Public procurement notice: Contract Award Notice
Published: 2017-01-26
Buyer: Orkney Islands Council
Country: UK
Region: Orkney Islands
Contract type: Services
Procedure: Open procedure
CPV classification: 50211000: Repair and maintenance services of aircraft | 60400000: Air transport services | 60410000: Scheduled air transport services | 60420000: Non-scheduled air transport services | 63730000
Estimated value: 4148000 GBP
Award criteria: The most economic tender

Technical requirements: Orkney Islands Council (the Authority) has a requirement for the provision of an Inter Island Air Service operating to the 6 Outer North Isles under a Public Service Obligation (PSO), which establishes the minimum frequencies and sets the maximum fare levels provided to each of the isles.
Since 2009, the summer and winter Inter Island Air Service timetables have been optimised to best meet the needs of itinerant teachers, pupils, NHS Orkney, as well as the residents from and visitors to the Outer North Isles.
However, the Inter Island Air Service has limited capacity, particularly on scheduled services which are shared by islands. Available resident and visitor capacity is reduced further due to pre-booking, particularly during term time for educational purposes. The service is operating to its maximum frequency, based on a 2 aircraft operation and existing pilot crewing hours. Therefore, there is no ability to enhance services to 1 island without taking services away from another within the existing Contract.
A new Contract period allows the opportunity to consider the current specified provision and the recommended level of frequency as outlined in the Orkney Inter-Island Transport Study, which follows Transport Scotland's Strategic Transport Appraisal Guidance (STAG). Any service improvements recommended by STAG (Option 3 — Enhanced Service following initial finding of the Orkney Inter-Island Transport Study) or to resolve the current shortfalls (Option 2 — Enhanced to address capacity constraints during term time and lack of current service to Eday) should be presented as costed options over and above the existing service provision by bidders.
The maximum Contract period for a PSO is 4 years; therefore, it is proposed that the next Contract will operate from 1.4.2017 until 31.3.2021 inclusive.
Tenderers are required to provide costs for Option 1, Option 2 and Option 3 as described in the ITT documentation.
Budget indicated includes the enhanced service Options 2 and Option 3, which are subject to availability of additional funding.
The Council reserves the right to cancel the procurement at any stage and not award a Contract. The expenditure, work or effort undertaken by bidders prior to the award of any Contract is accordingly a matter solely for the commercial judgement of bidders.
An operator that suffers, or risks loss or damage attributable to a breach of duty under the Public Contracts (Scotland) Regulations 2015 may bring proceedings to the Sheriff Court or Court of Session.
Tenderers should complete the ESPD (Scotland) contained within the Invitation to Tender documentation referred to as Appendix A to the Contract Notice For The Provision of Air Services Between the Orkney Mainland (Kirkwall) and the Islands of Papa Westray, North Ronaldsay, Westray, Sanday, Stronsay and Eday REFERENCE: OIC/PROC/0517.


Winner: Loganair Limited
Award value: 4148000
Number of bids: 1