Clyde

1
Clyde Hebrides Ferry Services Tender

• Stakeholder Consultation
• February 2007

2
Introduction

• Programme
• Consultation Process
• Service Specification Overview
• Award Criteria
• Sole Bidder Status

3
Programme
4
Consultation Process

• Full consultation with stakeholders,
  including-- Staff- Customers- CFL
  Unions- Local Authorities- NFU etc.

5
Service Specification Overview

• Section 3 ITT minimum standards of service
• Key principles
• Route network
• Vessels
• Harbour Services
• Timetables
• Fare Structure
• Staffing
• Performance Regime

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Key Principles

• Safety standards
• Standards in quality
• Reliability
• Performance
• Compliance
• Objectivity
• Impartiality

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Routes

• Existing network plus-- Kennacraig Islay
  (summer enhancements)- Ardrossan Brodick
  (winter additional sailing)- Oban Craignure
  (winter additional Friday evening sailing)-
  Oban Coll/Tiree (winter additional Sunday
  sailing)
• Mandatory variant bid-- Mallaig Lochboisdale
  (fully costed technical submission)
• Gourock Dunoon and Ballycastle Rathlin not
  part of CHFS tender.

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Vessels

• Obligation to use CMAL fleet (i.e. existing
  vessels). The operator is responsible for--
  Manning- Repairs- Running maintenance-
  Insurance- Supply of spares, consumables and
  fuel
• The Mallaig - Lochboisdale variant bid will fully
  consider the impact of the service on current and
  future fleet deployment.

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Harbour Services

• Existing service to be provided
• Harbour Access and Operating Agreement between
  CFL and CMAL
• Management of liabilities through Public Service
  Contract key issue

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Timetables

• Prescribed current timetable plus limited
  amendments
• Future development of timetable subject to
  Scottish Executive approval
• Limited flexibility to amend future service
  delivery patterns

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Fare Structure

• 2007/2008 prescribed fare structure
• Amendments/variation/reductions subject to
  Scottish Executive approval
• Limited flexibility to manage fare structure in
  the future

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Staffing

• TUPE will apply
• Future pension arrangements to be broadly similar
  to current schemes

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Performance Regime

• Key criteria-- Reliability- Punctuality-
  Harbour inoperability- Vehicle accommodation-
  Contact centre- Customer Service Undertaking
• Key issues-- Lifeline nature of services-
  Relief events- Implications for management and
  audit

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Award Criteria

• The Successful Tenderer will be, in all but
  exceptional and duly justified circumstances, the
  one who meets the Minimum Standards and requires
  the lowest financial compensation.
• Services additional to the Minimum Standard must
  be cash flow positive

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Sole Bidder Status

• The Scottish Executive has confirmed that the
  tender process will continue and that they will
  require the submission of a compliant bid. They
  have made this clear as they still need to comply
  with EU rules.
• It is expected that an even more stringent audit
  trail will be required to ensure that the
  operator will deliver Value For Money (VFM)
  during the contract period.
• V-Ships commented that various constraints
  within the tender do not enable the company to
  maximise its services to the communities directly
  involved and that with no direct control over the
  assets themselves, there would be little
  opportunity for added value via creative
  management and innovation.

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Summary

• Key objective CFL appointed as Successful
  Compliant Tenderer
• Maintain current service levels in the face of
  critical timescales for tender submission
• Award criteria limits opportunity for innovation
  and improvements at this stage
• Management of users expectations

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Clyde Hebrides Ferry Services Tender

• Stakeholder Consultation
• February 2007