Purpose of Report

The report sets out the procurement options considered and recommendations for the future commissioning and management of contracted Home to School Transport (HTST) services over the next eight years.

Decision

Cabinet Agreed to adopt an internally managed Open Framework as the procurement route for all contracted Home to School Transport services, including Social Care transport routes commissioned through the Home to School Transport team, for the next eight years.

Reasons for Decision

1.    This approach builds on the previous Dynamic Purchasing System (DPS) model, providing the most robust balance of cost efficiency, operational efficiency, supplier flexibility, long?term resilience, and compliance with the Procurement Act 2023. It also removes the need for repeated due?diligence exercises required by Contract Standing Orders, as suppliers are vetted once at framework admission. Through scheduled reopenings, the Local Authority can maintain competitive tension and support local market development, while mini?competitions ensure competitive pricing and quality standards throughout the 8-year term

Alternative Options Considered and Rejected

1.    The Traditional Closed Framework was explored and ruled out. This approach means we cannotrefresh suppliers mid?term, which weakens competition and risks price inflation as the framework ages.There is also a need to re?procure sooner than an Open Framework.

2.    The Outsourced Open Framework option has been explored and ruled out. This introduces avoidable delay and additional cost through the initial procurement of the framework operator and embeds ongoing management fees without a commensurate improvement in outcomes over an internally managed model. It also reduces the Local Authority’s direct control over call?off design and supplier development, which is central to tailoring solutions for local needs and ensuring continuous improvement. This model creates long?term dependency and exit risks, whereas an internally managed Open Framework maintains institutional knowledge, preserves agility, and delivers stronger overall value for money for the Council’s mainly sub?£50k route portfolio.

3.    The Single Supplier Contract option was excluded based on previous experience of this Contracting model which caused high dependency and resilience risks and the loss of competitive tension during the contract term.

4.    The Multiple Supplier (Lotted) Contract was not considered suitable because of its substantial administrative workload and lower efficiency compared to using lots within an Open Framework.

5.    Multiple Spot Contracts were dismissed due to the unsustainable administrative burden created by Contract Standing Orders, repeated due?diligence requirements, and the loss of economies of scale.

6.    If there is a change in circumstances and the recommended procurement route cannot be undertake nor no longer represents best value for the Council, any subsequent procurement route will be undertaken will be in accordance with the Council’s Contract Standing Orders and Procurement Law

Sally Cresswell (Cabinet Member for Education, Skills and Apprenticeships) presented the report and highlighted the following key points: 

a)    The report sought the re?procurement and renewal of school transport contracts, for future commissioning arrangements for home to school transport over the next eight years;

b)    The Council provided statutory transport for more than 1,000 children every school day, including pupils with special educational needs, children from low?income families and young people supported by social care;

c)    A full appraisal of procurement options had been undertaken, each assessed for operational practicality, value for money, compliance, market resilience and long?term sustainability;

d)    The recommended option was for the Council to adopt an internally managed open framework, which would build on existing strengths while offering a more efficient and future?proofed solution. The model would maintain strong supplier competition, reduce administrative burdens, improve access for local operators and ensure legal compliance.  The framework would support transparency, robust quality assurance and the flexibility to reopen to new providers throughout its eight?year lifespan;

e)    Although the re?procurement itself was not expected to generate savings, the open framework was the most cost?effective and administratively efficient option for procuring the £7.8–£8 million annual transport provision needed to support over 1,000 children on approximately 280 routes;

f)     Key risks, included market volatility and rising demand, had been identified and would be managed through strong governance, contract oversight and provider engagement. She noted that demand pressures had been a recurring theme in previous meetings;

g)    Environmental, legal and equality considerations had been fully reviewed, with safeguarding and emissions?reduction measures embedded where feasible. It was confirmed that the framework ensured the Council would continue to meet its statutory duties under the Education Act 1996; 

h)    Cabinet approval was sought to implement the internally managed open framework for all home?to?school transport services, including social?care?commissioned transport, for the next eight years to ensure resilience, flexibility and legal compliance.  

In response to questions raised it was reported that:

i)     Under the proposed Local Government Re-organisation the framework’s flexibility would allow services to expand into new areas, including parts of the South Hams, if required;

j)     No amendments would be required to the City of Plymouth Act in relation to taxi operations, as procurement would continue from within Plymouth, meeting existing legislative requirements.

The Leader commented and: 

k)    Thanked officers, noting that he had been advised of the significant work undertaken, particularly in relation to children’s SEND?related transport, and expressed appreciation for the progress and commitment demonstrated. He added that the Council was very excited about where that's going to lead over the next few years;

l)     Reflected further on local government reorganisation, agreeing that aligning cross?border transport and SEND provision made sense and that a unified service would be well?placed to operate effectively under any new arrangements.  

Cabinet agreed to:

1.    Adopt an internally managed Open Framework as the procurement route for all contracted Home to School Transport services, including Social Care transport routes commissioned through the Home to School Transport team, for the next eight years.