Work by Transport for Greater Manchester (TfGM) to facilitate SME operator involvement in future re-procurement of small franchise and school bus contracts for the Bee Network has been welcomed by ALBUM.
Five of the seven small franchise contracts let as part of the first tranche of reregulation in the region were due expire on 20 September 2026, although TfGM has agreed with operator Diamond Bus North West to move that date to 7 March 2027. The other two small franchises in that tranche will end in September 2027 and September 2028.
How work within the small franchises to start from March 2027 will be packaged is due to be confirmed later, but contract award is expected by June 2026.
Similarly, tranche one school franchise contracts – which are currently run by Stagecoach Manchester and Vision Bus – will end in September 2026, although extensions are expected to push that back by a year for “the majority” of them and by six months for a small number, subject to approval.
A report put before the Greater Manchester Combined Authority (GMCA) Bee Network Committee on 29 May notes how in preparing for re-procurement, “consideration has been given to how TfGM and GMCA will facilitate small- and medium-sized operator involvement.”
Such measures include:
- Maintaining small franchises with a PVR that is proportionate to SME operators’ size and experience
- Small franchise bid requirements that are reduced compared to large franchises in terms of page limits and financial tests
- Preventing large franchise depots from being used for small or school franchise delivery
- Holding briefing sessions created primarily for SME operators to guide them through the procurement process.
ALBUM has applauded the TfGM position of working to secure SME involvement in future procurement rounds, describing the measures listed as “practical.”
It adds that a diverse range of franchise sizes, including smaller lots, “will encourage greater participation from SMEs,” leading to benefits such as increased competition, an enhanced local economy, improved service quality, and a larger driver pool.
The body advocates more work to leverage SME presence in future Bee Network franchising procurement. That could include what ALBUM terms “micro-franchising,” but it also seeks restriction of some small franchise contracts – and not just home-to-school services – to bids from SMEs only.
Also proposed by ALBUM is the award of higher quality scores to large franchise bids where the operator agrees to subcontract a proportion of work to SMEs.
