ALBUM welcomes more SME support in Bee Network

Further steps to support the inclusion of SME operators in the Bee Network is being made by Transport for Greater Manchester (TfGM) in the next round of franchising procurement.

The move has been welcomed by the Association of Local Bus Company Managers (ALBUM), which has called for what it describes as a more equitable franchising approach, one that recognises the value local operators bring to communities and the economy.

A move by TfGM that is helping reduce barriers for SME operators is maintaining small franchises with a PVR that is proportionate to SME operators’ size and experience. Small franchise bid requirements are reduced compared to the larger franchises, in terms of page limits and financial tests. Additionally, large franchise depots cannot be used for small or school Franchise operations. TfGM is also providing briefing sessions designed primarily for SMEs to guide them through the procurement process.

ALBUM believes that a diverse range of franchise sizes, including smaller lots, will encourage greater participation from SMEs. This includes increased competition, with smaller lots attracting more bidders, driving down franchise prices and improving service quality. ALBUM says SME operators often source more locally, boosting the regional economy. The changes could bring about improved service quality, considering smaller operators often have a detailed understanding of local markets and can provide more personalised and responsive service. Additionally, ALBUM says encouraging more SMEs leads to a greater driver pool, with smaller companies attracting drivers who may not be interested in working for larger corporations and thus increasing the total number of drivers available.

ALBUM urges that, in future procurement exercises, all franchising authorities consider how to ensure that SME operators can continue to have a valuable part to play in the provision of public transport services in their areas, for example by:

• Awarding higher quality scores to large franchise operators who agree to sub contract a proportion of work to SMEs.

• Restricting some small franchises (and not just school day services) to bids from SME operators only.

• Micro-franchising.

• Noting the changes TfGM are making to encourage SME involvement in the franchise market.

A statement from ALBUM said: “Franchising must work for everyone not just the largest players. ALBUM continues to advocate for a balanced system that enables SMEs to thrive alongside larger operators, ensuring reliable, responsive and community-focused bus services.”