The deal, worth an estimated £3.5 million a year, means Lex Transfleet will be responsible for providing cradle to grave asset management and maintenance solutions for BAE Systems, which was brought together from British Aerospace and Marconi Electronic Systems.
BAE's fleet of about 1,310 vehicles — made up of 560 cars and light commercial vans, 250 heavy goods vehicles and 500 plant vehicles, such as fork-lift trucks and tractors — will be cut by 10% as part of the deal.
Simon Purchon, business development director for Lex Transfleet, said: 'Replacement vehicles will be brought in where wholelife costs demand it. There will be an estimated 10% fleet reduction,'
As part of the contract, Lex Transfleet will take over the in-house workshop maintenance facilities with staff given the option to stay and retrain or transfer.
Russ Armitage, director of group procurement for BAE Systems, said: 'In partnership with Lex Transfleet, BAE has developed a bespoke solution that actively seeks to reduce the ownership costs of running a varied and multi-site fleet.'