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TRAINING
On line training
Contract/Award

On line training tool:  Contract / Award

Introduction – Historically in most European Countries, local authorities have traditionally provided urban public transport, either directly or through associated companies. This has often been done with no formal contract which enables proper monitoring and management.

EU Regulation 1370/2007 is changing this. By 2019, if awarding exclusive operating rights or exclusive financial compensation then a contract is mandatory and, in most cases, contracts will be required to be awarded following a competitive procedure. The transition period for implementation of this regulation is between 2009-2019.

The purpose of contracts – The goal of a Public Transport Authority is to efficiently deliver high quality PT services which meet user needs and policy aims. The contract is a tool for ensuring goals are met:

– by monitoring and controlling performance
– by allocating risks which create market incentives to achieve the goals

The Contract defines the payments to be made and services to be delivered under contract.

– The detail of the services are specified and agreed.
– The minimum performance standards (MPS) are laid out.
– Payment is dependent on meeting the MPS.

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However, contracting can take many forms, as many kinds of relationships are possible between transport authorities and transport operators.  This on-line training module provides information and guidance on the different types of contract and the key components within contracts which need to be considered by authorities considering designing and awarding contracts for the supply of PT services.

While awarding contracts using competitive tendering processes will be new to many authorities, there are valuable lessons which can be learnt from experience in a number of European countries which have adopted various forms of contracting over the last 20 years. The training module draws on these experiences and provides case study examples where appropriate.

Click the links below to learn more on the topic and find suitable solutions for you:

Contract Regimes

Type of Contract

Risk Allocation

The Contents of the Contract

Lessons from European Experience

Links to relevant EPTA project resources and other useful resources