Second Bus Package under the Government Contracting Model up for Tender

News Releases 15 Apr 2015 bus contracting

1.      The Land Transport Authority (LTA) has put up the second bus package under the Government Contracting Model (GCM) for tender today. Both local and foreign bus operators may bid for the right to operate the package, which will include 25 bus services to be progressively implemented from the second half of 2016.

Scope of Tender

2.      The bus package will comprise 22 existing SBS Transit services and three new services which will be announced closer to the commencement date. The bus services will be operated from Changi Airport Bus Terminal, Changi Village Bus Terminal, Pasir Ris Bus Interchange, and Punggol Bus Interchange. They will be supported by the new Loyang Bus Depot located off Loyang Avenue.

3.      The bus services will be operated by the successful tenderer (the “Operator”) for a service term of five years with the possibility of a two-year extension for good performance.

4.      The tender documents outline the responsibilities of, and scope of services to be provided by, the Operator. These include:

a)   Operate and manage the 25 bus services in the Loyang bus package to meet or exceed the specified performance standards;

b)   Operate, manage and maintain the buses and their onboard equipment provided by LTA; 

c)   Operate, manage, and maintain Pasir Ris Bus Interchange, Punggol Bus Interchange, and Loyang Bus Depot;

d)   Operate, manage, and maintain LTA’s Centralised Bus Fleet Management System[1].

e)   Operate, manage, and maintain the Bus Ticketing System;

f)   Charge and collect the bus fares, as approved by the Public Transport Council, on behalf of the Government, as well as ensure that the correct fares are collected;

g)   Provide and update bus service information at all bus stops and bus interchanges served by the 25 bus services;

h)   Provide customer management services, such as lost and found service, and a hotline for commuter feedback and enquiries; and

(i)   Allow free boarding of bus services during train disruptions.

Contract Evaluation, Payment and Variation

5.      All tender submissions will be evaluated through a two-envelope process for quality and price with more weightage given to the quality proposal submitted by the tenderers.

6.      The Operator will be required to set up a local company to operate the Loyang bus package, with senior management overseeing its operations to be based in Singapore for better oversight and accountability.

7.      There will also be provisions for additional bus capacity in the contract which will enable the Government to make expeditious adjustments to the bus services, when necessary, in response to changes in ridership and commuter needs.

8.      Tenderers will submit the service fee which they require to run the bus services for the first year of the contract. The service fee to be paid to the Operator will be adjusted each year, to better reflect the operating climate, taking into consideration inflation and changes in wage and fuel costs.

9.      The Operator will be paid the service fee on a monthly basis with deductions for non-operated mileage that is within its control, such as driver absenteeism.

Safeguarding the Welfare of Workers

10.     Each new tender or change in contract for bus services may result in the movement of bus employees from one employer to another. To promote sound employment practices by public bus operators, the Public Transport Tripartite Committee[2] chaired by Senior Minister of State for Transport Mrs Josephine Teo had issued a set of Guidelines on Good Employment Practices in the Public Bus Industry in September 2014. The Committee will continue to engage the various stakeholders to safeguard the welfare of bus sector employees during the transition.

Ensuring a smooth transition

11.     To ensure a smooth transition, the implementation of the bus services in the Loyang bus package will be carried out in two tranches from second half of 2016 to allow sufficient time for the Operator to build up its resources, such as recruitment and training of bus captains and technicians.

Annex: Details of Loyang Bus Package

[1] The project is currently being undertaken by ST Electronics (Info-Comm Systems) and Trapeze Switzerland GMBH, and will be implemented in phases from the second half of 2015.

[2] The Public Transport Tripartite Committee, chaired by Senior Minister of State for Transport Mrs Josephine Teo and comprising representatives from LTA, Ministry of Manpower, National Transport Workers’ Union, SBS Transit and SMRT, was established in February 2014 to provide a platform for engagement and consultation on policies that affect the public transport workforce.


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