Access Fund for Sustainable Travel Guidance on Bidding Moving Britain Ahead July 2016
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Contents 1. Introduction 4 2. Background 6 3. Eligibility for Access Fund 7 4.Timetable 10 5. Monitoring and Evaluation 11 6. Assessment Criteria 12 Strategic case 13 Economic case 13 Financial case 14 Management case: Deliverability 15 Commercial Case 15 7. Application Process 16 Submission of Bids 16 Enquiries 16 3
1. Introduction The Government recognises the important role of smarter travel in building the kinds of places people want to work and live. The Department for Transport is therefore committed to supporting sustainable travel initiatives which support the local economy by improving sustainable access to new and existing employment, education and training. In his 2015 Autumn Statement, the Chancellor announced 580 million ( 80 million revenue and 500 million capital) for sustainable travel. 20 million of the revenue funding supported the Sustainable Travel Transition Year competition in 2016/17. The remaining 60 million will become the Access Fund from 2017/18 through 2019/20. The Access Fund will benefit local authorities who wish to deliver sustainable transport projects that seek to grow the economy by boosting levels of cycling and walking, and by improving access to jobs, skills, training and education. Local Transport Authorities are now invited to bid for a share of this 60 million pot for 2017/18 through 2019/20. Schemes receiving Dft funding may run for a single year or multiple years. The Access Fund is a significant contributor to the financial resources available for the Cycling and Walking Investment Strategy (CWIS), and all schemes must therefore demonstrate strong or very strong support for cycling and walking. This competition is for revenue funding only. The capital funding for the sustainable transport is embedded in the Local Growth Fund (LGF) and is subject to a separate competitive process (known as 'Growth Deals'). The Growth Deals competition was announced in March 2016 and is led by Local Enterprise Partnerships; the 500m capital funding announced for sustainable transport is part of the Department for Transport's overall funding contribution to the LGF. The Access Fund will operate as a competition between English Local Transport Authorities, excluding London. To be considered for funding, bids should articulate a strategic narrative around how their scheme will contribute to economic growth; should demonstrate support for boosting the numbers of people cycling and walking; and should articulate how the scheme will improve access to jobs, skills, education and training. Bids that receive the highest scores against the assessment criteria (see Chapter 6) will be awarded funding. The Department will prioritise bids that support cycling and walking in the context of the target and objectives of the Cycling and Walking Investment Strategy: to double cycling, where cycling activity is measured as the estimated total number of bicycle stages made each year, from 0.8 billion stages in 2013 to 1.6 billion stages in 2025; reverse the decline in walking activity, measured as the total number of walking stages per person per year; reduce the rate of cyclists killed or seriously injured on England s roads, measured as the number of fatalities and serious injuries per billion miles cycled, each year and increase the percentage of children aged 5 to 10 that 4
usually walk to school; Sustainable transport which supports access to work, skills, education or training. Bids from a single Local Transport Authority need to express a maximum interest of 1.5million across the three year Access Fund period; two or more local transport authorities may join together, with a maximum of five local transport authorities bidding together for a maximum of 7.5 million across the three year Access Fund period. All bids will need a minimum threshold of 350,000. For the purposes of this competition, Combined Authorities, as the Local Transport Authority for a number of local authorities in their area, will be able to submit their bid up to a maximum of 7.5million. Combined Authorities can also be part of joint bids with other Local Transport Authorities. Local Transport Authorities should also continue to work closely with a range of delivery partners, in particular Local Enterprise Partnerships (LEPs), to ensure that sustainable transport proposals are given due consideration in the development of their Growth Deal bids. Where a bid is reliant on Local Growth Fund capital and will be unable to progress without it, we ask that this is made clear in the application form. These points are expanded further in the following guidance. Greater detail on the funding eligibility and assessment criteria for the Access Fund revenue competition can be found in Chapters 3 and 6. 5
2. Background From 2011 to 2016, the Department supported the Local Sustainable Transport Fund, a 600m fund that supported over 100 projects to deliver schemes that supported economic growth, reduced carbon emissions and provided secondary social, health and wellbeing benefits, for example through schemes encouraging active travel, improving the public realm and connecting areas of deprivation to key services. Detail on the outputs from the Local Sustainable Transport Fund (LSTF) can be found here: https://www.gov.uk/government/collections/local-sustainable-transportfund In 2015 the new Access Fund was announced to build on the legacy of the former LSTF. For 2016/17, a Sustainable Travel Transition Year was launched to bridge the two grant programmes. The transition year makes the switch from the LSTF objectives which supported economic growth and carbon reduction to the new Access Fund objectives, which support health and social benefits through increased cycling, and economic growth through access to employment, education and training. The Sustainable Travel Transition Year acted as the bridge between the two funds, with primary objectives for the Sustainable Travel Transition Year being: Support the local economy and facilitate economic development; and Reduce carbon emissions. The additional objectives were: Helping to deliver wider social and economic benefits (e.g. access to employment, education and services); and Actively promoting increased levels of physical activity through walking and cycling. In May 2016, 23 projects received funding for the Sustainable Travel Transition Year. More information on these successful projects can be found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/52552 2/sustainable-travel-transition-year-2016-to-2017-successful-bidders.csv/preview 6
