Shared bike rental and associated micromobility schemes Framework Agreement - Solent Region

A Contract Award Notice
by PORTSMOUTH CITY COUNCIL

Source: Find a Tender
Type: Framework (Services)
Duration: 4 year (est.)
Value: £2M

Sector: TRANSPORT
Published: 31 Oct 2023
Delivery: To 10 Oct 2027 (est.)
Deadline: n/a

Concepts

Location

PORTSMOUTH

Geochart for 2 buyers and 6 suppliers

2 buyers

Portsmouth City Council Portsmouth

4 suppliers

Description

Portsmouth City Council ('the council') on behalf of Solent Transport, has established a multi-supplier, multi-Lot Framework Agreement for the provision of shared bike rental schemes in the Solent Transport area. The award of the framework agreement is 1st July 2022 for a 4 year period. The Framework Agreement is made up of 2 Lots; • Lot 1 - Central Southern England - Consisting of 4 suppliers • Lot 2 - Isle of Wight - Consisting of 2 suppliers Bike share rental schemes are planned for Portsmouth, Southampton and the Isle of Wight. Contracts for delivery of these schemes have been awarded in parallel with the establishment of the framework. The highest ranked tenderer on Lot 1, Beryl, was awarded separate contracts by Portsmouth and Southampton City Councils. The highest ranked tenderer on Lot 2, Beryl, was awarded a contract by Isle of Wight Council. Solent Transport is a partnership of the four Local Transport Authorities in the Solent Region (the council, Southampton City Council, Hampshire County Council and Isle of Wight Council). Solent Transport successfully bid for funding from the Department for Transport to establish a Future Transport Zone (FTZ). The FTZ bid included £2million that could be allocated to launch bike share schemes. This funding is forecast to be split as follows: • Portsmouth and Southampton: £1.6 million - £1.8million • Isle of Wight: £200,000 - £400,000 The scope of this framework includes, but is not limited to: • Complete shared bike rental scheme services, supplies and any necessary works required during installation. This includes for all types of bike, including but not limited to manual, electric, cargo, adapted bikes and tricycles. • Shared e-scooter rental scheme services, supplies and any necessary works required during installation. • Any additional shared rental micro mobility services, for example e-mopeds, that are offered by appointed framework suppliers at award and/or over the duration of the framework agreement. • Bike and associated micro-mobility pool schemes.

Lot Division

Central Southern England

The council, on behalf of Solent Transport, sought responses from tenderers who could provide turnkey shared bike rental schemes. The aim of Solent Transport's bike share schemes are to: • Encourage more people to cycle by improving access to bikes • Provide an alternative to short distance car travel • Promote multimodal travel • Encourage more people to get their own bike/e-bike after trying one via the share scheme Therefore, tenderers were required to provide: • A fleet of bikes and/or e-bikes to be part of a shared rental scheme for use by the public • A suitable, secure parking solution to ensure the city streetscape can remain clutter-free. • A solution that enables users to hire bikes, including payment as well as the ability to integrate into Solent Transport's Mobility as a Service platform. • Strategies and technology to combat vandalism and theft measures, inappropriate use and parking etc. • Servicing, maintenance and re-distribution of bikes to ensure the fleet is kept in safe working order and are available for users when and where they are needed. • Implementation and installation of the scheme as well as removal of the scheme at the end of the contract. • Launch and ongoing marketing services to promote the scheme and to assist Solent Transport encourage modal shift. • Management of the scheme including provision of customer support etc. • Data in respect of the usage of the scheme via data sharing between the relevant local authorities and Solent Transport. • Maintain a standard of service throughout the contract period that is in accordance with the agreed Key Performance Indicators and Service Level Agreements. A full specification was provided within the tender document set. Suppliers appointed onto Lot 1 of the framework in ranked order are: - Smidsy Limited (T/A Beryl) - Tier Operations Limited - Voi Technology UK Ltd - Hourbike with Smoove The highest ranked tenderer of this Lot, Beryl, was offered separate contracts by Portsmouth and Southampton City Councils to establish bike share schemes in the corresponding cities.

The Isle of Wight

The council, on behalf of Solent Transport, sought responses from tenderers who could provide turnkey share bike rental schemes. The aim of Solent Transport's bike share schemes are to: • Encourage more people to cycle by improving access to bikes • Provide an alternative to short distance car travel • Promote multimodal travel • Encourage more people to get their own bike/e-bike after trying one via the share scheme Therefore, tenderers were required to provide: • A fleet of bikes and e-bikes to be part of a shared rental scheme for use by the public • A suitable, secure parking solution to ensure the city streetscape can remain clutter-free. • A solution that enables users to hire bikes, including payment as well as the ability to integrate into Solent Transport's Mobility as a Service platform. • Strategies and technology to combat vandalism and theft measures, inappropriate use and parking etc. • Servicing, maintenance and re-distribution of bikes to ensure the fleet is kept in safe working order and are available for users when and where they are needed. • Implementation and installation of the scheme as well as removal of the scheme at the end of the contract. • Launch and ongoing marketing services to promote the scheme and to assist Solent Transport encourage modal shift. • Management of the scheme including provision of customer support etc. • Data in respect of the usage of the scheme via data sharing between the relevant local authorities and Solent Transport. • Maintain a standard of service throughout the contract period that is in accordance with the agreed Key Performance Indicators and Service Level Agreements A full specification was provided within the tender document set. Suppliers appointed onto Lot 2 of the framework in ranked order are: - Smidsy Limited (T/A Beryl) - Hourbike with Smoove The highest ranked tenderer of this Lot, Beryl, was offered a contract by Isle of Wight Council to establish a bike share scheme.

