Umm yes to everything
Granted their is a tendering process, but DfT know exactly who has what bid and are able to find reasons to get rid of them one by one. Take the new XC franchise; Arriva and Virgin both submitted bids. DfT just don't like Virgin after everything they've put them through, on paper both bids were pretty damn good, Arr also offered a higher premium. Virgin had more innovative ideas that went beyond the call of the franchise spec, but Arr got it anyway.
With the WC, thats exactly whats going to happen. Virgin will put in a bid, DfT will find reasons not to like it, even it if is the best bid on paper and then give it to someone else who may or may not offer more money.
Captain Permatan started as a crude gimick, now meant to be Keith Ludeman, boss of GoVia.