a The Department should capture the costs and benefits from the different approaches it has taken to managing uncertainty around, for example, the Thameslink, Southern and Great Northern, InterCity West Coast and Great Western franchises. It should use this to inform decision-making on franchises where there are challenging interdependencies with infrastructure improvement and the introduction of new rolling stock.
b The Department should develop alternatives to its current commercial approach so it is well placed to deliver value for money if market interest falls to a level where intense competition cannot be guaranteed. This could involve introducing more negotiation and dialogue with bidders to drive a better deal.
c The Department should assess the maturity of the programme, including its procurement and commercial capability, to establish whether it is ready to take a more flexible approach to managing franchises. The Brown Review recommended that the Department and operators establish a contractual relationship based on partnership but the Department has not yet started to do this.
d As part of the Department's analysis of the success of measures to incentivise improvements to the passenger experience, it should capture the costs of implementing such measures alongside the benefits. The Department will need to understand both the costs and the benefits to be able to assess the impact on both passengers and taxpayers.