The Association of Local Bus Managers (ALBUM) has welcomed a revised procurement process from Transport for Greater Manchester (TfGM) for its franchised bus services, a move which it describes as a step forward for SME inclusion. ALBUM says it is pleased that TfGM is taking further steps to support the inclusion of small and medium-sized bus operators in its next round of franchising procurement, something which the organisation and its members have consistently called for, seeking a more equitable franchising approach that recognises the value local operators bring to communities and the economy.
“We are encouraged to see TfGM adopting several practical measures that reduce barriers to entry for SME operators,” ALBUM says.
New practices include maintaining small franchises with a peak vehicle requirement (PVR) that is proportionate to SME operators’ size and experience; reducing bid requirements for small franchises compared to large ones in terms of page limits and financial tests; preventing the use of large franchise depots for small or school franchise operations, and; introducing briefing sessions designed primarily for SMEs to guide them through the procurement process.
ALBUM believes that a diverse range of franchise sizes, including smaller lots, will encourage greater participation from SMEs, leading
to benefits such as increased competition as smaller lots will attract more bidders, driving down franchise prices and improving service quality, as well as an enhanced local economy as SME operators often source more locally. It also believes that smaller operators often have a more detailed understanding of local markets, meaning they can provide an improved, more personalised and responsive service, whilst also having the ability to attract drivers who may not be interested in working for larger corporations, increasing the total number of drivers available.
Furthermore, the Association urges that in future procurement exercises, all franchising authorities should consider how to ensure that SME operators can continue to have a valuable part to play in the provision of public transport services in their areas, such as by awarding higher quality scores to large franchise operators who agree to sub-contract a proportion of work to SMEs, restricting some small franchises to bids from SME operators only or micro-franchising. It says that others should note the changes TfGM is making to encourage SME involvement in the franchised bus market. “Franchising must work for everyone not just the largest players. ALBUM continues to advocate for a balanced system that enables SMEs to thrive alongside larger operators, ensuring reliable, responsive and community-focused bus services,” the Association says.
