The key point here is who is paying for the contract.
If its an organisation that has a social resposibility, nexus, DCC, NCC ect then it is in there best intrests not to secure a service that a operator will run at there own risk or is being contracted to operate.
Anyone with the cash to spend can offer a contract on any grounds they so wish.
You must remember that Secured service and Contracted service are two different things.
RE: Arriva North East