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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 ...

Contract award notice

Results of the procurement procedure

Services

Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses
Orkney Islands Council
Council Offices, School Place
Kirkwall
KW15 1NY
United Kingdom
Contact person: Rosemary Colsell
Telephone: +44 01856873535
E-mail:
Fax: +44 01856876158
NUTS code: UKM65

Internet address(es):

Main address: http://www.orkney.gov.uk

Address of the buyer profile: http://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00369

I.2)Joint procurement
I.4)Type of the contracting authority
Regional or local authority
I.5)Main activity
General public services

Section II: Object

II.1)Scope of the procurement
II.1.1)Title:

Air Services from Kirkwall to Papa Westray, North Ronaldsay, Westray, Sanday, Stronsay and Eday.

Reference number: OIC/PROC/0517
II.1.2)Main CPV code
60400000
II.1.3)Type of contract
Services
II.1.4)Short description:

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.

II.1.6)Information about lots
This contract is divided into lots: no
II.1.7)Total value of the procurement (excluding VAT)
Value excluding VAT: 4 148 000.00 GBP
II.2)Description
II.2.1)Title:
II.2.2)Additional CPV code(s)
50211000
60400000
60410000
60420000
63730000
II.2.3)Place of performance
NUTS code: UKM65
Main site or place of performance:

Orkney Islands.

II.2.4)Description of the procurement:

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.

II.2.5)Award criteria
Quality criterion - Name: Aircraft proposed / Weighting: Pass/Fail
Quality criterion - Name: Service delivery / Weighting: 35
Quality criterion - Name: Panel presentation / Weighting: 5
Price - Weighting: 60
II.2.11)Information about options
Options: yes
Description of options:

Tenderers are required to provide costs for Option 1, Option 2 and Option 3 as described in the ITT documentation.

II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information

Budget indicated includes the enhanced service Options 2 and Option 3, which are subject to availability of additional funding.

Section IV: Procedure

IV.1)Description
IV.1.1)Type of procedure
Open procedure
IV.1.3)Information about a framework agreement or a dynamic purchasing system
IV.1.6)Information about electronic auction
IV.1.8)Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: yes
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure
Notice number in the OJ S: 2016/S 182-326544
IV.2.8)Information about termination of dynamic purchasing system
IV.2.9)Information about termination of call for competition in the form of a prior information notice

Section V: Award of contract

Contract No: OIC/PROC/0517
A contract/lot is awarded: yes
V.2)Award of contract
V.2.1)Date of conclusion of the contract:
21/12/2016
V.2.2)Information about tenders
Number of tenders received: 1
Number of tenders received from SMEs: 0
Number of tenders received from tenderers from other EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 0
Number of tenders received by electronic means: 1
The contract has been awarded to a group of economic operators: no
V.2.3)Name and address of the contractor
Loganair Limited
Cirrus Building, Marchburn Drive, Glasgow Airport
Paisley
PA3 2SJ
United Kingdom
Telephone: +44 1418427454
NUTS code: UKM65
The contractor is an SME: no
V.2.4)Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot: 4 148 000.00 GBP
V.2.5)Information about subcontracting

Section VI: Complementary information

VI.3)Additional information:

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.

Late tenders will not be considered by the Council.

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.

(SC Ref: 479478).

VI.4)Procedures for review
VI.4.1)Review body
Orkney Islands Council
Council Offices, School Place
Kirkwall
KW15 1NY
United Kingdom
Telephone: +44 01856873535
Fax: +44 01856876158

Internet address:http://www.orkney.gov.uk

VI.4.2)Body responsible for mediation procedures
VI.4.3)Review procedure
VI.4.4)Service from which information about the review procedure may be obtained
VI.5)Date of dispatch of this notice:
24/01/2017