Contents
Foreword 4
Introduction 5
1. Restarting the programme 7
Franchising powers 7
Decisions on the paused competitions 7
Essex Thameside 7
Great Western 8
TSGN 8
New franchising programme 8
Encouraging new entrants to the market 9
2. Specification of franchises 10
Devolution 10
Franchise objectives 10
Use of management contracts 11
Output-based specifications 11
3. Commercial proposition 13
Risk transfer 13
Capital requirements and cross-default 13
Franchise term 14
Profit sharing 14
Partnership and alliancing 14
Bidder-proposed investments 15
Change during the franchise term 16
Financial model 16
4. Procurement process 17
Market information 17
Simplicity of documentation 17
Streamlining the ITT 17
Pre-Qualification Questionnaire 18
Data site 18
Assessment of financial robustness 18
Assessment of quality and deliverability 19
5. Franchise management 21
Simplifying the franchise agreement 21
Guidance on franchise management 21
6. Organisation, governance and capability 22
DfT organisation 22
Structural options 23
Governance and assurance 23
Capability 24
Recruitment and capability plan 24
Programme management capability 25
Management of responses to clarification questions 25
Annex A: Index to the Brown Review recommendations 26
Table A.1 Index to the Brown Review recommendations 26