Ticketless Travel Survey

Tender description

The Thameslink Southern Great Northern (TSGN) franchise is operated by Govia Thameslink Railway Limited and will operate from 14.9.2014 to 19.9.2021. Within this franchise, passenger revenue risk has been assumed by the DfT and all ticketing and fares revenue is paid to it. Because the franchisee does not take revenue risk, the Secretary of State (SoS) has a requirement to ensure that the franchisee is operating in the same way it would if it was taking revenue risk. To ensure that passenger revenue is being maximised, the Franchise Agreement contains a requirement on the part of the SoS to undertake Ticketless Travel Surveys across the franchise. The Surveys are expected to be carried out quarterly with the first Survey to be completed before 14.9.2015 and subsequent surveys starting in the quarter October — December 2015. The level of ticketless travel across the lifetime of the franchise is a key measure of operator performance. There are a number of committed obligations in support of a reduction in ticketless and fraudulent travel including making it easier to purchase a ticket, e.g. increased number of ticket vending machines, mobile ticketing and a higher compliment of revenue protection inspectors (RPI). Benchmarks have been agreed between the franchisee and the SoS in support of a reduction in ticketless travel. To encourage the franchisee to meet and improve upon these benchmarks, financial incentives have been put in place. Should the franchisee not meet the benchmark target, it will be required to pay the SoS compensation for such failure. A methodology has been agreed by both parties, which the surveys provided under this contract must follow. Each survey will identify rates for ticketless travel and revenue at risk. The initial Term of this contract is 3 years, with the option to extend for a further 12 months following the end of the initial Term. This Procurement was run by Crown Commercial Service on behalf of DfT. The contract value stated in Section 6 Award details is estimated as the level of business is not guaranteed.