Report No. 89/2018 from the Strategic Director for Places was received.

Mr N Begy, Deputy Leader and Portfolio Holder for Planning Policy and Planning Operational, Highways & Transportation, Communications introduced the report, the purpose of which was to seek Cabinet approval for additional funding of £220,448 required to secure a new operator for the Rutland Flyer 1 bus service.

During discussion the following points were raised:

During discussion the following points were raised:

      i.        The Rutland Flyer 1 bus service was well used with approximately 127,000 movements a year and was a commercially viable route.

    ii.        The tender process had resulted in only one response from Stagecoach, whose bid of £270,840 per annum was an increase of £220,448 per year on the existing Centrebus contract.

   iii.        Centrebus had only very recently, and after the tender process had been completed, submitted an alternative bid to operate the service for an additional £39,000. This equated to an annual cost of £89,392 and a saving on the Stagecoach bid of £181,448 annually or £907,240 over the five year life of the contract.

   iv.        The Strategic Director for Places already had delegated authority in order to award the contract but in light of the new information and the considerable sums involved it was prudent to consult with Cabinet on the options available.

    v.        The Head of Legal and Corporate Governance advised that external legal advice had been sought which provided that there were three options that could be considered in these circumstances. These were as follows;

·         The contract could be awarded to Stagecoach, as they were the only ones who had responded to the tender process.

·         The contract could be awarded to Centrebus outside of the procurement process but this would breach the Council’s own rules on this process.

·         The procurement process could be re-run.

   vi.        It would not be appropriate to award the contract to Centrebus as they had not participated in the proper procurement process.

  vii.        Awarding the contract immediately to Stagecoach without consideration of the new information was contrary to the Local Authority duty to evidence value for money and could potentially give way to accusations that the Council had failed to safeguard public resources, particularly in light of the substantial figures involved.

viii.        There was a significant difference between the value of the contract advertised and the costs identified through the tender process

   ix.        Re-running the procurement process would be considered a proportionate and responsible response for the Council, as holders of the public purse.

    x.        Any re-run of the process would need to be expedited as soon as possible in order to ensure the seamless continuation of the service.

   xi.        Having debated the issue, officers would consider the options in consultation with the Portfolio Holder and update Cabinet on the proposed course of action.

  xii.        Cabinet were clear that the seamless continuation of the service was of the utmost importance when considering the options.

xiii.        The termination clause in the Contract gave each side a three month notice period without penalty.

DECISION:

1.    Cabinet APPROVED the additional funding of £220,448 required to continue operating the Rutland Flyer 1 (RF1) bus service.

Reasons for the decision

1.    The recommendation would ensure continuity of service for users of the RF1 bus service.

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Mr D Pye left the meeting and did not return.

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