Group of five calling for routes currently with CTOs to be retendered, and other changes to process; council says approach is unlawful and could constitute ‘an illegal cartel’, with report to CMA possible
Five operators have informed Wirral Borough Council (WBC) that they will not be tendering for special education needs transport contracts until it carries out a “total review of the procurement process.”
The group is seeking numerous changes. Among them are a minimum five-year contract term; abolition of the 30-day notice of cancellation; a review of the penalty points system; flexibility to allow for any unforeseen supplier price increases; and consultation with service providers before any attempt to alter or remove any contract aspect.
Also within the operators’ letters to WBC, seen by routeone, is a demand that contracts placed with community transport organisations are re-tendered immediately.
Earlier this year, WBC confirmed that it would award no further contracts to not-for-profit operators under Section 19 or Section 22 permits and that successful bidders must hold an O-Licence.
Those organisations already carrying out WBC tenders under Section 19 permits will be given “a reasonable amount of time to obtain the requisite O-Licences in addition to drivers’ licences and [Driver CPC cards].”
In response to the operators, WBC says that meetings with them will be held in September to consult on SEN contracts.
However, it adds that the threat not to tender unless WBC agrees to discuss conditions of a contract would amount to a breach of Section 2 of the Competition Act 1998, and that it would regard operators doing that to be part of an unlawful cartel.
“It would be an unlawful agreement between undertakings that has as its object or effect the restriction or distortion of competition. If the threat was carried out, WBC would be duty bound to report the outcome to the Competition and Markets Authority (CMA),” says the council.
WBC adds its hopes that the operators tender “so that a complaint to the CMA would not be necessary.”
