Transport tenders cover bus, coach and minibus services, school and SEND transport, taxi and private hire contracts and community transport, bought by councils and other public bodies. Licensing decides who can bid at all, and the rules differ for commercial operators and not-for-profit permit holders. This page sets out the licences and permits buyers look for, the safeguarding checks on school contracts, and how route lots and dynamic markets work. The notice and the tender pack have the final detail on each contract.
What buyers usually ask transport operators for
Licensing decides who can bid at all. The rules below are for Great Britain, and most of the detail sits in the tender pack, not the notice.
PSV operator licences
The gov.uk PSV operator licence page describes four types:
- Standard national: needed to operate commercially in Great Britain. Most full-time commercial operators hold this.
- Standard international: lets you take passengers abroad as well as within Great Britain.
- Restricted: for small operations. It allows 1 or 2 vehicles, neither carrying more than 8 passengers. Up to 16 passengers is allowed in either vehicle if you don’t use it as part of a passenger transport business, or run it as a sideline.
- Special restricted: only for licensed taxi operators running a local service. Stops can be no more than 15 miles apart, and the service must be registered with the local Traffic Commissioner.
In London, private bus or coach services need a London Service Permit, and taxis and private hire are licensed by Transport for London.
Section 19 and 22 permits
Not-for-profit organisations can use section 19 and 22 permits instead of a PSV licence. A permit vehicle must not be used with a view to profit. Charities usually qualify, but a business that makes or seeks to make a profit normally would not.
The difference is who you can carry. A section 19 vehicle cannot carry the general public, only the classes of passenger listed on the permit. A section 22 permit covers community bus services, which can carry the general public.
The permits guide has a section on tendering for contracts, which sets legal limits:
- A council can’t accept a section 19 permit holder’s tender for a subsidised local service contract under section 89 of the Transport Act 1985, because services run under a section 19 permit aren’t classed as local services.
- Section 19 holders can bid for contracts that aren’t local services, such as school transport where members of the general public aren’t carried, within the passenger classes on the permit.
- Councils can accept tenders from section 22 holders, and the guide says there’s no legal barrier to that.
- Contracts can’t be undertaken with a view to profit, because that would invalidate the permit. Full cost recovery is allowed.
Home-to-school transport
Some council transport contracts exist because local authorities have duties to arrange travel for pupils. The statutory guidance sets out local authorities’ responsibilities for children of compulsory school age. It applies to England and was last updated on 26 May 2026.
DBS checks for drivers and passenger assistants
Eligibility for a DBS check is the recruiting organisation’s decision: it is responsible for deciding whether a check is needed and at what level. For school contracts, the home-to-school guidance is more specific. It says local authorities should ensure an enhanced DBS check with a check of the children’s barred list has been carried out for drivers and passenger assistants involved in dedicated school transport. Its annex says dedicated school transport will almost always be regulated activity.
The guidance also says the Bus Services Act 2025 has introduced a requirement for bus and coach operators to carry out enhanced criminal records checks on drivers of closed-door school services who drive on more than three days in a 30-day period. That is the guidance’s statement, so check the current position before you rely on it. The pack should say which of your driver and passenger-assistant roles the buyer treats as eligible and who arranges the checks.
Taxi and private hire licensing
Taxi and private hire licensing is done by the licensing authority: the local council outside London, and Transport for London in London. The driver, vehicle and operator (for private hire) must all be licensed by the same authority. If you work across council areas, check which licence the buyer will accept.
How to win transport contracts
In the week to 10 Oct 2026 there were 13 live transport notices in our data (as of 10 Oct 2026). The sample is small, and a handful of large contracts can move the picture a lot, so we don’t quote a typical value. Look at the individual notices.
Route-by-route lots
A buyer must consider whether to split a requirement into lots and give reasons if it doesn’t. For school and SEND transport, a council might split by route or area. Pick the routes your vehicles and drivers can cover. If you can only run one route, a lot structure is your way in; a single all-routes contract is not.
Dynamic markets for school and SEND transport
Dynamic markets (formerly dynamic purchasing systems, or DPS) are one way a buyer can set up a pool of approved suppliers. A buyer must publish a dynamic market notice before it establishes one and again once it exists. Watch for those notices in your area. We don’t know how any given council prefers to buy, so read the notice for how to apply. Our guide to frameworks and dynamic markets explains how the routes differ.
Price per route, and prove you can deliver
A buyer may award to the most advantageous tender, the one that meets its requirements and best satisfies the award criteria. Build your price route by route: mileage, driver hours, passenger assistant, standby cover and the time between contract award and the start of service.
Then show you can deliver. Say how many vehicles you have available and what spare capacity you could call on. Describe how you record driver checks, vehicle inspections and licence renewals, and how you’d cover a breakdown or a sick driver. Buyers can judge a specific plan far more easily than a promise.
If you also sell or lease the vehicles rather than run them, see vehicle and fleet tenders. Our tender eligibility checker is coming soon. Until then, tell us your trade and postcode to join the free weekly list of live tenders, starting soon.
Questions
Which PSV operator licence do I need for council transport contracts?
It depends on the vehicles and the service. A standard licence is the type for operating in Great Britain commercially. A restricted licence covers one or two vehicles, neither carrying more than 8 passengers, with limited exceptions. A special restricted licence is only for licensed taxi operators running a local service. Check the tender pack for the licence the buyer requires.
Can a community transport charity bid using a section 19 or 22 permit?
Sometimes, within legal limits. Permit holders must run without a view to profit, although full cost recovery is allowed. A council can't accept a section 19 permit holder's tender for a subsidised local service contract under section 89 of the Transport Act 1985, but section 19 holders can bid for non-local services such as school transport that doesn't carry the general public. Councils can accept tenders from section 22 holders. Whether a buyer accepts a permit holder for a particular contract is set out in the pack.
Do drivers on school contracts need DBS checks?
Usually, for dedicated school transport. The statutory guidance for England says local authorities should ensure an enhanced DBS check with a check of the children's barred list has been carried out for drivers and passenger assistants on dedicated school transport, and that dedicated school transport will almost always be regulated activity. The employer decides whether a role is eligible, and the pack should say who arranges the checks, so check it before you price.
Can I bid for a single route?
Often, if the buyer has split the work into route lots. Buyers must consider whether to award in lots and give reasons if they don't. If the notice is a single contract covering every route, you would need to bid for all of it or partner with someone who covers the rest.
Why do some transport contracts look so large?
A single notice can cover many routes, several years and a whole fleet, so its stated value adds all of that up. We had 13 live transport notices in the week to 10 Oct 2026 (as of 10 Oct 2026). With a sample that small, one or two very large contracts would distort any average, so we don't quote a typical value.