RM6096 - Vehicle Lease & Fleet Management Framework Industry Day 24th July 2018
Agenda Item 1 Registration 2 Housekeeping & Introduction to the Industry Day 3 Overview of Crown Commercial Service and the Fleet Strategy Current Vehicle Lease & Fleet Management framework 4 Proposed new Vehicle Lease & Fleet Management framework 5 Break The Tender Process, Public Sector Contract terms and conditions and Next 6 Steps 7 Any other Questions? 8 Close
Housekeeping & Introductions Purpose of Industry Day ● To explain scope and technical requirements to potential providers ● To shape requirement based on industry feedback Outputs ● Gain potential provider awareness, engagement and opinion ● Explain buying landscape and relationship with other CCS agreements ● To understand risks and issues ● To inform of the procurement process ● Industry is informed and prepared to respond to tender
Who is here from CCS Fleet Team - Strategic Travel Team - Strategic Tammy Carter Vasco Neves Holly Brooks Rachel Hughes Fleet Team - Operational Sourcing Team James Rodgers Janine Cato Tina Cameron
Overview of CCS and Fleet CCS CC Strategy
Introducing the Crown Commercial Service We help organisations across the entire public sector save time and money on buying the everyday goods and services they need… significant bulk buying commercial savings power expertise supporting customer frontline focused services We aim to help our customers save £2 billion between 2016 and 2020
Our Focus and Priorities Maximising commercial benefits Focusing on our customers Strengthening the UK economy through effective policy delivery CCS CC
Our Customers Housing Government Associations Departments Devolved Administrations Local Government Emergency Services Education Health Charities / Third Sector
The areas we work in travel facilities temporary staff cloud & digital fleet management solutions office services outsourced services maintenance & network services marketing repair advisory services communications (e.g. consultancy, software & research utilities & fuels legal and language) technology products financial services construction & services contact centres
Fleet Agreements 35% of spend: £326m 17/18 Fleet Enablers & Services Vehicle Purchase ● Fleet Portal (RM1070) ● eAuctions Vehicle Lease Vehicle Other fleet related CCS & Fleet Conversions £914m Management agreements DPS (RM3710) (RM3814) (17/18) ● Vehicle Hire ● Fuel Cards ● Electrical Charging/Technology ● Insurance ● Driver Training Supply & Vehicle Fit of Tyres Telematics ● Liquid Fuels (RM3767) (RM3754) 10
Building a Total Fleet Solution Fleet Our vision is to be the Commercial “go to provider” for Agreements total fleet solutions and market insight for public sector fleets. Total Fleet Enabling Collaboration Technology – Our aim is to deliver Solution Fleet Portal commercial benefits by focusing on the whole life cost model Customer Needs and key influencers eg Estates Rationalisation and Fleet Policies 11
Changing Landscape: Alignment to Government Policy & Targets Government Buying Standards (GBS) for Transport ● Mandatory for CG and best practice for wider public sector ● Updated December 2017, applicable to cars and LCVs ● Minimum standards - zero/ultra low emissions by default (Fleet average of no more than 85g/km for cars and 147g/kim for LCVs by 2020) Government Fleet Commitment ● Announced at Autumn Budget November 2017 “Commit to electrify 25% of cards in central government departments fleets by 2022” ● 25% of CG car fleets to be ULEV by 2022 - 100% by 2030 Brexit ● Impact of vehicle production, costs and lead times WLTP ● Impacting on supply, customer purchasing profiles & fleet policies 12
Key Actions ● Customers need to balance between shrinking budgets against the need for greater investment for changing fleet profiles ● Customers will need to develop capability to monitor fuel/energy used, mileage and resulting emissions ● OEM market needs to be ready in terms of model range and capacity to deliver volumes required ● Lease & Fleet Management suppliers will be key in supporting the delivery of customer’s changing fleet needs and future strategies ● CCS will need to work with customers and support future strategies to deliver strong commercial benefits 13
Current Vehicle Lease & Fleet Management CCS CC Framework (RM3710)
