The West Midlands Franchising Scheme for Buses Dynamic Market

This notice relates to a Qualifying Utilities Dynamic Market (QUDM) being established by the West Midlands Combined Authority (the WMCA) for its use and the use of any successor authorities. 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, the WMCA’s transport executive, Transport for West Midlands (TfWM), will specify routes, service standards and operational requirements, and procure franchised bus services contracts and associated services competitively under the Dynamic Market.

The contracts to be procured under the Dynamic Market are public service bus contracts (classed as utilities services contracts). The general scope of services covers: (1) the provision of franchised bus services in accordance with timetables and operational specifications; (2) the provision of drivers and operational staff; (3) vehicle and depot maintenance and cleaning; (4) integration with WMCA / TfWM network management, traffic control and customer-facing systems; (5) integration with WMCA IT, data, performance, ticketing and revenue systems; and (6) performance management under the relevant contract.

Contracts will be performed wholly or substantially within the WMCA franchising regions, with individual contracts aggregated across all three anticipated tranches for the initial term(s) worth up to £1,560,000,000 over the anticipated contract(s) duration. The contracts will involve the use of WMCA-provided depots and WMCA-provided fleet (including zero emission vehicles). 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. It will remain open to new Applications throughout its term.

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 – 17th August 2026
• Tranche 2 – from March 2027
• Tranche 3 – from October 2027

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 B 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 under the Dynamic Market will be procured and awarded using the competitive flexible procedure in accordance with the Procurement Act 2023. Participation in these procurements is limited to suppliers successfully admitted as Members of the Dynamic Market.

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 31 July 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.