Alpha and beta phases for a redeveloped Bus Service Operator Grant (BSOG) system.

Tender description

Pre-market engagement A pre-market engagement event was held on 27 February 2026 to provide all suppliers with more detailed background on the requirements. The information shared during the event and subsequent questions and answers will be shared as additional information, alongside the ITT. Work done so far A previous discovery was completed in 2018, with the alpha following in 2019. Due to reprioritisation of resources to respond to COVID-19, this project was not continued. In 2022 the system currently in use was built. In 2023, a project to build a web form for the submission a new, separate grant generated some learnings for Better BSOG, and some initial prototyping of a portal for external users has been carried out and tested with users. An initial alpha took place in October 2025, ending in December 2025, in which some key deliverables were investigated and some recommendations were made. Which phase the project is in Alpha Existing team A product manager is being recruited, there’s an existing assistant product manager and SRO, along with the BSOG operations team and small policy team. The product manager will be a subject matter expert, with some digital experience. Bidders should be flexible and be ready to provide a product manager if requested by DfT. The current service is supported by the DfT Live Services Support and Continuous Improvement team. A DfT senior or lead developer will be available throughout the project to support the project team (on a consultative basis) in ensuring a high-quality product is delivered in-line with DfT expectations. Address where the work will be done Suppliers may work remotely or at supplier premises. Most meetings with DfT staff or other stakeholders will be via Microsoft Teams. There will be occasions where supplier staff are required by the Department to attend DfT offices such as: London SW1P 4DR, Hastings TN34 1EA (where the majority of the BSOG operations team is based) or Birmingham B4 6AT. The Department may also require visits to other stakeholders where necessary. Working arrangements All expenses must be pre-agreed with between the parties before being incurred, and must comply with the DfT Travel and Subsistence (T&S) Policy. Itemised receipts must be submitted to DfT before expenses invoices can be approved. The supplier is expected to be available and contactable during core hours of 10am to 4pm Monday to Friday. Provide more information about your security requirements: Baseline Personnel Security Standard (BPSS) Provide more information about your security requirements: Security Check (SC) Provide more information about your security requirements: All must have BPSS as a minimum. Preference for contractors to already hold SC clearance, however we would be willing to sponsor the SC clearance process at the supplier's expense. Those accessing the code or database must hold SC. Latest start date 2026-07-01 Enter the expected contract length: 2 years Extension period: 6 months Special terms and conditions All expenses must be pre-agreed between the parties and must comply with the Department for Transport (DfT) Travel and Subsistence (T&S) Policy. Itemised receipts must be submitted to DfT before expenses invoices can be approved. All vendors are obliged to provide sufficient guarantees to implement appropriate technical and organisational measures so that the processing meets the requirements of GDPR and ensures the protection of the rights of data subjects. For further information please see the Information Commissioner's Office website https://ico.org.uk/for-organisations/data-protection-reform/overview-of-the-gdpr/ Are you prepared to show your budget details?: Yes Provide further information: It’s estimated the work can be delivered for a maximum of £2,300,000. It’s expected the remaining elements of the Alpha can be delivered for £300,000 (excl VAT). Funding for Beta will be conditional on successful completion of the Alpha phase and internal budget approvals, however we anticipate this to be circa £2m. We expect a period of hyper-care to be included in the overall bid, covering a minimum of 6 months and maximum of 12 months, including a phased transition between the successful supplier, and the DfT Live Services Support and Continuous Improvement team, for a period of 3 months. Confirm if you require a contracted out service or supply of resource Contracted out service: the off-payroll rules do not apply Summary of work DfT requires a flexible delivery partner with GDS-compliant experience to deliver an alpha phase for the Better BSOG project. If alpha is successful, the project may proceed to beta, building system elements. The Department reserves the right to de-scope or re-scope objectives at any stage, including responding to policy changes. Where the supplied staff will work No specific location (for example they can work remotely) Who is the organisation using the products or services Department for Transport Why the work is being done BSOG aims to benefit passengers, helping operators keep fares down and enabling operators to run services that might otherwise be unprofitable and could lead to cancellation. BSOG currently pays 700 eligible commercials (up to £170m) and community bus operators (up to £4m) annually. The system currently used to process and pay BSOG claims was released in 2023. There is now an opportunity to redevelop the system, to do far more, and more efficiently. The new system must match current functionality and deliver the prioritised features listed below: A user-configurable BSOG calculation engine, so BSOG payments can respond to changing policy priorities, including admin functionality allowing payments to be made using various payment formulae, which can be added or removed at any time. The full operator journey, from applying to join the scheme, submitting claims and receiving payment, should be possible for the user to complete and manage online. Debt management functionality, including a dashboard Legal and audit functionality A number of APIs to platforms and databases, for service checking, fraud and other purposes A fraud risk dashboard Enhanced and integrated reporting Improvements to existing functionality, such as reworked dashboards and payment pages The business problem you need to solve The calculation approach is inflexible, making it slow and risky to implement new policy priorities, payment structures, or rate changes without significant technical intervention. Operators are reliant on manual processes to apply and submit claims or update their details, with no ability to track claim progress. Debt management is difficult to track, reconcile, recover, and report on, increasing financial risk and operational burden. Legal, audit, and control requirements are not sufficiently embedded in the system. Bus service and operator registration data is not automatically validated, creating delays, inconsistency, and risk of incorrect payments. The department lacks a consolidated, data‑driven view of fraud risk across operators and claims, limiting early intervention and consistent decision‑making. Internal and external aren’t integrated into the claims process, preventing automated checks. Existing reporting isn’t flexible or comprehensive, limiting insight into scheme performance, risk, value for money, and emerging issues. Users also want to be able to review data within a single service. DfT operations staff are constrained by inefficient tools and workflows, and current systems to process, review, forecast, and pay claims lack intuitive, increasing workload and error risk. Claim processing and fraud reduction measures could be made more efficient through the use of technology. First user type: Bus operators (commercial and community transport organisations): As a staff member or volunteer, I need to submit accurate service and mileage information, so our BSOG claim can be processed and paid. As a user with limited digital skills, I need clear, simple steps and assisted digital support, so I can complete claims confidently. As an operator admin, I need to manage user roles and update contact details, so our organisation’s information stays current. As a director, I need to review and sign off claims, so final submissions are compliant and authorised. As an auditor, I need to access multiple operator accounts and review evidence, so I can certify claims before submission to DfT. Internal: As an operations officer, I need to view, check and progress claims, so payments can be made and any issues resolved. As a manager, I need to monitor workloads, handle debt and fraud cases, and run reports, so the scheme is well‑managed and auditable. As a commercial finance user, I need to bulk‑upload and reconcile payment data, so non‑BSOG grants can be paid accurately and recorded. As a digital support user, I need to update the calculation engine, so future policy changes can be implemented quickly.