3. Eligibility for Access Fund The Department has 60m in revenue funding available for sustainable travel projects from 2017/18 through to 2019/2020. The competitive process for the revenue funding stream is open to all local transport authorities in England (excluding London), regardless of previous bidding success. Where it is a joint bid of two or more local transport authorities, a single Local Transport Authority should be named as the lead. The grant is available for the period from 1 April 2017 to 31 March 2020. All grant funding must be fully committed by March 2020. Initiatives should seek to demonstrate a long term vision for sustainable transport and indicate how the proposal is the start of a scalable approach that could be delivered over a number of years, for instance to 2025. This competition is based on similar guidance and application forms to the 2016/17 Sustainable Travel Transition Year competition. Bids should not exceed 30 pages in length; the cover page and the signature declaration page will not count toward the overall page limit. Annexes should be restricted to risk registers, delivery timetables, governance organograms, scheme impact Pro forma and supporting economic appraisal summary note and letters of support only; these will also not count toward the total page limit. Any additional annexes above and beyond those listed above will not be reviewed and will not be considered during the assessment process. In addition, the scheme impact Pro forma and supporting economic appraisal summary note will not count toward the overall page limit. The primary objectives of the Access Fund are: To support the local economy by supporting access to new and existing employment, education and training; and To actively promote increased levels of physical activity through walking and cycling. There is compelling evidence on the many benefits to cycling and walking - they contribute to a healthier nation and to improved air quality and reduced emissions, and can help broaden employment and training horizons for people seeking work or education opportunities. With all these benefits, this Government is serious about making this country a cycling nation and to increase levels of walking. Bidders should note the publication of this Government s Cycling and Walking Investment Strategy: https://www.gov.uk/government/consultations/draft-cycling-and-walking-investmentstrategy, which was published for consultation in March 2016 with an ambition for England of making cycling and walking the natural choice for shorter journeys, or as part of a longer journey. In order to achieve our ambition we have set a number of objectives to measure progress. By 2020 we will: Increase cycling activity, where cycling activity is measured as the estimated total number of cycle stages made each year; 7
Reverse the decline in walking activity, measured as the total number of walking stages per person per year; Reduce the rate of cyclists killed or seriously injured on England s roads, measured as the number of fatalities and serious injuries per billion miles cycled, each year; Increase the percentage of children aged 5 to 10 that usually walk to school. All bids must demonstrate some level of focus on walking and cycling; bids with a strong focus on walking and cycling will be viewed favourably. The competition is for revenue funding only. The Department for Transport welcomes ambition and innovation in all proposals, and is therefore requesting a minimum additional funding of 10% matched local contribution for all bids. Where local contribution is being sought from elsewhere such as Local Growth Fund (LGF), this should be specified. Other sources of local contributions should also be noted too. The local contribution (capital or revenue) funding may come from any source such as Health and Wellbeing Boards, Integrated Transport Block, new bids for the Local Growth Fund and other third party funding, apart from funding from the DfT which has been secured through previous competitions such as rounds of the LGF or the CCAG. Any local contribution declared should be inextricably linked to the revenue funding being requested. Where a complementary activity is likely to progress regardless of securing revenue funding from DfT, we recommend you do not declare it as a local contribution and instead focus on the outputs that the additional revenue funding is likely to deliver. Any English Local Transport Authority outside London County Councils, Combined Authorities and Unitary Authorities can apply for funding. Combined Authorities, as the Local Transport Authority, will be responsible for bids for their area. Applications can include partnerships with any number other Local Transport Authorities in order to cover geographical areas that cut across Local Transport Authority boundaries; in these cases, one transport authority must be identified as the lead authority, with others as partners. As there are separate funding arrangements for the devolved administrations, local authorities in Scotland, Wales and Northern Ireland are not eligible for funding. However, we welcome collaborative working and will accept bids in partnership with neighbouring English bidding authorities. There is no limit on the number or types of revenue-related measures in a package proposal. Local Transport Authorities should submit a single bid encompassing all proposed revenue schemes; bids can contain a broad range of measures provided these come together holistically to meet the objectives for the Access Fund. The only exception will be if the Local Transport Authority has been identified as the lead authority for a group bid. In these circumstances, that Local Transport Authority may submit two bids: one for themselves, and one as the lead authority for a group bid. (A local authority cannot be named as the lead authority for more than one group bid, but may participate in several group bids as a partner). Applications relating to National Parks must be led by the relevant Local Transport Authority. Bids could be taken forward by a single Local Transport Authority or as a joint application in cases where National Parks span more than one authority. In all 8
