First ScotRail franchise - Podcast transcript
What’s this report about?
Transport Scotland is the government agency responsible for rail services and this report looks at its performance in managing the contract with First ScotRail to provide passenger rail services. We also assessed the process for awarding the extension to the contract earlier this year, and also looked at First ScotRail’s performance in running passenger rail services against the terms that are set out in its contract with the Scottish Government. 
And what have you found?
We’ve found that Transport Scotland is generally managing the franchise contract effectively. It regularly reviews First ScotRail’s performance and acts quickly to address any issues. However, some of the performance measures could better match passengers’ concerns and wider government priorities, and Transport Scotland could do more to make it easier for people to access information about First ScotRail’s performance, as well as the contract itself, and how it’s being managed.
We have found that overall First ScotRail’s performance to date has been good and improving in most areas. Its delays are down, passenger numbers and satisfaction overall is up; also service quality at stations and on trains is good and it is improving in most areas. 
Regarding the contract extension, we found that Transport Scotland used a rigorous appraisal process when it was reviewing the contract, and it secured a guaranteed £73 million pounds investment from First ScotRail in exchange for the extension. However, parts of the review process could have been better managed, for example, record keeping and consultation.
What is the impact and the importance of all this? Why did you do this report?
Rail transport is a vital service. First ScotRail provides 81 million passenger journeys a year and there are also significant amounts of public money involved, with First ScotRail to receive £2.5 billion in government subsidy over the contract’s ten-year term. And also, obviously, service quality and performance are important areas for service users.
You mentioned that you looked at the franchise extension that was done earlier this year, and there was quite a bit of coverage of that at the time. Was this process done properly?
Transport Scotland’s review of the contract included a rigorous appraisal process, and this included modelling different options and also getting advice from expert external consultants. Through the extension, Transport Scotland has also secured a guaranteed £73 million investment from First ScotRail and this will be used to either reduce the government subsidy or be invested in rail services. The extension to the franchise has also introduced more challenging targets for First ScotRail’s performance. 
However, there are some parts of Transport Scotland’s review process of the contract could have been better managed, for example, better record keeping and consultation.

And just lastly, what do you want to see happen now?
We have made a number of recommendations for Transport Scotland which we believe would help it improve both its management of the franchise contract with First ScotRail, and transparency and accountability to passengers and other stakeholders.
Whilst overall we indicate that Transport Scotland is generally managing the contract effectively, there are three recommendations that I would like to highlight:
•	Firstly, Transport Scotland should review the performance measures that it currently uses, so that they become more in line with some areas of passengers’ concerns and wider government priorities
•	Secondly, Transport Scotland should also set up a single source from which stakeholders can easily access relevant information about the franchise, and also clarify its consultation arrangements with stakeholders
•	Lastly, Transport Scotland should develop a systematic project plan for awarding the next franchise. This plan should set out the key stages, consultation strategy, criteria for decisions and the arrangements for reporting and approving the franchise.