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DVSA drives up online theory test contract value to £700m with no explanation

The Driver & Vehicle Standards Agency has more than doubled the maximum offer on the table for a new online theory test service to £700 million.

The reprocurement of the online evaluation system began in March last year, with a preliminary market engagement which sought to “gain traction and interest in a potential future opportunity” to run the service which provides 3.6 million online tests each year.

Initially, £300 million was put forward as the maximum value of procurement, to run the service from September 2028 to September 2033, with a possible one-year extension. The Driver & Vehicle Standards Agency later published two more notices, both putting the same price tag on the work, but to run the service for a maximum of seven years.

In the most recent notice published last week, the maximum value went up to £700 million - excluding tax - for a maximum of nine years from September 2028 until September 2037.

No explanation was given for monetary value, which went from about £60 million a year to about £78 million a year. The DVSA said it expects to publish the tender notice to kick off the competition in April.

In a statement sent to The Register, a spokesperson at the DVSA said: "DVSA has published a preliminary market engagement notice and therefore it would not be appropriate to comment further on this activity.

“We are committed to providing an effective Theory Test Service, improving efficiency and addressing the needs of users. Further updates will be communicated in due course via public procurement channels.”

The UK Theory Test is a statutory service owned by the DVSA that is a prerequisite ahead taking the practical test. It is administered by the DVSA and two private orgs. Theory test contracts and digital operations are run by DVSA, and theory test center ops are overseen by the two private entities.

The driving agency has been under pressure in recent months after the system for booking driving tests hit the skids.

In December, the National Audit Office (NAO) criticized the DVSA over long waits for its practical driving tests. The NAO said these were primarily down to a lack of examiners but the situation was worsened by the agency's 18-year-old booking system being vulnerable to targeting by third-party cancellation checkers and slot resellers. It found some candidates paid up to £500 to secure a test that costs £62 on weekdays.

The DVSA has launched a search for a chief digital and information officer, who will be expected to help improve the service for booking tests. The prospect of a massive procurement for a £700 million online theory test system will be another challenge for the incoming chief. The salary earmarked for the role? £95,000 a year. ®

Source: The register

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