Gov’t have scrapped the deal with First Group.

http://www.bbc.co.uk/news/business-19809717

And it said an announcement would be made about the suspension of staff while investigations were carried out.

Didnt realise it was possible to U-turn a train.

I wonder if there is a corruption angle to this story.

Most likely they were advised that if Branson took them to court, he’d win.

Probably the usual biblical scale Whitehall incompetence, rather than any corruption.

The First Group figures always looked completely ridiculous, sketched-out-on-the-back-of-a-fag-packet stuff. My guess is they took them at face value, rather than actually go into any detail and actually do what they were supposed to do and actually question and investigate them

The First Group figures always looked completely ridiculous, sketched-out-on-the-back-of-a-fag-packet stuff

Which is how bidding for big (both public and private) contracts works – win it, and then make it work. No good been right, and not winning the contract…

Well it is if they walk away from the franchise half way through, leaving us – the muggins taxpayer – to pick up the tab, yet again. It has to be at least slightly credible. And the First Group bid always looked total cloud cuckoo-land nonsense

Most likely they were advised that if Branson took them to court, he’d win.

Probably the usual biblical scale Whitehall incompetence, rather than any corruption.

This.

Pretty much every major procurement i’ve been involved in has faced the threat of challenge in some shape or form.

It’s not difficult to find grounds for challenge, however it’s rare that the process is set aside completely.

As binners pointed out, the is an failure in the process, not corruption. Large procurements are too transparent to allow room for corruption to go unnoticed (i know the naysayers will naysay, but i do this day in day out).

When the attitude appears to be that the cheapest will be the most efficient, the starting point is wrong.
Surely the decision makers should be lauded for having the courage for publicly announcing a change of mind, not a common occurrence.

It will be very interesting to see whether this problem goes any further than the DfT, and whether the entire Government procurement process is flawed….

Already being discussed.

http://singletrackworld.com/forum/topic/trains-virgin-loses-west-coast-mainline/page/4

Can’t wait til we start getting these type of legal challenges for who provides your GP services, or does your grans hip replacement.

Something to look forward to in our brave new world eh?

Well I can imagine that there will be a whole number of companies that might have lost out in tendering processes in the last year that will be very interested in this and may be more inclined to launch a challenge now.

In theory this means procedures will improve, in practice it means a whole bunch of lawyers will get **** rich.

But at least they stepped back from the brink rather than carrying on regardless…

I don’t think for one second they’d have stepped back from the brink unless they knew full well they were in for a protracted, expensive and humiliating legal defeat

I used to work in the rail industry both pre & post privatisation. I was not involved in franchising though a former boss went to work in this area.

I know a part of the job was to challenge the assumptions of the potential franchisee’s so a little surprised this has happened. Process could have changed though.

I did wonder initially if Branson’s challenge was a bit of sour grapes – don’t know the numbers myself – but seems the bearded one is correct.

Privatise it all again and recruit me as a vastly overpaid consultant is what I say.

Well I can imagine that there will be a whole number of companies that might have lost out in tendering processes in the last year that will be very interested in this and may be more inclined to launch a challenge now.

The first words on a 2nd place bidder’s lips as soon as the outcome of the procurement is delivered is “Do i have any grounds for challenge”.

Since the downturn since 2008, it’s pretty much standard on large infrastructure projects that unsuccessful bidders will attempt to challenge.

With a robust process, most challenges don’t make it out of the boardroom, however not all procurements are robust and some are quite frankly shocking. This leaves plently of opportunity to mount a challenge.

This won’t lead to an increase in challenges (or indeed retrospective ones), what will happen is that any upcoming franchise procurements (or anything coming out of DfT) will take twice as long and cost twice as much as they try to avoid making the same mistakes.

This will have immediate and noticable effects on the forthcoming Scotrail franchise tender process. Happy days for external legal counsel.

Must resist ranting…

Why resist? You’re among friends. Well…. fellow ranters 😀

Blimey!!! This could be a first!!!

Could the first Whitehall civil servant be sacked for being a ****-wit who has cost the taxpayer millions, with their utter incompetence?

Three civil servants suspended!

This should be interesting as the rules and model for the procurement were defined under the last government, albeit the civil servants really run the show on these things – the process is for too complicated for any individual minister to really get involved in the detail – the bidders information for this procurement apparently runs to several thousand pages.