West Coast franchise chaos could improve public procurement

17th Oct 2012

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121017WC2bigContracting experts are optimistic that the West Coast Main Line train franchise debacle will lead to improved procurement for all Government transport projects.

The competition to run trains on the West Coast route was cancelled in October by Transport Secretary Patrick McLoughlin following “significant technical flaws” in the way the franchise process was conducted. Three officials involved in the competition have been suspended and the Transport Secretary has ordered two independent reviews, one to look at what went wrong on the West Coast and the second to consider rail franchise procurement.

This week Government announced that Virgin Rail would continue running WCML until the franchise can be rebid.

“What might emerge from the procurement review is a way to make the whole process more efficient and less risky,” said Steve Rowsell of procurement specialist Rowsell Wright. “Public projects such as construction work for the Olympics and Crossrail have gone through major procurements and not experienced problems,” he said. Those programmes were procured by delivery organisations employing specialist expertise at arms length from Government departments.

Rail franchises in the privatised rail industry used to be procured by the Strategic Rail Authority before the role was taken back into DfT in 2006.

CIHT Past President and Morgan Sindall highways manager Chris Jackson said the West Coast issue “will demonstrate how important it is for public procurement processes to be set up so that bids can be clearly compared on a like for like basis. And there needs to be a proper balance of in house experience and outside expertise in the assessment teams.”

The cost of the West Coast Main Line bids could amount to £100M according to some reports and will be repaid by Government to franchise competitors Virgin Rail and FirstGroup. “This should focus attention on making the public procurement process much cheaper and more efficient,” Mr Jackson said.

“Efficiency in procurement is vital to allow bidding organisations to put in their bids without an excessive burden on their overheads. I feel optimistic that out of this will come some good for all Government transport procurement,” he said.

 
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