Project

Melbourne Metro Bus Franchise

PROJECT STATUS
Under Procurement
Melbourne Metro Bus Franchise

The Victorian Government will re-tender the contract for the Melbourne Metro Bus Franchise (MMBF) which operates 30 per cent of Melbourne's public transport bus services. The new contract will be structured for an initial seven-year term, with a potential extension of 2.5 years. The current contract, worth $1.7 billion, was awarded to Transdev in 2013. 

The current MMBF comprises over 527 buses and approximately 1000 drivers operating around 36 million kilometres annually. The operations include:

  • 49 network routes servicing Melbourne's eastern, south-eastern, and western suburbs and the CBD
  • 134 school services, and
  • six depots and an operational control centre.

The Victorian Government has indicated it is seeking tenders that support the potential transition to zero-emissions bus fleets. The Victorian Government has also set social procurement goals for the new contract, covering:

  • employment of Priority Job Seeker Groups
  • gender equality, and
  • expenditure with Social Enterprises and Victorian Aboriginal businesses.

Key Dates

Dec 2018 Project Announced
Sep 2020 EOIs Open
Dec 2020 RFP Open
Sep 2021 Expected Announcement of Preferred Bidder
Jan 2022 Expected Transition to New Contract

Procurement

Procuring Agency: The Victorian Government.
Related contracts:
Commercial and Financial Advisor
Successful Tenderer - KPMG.

Legal Advisor
Successful Tenderer - Minter Ellison.

Probity Advisors
Successful Tenderer - RSM Australia.

PROJECT HISTORY

Dec 2018 Victorian Government announced it would be re-tendering the Melbourne Metro Bus Franchise.
Jul 2020 Due to delays brought on by the COVID-19 pandemic, the existing franchise agreement was again extended until January 2022 to allow for re-tendering.
Sep 2020 EOI to operate the Franchise for a term of up to 9.5 years were released and an industry briefing was held.
Sector
Other Transport
Procurement approach
Traditional Procurement |
Location
Victoria |
Infrastructure Australia status
Not considered
Resources
Tender notices
2020/09/15