Fleet services

{
  "awards": [
    {
      "aboveThreshold": true,
      "contractPeriod": {
        "endDate": "2030-11-08T23:59:59+00:00",
        "startDate": "2025-12-09T00:00:00+00:00"
      },
      "documents": [
        {
          "datePublished": "2025-11-07T13:24:28Z",
          "description": "Transparency notice on Find a Tender",
          "documentType": "awardNotice",
          "format": "text/html",
          "id": "072035-2025",
          "noticeType": "UK5",
          "url": "https://www.find-tender.service.gov.uk/Notice/072035-2025"
        }
      ],
      "id": "1",
      "items": [
        {
          "additionalClassifications": [
            {
              "description": "Fleet management, repair and maintenance services",
              "id": "50111000",
              "scheme": "CPV"
            },
            {
              "description": "Vehicle-fleet management services",
              "id": "50111100",
              "scheme": "CPV"
            },
            {
              "description": "Vehicle-fleet-support services",
              "id": "50111110",
              "scheme": "CPV"
            }
          ],
          "id": "1",
          "relatedLot": "1"
        }
      ],
      "mainProcurementCategory": "services",
      "milestones": [
        {
          "dueDate": "2025-12-08T23:59:59+00:00",
          "id": "1",
          "status": "scheduled",
          "type": "futureSignatureDate"
        }
      ],
      "relatedLots": [
        "1"
      ],
      "status": "pending",
      "suppliers": [
        {
          "id": "GB-COH-04110984",
          "name": "SG Fleet Ltd"
        }
      ],
      "value": {
        "amount": 14000000.0,
        "amountGross": 16800000.0,
        "currency": "GBP"
      }
    }
  ],
  "buyer": {
    "id": "GB-PPON-PMCL-4972-LYCY",
    "name": "Metropolitan Housing Trust Ltd"
  },
  "date": "2025-11-07T13:24:28Z",
  "id": "072035-2025",
  "initiationType": "tender",
  "language": "en",
  "ocid": "ocds-h6vhtk-05dcce",
  "parties": [
    {
      "address": {
        "country": "GB",
        "countryName": "United Kingdom",
        "locality": "London",
        "postalCode": "N14 6PW",
        "region": "UKI54",
        "streetAddress": "The Grange, 100 Hight St"
      },
      "contactPoint": {
        "email": "procurement@mtvh.co.uk"
      },
      "details": {
        "classifications": [
          {
            "description": "Public authority - sub-central government",
            "id": "publicAuthoritySubCentralGovernment",
            "scheme": "UK_CA_TYPE"
          }
        ]
      },
      "id": "GB-PPON-PMCL-4972-LYCY",
      "identifier": {
        "id": "PMCL-4972-LYCY",
        "scheme": "GB-PPON"
      },
      "name": "Metropolitan Housing Trust Ltd",
      "roles": [
        "buyer"
      ]
    },
    {
      "address": {
        "country": "GB",
        "countryName": "United Kingdom",
        "locality": "Solihull",
        "postalCode": "B92 0HA",
        "region": "UKG32",
        "streetAddress": "Station Court, Old Station Rd, Hampton in Arden"
      },
      "contactPoint": {
        "email": "ostevenson@sgfleet.com"
      },
      "details": {
        "scale": "sme",
        "vcse": false
      },
      "id": "GB-COH-04110984",
      "identifier": {
        "id": "04110984",
        "scheme": "GB-COH"
      },
      "name": "SG Fleet Ltd",
      "roles": [
        "supplier"
      ]
    }
  ],
  "tag": [
    "award",
    "contract"
  ],
  "tender": {
    "description": "Management of fleet and related services\nTo view this notice, please click here: \nhttps://www.delta-esourcing.com/delta/viewNotice.html?noticeId=985759408",
    "documents": [
      {
        "description": "Not published",
        "documentType": "conflictOfInterest",
        "id": "conflictOfInterest"
      }
    ],
    "id": "2025-2026-287",
    "legalBasis": {
      "id": "2023/54",
      "scheme": "UKPGA",
      "uri": "https://www.legislation.gov.uk/ukpga/2023/54/contents"
    },
    "lots": [
      {
        "id": "1",
        "status": "complete"
      }
    ],
    "procurementMethod": "direct",
    "procurementMethodDetails": "Direct award",
