Framework agreement for hire
and maintenance of estate and saloon cars, and commercial vehicles.
Paul Golding reports.

 

Braintree District Council logo

The five lease firms chosen by
Braintree District Council as nominated suppliers for a framework
contract potentially worth £20m will have to battle for every bit
of business as public sector spending is squeezed.

The framework agreement covers the
contract hire of estate and saloon cars and commercial vehicles
along with maintenance of staff cars, and has a stated value of
£20m over four years.

 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Call-offs

The actual amount of business will
depend on the quantity and value of specific purchases (known as
call-offs) made during the term of the agreement.

The five companies competing for
the contracts are: JCT600, Automotive Leasing, Lex Autolease,
Arnold Clark and TCH Leasing.

Braintree District Council
procurement consultant Will Baxter said: “No other companies can
bid for contracts within this framework, but the five chosen won’t
necessarily all get the same volume of business over the four
years.”

The arrangement is an alternative
to that offered by companies like Buying Solutions, the largest of
more than 40 professional buying organisations operating across the
public sector.

JCT600 Contracts head of sales Rob
Kellock said a significant element of the framework is that it
includes commercial vehicles.

“Phil Jones joined us as regional
manager in 2006 and has increased our number of public sector
clients,” Kellock added.

“This business has not come
exclusively from county councils; we have been successful in
securing business with fire services, for example.”

Framework contracts are agreements
with suppliers that establish the terms governing contracts awarded
during a given period, in particular price and quantity.

 

Committed

The contract offered by Braintree
District Council can be accessed by many other public sector
organisations, saving them the time and cost of operating an
individual tender process.

Automotive Leasing brand director
Stewart Walker said a number of councils are still committed to the
sole supplier option – for example, Surrey County Council with
which Automotive Leasing recently won a contract.

Others prefer the procurement hub
approach and like to set up framework contracts that can be used by
other public sector organisations.

Walker said: “We find some councils
are confused by frameworks in terms of understanding which one best
suits their requirements. It saves time in terms of tendering so is
potentially better for smaller and less complex fleets. In central
government, where they have large fleets, the framework approach is
less favoured.”

With 90 per cent of the Automotive
Leasing’s business coming from the public sector, Walker is
interested in the potential for public sector bodies of adopting
the “grey fleet” option, where employees use their own vehicles for
business.

Issues such as mileage rates (which vary widely), and the extent
to which employees should be monitored in terms of maintenance of
their vehicle, are some of the challenges of the grey fleet
approach.

See also: Outlook for
business