Fleet News

Move to cut public sector’s fleet costs

The Government has just completed the roll out of a new initiative aimed at cutting the cost of leasing vehicles for usein the 100,000-vehicle public sector fleet.

It allows all public sector bodies, regardless of size, to benefit from a single procurement process, providing them with preferential leasing terms and discounts usually only available to larger fleets.

More than 170 public sector organisations have already expressed an interest in sourcing their fleet vehicles through the new initiative and it is expected that more will join.

The initiative also means that suppliers no longer have to tender each time a public sector body wants to renew its fleet contract.

However, just 10 suppliers have so far been appointed – Appleyard, Arnold Clark, Arval, Automotive Leasing, GE, Lex, Lloyds, Lombard, Masterlease and TCH. These 10 could effectively dominate the supply of vehicles into the public sector fleet.

The initiative was developed by the procurement fleet team at the Office of Government Commerce along with the fire services procurement office, prison service and the Government Car and Dispatch Agency.

The authority leading the initiative, the NHS Purchasing and Supply Agency, which operates more than 30,000 vehicles, has said it will save 1% on top of its lease rates through the deal.

The deal combines elements of a previous vehicle leasing contract together with features available for the first time to all public sector bodies such as an interactive user website and the ability to profit share on service, maintenance and repair disposal value.

All are able to use this leasing deal alongside other contracts to achieve further savings.

The initiative also allows public sector fleet operators to restrict the number of suppliers by specifying ‘call-offs’, such as capping CO2 emissions.

There is also a flexibility option meaning cars can be taken without maintenance, with alternative payment profiles, including arrears payments and lease terms of between one and five years.

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