The Department for Transport (DfT) has ‘created confusion’ within sections of the rail industry with its involvement in several multi-billion pound train orders, a new report has suggested.
The DfT’s decision to lead the procurement process for both Thameslink and the Intercity Express Programme (IEP), without any previous experience of running such high-profile competitions, has baffled parts of the industry as to what role the department plays, according to National Audit Office (NAO) research.
Particularly following a decision in July 2013 to exercise an option for 270 additional carriages from Agility Trains worth around £1.4 billion.
Although both procurements have demonstrated a level of competition equal to or greater than others run since 2000, the NAO said it would be difficult to establish value for money for wither project until the new trains have entered service.
Amyas Morse, head of the National Audit Office, said: “At the moment there is a gap between the Department’s stated desire to play only a strategic role in the rail industry and how it is acting. It needs to ensure that the industry understands its policy on the procurement of trains and produce a detailed integrated plan bringing together infrastructure, rolling stock and franchising strategy.”
