Award

Provision of Inter-Island Air Services for Orkney Outer North Isles

ORKNEY ISLANDS COUNCIL

This public procurement record has 2 releases in its history.

Award

21 Jan 2025 at 16:23

Tender

11 Sep 2024 at 15:10

Summary of the contracting process

Orkney Islands Council, a regional or local authority, has confirmed the award for the provision of Inter-Island Air Services operating to the six Outer North Isles (Papa Westray, North Ronaldsay, Westray, Sanday, Stronsay, and Eday) under a Public Service Obligation. The contract, signed on December 20, 2024, with a duration of 48 months, is valued at £6,821,240 and will be executed by Loganair Limited. The procurement process followed an open procedure and is covered by the Government Procurement Agreement (GPA). This contract aims to maintain essential air services that support the economic and social fabric of the Orkney Islands, with further enhancements dependent on additional funding from the NHS Orkney and the Scottish Government to introduce a third aircraft.

This contract presents significant opportunities for businesses involved in air transport services, aircraft maintenance, and related support services to establish or expand their operations within the Orkney Islands. The tender prioritises quality and price equally, making it an attractive prospect for companies that can provide efficient and reliable air transport solutions. Additionally, businesses specialising in community benefits, supply chain development, and environmental impact reduction would find complementary growth potential through contributions to this vital regional service. The contract also includes community benefits, such as work experience opportunities and minimising environmental impacts, ensuring that participating businesses can deliver broader social value.

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Notice Title

Provision of Inter-Island Air Services for Orkney Outer North Isles

Notice Description

Orkney Islands Council (the Authority) has a requirement for the provision of an Inter Island Air Service operating to the six Outer North Isles of Papa Westray, North Ronaldsay, Westray, Sanday, Stronsay and Eday under a Public Service Obligation (PSO), which establishes the minimum frequencies and sets the maximum fare levels provided to each of the isles.

Lot Information

Lot 1

Orkney Islands Council (the Authority) has a requirement for the provision of an Inter Island Air Service operating to the six Outer North Isles under a Public Service Obligation (PSO), which establishes the minimum frequencies and sets the maximum fare levels provided to each of the isles. The maintenance of scheduled air services between Orkney Mainland (Kirkwall) and the islands of Papa Westray, North Ronaldsay, Westray, Sanday, Stronsay, and Eday are essential to counter the islands peripherality, fragile economic base and depopulation of the islands. There is no rapid alternative means of transport to Kirkwall on the Orkney Mainland, and for onward connections with the Scottish Mainland. The designated services, which are currently operated by the air carrier Loganair Ltd, are essential for the maintenance of the economic and social fabric of the islands. They are used for access to essential services (e.g. educational, financial, commercial, professional, advisory and health) which cannot be provided locally; and are also used for tourism. Should these air services be withdrawn the upkeep of the airfields could be placed in jeopardy and this in turn would put at risk the vitally important air ambulance service (currently operated by helicopter) which provides the essential emergency medical link. For North Ronaldsay and Papay Westray these services are defined as lifeline services in terms of the Scottish Government criteria. In recognition of the importance of these services, subsidy is made available by Orkney Islands Council ("the Council") to subsidise the Designated Services. Additional information: The contract value as noted at 11.2.6 is in relation to Option 1 the current services and for the contract duration of 48 months. An estimated contract value of 8,890,243 GBP is estimated to include the enhanced services. Take up of Option 2 and 3 will be subject to a Council decision following subject to Committee approval.

Options: Tenderers are required to provide information and costs for 3 options as follows: Option 1 - current service operation; Option 2 - enhanced service (additional aircraft expected);and Option 3 - enhanced service (additional aircraft and crew expected.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-049a12
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/002074-2025
Current Stage
Award
All Stages
Tender, Award

Procurement Classification

Notice Type
Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

50 - Repair and maintenance services

60 - Transport services (excl. Waste transport)

63 - Supporting and auxiliary transport services; travel agencies services


CPV Codes

50211200 - Aircraft repair services

60400000 - Air transport services

60410000 - Scheduled air transport services

60420000 - Non-scheduled air transport services

63730000 - Support services for air transport

Notice Value(s)

Tender Value
£6,890,244 £1M-£10M
Lots Value
£6,890,244 £1M-£10M
Awards Value
Not specified
Contracts Value
£6,821,240 £1M-£10M

Notice Dates

Publication Date
21 Jan 20251 years ago
Submission Deadline
14 Oct 2024Expired
Future Notice Date
Not specified
Award Date
20 Dec 20241 years ago
Contract Period
Not specified - Not specified
Recurrence
August 2028

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
ORKNEY ISLANDS COUNCIL
Contact Name
Rosemary Colsell
Contact Email
rosemary.colsell@orkney.gov.uk
Contact Phone
+44 01856873535

Buyer Location

Locality
KIRKWALL
Postcode
KW15 1NY
Post Town
Kirkwall
Country
Scotland

Major Region (ITL 1)
TLM Scotland
Basic Region (ITL 2)
TLM2 Highlands and Islands
Small Region (ITL 3)
TLM20 Highlands and Islands
Delivery Location
TLM65 Orkney Islands

Local Authority
Orkney Islands
Electoral Ward
Kirkwall East
Westminster Constituency
Orkney and Shetland

Supplier Information

Number of Suppliers
1
Supplier Name

LOGANAIR

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