2018 Report details for project: Rail Franchising Programme

Project name: Rail Franchising Programme - there are 5 reports for this project: 2015, 2016, 2017, 2018, 2019
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Organisation: DFT (D9) - see all reports for this organisation
Report year: 2018 (data is from Sept 2017)
Category: Infrastructure - see all reports for this category
Description: To secure the provision of passenger rail services as set out under the Railways Act 1993 (as amended) by letting Rail Franchises. Current competitions as at July 2018 are: East Midlands, South Eastern and West Coast Partnerships.
DCA (RAG): Amber/Red
DCA text: The IPA amber/red Confidence rating recognises the strategic challenges that the Rail Franchising programme faces. Despite the work load represented by the current franchise programme – unprecedented since the start of privatisation – there is full confidence in the franchise team and its leadership. There are sound processes for setting up project teams and that templates exist for all the necessary management tools and contract frameworks. However the department is always looking at how to improve its processes in response to changing external conditions.
Start date: 2013-03-26
End date: 2019-12-01
Schedule text: Proactive management of rail franchise schedule led to the most recent publication (July 2017) with several competitions being retimed. o Cross Country – Retimed by using two of 13 additional rail periods. This ensured an adequate ‘decoupling’ from the East Midlands franchise, with which it shares a similar pool of potential bidders. This should maximise bidder interest and competitive tension, improving the Department's ability to achieve best value for money. o East Midlands – This was retimed to de-conflict it from the South Eastern and West Coast Partnerships franchises, as per the recommendation of the Brown review. If unresolved, clashes could lead to reduced quality bids, a reduced number of bidders, strain on the supplier market and extra pressure on NR and DfT resources to support the franchise competitions. o West Midlands – Additional time was required to allow franchise bidders to conclude their bids along with delays associated with pre-election period. This has now been contracted (August 2017) and service started in December 2017.
Baseline: £8.70m
Forecast: £8.70m
Variance: 0.00%
Variance text: Less than 5% variance
Whole Life Cost: £35.30m
WLCost text: Budget is the RDEL Costs (the admin cost as forecasted for the 2017/18). Budgets for 2017/18 are under review given the reduction in expected allocation from the centre. Income reflects the revenue line expected from the Long Term Forecast (LFT) (July 2017) across the current Franchise competitions. The variance from 2016/17 reflects the decision to show the cost of running a franchise competition (RDEL) vs the expected LTF forecast. In 2016/17 The LTF figures were displayed as RDEL and no income was reported. This change more accurately reflects the cost to government as well as the revenue generated by franchising.
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Sourcefile: IPA_2018.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.