cases, bids should be endorsed and delivered in partnership with the National Park Authority. Each bid must submit a scheme impacts Pro forma and an economic appraisal summary note to support the economic case. Bidders are not expected to provide a full WebTAG compliant economic appraisal as it is not proportionate for this amount of funding. The scheme impacts Pro forma must be submitted in Excel format using the template which is published online alongside the application form and this guidance note. The Pro forma should consist of the bidder's estimation of the outcomes delivered by the scheme, for example the number of cyclists before and after the intervention in the affected area. Explanation of the estimated outcomes should be concise and refer to evidence and local information where possible (e.g. automatic traffic counters). DfT analysts will use this information to estimate the likely economic and social impacts of the scheme, and in turn its likely value for money. Detail of the evidence used and assumptions made in the Pro forma should be set out in the economic appraisal summary. It should be submitted alongside the Pro forma and application form. Bidders are advised to be clear and transparent about supporting evidence because there is unlikely to be time to contact individual bidders with clarification queries. Research published by the DfT demonstrates that sustainable transport projects are strongest when capital infrastructure is supported by revenue measures, which is why the department is providing both revenue and capital funding for sustainable transport. The 500m capital element is part of the Local Growth Fund (LGF), and LEPs are currently bidding for 1.8bn from the LGF with their bids due by summer recess. Whilst bids for the 60m of revenue from the Access Fund can be freestanding, we would encourage links to capital projects, we therefore ask that bids should make clear where there is a link to capital projects and whether this dependency relates to a new bid for LGF; further whether the Access Fund bid is dependent on the success of the related new LGF bid. 9
4. Timetable The deadline for submission of applications will be 6 p.m. Friday 9th September 2016. The winners will be announced in December 2016. Implementation of the successful applications will commence from the point of grant award. The award can only be claimed for expenditure between the date of grant award and 31 March of that year. 10
5. Monitoring and Evaluation Should your bid be successful, you will be expected to work with the Department and ensure that there is a proportionate approach to reporting spend against delivery of outputs from your schemes regardless of their size. Outputs are the tangible deliverables in a project usually delivered once key project milestones have been reached. Each successful bid will be expected to have in place a plan for a proportionate level of monitoring and evaluation of their scheme. If successful you will also be expected to work with the Department to support a programme-level evaluation of the Access Fund, as has been the case for previous schemes such as the Local Sustainable Transport Fund. The bidder should put in place mechanisms to ensure that schemes are monitored and evaluated. These mechanisms will examine metrics relevant to the project, such as changes in cycling and walking levels, improved health or economic benefits, reductions in congestion, improved cycle safety or changes in modal splits, and carbon reduction. In particular bidders should consider: Establishing proportionate evaluation and monitoring plans; being prepared to work closely with the Department. Ensuring that monitoring and evaluation plans are in place for schemes by the time that funding is signed off or before any data collection is programmed. Putting in place processes to ensure that the results of any evaluation and monitoring are published. Detailed guidance on transport metrics can be found in the DfT Monitoring and Evaluation frameworks that have been produced for the Cycle City Ambition programme and the Local Sustainable Transport Fund. These frameworks provide guidance on data requirements for monitoring cycling and walking schemes, data collection methods and potential data sources and can be found at the addresses below: Cycling city ambition grant: monitoring plan: https://www.gov.uk/government/publications/cycling-city-ambition-grant-monitoringplan Local Sustainable Transport Fund Monitoring and Evaluation Framework: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/35975/ lstf-monitoring-evaluation-framework.pdf 11
