Agenda item

Mr P Osborne - Cabinet Member for Highways and Transport presented the item. Philip Lightowler-Head of Public Transport and Shane Bushall-Head of Service: Public Transport were also in attendance

1)    Mr Lightowler opened the discussion that would encompass decisions 2500078 and 79 respectively. The Dynamic Purchasing System (DPS) framework for procuring transport services had been in place since 2016. The DPS had allowed suppliers to register on a closed framework and be procured contractually.

2)    The DPS systems allowed a ‘procure compliant’ ability to procure tenders in blocks. The DPS would accommodate larger tendering such as supportive bus services and also a more flexible response to individual requirements.

3)    Procurement times using the DPS had facilitated a faster response which would be required in supporting functions such as adult’s social care. Currently there were 400 active suppliers throughout Kent, with the local supportive bus mainstream homeschool transport having 40 providers currently.

4)    As the 2026 extension point for the current procurement arrangements approached work had taken place with colleagues in Commissioning and Procurement to explore options for either extending or replacing the existing framework. The review had been shaped by the introduction of the Public Procurement Act 2023, which would bring significant changes to how the public sector procurement would be structured. Notably, the Act would not provide a direct replacement of DPS frameworks.

5)    The Dynamic Market option had been explored as an alternative but was deemed to lack the flexibility and scope to deliver services. The two DPS Frameworks (78 and 79) in line with received legal advice would look to be extended until February 2029.

6)    The remarked extension would allow for the day to day running of services to remain intact and allow collaborative works to take place with Commissioning and Procurement colleagues to source an alternative commercial strategy.

7)    Members highlighted concerns on inflated costs and asked Officers on how the council would combat the rising costs. Officers acknowledged the concern and the rising costs associated with Specialist and Complex Needs (SCN) transport. A substantial increase in demand had grown from 2,500 -3,000 clients to over 6,500.

8)    The increased costs of contracts had been addressed and targeted works would be underway to review and address these pricing structures. It was discussed that the current frameworks in place would remain the most effective method for tendering transport services.

9)    Over the past 12 to 18 months, KCC had undertook a strategic project to address the growing challenges associated with Special Educational Needs (SEN) transport. A major advancement had been the introduction of a new scheduling package, which would help to streamline service planning and improve overall operational efficiency.

10)From 2017 onwards, the council had experienced a sharp and sustained increase in the demand for SEN transport.  A positive aspect was that there had been early signs that demand may be beginning to plateau. If current measures continued to take effect there could be cautious optimism that demand could begin to stabilise or even decline over time.

11)Work would be focused on addressing cost pressures, particularly around high-cost contracts and unit pricing. Financial aspect would remain a priority, and the team would be actively engaged in identifying efficiencies and ensuring value for money.

RESOLVED to endorse the proposed decision, namely:

That the Cabinet Member for Highways and Transport agree to:

1)    EXTEND the current DPS framework for SS15096 Supported Local Bus & Home to School Transport from its current expiry of 31st December 2026 to 23rd February 2029.

2)    ENABLE the development of an appropriate commercial strategy, taking account of the procurement options available under Procurement Act 2023.

3)    DELEGATE authority to the Director of Growth, Environment and Transport to approve the DPS extension report, as prepared by Commissioning and Procurement.

4)    DELEGATE authority to the Corporate Director of Growth, Environment and Transport to take other necessary actions, including but not limited to entering into contracts or other legal agreements, as required to implement the decision as shown at Appendix A