk for changes to employer contributions during their franchise term since the Railways Pension Scheme was established.
o We have total confidence in our process.

Railhub Archive ::: 2019-05-02 DfT-001