Press Releases

Government Launches New Deal To Cut Cost Of Leasing Vehicles

A new pan government framework worth up to £270 million over three years has been awarded for the lease of cars and car derived vans.
 
Launched this week, the OJEU-compliant new deal will save significant time and money for public sector organisations, which will avoid having to undertake their own procurement processes for leased vehicles.

Developed with the help of the collaborative procurement fleet team at the Office of Government Commerce (OGC) and organisations including Firebuy, HM Prison Service, Hertfordshire and Surrey County Councils and the Government Car and Dispatch Agency, the framework is a major advance for car leasing within the government.  It provides the public sector with access to very competitive terms and discounts of an average of 2-3% on previous prices, with some of the most popular models being available at much greater discounts, such as the hybrid Toyota Prius. The authority leading the framework, NHS Purchasing and Supply Agency (NHS PASA), which alone operates more than 30,000 vehicles, will save an extra 1% on top of its already very competitive lease rates through the deal.

The deal combines the best elements of a previous popular NHS PASA vehicle leasing contract together with innovative features available for the first time to the wider public sector, including a full interactive user website and the ability to profit share on service, maintenance and repair disposal value. Over 130 public sector organisations have already expressed an interest in the framework and it is expected that more will join over the next few months.

All customers will be able to use this leasing deal alongside other pan government or other contracts for vehicle purchase and glass to achieve further savings. The framework also allows customers to restrict the number of suppliers by providing for call-offs between an organisation and its selected framework supplier or suppliers. Sustainability can be addressed in the call-off selection process, which allows customers' to incorporate their own policies, including environmental factors such as capped CO2 emissions, when selecting suppliers.  A flexibility option means that cars can be taken without maintenance, with alternative payment profiles, including arrears payments and lease terms of between one and five years.

The ten successful bidders for the framework were chosen on the basis of criteria such as price, quality, service and sustainability. The suppliers include Appleyard, Arnold Clark, Arval, Automotive Leasing, GE, Lex, Lloyds, Lombard, Masterlease and TCH.  All the lease providers have signed a Government Master Hire Agreement with standard terms and conditions across the framework.

Notes to Editors

Following the OGC's publication in January of Transforming Government Procurement (TGP), the government's new policy on procurement, this framework is part of a new coordinated approach to major categories of expenditure. TGP is about meeting the public's demand for high quality public services by becoming more efficient in the way common goods and services, such as the leasing of vehicles, are bought. This framework is a good example of how collaborating across departments to obtain better quality, service and value for money is achieved.

About OGC

The Office of Government Commerce (OGC) is an office of HM Treasury, responsible for improving value for money by driving up standards and capability in procurement, from commodities buying to the delivery of major capital projects, maximising the effective use of 60% of Government spending and a £30 billion property estate.
A new Government strategy launched in January 2007, Transforming Government Procurement, highlighted the central importance of procurement in delivering high-quality public services and best value for money.  OGC is tasked with delivering this transformation, and with driving up standards and procurement capability across central Government.  The OGC will do this through:

• Setting the right procurement standards and ensuring they are met;
• Capitalising on the Government's collective buying power to achieve value for money;
• And playing a stronger role in the successful delivery of major projects.

Media Contact:
Martin Day, Press & Media Advisor
T: 020 7271 1318
F: 020 7271 1345
M: 07771 815245
E: martin.day@ogc.gsi.gov.uk