Purchase of Standard and Specialist Vehicles Industry Day

Purchase of Standard and Specialist Vehicles (RM6244) Industry Day

Agenda 1. Purpose of today s session 1. About CCS and Fleet 1. Current agreements 1. Proposed new agreement 1. Gain industry insight and feedback to shape outcome

Crown Commercial Service and Fleet Strategy

for 21/22: 2020/21 17,000 6.7bn17,000 aim to help our customers save 1.572Bn Customers Customers 13bn public sector spend through our commercial agreements 6.3bn from the wider public sector 601m commercial benefits including savings 1bn commercial benefits including savings 5,000+ Suppliers from central government 22.7bn public sector spend through our commercial agreements 601 commercial benefits including savings 8bn from the wider public sector 15bn from central government CCS customers are: police, fire, NHS, CG, local gov t, charities, education, housing associations et al 4

The Fleet Strategy Our Strategy is to provide Total Fleet Solutions for public sector buyers Provide commercial expertise and market insight to enable effective fleet management Support whole life costing to support best value Help the public sector meet its policy objectives e.g. Environmental, Social Value and Data Security 5

Vehicle purchase Vehicle lease Flexible rental Vehicle hire Solutions based approach Fleet management Electric charging infrastructure Vehicle conversions Fleet management Vehicle telematics Insurance services Supply and fit of tyres Fleet management Fuel cards Fuel supply 6

CCS Fleet Group around 125,000 vehicles acquired via CCS agreements 80% are leased of which 35% are salary sacrifice currently over 3,400 customers accessing CCS Fleet agreements access for all public sector bodies wide range of agreements Vehicle lease Vehicle purchase Vehicle hire Vehicle telematics Vehicle conversions Tyres, glass & fast fit solutions for Fleet: 78% wider public sector ( 883m 20/21) 22% central government ( 246m 20/21) 7

Current agreements

What is a framework agreement? a framework agreement is a contract between CCS and the suppliers appointed to it framework agreements allow orders to be placed during the lifetime of the framework when volumes and timing are uncertain suppliers undertake contractual obligations to customers and CCS e.g. quality and price, management information/charge customers can approach suppliers with technical queries, requests for quotes and to place vehicle orders (call-off contracts) repetitive bidding processes and costs can be avoided call-off contracts are separate legal agreements between the supplier and customer but subject to the specification and terms defined in the framework agreement.

RM6060 - Vehicle Purchase 4 year framework agreement expiring in December 2022 (2020/21 spend 716M; RM6244 is valued at 4B over 4 years) 7 lots (vehicle types) with 47 suppliers in total lots based on different vehicle types i.e. cars, LCVs, HGVs, buses, coaches and motorcycles OEMs and vehicle brands appointed to the framework standard factory build vehicles plus conversion Bluelight Lots orders can be placed with OEMs or nominated dealers customers can nominate dealer for delivery and servicing including parts direct award or further competition

RM3814 - Vehicle Conversions Dynamic Purchasing System expiring 23 August 2023 120 Suppliers 50 spend in 20/21 wide scope of conversions offered further competition only customer has choice on how to acquire fleet - either through a CCS FW or through convertor customer can decide to use their own systems when tendering suppliers may join or leave the DPS at any time convertors have varied and extensive experience in their field convertors can be from SME to large organisations DPS has gained momentum in the last couple of years

Proposed new agreement (RM6244)

Objectives provide a solution upon expiry of RM6060 & RM3814 improve customer journey clear access to standard and specialist vehicles Make available all vehicle makes/models in the UK market ensure the optimum mix of suppliers provide a future-proofed solution, in a changing industry improved clarity of scope, removing duplication of offering increased choice of products and services

Proposal single framework agreement scope covering that of current agreements some new additions to products and services lotting structure clearly defining route to manufacturer product to bluelight product to converted/specialist product

Lotting structure (page 1 of 2) Lot description Supply market Purchase of Passenger Cars (including 4x4 variants) 1 Manufacturer Purchase of Light and Medium Commercial Vehicles up to 7.5T Purchase of Medium to Heavy Commercial Vehicles including Chassis and Cabs 2 Manufacturer 3 Manufacturer Lot description Supply market Bluelight cars and motorcycles (Emergency Services) 4 Manufacturer Bluelight Light and Medium Commercial Vehicles up to 7.5T (Emergency Services) 5 Manufacturer

Lotting structure (page 2 of 2) Lot description Supply market Purchase and Conversion of Refuse Collection and other Waste Management Vehicles Purchase and Conversion of Minibuses (9-17 Seats) (including accessible and patient transport) Purchase and Conversion of Buses & Coaches (over 17 Seats) Purchase and Conversion of Trailers & Mobile Units (including health screening, events, mobile office units) 6 Manufacturer / Convertor 7 Manufacturer / Convertor 8 Manufacturer / Convertor 9 Manufacturer / Convertor Conversion of bespoke and specialist vehicles 10 Convertor

Interaction between other fleet agreements CCS vehicle purchase agreement interacts with the CCS vehicle lease agreement lease providers appointed to the vehicle lease agreement are given access to the support terms (discounts) available from the vehicle purchase agreement ( Requesting Body ) CCS lease providers pass on the benefit to public sector end users in the form of lower lease costs vehicle supply chain is compliant and subject to CCS contract terms

Next steps

Procurement process Consultation on contract terms and specification Nov/Dec 21. CCS will publish a further contract notice to notify the market when the procurement process commences and the procurement documentation becomes available Feb/Mar 22 https://www.find-tender.service.gov.uk/Search https://www.contractsfinder.service.gov.uk/Search CCS will use an eSourcing tool https://crowncommercialservice.bravosolution.co.uk/web/login.html updates will be published on the CCS website https://www.crowncommercial.gov.uk/agreements/RM6244 Go Live: 2 December 2022

Q&A

Thank you Email us: info@crowncommercial.gov.uk Call us: 0345 410 2222 Visit our website: https://www.crowncommercial.gov.uk/products-and- services/corporate/fleet/ @gov_procurement Crown Commercial Service