Scottish Government

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The Operator will be responsible for ensuring that sufficient vessels are appropriately deployed to meet the Minimum Standards. The Operator is also responsible for fleet relief and for planned and unplanned maintenance.

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

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Risk that demand for service does not match the levels planned

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The Operator will be responsible for carrying out all planned and day to day maintenance under the Harbour Agreement. Unplanned maintenance is likely to be carried out by the Operator and the parties are to meet to discuss who pays. Full details are set out in Harbour Agreement.

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The successful tenderer will be responsible for maintaining the vessels in line with the leasing/ charter arrangement with the VesCo. Operator is responsible for maintaining the CMAL Vessels in accordance with the Charterparties.

Operator can request CMAL's consent to carry out upgrades / refurbishments and will bear the cost. If CMAL requires upgrades CMAL bears the cost.

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

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The Executive will normally bear the risk of legislative changes which were not foreseen at the time the PSC was agreed. CMAL bears the risk of changes required to the CMAL vessels by Class or applicable legislation.

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

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Tenderers are responsible for the content of their bids.

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The Successful Tenderer must meet the Minimum Standard set out in the Service Specification.

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Force Majeure (as defined in the PSC) will entitle the affected party to relief from its obligations for a certain period.

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The Operator is required to meet the performance standards, subject to certain relief events and other relevant provisions set out in the PSC.

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CMAL is responsible for the ongoing replacement of the CMAL Fleet. CMAL bears the risk of changes required to CMAL Vessels by Class or applicable legislation.

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Capital investment in relation to CMAL owned ports, harbours and shore facilities will usually fall to CMAL. However, there is scope for the Operator to provide, at its own expense, equivalent facilities or to refurbish/improve CMAL facilities.

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Tenderers are required to bid as if TUPE applies and the 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.