West Coast

The Institute for Government takes the InterCity West Coast franchise contract as a case study.

In 2012, it was awarded to FirstGroup. Rival Virgin threatened a legal challenge and the contract was cancelled by then Secretary of State for Transport Patrick McLoughlin, citing “significant technical flaws” in the 15-month process.

Reviewing the botched tendering, DfT director Sam Laidlaw found inadequate planning and preparation, deficiencies in organisational structure, and weakness in governance.

The Institute for Government states: “Staff turnover plays a role in all of these. Laidlaw said there was a lack of continuity in senior leadership roles within the DfT and in oversight of the franchise process. Laidlaw also found responsibility for the complex procurement was left in the hands of relatively junior civil servants with limited commercial expertise.”

The National Audit Office subsequently identified project management failings across the Department. It had four different Permanent Secretaries in two years, and multiple changes in directors responsible for major infrastructure projects.

The NAO concluded: “Such high turnover impedes the Department’s ability to discharge its responsibilities.”