6. Assessment Criteria The Access Fund is expected to support a range of sustainable transport initiatives that grow the economy, reduce carbon emissions, improve air quality, increase the numbers of people cycling and walking, and improve access to opportunities for those not in employment, education or training. Bidders may find it helpful to refer to our Behavioural Insights toolkit 1 when considering which audiences to target. The Department will assess bids in line with its Transport Business Case guidance 2 consisting of: the strategic, financial, economic, management and commercial cases. To ensure a proportionate and light-touch process, there is a limit of 30 pages for any bid submitted, be it from a single authority or a joint bid. The Department's appraisal guidance is based on the principles of proportionality. Bidders are not expected to produce a fully WebTAG compliant economic appraisal for this round but are expected to demonstrate value for money and added value for proposed projects for the funding period. The approach of DfT analysts assessing bids will be to scrutinise information and evidence supplied by bids on quantifiable and other expected impacts of the scheme. Analysts will then compare information provided against evidence from past bidding rounds as well as evidence from relevant literature and WebTAG. Bids should seek to clearly state what the physical outputs deliverables from the proposed plan will be, and the associated costs. It is worth noting that the Strategic Case and the Economic Case will be assessed separately. It is therefore recommended that you do not rely on evidence supplied in the Economic Case to support your Strategic Case, the two cases are assessed independently. Key evidence should therefore be duplicated in both the Strategic Case and the Economic Case. Strategic case Bids will need to give a clear explanation of the projected impacts on the area in question. The following considerations will be used to assess each bid: Primary objectives; Evidence that the bid will support the economy by supporting access to new and existing employment, education and training. To actively promote increased levels of physical activity through walking and cycling. Supporting objectives; 1 https://www.gov.uk/government/publications/behavioural-insights-toolkit 2 https://www.gov.uk/government/publications/transport-business-case 12
Demonstration of an understanding around how transport contributes to carbon emissions and air quality levels, and provision of clear solutions; Reduced traffic congestion through providing people travel choices. Economic case The economic, environmental, social and distributional impacts of a proposal will be examined as part of assessing value for money. It is important that the economic case is linked to the strategic objectives of the scheme. For the economic case bid assessors will judge the strategic rationale for Government intervention as a key part of estimating the scheme's likely value for money. Bidders should take a proportionate approach to analysis when demonstrating the potential impacts of their scheme. While there is no need to undertake a full WebTAG compliant assessment, each bid must support their estimations of scheme impacts and assumptions with robust supporting evidence. All bidders are required to complete a scheme impacts Pro forma which asks bidders to give information on a number of metrics relevant to the appraisal of their scheme. When inputting metrics into the Pro forma, bidders must explain the evidence and assumptions used to reach each value, including by submitting an economic appraisal summary note for DfT analysts to review. The Pro forma can be found on the Department for Transport website alongside this guidance. The metrics include: Number of current users (public transport, car drivers and sharers, cycle, pedestrian); and Number of forecast users with scheme implemented. The Pro forma must be completed in full and submitted in Excel spreadsheet format. Bidders must refrain from changing the formatting of the Pro forma table. This is to ensure that assessments of each scheme can be made as accurately and quickly as possible. Bidders are advised to answer each question in the Pro forma with a single metric and a concise explanation of the supporting evidence or rationale for each. More detailed information can appear in the economic appraisal summary note. Bidders should not assume that assessors have any knowledge of the scheme's local circumstances or scheme. Be as clear as possible. For the economic case, bidders may wish to consider a narrative, for example: The scheme objectives and what will be delivered The outcomes of the scheme being delivered (e.g. new cyclists) How these outcomes will be delivered by this intervention, for example referring to experience of past schemes or robust evidence For bids with more than one project element, separate Pro forma for each project scheme can be submitted where considered beneficial to demonstrate the economic case. 13
Economic appraisal summary In addition to the scheme impacts Pro forma, bidders must also complete an economic appraisal summary note briefly outlining the evidence used and key assumptions made. The summary must: Explain the evidence used and assumptions made when completing the Pro forma. If bids have attempted to quantify benefits, though this is not strictly necessary, the summary should explain how these estimates have been reached. Set out in full benefits of the scheme that are not possible to quantify, or wider benefits that do not fit into the Pro forma table. This is so that wider/unquantifiable benefits of each scheme can be given due consideration by assessors. Assessment Information supplied in the economic case and scheme Pro forma will be assessed for value for money by DfT analysts. When assessing the economic case, its fit with the strategic rationale for Government intervention and wider strategic case will also be scrutinised. The information submitted in the Pro forma will be compared against relevant existing evidence, literature and WebTAG data to approximate the likely value for money for each scheme. Using the Pro forma and economic appraisal summary, DfT assessors will scrutinise the supporting evidence given in each bid s Pro forma and the assumptions made. Sometimes it will not be possible or proportionate for bidders to quantify all the benefits of their scheme. In such cases, bidders should still complete the attached Pro forma and provide a qualitative assessment of the benefits of the project. Qualitative articulation of benefits should still be supported by sufficient, robust evidence, such