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Provision for Public Service Obligation Air Services

Argyll and Bute Council

This public procurement record has 1 release in its history.

Tender

23 Oct 2026 at 01:00

OJEU - F2 - Contract Notice
Summary of the contracting process

Argyll and Bute Council is seeking one operator to run scheduled passenger air services linking Oban with Coll, Colonsay and Tiree. The work covers the full operation and management of the routes: aircraft and crew, maintenance, bookings and ticketing, customer service, marketing, performance reporting and related operational activities. The services are intended to provide safe, reliable and resilient air links for island communities, supporting access to education, healthcare, essential services and employment, as well as tourism and economic development. Delivery is across the Oban–Coll–Colonsay–Tiree routes in Argyll and Bute. This is a passenger air transport service, rather than an aircraft supply contract.

The Council invited offers through an open procedure for a single operator. The tender submission deadline was 15 January 2027 at 12:00, with bids submitted electronically; the contract is scheduled to run from 16 September 2027 to 15 September 2031. The maximum available Council subsidy is £1,977,796, and a tenderer's proposed contract price must not exceed it. The Council may extend the contract by up to two years, subject to satisfactory performance and agreement with the contractor. The stated evaluation gives 54 points to the service proposal and 10% to price. The tender includes suitability and technical selection criteria, and execution is reserved to a particular profession. Variants are not allowed.

This opportunity is suited to an established air operator able to deliver scheduled island passenger services as a complete operating service, rather than a supplier providing only aircraft or a single supporting function. Bidders need the operational capability to provide aircraft and crew, maintain aircraft, manage reservations and ticketing, and deliver passenger service, marketing and performance reporting. The routes require reliable service across island communities and the ability to support essential travel as well as tourism and local economic activity. The technical selection criteria reserve execution to a particular profession, so bidders must be able to meet the relevant professional requirements set out in the tender. The contract is awarded to one operator; a suitable bidder therefore needs the capacity to take responsibility for the integrated service across all four destinations.

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Notice Information

Notice Title

Provision for Public Service Obligation Air Services

Notice Description

Argyll and Bute Council is seeking to appoint a single operator to deliver Public Service Obligation (PSO) Air Services connecting Oban with the islands of Coll, Colonsay and Tiree. The Contract is for a four-year period commencing on 16 September 2027 and ending on 15 September 2031. The Services are intended to provide safe, reliable, resilient and financially sustainable air connectivity for island communities, supporting access to education, healthcare, essential services, employment, tourism and economic development. The successful Operator shall be responsible for the operation, management and delivery of the scheduled air services, including aircraft, crew, maintenance, booking and ticketing arrangements, customer service, marketing, performance reporting and associated operational activities in accordance with the Contract requirements.

Lot Information

Lot 1

Argyll and Bute Council seeks to appoint a single operator to provide Public Service Obligation (PSO) Air Services between Oban, Coll, Colonsay and Tiree for a four-year period commencing 16 September 2027. The Contract covers the operation of safe, reliable and resilient scheduled passenger air services supporting connectivity, education, healthcare, economic development and tourism for the island communities served.. The subsidy represents the maximum funding available from the Council. The Contract Price is the amount proposed by the Tenderer to deliver the Services and must not exceed the maximum subsidy available.

Renewal: The Council anticipates that any successor contract shall be awarded no later than six (6) months prior to the expiry of the Contract to allow an appropriate mobilisation and transition period The Contract may be extended for a further period of up to two (2) years at the Council's discretion, subject to satisfactory performance and following agreement with the Contractor.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-r6ebe6-0000846446
Publication Source
Public Contracts Scotland
Latest Notice
https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=OCT567240
Current Stage
Tender
All Stages
Tender

Procurement Classification

Notice Type
OJEU - F2 - Contract Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

60 - Transport services (excl. Waste transport)

CPV Codes

60400000 - Air transport services

Notice Value(s)

Tender Value
£1,977,796 £1M-£10M
Lots Value
£1,977,796 £1M-£10M
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
23 Oct 20264 days ago
Submission Deadline
15 Jan 20273 months to go
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
16 Sep 2027 - 15 Sep 2031 4-5 years
Recurrence
Approximated 2 years and 6 months to 3 years.

Notice Status

Tender Status
Active
Lots Status
Active
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Argyll and Bute 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
LOCHGILPHEAD
Postcode
PA31 8RT
Postcode Area
Paisley
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
TLM63 Lochaber, Skye and Lochalsh, Arran and Cumbrae, and Argyll and Bute
Local Authority
Argyll and Bute
Electoral Ward
Mid Argyll
Westminster Constituency
Argyll, Bute and South Lochaber

Further Information

Notice Documents

  • https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=OCT567240
    Provision for Public Service Obligation Air Services - Argyll and Bute Council is seeking to appoint a single operator to deliver Public Service Obligation (PSO) Air Services connecting Oban with the islands of Coll, Colonsay and Tiree. The Contract is for a four-year period commencing on 16 September 2027 and ending on 15 September 2031. The Services are intended to provide safe, reliable, resilient and financially sustainable air connectivity for island communities, supporting access to education, healthcare, essential services, employment, tourism and economic development. The successful Operator shall be responsible for the operation, management and delivery of the scheduled air services, including aircraft, crew, maintenance, booking and ticketing arrangements, customer service, marketing, performance reporting and associated operational activities in accordance with the Contract requirements.

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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