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 modeled on the Pan-Government Car Leasing
Framework, which (though 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 went live in July this year
and runs initially for two years, with an option to extend for a
further two years.
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By GlobalDataThe 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).
A ‘restricted procedure’ notice was placed in OJEU
for the framework agreement as a whole before its inception.
Following a prequalification 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).
Fleets listed
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.”
Kerridge added: “We are delighted to have been
appointed as a supplier for both operating leases and full service
contract hire.
“There are many pressures now facing fleet managers
within the NHS and the wider public sector.
“Increasing environmental concerns go hand-in-hand
with the ever-present need to make better use of assets.
“Add to this the budgetary pressures and road
safety compliance issues, and it is clear that new solutions are
needed.
“The framework gives public authorities an
opportunity to fund and support important vehicle renewals, keeping
pace with legislative changes while taking advantage of the
competitive rates and high quality standards that become available
through this type of national competition.
“Extending a vehicle lease often does not result in
the economy a fleet operator needs.
“The pace of change can make existing vehicles
obsolete or too expensive to continue running. It is imperative
therefore to find a lease partner with the financial standing to
support a fleet refresh at the most appropriate time.”
Ken Hunnisett, director of Cranmer Lawrence,
commented: “As a longstanding 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.”
Initial suppliers for finance contracts in
CV framework
|
Contract hire |
Finance and operating |
|
Alliance & Leicester |
Artegy |
|
Artegy |
Automotive Leasing |
|
Automotive Leasing (LeasePlan) |
Cranmer Lawrence |
|
Hitachi Capital |
Siemens Financial Services |
|
ING Car Leasing |
|
|
Lloyds TSB |
|
|
Salford Van Hire |
