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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 00:00

OJEU - F3 - Contract Award Notice
Tender

11 Sep 2024 at 01:00

OJEU - F2 - Contract Notice
Summary of the contracting process

Orkney Islands Council has awarded a contract for the provision of inter-island air services to Loganair Limited, aimed at the six Outer North Isles (Papa Westray, North Ronaldsay, Westray, Sanday, Stronsay, and Eday). This contract falls under the general public services category and is crucial for sustaining the islands' economic and social framework. It was signed on 20 December 2024 and valued at £6,821,240, with the provision lasting 48 months. This procurement utilized an open procedure, with the tender period concluding on 14 October 2024. The project adheres to a Public Service Obligation (PSO), ensuring minimum service frequencies and capped fare levels are maintained for these essential air services. The delivery location is primarily the Orkney Islands.

This tender opens significant business opportunities, particularly for large-scale service providers experienced in regional air transport. The contract's essential nature in maintaining connectivity and access to critical services, including health and tourism, makes it a vital project. Firms already adept in operating within stringent public service frameworks will find this contract particularly suitable due to its robust regulatory and operational demands. The continuation and enhancement options of the air service underscore long-term business growth and stability, with the potential for increased operations conditional on further government funding.

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Notice Information

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.. 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.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-r6ebe6-0000777202
Publication Source
Public Contracts Scotland
Latest Notice
https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=JAN522225
Current Stage
Award
All Stages
Tender, Award

Procurement Classification

Notice Type
OJEU - F3 - Contract Award 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
Complete
Awards Status
Not Specified
Contracts Status
Active

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Orkney Islands Council
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
KIRKWALL
Postcode
KW15 1NY
Postcode Area
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 Limited

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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