(31 Dec 2023, 11:13 am)Dan wrote DC - de-minimis cost (directly awarded, Nexus keeps revenue)
DS - de-minimis subsidy (directly awarded, operator keeps revenue)
MC - minimum cost (tendered, Nexus keeps revenue)
MS - minimum subsidy (tendered, operator takes revenue risk and keeps revenue).
MW - Miscellaneous Works
In broad numbers (regardless of operator), the gross price of 1 PVR on an all-day tender is around £200k.
So, on the 317 (which is 5 PVR), Stagecoach will be assuming there is around £400k revenue in addition to the £600k net subsidy.
In revenue terms, it’s a meaty contract - but it won’t be the huge money spinner that you think it is.
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Thanks for that so was technically right with the terms but got the terminology wrong.
Surprised the revenue is only £400k, always seems reasonable loads at the North Shields to Whitley Bay end of the route, at least, whenever I've seen it. Unsure on the other side though, could carry fresh air for all I know on it's mystery tour around every estate going.