Anger at tendering process may end in court

Jun 24 2009 by Neil McKay, The Journal

Scarlet Band won a 98% approval rating from passengers and The Journal can reveal five operators offered to run the service at a lower cost than Arriva, with the cheapest option being £803,421 per year – a saving of £170,000 to the council taxpayer over the five years of the contract.

Last night another unsuccessful operator, Go North East, described the tendering process as “demonstrably unfair” but said it would not be challenging the decision in court.

Managing Director Peter Huntley said: “Although we are confident, on the basis of legal advice given, that the councils process was defective and should be set aside, the substantial costs to the council tax payers of Durham of our injunction and the legal process that will follow would be substantial, as would our costs.

“The tendering process was demonstrably unfair and the council has recognised its errors in deciding to overhaul its own procedures. We can only hope this action will avoid any repeat of this very unfortunate affair.

“The charge payers of Durham have not been well served in this and have not obtained the best value for their money. We do not want to add to this problem by causing them to spend even more money. “

Following a public outcry over Arriva being named preferred bidder, Durham County Council launched a review of its tendering procedure.

Adrian White, the council’s head of transport, said that following the review, its legal services were satisfied a “correct and proper” process had been followed. Arriva is due to take over the Park and Ride service in October.