I think that this result is really ... another bigger alarm, because we have seen (that) in the first Bulim package, SMRT put in the lowest bid, but they did not get it.
"However, today it is actually the reverse. Go-Ahead put in the lowest bid, but they actually got it, which means our foreign operators, bidders, in terms of technical capability, they have better something to offer as compared to our local incumbents.
"They must have something different in terms of their technical offerings, the way they run the service, the way they provide the overall maintenance and also to achieve the Government's rules and regulations and to achieve the standards specified by the Government. If the local operators still want to remain relevant, I think it is time for them to do something very different or to inject some very drastic change to their operating practices."
Added UniSIM senior lecturer Professor Walter Theseira: "(This is) another signal that the Government is serious about using bus contracting to spur innovation through using foreign companies who may be able to introduce new management and operations practices to Singapore.
"However, unlike the first round, the winner this time was the lowest bidder. So a balance of price and promised performance will clearly be important."
SBS Transit currently runs all 22 existing routes which are under the Loyang package.
When contacted, the operator said it is naturally disappointed at not being awarded the tender. It added that it will work with the LTA, the National Transport Workers' Union and Go-Ahead for a smooth transition.
The local operators can still bid for the third bus package.
SBS Transit and SMRT will continue to run another nine bus packages as negotiated contracts for about five years. These comprise the remaining 80 per cent of existing buses.
After these negotiated contracts expire, more bus services will be gradually tendered out.