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08.03.13

Great Western bidders take legal action against DfT

The four TOCs who spent millions preparing their bids for the now-scrapped Great Western rail franchise competition are beginning legal proceedings against the Government for compensation.

FirstGroup, Stagecoach, Arriva and National Express each spent around £10m to submit their bids for the franchise, which was called off following the West Coast Main Line chaos.

Bidders for the West Coast contract are being compensated, unlike on Great Western, and the four TOCs suggest this is unfair.

In January, the DfT said: “In keeping with the relevant invitations to tender, which made clear that bidders are responsible for their own costs, the Secretary of State does not believe it would be appropriate to reimburse bidders.”

There will be a ‘stay’ in legal proceedings until the end of March, the BBC has reported.

Tell us what you think – have your say below, or email us directly at opinion@railtechnologymagazine.com

Comments

Mark Johnson   13/06/2016 at 09:37

Whilst I agree that companies should normally cover the costs of their own bids, surely this only valid when the competition continues to completion and a contract is awarded. This then would mean that the cost is an investment towards the possibility of winning the contract, and the bed bid would win. If the competition is called off due to no fault of the bidders (i.e. no foul play or collusion, etc.), then surely it would only be fail that some recovery of costs is possible. (PS, I'm not involved in any way with this bid or the tendering companies. Its just my view).

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