The company operating the national car test, NCTS Ltd, may lose the contract after being ranked second in a tender to provide the service for the next 10 years, reports the Irish Times. NCTS Ltd…has run the vehicle roadworthiness test since January 2000. Three companies tendered for the new contract, and NCTS is understood to have been ranked second during the evaluation period.

Negotiations between the Road Safety Authority (RSA) and the preferred bidder are under way, with a contract expected to be signed within weeks…The new contract envisages up to 11 million car tests being conducted between 2010 and 2019, suggesting potential fee income for the successful company of over €400 million at 2008 prices. The test costs €49, and a retest €27.50…The RSA has decided to follow the current model of awarding the contract to one operator for a 10-year period…

In a note in its 2007 annual report, the NCTS directors state revenues are largely dependent on one contract. "If this contract was to cease, this would have a detrimental effect on revenues", adding that wage increases were impacting on profitability...NCTS employs 497 people in 48 test centres across the State, and also provides driving tests under licence to the RSA.

Irish Times