The Department restarted its franchising programme in 2013

1.11  The government paused its live franchise competitions  in 2012 and commissioned Richard Brown (appointed as a non-executive director of the Department in 2013) to carry out a further review of rail franchising, which looked at the Department's franchising approach. Published in January 2013, the Brown Review made recommendations on:

•  scheduling franchise competitions;

•  improving services for passengers; and

•  improving the programme's commercial approach, including ensuring that risk is allocated appropriately between the Department and operators.

The Department has based its reform of rail franchising largely on Brown's recommendations.

1.12  In March 2013, the Department restarted the franchising programme. It resumed the competitions for the Thameslink, Southern and Great Northern and Essex Thameside franchises. The InterCity East Coast franchise competition, which began in October 2013, was the first the Department carried out from start to finish under its revised objectives and processes.

1.13  The Department has demonstrated that it is committed to continuously improving its franchising programme. This includes embedding a structured approach to learning lessons and responding to feedback from operators and stakeholders. This is particularly important for rail franchising, because the cycle of reletting will begin again as current franchises approach their end. For example:

•  The Department holds 'lessons learned' workshops after each franchise competition.

•  The Department holds 'bidder days' to give bidders the opportunity to feed back their experiences of the procurement process and make suggestions for improving it. Examples of the Department implementing changes as a result of feedback include the launch of the 'PQQ (Pre-Qualification Questionnaire) Passport' which is intended to increase the numbers of new entrants and reduce bidding costs and a review of the amount of parent company support a bidder requires (see paragraph 3.23).

•  The Department is reviewing the complexity and quantity of information it requires from bidders in its financial models in an attempt to reduce bidder costs and reduce the risk of errors in bids.