EMR Direct Award Prior Notification

[Mollman]

https://www.gov.uk/government/publi...e4b9-4057-b327-7e7a8bdc1953&utm_content=daily

Looks like an extension of up to two years for the interim contract.

Section number: VI.1
Instead of:
It is anticipated that the contract will have a duration in the region of 4 to 6 years in total and this is likely to include a core period of at least 4 years with an optional additional period or periods exercisable at the sole discretion of the contracting authority.

The contracting authority reserves the right not to proceed with the Direct Award as envisaged or to use an alternative method to procure an operator for the contract.

Without limiting that, it is currently anticipated that the grant of any Direct Award as envisaged in this notice will follow on from the completion of certain termination arrangements in respect of the extant Franchise Agreement entered into by the contracting authority and Abellio East Midlands Ltd on 9 May 2019 (the ‘Franchise Agreement’). The Franchise Agreement has been substantially varied by the Emergency Recovery Measures Agreement (‘ERMA’) entered into by the parties on 19 September 2020. Under the ERMA, Abellio East Midlands Ltd must have completed the termination arrangements by 14 December 2020. If those arrangements are not completed by that date, the Secretary of State may terminate the ERMA. If the ERMA is terminated, the variations to the 3 / 3 Franchise Agreement will fall away and the parties will revert to the underlying terms of the Franchise Agreement. In those circumstances, it is currently anticipated that the Direct Award as envisaged in this notice will not be made.

Read:
It is anticipated that the contract will have a duration of 4 to 8 years in total and this is likely to include a core period of at least 4 years and a further period of no more than 4 years during which the contracting authority will have the right, exercisable at its sole discretion, to terminate the contract on notice.

The contracting authority reserves the right not to proceed with the Direct Award as envisaged or to use an alternative method to procure an operator for the contract.

Without limiting that, it is currently anticipated that the grant of any Direct Award as envisaged in this notice will follow on from the expiry of the extant Franchise Agreement entered into by the contracting authority and Abellio East Midlands Ltd on 9 May 2019 (the ‘Franchise Agreement’). The Franchise Agreement has been substantially varied by the Emergency Recovery Measures Agreement (‘ERMA’) entered into by the parties on 19 September 2020. The expiry date of the ERMA, which was entered into in compliance with Article 5(5) of Regulation 1370/2007, and of the underlying Franchise Agreement, is being extended from 1 April 2022 to 16 October 2022 by exercise of the Secretary of State's contractual right to extend.

 

[Scouserail87]

Looks like they've also extended the date that the EMRA comes to an end to October 2022 from April 2022, anyone know why or what significance the extension to the Direct Award has?

 

[LowLevel]

The ERMA extension was notified internally a few weeks ago. I'd hazard a guess that as a franchise EMR is going to be less subject to significant change post COVID and already has a plan in the early stages of implementation, presumably this being the case it isn't a priority to become a National Rail Contract and this keeps it going out of the way. Between 4 and 8 years could be any time between 2026 and 2030.

 

[Scouserail87]

The ERMA extension was notified internally a few weeks ago. I'd hazard a guess that as a franchise EMR is going to be less subject to significant change post COVID and already has a plan in the early stages of implementation, presumably this being the case it isn't a priority to become a National Rail Contract and this keeps it going out of the way. Between 4 and 8 years could be any time between 2026 and 2030.

Makes sense, thanks for the reply.

 

[Skymonster]

Very disappointing - I was rather hoping DfT would take back control rather than give Abellio an extension

 

[LowLevel]

Very disappointing - I was rather hoping DfT would take back control rather than give Abellio an extension

It doesn't really make any difference, the DfT call the shots at the moment anyway. Abellio are just middle men.

 

[STINT47]

It doesn't really make any difference, the DfT call the shots at the moment anyway. Abellio are just middle men.

True enough but Abellio have not come across as particularly competent middle men or instilled confidence for the future.

Personally I can't help but think that if stagecoach had remained things would not have got this bad.

 

[Skymonster]

It doesn't really make any difference, the DfT call the shots at the moment anyway. Abellio are just middle men.

My issue is that Abellio, under the ERMA and presumably under the future GBR management contracts, will be making some money from EMR. I think, given the current complete balls up it is making of EMR (which shows no signs of truly abating), Abellio should not be rewarded with a contract extension - in fact, as I said, I think the contract should be terminated.

 

[WesternLancer]

My issue is that Abellio, under the ERMA and presumably under the future GBR management contracts, will be making some money from EMR. I think, given the current complete balls up it is making of EMR (which shows no signs of truly abating), Abellio should not be rewarded with a contract extension - in fact, as I said, I think the contract should be terminated.

tend to agree with this. They have shown themselves to be poor - despite the no doubt poor hand of DfT in matters...

 

[Mollman]

Very disappointing - I was rather hoping DfT would take back control rather than give Abellio an extension

They probably have their hands full with transferring SouthEastern over to OLR. They would also inherit the existing issues Abellio have - seemingly poor availability of 360s, lack of 170s from WMR and industrial unrest.

 

[LowLevel]

The RMT apparently consider "significant progress" has been made in discussions and negotiations on all fronts so it will be interesting to see how that goes forward.

== Doublepost prevention - post automatically merged: 21 Oct 2021 ==

Just had confirmation from the RMT that industrial action is now suspended.