This new contract comes into effect on October 1, replacing the three-year, £20 million annually deal won by Vauxhall which created the so-called Whitehall super fleet of the Inland Revenue, DSS and Employment Service. The Employment Service is not involved in this latest tender, but the available business does represent the amalgamation of Government buying power, in line with the Comprehensive Spending Review's drive for closer working relations between departments.
Significantly, this tender guarantees a minimum level of business to suppliers, and should therefore lead to better terms than the open Government contracts off which all departments can call. Stan Ayling, head of transport and travel at the Inland Revenue and chairman of the tender board which will award the contract, said: 'I am a great believer in tendering for business. Despite inflation, you invariably get as good a deal or better than before because of the competition.'