New direct awards have been agreed for First Group’s Great Western Railway and Govia’s Southeastern, where the existing franchises had been due to end at 02.00 on 1 April. GWR now runs for another three years, extendable to four, and Southeastern for up to two years. Both awards are management contracts for at least the next six months, in which the Department for Transport collects the revenue and covers the costs, paying the operators up to 2 per cent of the previous ‘cost base’ as an operating fee.