Management Framework Industry Day 24th July 2018 Agenda Item 1 - - PowerPoint PPT Presentation

24th July 2018

RM6096 - Vehicle Lease & Fleet Management Framework Industry Day

Agenda

Item

1 Registration 2 Housekeeping & Introduction to the Industry Day 3 Overview of Crown Commercial Service and the Fleet Strategy 4 Current Vehicle Lease & Fleet Management framework Proposed new Vehicle Lease & Fleet Management framework 5 Break 6 The Tender Process, Public Sector Contract terms and conditions and Next 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 Tammy Carter Holly Brooks Rachel Hughes Fleet Team - Operational James Rodgers Tina Cameron Travel Team - Strategic Vasco Neves Sourcing Team Janine Cato

Overview of CCS and Fleet Strategy

CC CCS

Introducing the Crown Commercial Service

We aim to help our customers save £2 billion between 2016 and 2020 We help organisations across the entire public sector save time and money on buying the everyday goods and services they need…

commercial expertise supporting frontline services customer focused bulk buying power significant savings

Our Focus and Priorities

Maximising commercial benefits Focusing on our customers Strengthening the UK economy through effective policy delivery

CC CCS

Our Customers

Devolved Administrations Health Education Local Government Charities / Third Sector Emergency Services Government Departments Housing Associations

The areas we work in

cloud & digital solutions network services software technology products & services temporary staff

• utsourced services

advisory services (e.g. consultancy, legal and language) facilities management maintenance & repair utilities & fuels construction travel fleet

• ffice services

marketing communications & research financial services contact centres

Fleet Agreements

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Fleet Enablers & Services

• Fleet Portal
• eAuctions

Other fleet related CCS agreements

• Vehicle Hire
• Fuel Cards
• Electrical Charging/Technology
• Insurance
• Driver Training
• Liquid Fuels

£914m (17/18)

Vehicle Conversions DPS (RM3814) Vehicle Telematics (RM3754) Supply & Fit of Tyres (RM3767) Vehicle Lease & Fleet Management (RM3710) Vehicle Purchase (RM1070) 35% of spend: £326m 17/18

Building a Total Fleet Solution

Enabling Technology – Fleet Portal Collaboration Customer Needs eg Estates Rationalisation and Fleet Policies Fleet Commercial Agreements

Total Fleet Solution

Our vision is to be the “go to provider” for total fleet solutions and market insight for public sector fleets. Our aim is to deliver commercial benefits by focusing on the whole life cost model and key influencers

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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

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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

Current Vehicle Lease & Fleet Management Framework (RM3710)

CC CCS

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

• f 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”

• Wider T&Cs agreed between funder and

manufacturer

• Access as a “Contracting Body” i.e. customer,
• nly when established as an “Agent”
• Funders and Fleet Management
• rganisations defined as “Requesting

Bodies”

• Access to Support Rates only
• Wider T&Cs agreed between funder

and manufacturer i.e. the “Vehicle Contract”

• Converters

defined as “Requesting Bodies”

• Access to

Support Rates

• nly
• Wider T&Cs

agreed between converter and manufacturer

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
• ptimisation and utilisation.

Proposed New Vehicle Lease and Fleet Management Framework (RM6096)

CC CCS

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 +): Lot 1: Lease of passenger motor vehicles and light light commercial vehicles up to 3.5 tonnes, including cars, vans, 4x4s, alternatively fuelled vehicles (eg hybrids, electric) and converted vehicles up to 3.5 tonnes Lot 2: Lease of commercial vehicles 3.5 tonne and above, including buses, coaches, trailer and municipal vehicles Lot 3: Fleet management services (funded & non funded suppliers) Key Questions for consideration:

• Lot 1 & 2: include provision to sole

supply with standard management provision included?

• Lot 3: change to independent,

non-funded, suppliers only?

• Overseas - enable across any lot?
• Flexible options - widen scope to

include? enable across all lots?

