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Biggest fleet deal in history hits 100,000
Date: 27 June 2007 | Author: Tristan Young
Public sector procurement agency the Office of Government Commerce (OGC) is on the verge of signing the largest fleet deal in history at more than 100,000 vehicles.
The car and van leasing contract is due to be awarded in the next few weeks to no more than 10 contract hire providers. BusinessCar's sources have claimed the OGC is down to the final 11 firms.
Although the deal is being done by the OGC in the name of the NHS Purchasing and Supply Agency (PaSA) the terms of the deal mean it is open to the entire public sector.
OGC category manager Barnaby Wiles said: "The anticipated volume throughput is 100,000 vehicles but there is no upper limit. It's the biggest framework contract for vehicle leasing across the Public Sector.
"The procurement is currently in the evaluation stage. It is anticipated that it will be awarded to between five and 10 suppliers."
The deal is for three years with a one-year extension option and is part of the OGC's raison d'etre - to get better value from Government purchasing - as set out in it's guide Getting Better Value from your Fleet. It is part of the Labour's push to save £21.5 billion in the public sector.
When the deal is finalised it will follow a similar contract for tyres signed by the PaSA earlier this year. The Tyre Framework Agreement picked Michelin and Goodyear to supply tyres for the NHS with ATS Euromaster and Hi-Q carrying out the fitting, repair and disposal.
Meanwhile, Inchcape Fleet Solutions has won a five-year, 2200-vehicle contract hire and fleet management deal with the Department of Work and Pensions.
