The Scottish Government

Successful Tenderer

Executive/ VesCo

Shared Negotiable

Comment

Vessel design

X

Vessel construction risk

X

Commissioning risk

X

Operational risk (vessels)

X

The successful tenderer will be responsible for ensuring that sufficient vessels are appropriately deployed to meet the minimum standards. The successful tenderer is also responsible for fleet relief and for planned and unplanned maintenance.

Policy risk

X

Policy risk not involving legislation or the unilateral actions of central or local government

Demand for volume risks

X

Risk that demand for service does not match the levels planned

Maintenance risk for harbours

X

Primarily for VesCo. The successful tenderer will be responsible for carrying out all maintenance under the Harbour Management Agreement. The Management fee will cover planned and day to day maintenance. VesCo will carry the risk for unplanned maintenance although the successful tenderer will be expected to carry out the work. The successful tenderer will be responsible for the cost and consequences of any damage to shore infrastructure as a result of the operation, by the successful tenderer, of his own or chartered vessels. Full details will be set out in terms and conditions.

Maintenance risk for vessels

X

The successful tenderer will be responsible for maintaining the vessels in line with the leasing/ charter arrangement with the VesCo.

Inflation risk

X

Bids should be made at today's prices (in cash terms). The subsidy will be adjusted annually to take account of inflation (CPI). The successful tenderer is responsible (except for material change events) for the risk in relation to variations in the cost of operational matters e.g. salaries, overhauls.

Legislative risks

X

The Executive or VesCo will normally bear the risk of legislative changes which were not foreseen at the time the contract was agreed.

Change in requirements of transport policy

X

For example, a change in EU or Govt policy in relation to subsidisation of shipping operators

Incorrect cost or time estimates for providing services

X

Tenderers are responsible for the content of their bids. The bid documents will form a part of the final contract.

Failure to meet specified service levels

X

The successful tenderer must meet the minimum standard set out in the service specification.

Force Majeure

X

Force Majeure will constitute a relief event.

Industrial action

X

Strikes or industrial action unrelated to the Operator will constitute a relief event. Strikes or industrial action involving the Operator's staff or employees, subcontractor's staff or employees or the staff or employees of an associated company will not constitute a relief event and are the responsibility of the successful tenderer.

Failure to meet
performance standards

X

Annex 20 sets out the requirements in relation to Performance.

Capital expenditure - Vessels

X

Procurement of vessels for the CHFS network will usually fall to VesCo. However, there is some scope for the Successful Operator to bring his own vessels to supplement the service specification services and/or to carry out refurbishment/improvement of VesCo vessels.

Capital expenditure - ports

X

Capital investment in relation to VesCo owned ports, harbours and shore facilities will usually fall to VesCo. However, there is scope for the successful tenderer to provide, at his own hand, equivalent facilities or to refurbish/improve VesCo facilities.

Costs related to TUPE

X

Tenderers are required to bid as if TUPE applies and therefore subsidy will reflect this. Where TUPE is found, as a matter of law, not to apply the Executive will claw back, through the subsidy, any consequential savings to the Operator.
Tenderers will wish to note that any errors in their bid costs will be their responsibility.