URL: https://democracy.kent.gov.uk/ieDecisionDetails.aspx?ID=3029

Decision Maker: Cabinet Member for Highways and Transport

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

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  

Content: 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   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    

Date of Decision: October 6, 2025