Decision Maker: Assistant Director - Neighbourhood Delivery
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
The Council are looking to purchase 32 Light
Commercial Vehicles (Vehicle with a gross vehicle weight of no more
than 4.5 metric tonnes) over the next 4 years:
21-22 – 19 LCVs (these are likely to roll in 22-23 due to
current lead times)
22-23 – 6 LCVs
24-25 – 2 LCVs
25-26 – 5 LCVs
Over the last few years, the Council have been looking to
standardise the fleet which brings a number of benefits including
familiarity of vehicles, reduced parts inventory and closer
relationships with manufacturers and dealerships. The Council have
already awarded long term agreements for refuse vehicles and
sweepers and are now looking to extend this to the purchase of
Light Commercial Vehicles.
The Council have looked at a number of procurement options and have
identified the TPPL Framework Agreement which is a framework that
covers fleet requirements from passenger vehicles up to 12.5t
Commercial Vehicles. Lot 2 of the agreement covers Light and Medium
Commercial Vehicles up to 12.5t and includes 20 suppliers and main
dealerships.
As part of the framework tender process, bidders were evaluated on
70% cost and 30% quality. Successful companies were then ranked on
the agreement from 1-20. Ford are current ranked number 1 meaning
the Council are able to carry out a direct award appointment
without the need to go through a lengthy tender process.
The Council’s Transport Manager has also held a number of
discussions with Ford and he is satisfied that Ford can supply
vehicles to our requirements over the next 4 years.
On this basis, the Council will carry out the direct award on the
framework agreement to Ford.
To award a contract to Ford for the supply of
Light Commercial Vehicles for the next 4 years.
Procurement have carried out an assessment of
the procurement routes for the supply of Light Commercial Vehicles
over the next 4 years. This included a WTO open tender process,
framework agreement with further competition and framework
agreement with direct award. The Council quickly decided the
framework agreement was the best option as a thorough assessment
has already been carried out by the framework provider and included
all the main manufacturers and a number of dealerships which
provides a high level of competition. It is also quicker than a
thorough WTO Open Tender Process which could take up to 6 months to
complete.
The Council then looked at the options for direct award and further
competition:
Direct award:
The Council are able to award the contract to Ford as they are the
number one ranked supplier. The evaluation for the framework
agreement was based on 70% price and 30% quality. Ford have the
lowest prices on the framework agreement across the range of Light
Commercial Vehicles.
Ford’s pricing on both mini tenders and direct awards is
based on their framework discounted terms. Bidders will provide the
same pricing whether it’s a mini competition or a direct
award.
Even though Ford also scored well on quality, the Council have held
a number of discussions with Ford to ensure they are the right
supplier for the Council. A summary of these discussions are:
-Confirmation that Ford have the required fleet vehicles to cover
the Council’s requirements over the next 4 years.
-Confirmation that Ford have a number of electric vehicles and are
looking to increase their offer of electric commercial vehicles in
the next couple of years. The Council will explore the viability of
an electric fleet in the near future.
-As part of the agreement, Ford will offer ‘Ford Live’
which includes mobile fleet support vehicles meaning the Council
will not need to travel far for routine repairs. This has a target
of a 24 hour response.
-Ford are able to offer an extended warranty to cover £100k /
5 years (whichever comes first).
-Confirmation that Ford will work with all our current ancillary
suppliers such as Tipmaster.
-Will offer a single point of contact at Ford UK.
-The possibility of using a local dealership in the future. There
are a number of local dealerships and the Council will need to
explore the possibility of these dealerships supplying and
maintaining the Council’s LCVs through Ford UK in the
future.
To summarise, Procurement feel the direct award to Ford provides
value for money. It is also likely with Ford offering the lowest
pricing they would be very likely to win the contract if we went
for the further competition option.
Further competition
This route would require the Council to run a further competition
exercise with the 20 members of the framework agreement.
By carrying out a mini competition any of the suppliers on the
agreement who can meet the Council’s specification can submit
a tender response. The tender process would be managed by TPPL and
they expect to be able to turn around the tender in 4-6 weeks once
the Council have developed a specification of requirements for the
4 years. The Council then need to award the contract in line with
our internal governance arrangements which will take approximately
2 more weeks.
As mentioned, there is a good possibility that Ford would be
successful if a further competition exercise was carried out
however this would mean the Council would not be in a position to
order vehicles for another 10-12 weeks. As the Council already have
a number of vehicles which need replacing, along with the long lead
times being quoted, it is likely that some of our LCVs will reach a
point where it is no longer viable to keep them on the road. This
will mean the Council could be looking at short term leasing while
we wait for new vehicles to arrive ultimately meaning increased
costs for the Council.
Summary:
The direct award appears to offer the best value for money when
considering all costs involved.
The direct award is also compliant with the Council’s
Commissioning and Procurement Standing Orders and the Public
Contract Regulations 2015.
On that basis, Procurement are happy for this contract to be
awarded under a direct award on the TPPL Framework to Ford
UK.
Publication date: 19/10/2021
Date of decision: 19/10/2021