Award Detail

1	Smidsy (London) Lot 1 - Central and Southern England Reference: 1 Num offers: 6 Value: £1,800,000
2	Tier Operations (London) Lot 1 - Central Southern England Reference: 2 Num offers: 6 Value: £1,800,000 Contractor is an SME.
3	Voi Technology (London) Lot 1 - Central Southern England Reference: 3 Num offers: 6 Value: £1,800,000
4	Hourbike with Smoove (London) Lot 1 - Central Southern England Reference: 4 Num offers: 6 Value: £1,800,000
5	Smidsy (London) Lot 2 - Isle of Wight Reference: 5 Num offers: 2 Value: £400,000
6	Hourbike with Smoove (London) Lot 2 - Isle of Wight Reference: 6 Num offers: 2 Value: £400,000

Renewal Options

As bike share schemes let via the Framework Agreement develop and succeed, it is envisaged that individual call-off contracts may be extended in duration and/or varied in scope to adapt to the changing nature of the schemes. The nature and type of extensions and variations envisaged are as follows: • Duration - call-off contracts let from this agreement may be extended, in increments to be agreed to a maximum total term of 10 years. Where the total term exceeds 5 years, this will be agreed at the discretion of the contracting authority, taking into consideration the requirement within the Concession Contracts Regulations 2016 that the maximum length of a contract shall not exceed the time that a supplier could reasonably be expected to recoup the investments made in operating the services, together with a return on invested capital. Any extension decision will be based on the open book information provided in respect of generated revenue and associated costs, including those associated with the buy-back of any assets. • Volume - where schemes are successful, the volume of bicycles/micromobility vehicles and associated docks and parking hubs may be increased. The call-off contract may be varied to accommodate these additional volumes and the value of the call-off contract concerned may be modified accordingly. • Geography - the geographic operating area of a scheme let via a call-off contract may change or increase to accommodate new user groups or as a result of the scheme's success. While it is envisaged that the majority of geographic expansions will remain within the administrative boundary of the contracting authority which awarded the call-off contract, there may be instances where this expansion goes beyond this boundary. Examples include but are not limited to standalone schemes launched in a new area that another contracting authority has agreed to manage on a shared services basis, or an established scheme which is expanded into the administrative area of a neighbouring authority. As a result of any such geographic expansion or variation, the value of the call-off contract concerned may be modified accordingly. • Technical scope - this Framework Agreement allows for the purchase of additional micromobility services, including, for example e-scooters, on a purchase, rental or pooling option. In the event that a contracting authority wishes to purchase additional services, contracting authorities may choose to extend an existing call-off contract for bike share. As a result, the value of the call-off contract concerned may be modified.

Award Criteria

PRICE

CPV Codes

60100000 - Road transport services
34430000 - Bicycles
50100000 - Repair, maintenance and associated services of vehicles and related equipment
72260000 - Software-related services

Indicators

Options are available.
Award on basis of price.

Other Information

The maximum value of the framework is estimated to be £200million. This is a potential maximum total consideration that includes all potential turnover generated by the suppliers. It allows sufficient capacity in the event that further schemes are launched via the agreement and allows for all potential extension and variation options to be taken up. Further information is included under Section VI.3. The council established the framework agreement in accordance with the Open Procedure as defined within the Public Contracts Regulations (2015). The maximum value of this framework has been set in this Notice as £200million. This figure reflects the total estimated consideration and includes the projected turnover that may be generated by the supplier. This figure is to provide sufficient capacity in the event that the framework is widely used and to allow for the expansion of schemes in accordance with the options set out in Section II.2.11. • The anticipated value of the framework based on the known bike share schemes, until 30th June 2024 (the end of the FTZ programme) is estimated to be in the region of £4million to £7million. • In the event that the call off contracts are extended to their maximum duration of 10 years, the anticipated value of the framework is estimated to increase to between £31million and £45million. • In the event that additional bike share schemes are launched within the Solent Transport region, the anticipated value of the framework is estimated to increase to between £62million and £90million. • In the event that the framework is used for the delivery of additional micromobility schemes, the anticipated value of the framework is estimated to increase to between £93million and £135million. • In the event that the framework is used by contracting authorities in West Sussex and Surrey, the anticipated value of the framework is estimated to increase to up to £200million. The estimated value of schemes has been calculated from a report recently commissioned by Solent Transport to ascertain the potential demand for bike share schemes in Portsmouth, Southampton and the Isle of Wight. It should be noted that due to the nature and funding of these schemes, the council is unable to provide any commitments or guarantees in respect of potential revenues generated via this Framework Agreement. Suppliers should note that while additional micromobility services are included within this scope, the main objective of this procurement is to establish bike share rental schemes. There are currently no plans to launch additional micromobility schemes across the Solent Region, or to novate existing micromobility schemes to this framework. Instead, additional scope activities are included to provide Solent Transport and contracting authorities a route to access developing micromobility services.

Reference

FTS 032133-2023