Management Information & Management Fee

Management Information

• Suppliers must report all spend under the Framework, including additional charges levied

such as additional SMR, Damage etc (list to be finalised - will be more detailed than current)

• Spend audited through annual self declaration, for accuracy and completeness of
• Income. These are subject to periodic audit reviews by CCS.
• Separate reporting requirements for order pipeline to assist CCS with future forecasting.

Management Fee

• Maintaining a 0.5% Management Fee charged against spend under the agreement (applies

to lease rental & fleet management charges only).

• CCS are a non-profit making Trading Fund. This fee is to cover the costs of:

○ CCS Fleet Portal ○ CCS Fleet Category and wider teams in the provision of compliant framework, reporting, ongoing management and customer guidance.

Fleet Portal: Supplier Requirements

• Suppliers will be required to:

○ Subscribe to CAP www.cap.co.uk ○ Configure their systems in order to receive and transmit vehicle quotation information securely in “XML” format utilising vehicle identification data by their “CAP1” vehicle code. ○ The quotations shall be in line with the payment profile specified by the Contracting Body eg monthly in advance etc ○ All prices shall be ex VAT ○ All prices will be fixed for a period of 30 calendar days from the data of the quotation, subject to manufacturers price increases. ○ Instructions for setting up the lease car website (Fleet Portal) leasing interface will be issued to suppliers as part of the Invitation to Tender Note: Suppliers will also be required to provide quotations via other methods than the Fleet Portal such as email and public sector eSourcing systems.

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Challenges / Questions

• Master Hire terms and conditions / CCS Core Terms

○ What challenges do these two documents cause?

• Flexible Options

○ Cross-over between CCS Vehicle Lease and Vehicle Hire frameworks? ○ Facilitate options across both commercial agreements - what are the implications (customer & supplier)?

• Overseas provision

○ Would this be feasible?

• Positioning of fleet management services within lotting structure

○ Where does it best fit / is it right to separate funded and independent?

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Challenges / Questions

• Cross framework challenges

○ Understand any issues

• Excess Mileage rates for non petrol / diesel:

○ When will this be available?

• Early Termination costs

○ Maintain competitive terms but deter bad practice

Break

CC CCS

The Tender Process, new Public Sector Contract and Next Steps

CC CCS

The Tender Process

• Follows UK Public Procurement Regulations for frameworks
• Open procedure
• OJEU Contract Notice and Formal Invitation to Tender issue
• Use of electronic tendering via CCS eSourcing Suite BravoSolution system

and of new Public Sector Contract and Bid Pack

• Communication must be channelled through CCS eSourcing Suite

(BravoSolution) system

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New Public Sector Contract and Bid Pack

• New format for public sector contracts has been launched
• Three elements:

○ Core Terms - which form part of the framework and call-off contracts ○ Schedules - split into 3 groups for framework schedules, call off schedules and joint schedules ○ Forms - the framework award form and call off order form

• Framework Award only 5 pages and Call Off only 7 pages (both have options

to refer to other Schedules, where relevant)

• Standardised Core Terms with opportunity to amend with Special Terms -

consultation with Suppliers will be undertaken

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Timescales

Action Responsibility Timescale

Core Terms Consultation CCS and Suppliers July - September Issue of OJEU Contract Notice CCS October 2018 Response to OJEU tender Suppliers October/November/ December 2018 Tender evaluation CCS January 2019 Framework Award to Suppliers CCS February 2019 Framework Launch CCS with Suppliers March 2019 onwards New Framework Live CCS and Suppliers 16 May 2019

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Things you can do now

• Engage with us on Core Terms consultation
• Register with Contracts Finder and Tenders Electronic Daily (TED) for alerts

relevant to your business area

• Monitor alerts from Contracts Finder and Tenders Electronic Daily (TED) for

those relevant to your business area

• Register on CCS’s Bravo Solution page
• Monitor CCS RM6096 Procurement Pipeline pages for more information