(20 Apr 2026, 11:57 am)Ambassador wrote Suspect this won't be the first of this type of withdrawal as cost pressures rise (see Yorkshire Buses)
However, it does beg the question, is the tender and procurement process atypically local government driven (low price - sod the outcome) going to cost much more in the long run.
When the Angel network does come in, we'll likely see the likes of these and GCT reduced to school work and rail replacements, as the real big boys swoop in (a la manchester and liverpool)
For me, it's alarming that businesses are putting themselves into a position. Diesel has been on an almost-rapid upward trend for 6 years now, and whilst it of course spiked with the outbreak of the invasion of Ukraine, the price has been volatile ever since then. To need to 'chuck the contract' or close your business down after just over a month of a spike, is probably a good indication that you've got your numbers wrong.
Nexus procurement has been broken for a long time imo. Whereas previously there was a quality element, I suspect that nowadays it's heavily or exclusively on price. There is supposed to be an obligation on contracting authorities to "seek explanations from bidders about abnormally low tenders, before taking action to reject the bidder.", and I think it's reasonable to question whether this happened here.
It must cost Nexus a fortune to re-tender all their services each year alone, without adding the cost of unexpected re-tenders and emergency awards to the mix.
On the latter point, I'm not sure I agree. I would hope that lessons have been learned about the way the big boys were able to grab most of the SME work, and that they resolve that going forward. There's definitely a role for SMEs to play here, and I think the security of a long-term contract award will allow them to invest.