The push to generate substantial savings in both central and local government procurement will continue throughout the next parliament. For fleets, opportunities to reduce costs exist through the Crown Commercial Services’ seven Framework agreements
The Crown Commercial Service has nearly 10 years’ expertise in developing fleet agreements. The Fleet category covers the purchase and lease of a wide range of vehicles, including passenger vehicles, motorcycles, car‑derived vans, light commercial vehicle and heavy and specialist commercial vehicles of 7.5 tonnes and above.
In 2013/14, approximately 32,000 vehicles and a quarter of a million tyres were purchased using the seven frameworks available (Vehicle Purchase, Vehicle Lease, Insurance, Fuel Cards, Vehicle Hire, Supply and fit of Tyres and Vehicle Conversions and Reconditioning Services) for which a total of 70 suppliers exists across 25 ‘lots’.
The procurement for the Framework Agreement was undertaken using the Open Procedure in compliance with all public procurement regulations, and the frameworks are projected to save £123.4 million over 2014/15.
Savings are calculated through the CCS database of previously paid prices, which provides up to date baselines for comparison. External agencies are also used to compare agreement spend against other market areas in order to give a true representation. The suppliers have, according to the CCS, gone through a rigorous selection process based on quality and price as well as financial, technical and performance capabilities. All comply with UK and EU legislation.
Vehicle Purchase
The framework for Vehicle Purchase (RM1070) is made up of suppliers who directly manufacture the required vehicles and are responsible for managing and controlling the complete supply chain from vehicle manufacture through to the supply, delivery and services, including after sales support and maintenance and servicing. RM1070 provides access to a wide range of vehicles across nine separate ‘lots’ including cars, 4x4s, commercial vehicles, buses, coaches and motorcycles from a total of 41 suppliers. It is fully supportive of the Clean and Energy Efficient Vehicles Directive 2009-33-EC and flexibility for sustainable vehicle procurement measures.
Lot 6 is distinct as it is for the supply and delivery of appropriate vehicles for overseas, with the specific requirements for this purpose. Lots 7, 8 & 9 are for Blue Light vehicles which in this context means UK police forces, UK ambulance trusts, Highways Agency, Marine and Coastguard Agency and UK fire and rescue services, and other organisations with specific emergency vehicle specification requirements.
Leasing
There is a separate fleet management framework agreement in place for vehicle lease (RM858) which is in place with eight approved suppliers - Alphabet (GB), Arnold Clark Vehicle Management, Automotive Leasing, Inchcape Fleet Solutions, Lex Autolease, Lookers, TC Harrison Group and Volkswagen Group Leasing. As it expires in May, CCS is currently developing a replacement, set to be available later in the year.
e-Auctions
For the Vehicle Lease and Vehicle Purchase Frameworks, e-Auctions assist in standardising specifications and aggregate volume. Vehicle manufacturers view them as hugely valuable in boosting fleet sales.
An eAuction can help drive competition amongst vehicle manufacturers to deliver significant savings. There may also be an opportunity to aggregate requirements with other customers to achieve economies of scale. During an eAuction, bidders compete in real time and have multiple opportunities to improve their price, which encourages bidders to offer greater price savings than a standard best and final offer approach.
All eAuctions follow compliance checks against technical and delivery criteria, and so are based on price alone. The eAuction service includes advice on a strategy that will best meet the buyers’ requirements, and help with the wording to be included in tender documentation. The CCS also manages the live eAuction process, and trains bidders in the use of its software.
In November 2013 an eAuction for 1,270 passenger and commercial vehicles achieved average savings of 39 per cent across all of the vehicles against the manufacturers recommended retail prices.
In February 2014 a further eAuction for 754 passenger and commercial vehicles delivered average savings of 40 per cent across all the vehicles against the manufacturers’ recommended retail prices.
The total savings from the manufacturers recommended retail prices are over £7.2 million across the two eAuctions.
Participating departments included the Ministry of Defence, Department for Work and Pensions, Driving Standards Agency, Environment Agency, Vehicle & Operator Services Agency, HM Revenue and Customs and the Gangmasters Licensing Authority.
Three eAuctions will take place this financial year (July, October and February 2016).
Fleet Portal
The Fleet Portal is a web-based system which serves both Vehicle Purchase (RM1070) and Vehicle Lease (RM858), and allows for instant quotations of standard vehicles for purchase or lease. For Vehicle Purchase, the standard manufacturer framework discounts are applied to the Manufacturer Retail Price to provide a net discounted price. All vehicle technical information is available to enable buyers to compare one vehicle against another and there is a link to the Vehicle Lease framework to obtain real time lease quotes.
Although online quotations cannot be run for Lots 3-9 (inclusive) from the Vehicle Purchase framework, all supplier and framework information about these can still be found within the Fleet Portal.
For Fleet leasing, the Portal pulls real‑time prices from each supplier’s website, based on the buyers’ organisation profile which is set up upon registration.
Prices are displayed along with SMR costs, finance rates and other information which enables users to make a quick and easy comparison. The Fleet Portal can be accessed at www.gpsfleetportal.cabinetoffice.gov.uk
Fuel Cards
Detailed management information supplied by fuel card providers can assist in the efficient and effective management of fleets.
The Fuel Card and Associated Services Framework came into operation in May 2014 and runs until May 2018. It is open to customers that do not necessarily have a large fleet of vehicles, but would like to introduce fuel cards as an efficient way to pay for fuel used on official business. The Crown Commercial Service provides support in the form of advice and guidance on using the agreement, contract management, specific support to start and/or expand existing fuel card programmes, and management and support for further competitions.
Community benefits
Further information on the full range of services offered by each supplier is detailed in the framework, as are the community benefits of each. For instance, Fuel Card Services offers a value added service called CO2Count (www.co2count.org.uk) which donates to Cool Earth, a charity that works alongside indigenous villages to halt rainforest destruction. Since 2012, the company has donated over £125,000 and helped protect 1,725 acres of Peruvian rainforest – keeping 414,000 trees standing and locking in 448,500 tonnes of CO2.
Since 2012, Barclaycard Business’s UK Community Investment programmes have reached 1.2 million young people and engaged 68,000 Barclays Colleagues.
The Crown Commercial Service Fleet Frameworks are designed to complement one another and its ongoing strategy is to deliver an end-to-end solution.
Fuel cards
Fleet Purchase
Leasing
CCS: telephone 0345 410 2222 or visit http://ccs.cabinetoffice.gov.uk