Qualifying Utilities Dynamic Market (QUDM) for the provision of Small Franchised Bus Services in the West Midlands - The West Midlands Franchising Scheme for Buses

This notice relates to a Qualifying Utilities Dynamic Market (the Dynamic Market) being established by the West Midlands Combined Authority (the WMCA) for its use and the use of any successor authorities, for the procurement of small franchised bus services in the West Midlands. The Invitation to Apply for Membership (the IAM) for the Dynamic Market is available at the link at the bottom of this notice.

The Dynamic Market is being established as part of the WMCA's bus franchising programme, under which the West Midlands bus network will transition from a deregulated system into public control. The franchising scheme has been made by the WMCA under the Transport Act 2000 (as amended). Under the franchising model, Transport for West Midlands (TfWM) will specify routes, service standards and operational requirements, and procure small franchised bus services contracts and associated services competitively under the Dynamic Market (Small Franchised Bus Services).

The Dynamic Market is intended to create and maintain a pool of qualified suppliers eligible to participate in future procurements for Small Franchised Bus Services. It has been designed to support proportionate access to franchising opportunities for a broad range of operators, including small and medium-sized enterprises (SMEs), voluntary, community and social enterprises (VCSEs), special purpose vehicles (SPVs), consortia and larger operators. The Conditions of Membership are described in the Invitation to Apply for Membership (IAM).

The contracts to be procured under the Dynamic Market are public service bus contracts (classed as utilities service contracts). The general scope of services covers: (1) service delivery in accordance with the relevant contract requirements; (2) operational management and the provision of drivers and other operational staff; (3) vehicle provision, depot operations, maintenance and cleaning; (4) mobilisation activities; (5) integration with WMCA systems and the wider franchised network; and (6) performance management under the relevant contract. Small Franchised Bus Services are expected to be provided using the operator's own fleet and depot facilities, subject to the requirements of the relevant procurement documents.

Contracts will be performed wholly or substantially within the WMCA franchising regions, with individual contracts aggregated across all three anticipated tranches worth up to £198,000,000 over the anticipated contract(s) duration. The specific arrangements for each procurement are further described in the IAM and will be set out in the procurement documents for the relevant Invitation to Tender (ITT).

The Dynamic Market is being established as a single-part Dynamic Market and will operate for an anticipated initial period of thirteen (13) years, with options for extension or reduction at the WMCA's discretion. The Dynamic Market will remain open to Applications throughout its duration. Applicants that satisfy the Conditions of Membership.

Under the Dynamic Market, ITTs will be issued in three tranches. Each tranche may be sub-divided into one or more lots, as set out in the relevant ITT. The indicative tranche ITT issue dates are:

• Tranche 1 – 5th October 2026
• Tranche 2 – From January 2027
• Tranche 3 – From February 2028

Further information on the tranches, including the indicative scope of contracts in each tranche, is set out in the IAM. The above dates are indicative and may be subject to change at the WMCA’s absolute discretion.

The IAM is made available to all potential suppliers (Applicants) that are interested in tendering for franchised bus services contracts and associated services under the Dynamic Market. Applicants must register on the WMCA's Proactis e-tendering portal and express interest in the opportunity in order to apply. Applications must be submitted electronically through Proactis, by completing and submitting a response to the Dynamic Market Questionnaire (DMQ) (Appendix 2 to the IAM), together with any other information required by the IAM. No other method of submission will be accepted. The WMCA shall assess each Application in accordance with the IAM.

Contracts awarded by reference to the Dynamic Market will be procured and awarded using the Competitive Flexible Procedure in accordance with the Procurement Act 2023. Participation in these procurements will be limited to Members admitted to the Dynamic Market. The procurement documents issued for each procurement will set out the contract-specific requirements, award criteria and evaluation methodology.

As the Dynamic Market is a qualifying utilities dynamic market established under section 40 of the Procurement Act 2023, the WMCA is not required to publish tender notices for individual procurements under the Dynamic Market via the central digital platform. Associated ITT documents for each procurement will be issued only to Members of the Dynamic Market at the point of issue; suppliers with pending Applications, or that are not Members, will not receive the ITT. Suppliers are responsible for monitoring any ITTs issued in connection with the Dynamic Market and for responding accordingly.

Applicants intending to participate in a particular tranche must submit their Application in line with the timescales set out in the IAM, to enable the WMCA to assess and (if successful) admit them as a Member. For tranche 1, Applications must be submitted by no later than 1200 hrs (BST) on 18th September 2026. Suppliers that do not apply on or before this date will be unable to take part in the procurement process for tranche 1 and suppliers with pending Applications at the point of ITT issue will not receive an ITT for that tranche. Missing a tranche cut-off does not prevent a supplier from applying for membership in respect of subsequent tranches.