On the franchise competitions

3  Throughout planning, procurement and operation the Department has set specific objectives which reflect its overall priorities to control costs, live within the public funding available and improve railway performance. Although the Department's wider objective of improving the environmental impact of transport was not explicitly stated as an objective in any of the franchises examined, the Department has begun to include environmental issues in its assessment criteria and has added an explicit objective for the South Central franchise (to be let in 2009).

4  The Department's service specifications are generally well thought through, reflecting the objectives set. The Department assesses changes from the previously specified level of service in consultation with stakeholders. These changes are clearly linked to the specific objectives for each franchise and alterations are subject to cost benefit and affordability analysis.       

5  Local bodies are consulted on specification but are not involved in bid evaluation and negotiation. The Department asks relevant local bodies, such as Passenger Transport Executives (PTE), for their views on the service specifications for each franchise. PTEs are not, however, closely involved during subsequent bid evaluation and negotiation.

6  The Department has been successful in stimulating keen competition for franchises. There were three or more bidders on seven out of the eight franchises awarded by the Department and two on the West Midlands franchise. All the winners of the franchises were established UK companies and there was limited interest from overseas companies. There is no sign that incumbency bestows any clear advantage when bidding for franchises.

7  The Department has been successful in letting franchises to the timescales initially established. The Department did not incur any delays, and all four franchises awarded in 2007 were procured by the dates initially envisaged.