as information on the ground from a trusted local source. Bidders should identify when benefits of the initiatives are expected to be realised. Information on sources of funding should be clear and transparent, and funding sources such as partnership or match funding that will impact on the scheme must be set out clearly alongside the funding from the Department being sought. The measures brought together in a bid package need to maximise the overall benefits relative to the full cost (not only DfT contribution) and bidders should seek to identify all impacts. Successful bids will show clearly how the economic case for the scheme fits with overall strategic objectives. Where schemes relate to walking and cycling, bidders may wish to use the Department for Transport s Cycling and Walking Appraisal Toolkit alongside a completed Pro forma. Bidders that make use of this tool should submit their version of the toolkit in Excel spreadsheet format and outline key assumptions made within the toolkit. Financial case Bidders must confirm local commitment to the initiatives proposed. A minimum local contribution of 10% for all bids is required. This cannot be other bid-based Department for Transport funding, but can be made up of both local authority funding (including Integrated Transport Block), Local Growth Fund and other third party 14
funding. Evidence of funding and support from the private sector would further strengthen the evidence that the scheme has a demonstrable link to growth and jobs. Bid applications must identify the source of the local contribution, including any conditions attached to the funding. Bidders must explain how the external funding has been secured and should attach a letter of support as an annex; this should articulate when funding would be available (including any triggers that are needed to release the external contribution). Bids should clearly state what the outputs from the project will be and the predicted costs associated with these. Responsibility for estimating and controlling all project costs lies entirely with the lead bidding authority. The Department's agreed contribution will be the maximum that the project will receive. It will not commit to provide any funding beyond 31 March 2020 nor will it entertain any contribution to cost increases that may arise. These would have to be met through local contributions. A signature from the local authority s Section 151 Officer should be included in the application form confirming that any cost increases or cost over-runs would be met by the authority. Management case: Deliverability Proposals must be able to demonstrate that they have a sound strategy for delivery for each element of their package. This can be explained through a project or programme plan giving timescales and output milestones. Applications should include the current status of the initiatives proposed, for example, if the schemes are established either in the local area as part of an existing grant, or whether they are in the development stage. All applications should include key risks to delivery and planned measures for managing those risks and risk mitigation in the form of a risk register. Any scheme dependencies that may impact delivery, such as on third party funding or complementary capital works, should be clearly stated in the bid alongside a statement on how this will be managed. Applications should detail how the project will be managed and clearly identify the roles, responsibilities and the level of involvement of any partnership bodies and stakeholders in the delivery process. There should be a clear statement of senior level support from these organisations; this can be provided in the form of a letter. The Department attaches importance to a wide spectrum of community participation (including but not limited to business) in decision-making and delivery, with local authorities drawing on the ideas and expertise of the community and voluntary sector. Proposals can be developed from existing engagement, where appropriate. Commercial Case The commercial case provides evidence of the viability of a proposal and, where relevant, the procurement strategy that will be used to engage the market. Ideally relationships with subcontractors and delivery partners should be established prior to submitting your bid in order to avoid lengthy procurement processes given the timescale of the fund. 15
7. Application Process There is one application form available; it is published alongside this guidance on the Department for Transport s website. Applicants should complete all sections as explained on the form and this should be accompanied by any necessary supporting material. Bids should be limited to 30 pages; this does not include any cover page or S151 signature declaration page. Annexes must be restricted to risk registers, timetables, governance organograms and letters of support only; these will not count toward the total page limit. The scheme impact Pro forma also does not count toward the overall page limit. For partnership bids, it will be for the partner authorities to decide which authority will lead and submit the bid. Submission of Bids The deadline for both the application form and the scheme impact Pro forma is 6pm. Friday 9th September 2016. An electronic copy of the bid is required to sat.programmes@dft.gsi.gov.uk. An acknowledgement email will be issued within one week of receipt. If you do not receive an email this means the department has not received your bid and you should get in touch. Enquiries If you have any questions about this guidance, including clarification on the information and appraisal requirements for bids, please email sat.programmes@dft.gsi.gov.uk or contact: Rabina Nawaz Lead of Communications and Stakeholder Engagement Tel: 020 7944 3395 Jonathan Marshall Head of Programme Implementation, Sustainable Accessible Travel Tel: 020 7944 3544 The Department will not be able to advice on the merits or otherwise of emerging proposals in the period up until submission of bids. 16