Vehicle lessors have welcomed a new framework for the leasing of
commercial vehicles (CVs) to public sector users, with many of the
largest players in the market now participating in it.
The new Fleet Management Framework Agreement
for CVs has been developed by the Buying Solutions arm of the
Office of Government Commerce (OGC), a division of HM Treasury.
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It is modelled on the Pan-Government Car
Leasing Framework which, although available to all government
departments and agencies, was developed by the NHS Purchasing and
Supply Agency (PASA) with the needs of NHS hospital trusts
principally in mind.
These arrangements work on the same principle
as price comparison websites for private sector consumers.
Potential lessees obtain quotes based on their specified parameters
for vehicle types, hire periods and service packages, on the basis
of pre-tendering by lessors.
The new CV framework will run for two years,
with an option to extend for a further two years. The car leasing
framework in its present form, including car-derived vans, is
running for three years from August 2007, with an option to extend
for a further year. The new framework will cover requirements for
all types of CVs used in the public sector. These will include
emergency vehicles, vehicle conversions and trailers.
For public sector lessees, one of the
advantages of using the new framework agreement concerns compliance
with European competitive tendering laws for public sector
purchasing. Because the suppliers have pre-tendered, there is no
need for the costly and cumbersome procedure of inviting tenders
for each contract through notices in the Official Journal of the
European Union (OJEU).
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By GlobalDataA “restricted procedure” notice was placed in
OJEU for the framework agreement as a whole before its inception.
Following a pre-qualification stage, suppliers were then invited to
tender with their terms for various forms of lease or fleet
management facilities including contract hire.
Apart from the NHS, government departments and
agencies supporting the CV framework at the outset include HM
Revenue & Customs and a number of central government security
agencies (Home Office, Ministry of Justice, UK Border Agency and HM
Prison Service).
Rob Kerridge, head of business development for
Artegy, the contract hire and fleet support services arm of BNP
Paribas Lease Group, said: “We hope to see local authorities
eventually making use of this framework as well as NHS trusts.”
The CV framework has been widely welcomed in
the vehicle leasing sector.
Stuart Walker, brand director for LeasePlan’s
Automotive Leasing arm, said: “We have public sector clients for
all types of vehicle. CV renewal contracts tend to come on a more
one-off and less regular basis than for cars. The framework will
make ordering much easier for clients because of the streamlined
OJEU compliance aspect.”
Ken Hunnisett, director of Cranmer Lawrence,
commented: “As a long-standing provider of operating lease finance
to the public sector, we are very pleased to have been chosen as an
approved supplier under the framework. It gives the opportunity for
‘best of breed’ asset financiers and maintainers to act in
partnership in direct competition with contract hire providers. In
recent years the great majority of ambulances have been financed in
this way, to the demonstrable benefit of the NHS trusts.”
Mark Pedley, head of public sector sales at
ING Car Lease, said: “The public sector is increasingly important
to us, and the opportunity to finance light CVs through the new
framework is having an unexpectedly positive impact on our
competitive position in car fleets. Despite the tough economic
conditions and prospective cuts in public spending, we see a bright
future for contract hire and leasing in the public sector.”
Andy Thompson