Existing Lotting Structure Lot 1 - Lease of passenger motor vehicles and light commercial vehicles up to 3.5 tonnes, including cars, vans, 4x4s, alternatively fuelled vehicles (e.g. hybrids, electric) and converted vehicles up to 3.5 tonnes Lot 2 - Lease of commercial vehicles 3.5 tonnes and above, including buses, coaches, trailers and municipal vehicles Lot 3 - Fleet management services (Includes Independents & Funders) Includes Enhanced Security Requirements ●
Terms and Conditions Two documents covering the Terms & Conditions of the Framework Agreement Framework Agreement (CCS Core Terms) ● Schedule 2 Annex 3 - Master Lease Terms & Conditions ● Customers overlay this with the Customer Call Off Agreement to enhance the core framework terms
Fleet Portal (Standard build cars and LCVs) Online system which collates technical data including that from CAP for Cars & ● LCV providing the best value solution and supporting Direct Award Manufacturers support rates are applied to the MRP showing the discounted ● purchase price. Provides a direct link to vehicle lease suppliers for live quoting (2 - 4 year leases) ● Over 200,000 quotes per annum with over 1,000 active users. ● Open book pricing to include SMR, residual value and finance rates used. ● Allows customers to search for vehicles, based on operational, environmental, ● safety and cost criteria, to determine the best value solution and support Direct Award
Spend and Customers
Framework Spend by Lot
Vehicle Volumes Vehicle volumes have increased by 19,000 during the lifetime of the current framework (circa 21%) Lot 1 95,065 Lot 2 1,572 Lot 3 12,925 Total 109,561
Framework Relationships ● Access to Support Rates is via an appointed Funder or Fleet Management organisation, who are defined as “Requesting Bodies” ● Converters ● Wider T&Cs agreed between funder and manufacturer defined as “Requesting ● Access as a “Contracting Body” i.e. customer, Bodies” only when established as an “Agent” ● Access to Support Rates only ● Funders and Fleet Management ● Wider T&Cs organisations defined as “Requesting agreed Bodies” between ● Access to Support Rates only converter and ● Wider T&Cs agreed between funder manufacturer and manufacturer i.e. the “Vehicle Contract”
Benefits of current arrangement Simple vehicle acquisition process for standard specification vehicles in Lot 1. ● Option to nominate a preferred local dealership for delivery. ● More flexible, clear and concise route to market, together with improved competition. ● Consolidation of vehicle lease and fleet management into single agreement. ● Improved technology such as telematics to improve fleet utilisation and manage risk ● effectively. Supplier access to manufacturer discounts via the Vehicle Purchase agreement (RM1070). ● Provision for reduced pricing based on standardised vehicle specifications and ● aggregated volumes, supported by Vehicle Purchase eAuctions. Opportunity to improve fleet performance and costs through fleet audits, fleet ● optimisation and utilisation.
Proposed New Vehicle Lease and Fleet Management CCS CC Framework (RM6096)
Strategy and Scope To support all public sector fleets with their diverse fleet operational requirements and policies by establishing a commercial agreement that includes: Funding options for all brands and vehicles within the UK market ● Integration with the CCS Fleet Portal for standard build cars and LCVs, providing real ● time competitive pricing and enabling direct award for the customer. Access to a full range of fleet management services (funded and independent suppliers) ● Seamless integration across all fleet category commercial arrangements ● Gain greater visibility of public sector fleet spend patterns through improved MI ● Access to overseas provision where possible ● Options for more flexible contracts where required ● Continued focus on the whole life cost of the vehicle cycle ●
Lotting Structure Current (Lease Commitment 2 years +): Key Questions for consideration: Lot 1 : Lease of passenger motor vehicles and Lot 1 & 2: include provision to sole ● light light commercial vehicles up to 3.5 supply with standard management tonnes, including cars, vans, 4x4s, provision included? alternatively fuelled vehicles (eg hybrids, Lot 3: change to independent, ● electric) and converted vehicles up to 3.5 non-funded, suppliers only? tonnes Overseas - enable across any lot? ● Lot 2 : Lease of commercial vehicles 3.5 tonne and above, including buses, coaches, Flexible options - widen scope to ● trailer and municipal vehicles include? enable across all lots? Lot 3 : Fleet management services (funded & non funded suppliers)
Recommend
More recommend
