East Midlands Franchise Invitation to Tender 7 June 2018 1 The Department for Transport has actively considered the needs of blind and partially sighted people in accessing this document. The text will be made available in full on the Department’s website. The text may be freely downloaded and translated by individuals or organisations for conversion into other accessible formats. If you have other needs in this regard please contact the Department. Department for Transport Great Minster House 33 Horseferry Road London SW1P 4DR Telephone 0300 330 3000 Website www.gov.uk/dft General email enquiries: [email protected] © Crown copyright 2018 Copyright in the typographical arrangement rests with the Crown. You may re-use this information (not including logos or third-party material) free of charge in any format or medium, under the terms of the Open Government Licence. 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Where we have identified any third-party copyright information you will need to obtain permission from the copyright holders concerned. 2 Contents Section 1: Introduction ...................................................................................................... 6 1.1 Introduction .............................................................................................................................. 6 1.2 Form of Contract ..................................................................................................................... 6 1.3 Exceeding the Department’s requirements ............................................................................. 6 1.4 Communications ..................................................................................................................... 7 1.5 Structure of this ITT ................................................................................................................. 7 1.6 Other documents ..................................................................................................................... 8 1.7 Franchise Letting Process Agreement .................................................................................... 8 1.8 Commencement of the East Midlands Franchise ................................................................... 8 1.9 Liability for costs, updates and termination ............................................................................. 8 1.10 Defined terms .......................................................................................................................... 9 Section 2: Scope and Objectives .................................................................................... 10 2.1 Scope of the East Midlands Franchise ................................................................................. 10 2.2 Franchise Objectives ............................................................................................................. 10 2.3 Evaluation of Financial Robustness ...................................................................................... 11 Section 3: Information and Instruction to Bidders ............................................................ 13 3.1 Applicability of this document ................................................................................................ 13 3.2 Accuracy of information and liability of the Department and its representatives .................. 13 3.3 Intellectual property ............................................................................................................... 14 3.4 Industry consultation and disclosure of information in Bids .................................................. 14 3.5 Non-compliant Bids ............................................................................................................... 15 3.6 Automatic elimination ............................................................................................................ 18 3.7 Right to disqualify Bidders ..................................................................................................... 19 3.8 Data Site and AWARD .......................................................................................................... 19 3.9 Bidder Clarification Questions ............................................................................................... 19 3.10 Transparency and Freedom of Information ........................................................................... 21 3.11 Competition Matters .............................................................................................................. 21 3.12 Regulation (EC) 1370/2007 ................................................................................................... 26 3.13 Changes to information or circumstances ............................................................................. 27 3.14 Variations to the Franchise Agreement ................................................................................. 27 3.15 Form of Tender...................................................................................................................... 28 Section 4: Explanation of Requirements for Bid Submission and Overview of Process following Bid Submission .................................................................................................... 29 4.1 Preparation of Bids ................................................................................................................ 29 4.2 Franchising timetable and process ....................................................................................... 29 4.3 Structure and format of Bids ................................................................................................. 30 4.4 Page limits, size of text, other formatting .............................................................................. 34 4.5 Annexes and appendices ...................................................................................................... 35 4.6 Letters of Support .................................................................................................................. 35 4.7 Cross referencing .................................................................................................................. 35 4.8 Bid consistency ..................................................................................................................... 36 3 4.9 Language .............................................................................................................................. 36 4.10 Monetary amounts ................................................................................................................ 36 4.11 Submission of Bids ................................................................................................................ 36 4.12 Presentations ........................................................................................................................ 38 4.13 Validity of Bids ....................................................................................................................... 38 4.14 Process following Bid submission ......................................................................................... 38 4.15 Voluntary standstill period ..................................................................................................... 42 Section 5: Detailed Bid submission requirements - Delivery Plans ................................. 43 5.1 Introduction ............................................................................................................................ 43 5.2 Residual Value Mechanism ................................................................................................... 45 5.3 Delivery Plan 0 - Bid Summary ............................................................................................. 49 5.4 Delivery Plan 1 – Franchise Management ............................................................................ 50 5.5 Sub-Plan 1.1 Leadership and Sustainability ......................................................................... 50 5.6 Sub-Plan 1.2 Partnering ........................................................................................................ 55 5.7 Delivery Plan 2 – Train Service and Performance ................................................................ 61 5.8 Sub-Plan 2.1 Train Services ................................................................................................. 61 5.9 Sub-Plan 2.2 Rolling Stock ................................................................................................... 79 5.10 Sub-Plan 2.3 Performance .................................................................................................... 96 5.11 Delivery Plan 3 – Revenue .................................................................................................. 100 5.12 Sub-Plan 3.1 Marketing and branding ................................................................................ 100 5.13 Sub-Plan 3.2 Fares, Ticketing and Revenue Protection ..................................................... 102 5.14 Delivery Plan 4 – Customer Experience and Stations ........................................................ 107 5.15 Sub-Plan 4.1 Customer Experience ...................................................................................