Purpose

Proposed
decision:
 
That the Cabinet Member for
Highways and Transport:
 
AGREE to extend the current DPS framework for
SS15096 Supported Local Bus & Home to School Transport from its
current expiry of 31st December 2026  to 23rd February 2029, with a view to
procure a new commercial strategy under the new Procurement Act
2023.
 

·    
Reason for the decision

 
The current DPS framework expires
on the 31st of December 2026 and under the new
Procurement Act 2023, there is no like for like
replacement.  To provide suitable time
for alternative procurement frameworks to be fully explored and a
new commercial strategy to be developed, it is proposed to extend
the current DPS to 23rd February 2029.  Such an extension is allowed under the Procurement
Act 2015.
 

·    
Background
 
Kent
County Council (KCC) has a statutory duty to provide home to school
transport for eligible children of compulsory school age under the
Education Act 1996. As the Local Transport Authority, KCC also has
a duty under the Transport Act 1985 to provide socially necessary
public passenger transport services 
where the requirements for such would not otherwise be met, for
example by a private or commercial operator.
 
This
leads to a need to contract from bus and coach operators (known as
Public Service Vehicle Operators (PSV)), be it for a local
registered bus service or a contract transporting children from
their home to a local school.
 
The
majority of the requirement is centred on local registered bus
services, with the smaller requirement being contracted home to
school transport workings.
 
The
Supported Local Bus (including Kent Karrier) and Home to School Transport Services DPS
was established as a route to market to meet both of these
obligations. This route to market was determined following a full
review of the procurement options/frameworks available to the
service.  It sought feedback from other
local authority transport teams, in particular their preferred
procurement routes and benefits . 
Approval of the route to market involved full engagement with a
range of stakeholders across the authority.
 
The DPS
allows the Public Transport Team to run competitive and
PCR2015-compliant tenders with pre-qualified Public Service Vehicle
(PSV) Operators for the provision of bus and coach
services.
 
Furthermore, the DPS includes the facility to directly award
de-minimis (low value) contracts, including small additions to an
existing contract and in emergencies, where a supplier becomes
insolvent or has their PSV licence revoked by a Traffic
Commissioner and an alternative is required the next
morning.
 
The DPS
commenced on 1st January 2017 with a 10-year lifespan and estimated
total value of £100 million and stands to conclude on 31st
December 2026.
 
When
the DPS was set up in 2016, the Public Contract Regulations 2015
applied. However, as of 24th February 2025, any new procurement or
purchasing mechanism is subject to the Procurement Act 2023, which
provides new procurement processes but does not have a directly
comparable replacement for Dynamic Purchasing Systems. Under the
Procurement Act 2023 (PA23), there is no longer the option to
establish new Dynamic Purchasing Systems. However, two new
arrangements were introduced: Open Frameworks and Dynamic Markets.
In addition, ‘Guidance: transitional and saving
arrangements’ was published to advise on managing the
changeover from the previous legislation, including the lifespan of
extant DPSs. With the current DPS set to expire at the end of next
year, several options for fulfilling KCC’s statutory
obligations have been identified and evaluated.
 
The
service still believe that a DPS provides a procurement framework,
that meets its needs in terms of being procurement compliant,
flexible, allows planned tendering but also short term tendering,
even for urgent needs.  Allows direct
award de-minimus contracts, which are
useful in this arena.  Therefore to not
have a comparable replacement for the DPS under the new Procurement
Act 2023, poses a risk to how the service tenders transport and
ultimately users.
 
This is
not an issue unique to Kent, a number of local transport
authorities (those tender transport contracts) have conveyed to
national government the risk of not having a DPS replacement and
the limits that the procurement options available bring to
transport tendering.  It is hope that
this may see changes brought forward by national
government.
 
Extending the term of
the current DPS would minimise service disruption by retaining
processes which KCC staff and Suppliers are already familiar with.
Additionally, it offers relative stability in the medium-term,
while the potential impacts of Local Government Reform crystallise.
Whilst this still does not directly resolve the matter of the route
to market beyond 23rd February 2029, it does offer an interim
solution which can be delivered, while work progresses to develop a
longer-term commercial strategy..
 
Options (other options considered but discarded)
 

Procuring under PCR15
Dynamic Markets
Open Frameworks

 
How the proposed decision supports the

Framing Kent's Future
- Our Council Strategy 2022-2026
 
Enables provision of socially necessary bus services, where the
market cannot provide.
 
Supports the delivery of Bus Service Improvement Plan funding to
enable the continued operation of services across the Kent bus
network or for service improvement initiatives.
 
Ensures that services are provided in a timely manner for
children entitled to free home to school transport, so supporting
social mobility and sustainability.
 
Promotes the use of bus, so tackles congestion, improves
sustainability and improves air quality.
 
 
How the
proposed decision supports Securing Kent’s Future 2022
-2026:
Securing Kents Future
- Budget Recovery Strategy.pdf
 
Service Continuity - Maintains stable procurement during
legislative change (procurement act 2023)
 
Financial Resilience -  Avoids
unnecessary cost and disruption associated with premature or
unplanned procurement changes.
 
Strategic Planning - Allows time to develop future-proof
commercial strategy
 
Best
value consideration - Supports efficient and compliant procurement
practices that deliver value for money
 

Decision

As Cabinet Member for Highways and Transport I
agree to:
 

EXTEND the current DPS framework for
SS15096 Supported Local Bus & Home to School Transport from its
current expiry of 31st December 2026 to 23rd February 2029.

 

ENABLE the development of an appropriate commercial
strategy, taking account of the procurement options available under
Procurement Act 2023.

 

DELEGATE authority to the Director of Growth,
Environment and Transport to approve the DPS extension report, as
prepared by Commissioning and Procurement.

 

DELEGATE authority to the Corporate Director of
Growth, Environment and Transport to take other necessary actions,
including but not limited to entering into contracts or other legal
agreements, as required to implement the decision