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Tender contract border confined

NSW's unpopular bus contract tender process will now be confined to Sydney's inner metro area

July 18, 2012

The Bus Association of NSW (BusNSW) has claimed a small victory in the battle to reverse a NSW government bus contract tendering process decision which could see long-established bus operations go out of business.

According to BusNSW, extensive representation by the state’s private bus operators made to their local MPs regarding tendering bus service contracts outside the Sydney Metropolitan Bus System Contract (MBSC) area has seen some results.

BusNSW Executive Director Darryl Mellish says the industry was surprised at the NSW government’s decision to tender MBSC contracts without first renegotiating performance standards with existing operators.

The government then proceeded to call for tenders, initially for four metropolitan bus regions from Monday July 2, 2012.

Mellish confirmed a number of operators received correspondence from local MPs and Transport Minister Gladys Berejiklian indicating the NSW government has no plans to require bus operators in outer metropolitan or rural and regional areas to tender for existing contracts.

“This is considered a very important decision taken by government that will hopefully allay the fears of the Outer Metropolitan Bus System Contract (OMBSC) and Rural and Regional Bus Services Contract (RRBSC) holders,” Mellish says.

He says OMBSC and RRBSC bus operators will now have their investments and security preserved as long as performance standards are continued to be met.

“The decision supports the views of industry experts who consider tendering NSW private bus contracts is not the best method of ensuring value for money and driving customer outcomes,” Mellish says.

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