    "procurementMethodRationale": "MTVH seeks to retain SG Fleet for maintenance of its existing fleet vehicles and any new requirements for the next 5 years to October 2030.\nThe below summary outlines options and costs and benefits:\nOption 1 - Extend existing \u0026 new requirements\nCost / benefit to MTVH: + \u00a342k profit share AND + mileage credits \u00a3248k\nTechnical issues: Advantage \u2013 further innovation eg. EV charging\nOption 2 - Extend existing requirements and re-tender new requirements\nCost / benefit to MTVH: + \u00a342k profit share; + mileage credits \u00a3248;  Economies of scale reduced by spreading over two suppliers\nTechnical issues: Management of x2 systems\nBusiness disruption: Operational downtime for switch over\nImpact on customer service response time\nOption 3 - retender ALL requirements\nCost / benefit to MTVH: Settle existing vehicles \u00a33.8m: Long term ROI: Uncertain cost over-runs\nTechnical issues: No other company will take on existing vehicles: Training and knowledge transfer: Regulatory and legal compliance checks\nBusiness disruption:  Operational downtime for switch over; Impact on customer service response time\nExisting fleet justification for retaining SG Fleet: \n-Benefit from the 50% profit share when the vehicles are de-leased. Average at \u00a3600 p/ vehicle, therefore potential of \u00a342k in profit share credits. \n-MTVH  will not be charged the first \u00a3150.00 for damage/ excess wear and tear per vehicle, in accordance with the BVRLA Guide. Based on an average of 8.6% of the fleet having damage, potential savings are \u00a3903.\n-MTVH will receive mileage credits back when the vehicle is de-leased, this is for mileage that have been paid for and as part of the lease and not used. Based on milage readings from Sept 2025 and projected to the contract end date, a total of 1,034,571 miles hasn\u2019t been used. Payment for any excess mileage at the rate of 20.00/ (some at 15.00) pence (plus VAT) per one mile for the first 10,000 excess miles and 30.00/ (some at 22.51) pence (plus VAT) per mile. Therefore, potential saving of \u00a3247,207. \n-In total MTVH could potentially receive approx \u00a3248,152k in credits. \n-Savings/ cost avoidance we\u2019ve benefited from in the last 4 years with SG Fleet are: \noModul Safestowe issue \u00a340k (sourced circa x40 safestowes to prevent delays)\noModul Compensation \u00a32k (donated to Molly Higgins Charity)\noExpansion Project Vehicle delivery (Axis TUPE) which avoided further soft costs (hires), potentially \u00a335.5k (based on x35 vehicles for 1 month). \noYTD saved \u00a310.5k in SMR (service, maintenance \u0026 repair) savings / goodwill (based on 2024/25 YTD figures)\noExtend current 21-plate vehicle contracts to 60 months, saving circa \u00a346k (till end of contact)\nTerminating would result in having to settle all current vehicle lease contracts, estimated \u00a33.8m (as of Sept 2025).\nTotal Gross Value: \u00a312m (over 5 years) (based on 2024/25 YTD figures, includes all vehicle costs).\nIf we were looking to change supplier, the vehicles are all on individual contracts (some recent ones on 5 year-leases), the start date dependent on when they were received. We would need to pay off the individual contracts if we were to terminate or phase out until contract expiry.\nNew fleet requirements:\nIn order to undertake a comparison of SG Fleet vs average market rate for new vehicles using manufacturers and specifications required, we must account for MTVH specification, technical work to accommodate and allow for business disruption. All vehicle suppliers are going to source the vehicles form the same place, directly from the manufacturers.\n-Existing vehicles will need to stay with SG Fleet. New providers won\u2019t except existing fleet vehicles originally from another fleet provider. If that was an option, the lease contracts would need to be settled prior to a transfer, costing the business an estimated \u00a33.8m (as of Sept 2025).\n-Training and Knowledge Transfer\noStaff Training: Employees need to be trained on the new provider\u2019s system, which can involve a learning curve and potentially reduce productivity in the short term.\noKnowledge Gaps: The team is used to working with the current provider\u2019s system, and there might be challenges in transferring that knowledge. Documentation, support from the new provider, and training programs can help mitigate this, but would potentially reduce productivity.\n-Regulatory and Compliance Issues\noLegal and Regulatory Compliance: As we operate in a heavily regulated industry, ensuring that the new provider complies with all relevant regulations (e.g. environmental standards, safety protocols, etc.) is a key consideration.\noFleet Certification and Inspection Records: If there are certifications or inspections that need to be updated or transferred, keeping track of these can be complex.\n-Operational Downtime\noTransition Period: The transition period itself may involve downtime where some vehicles are unavailable while being switched over. Minimizing operational disruptions is key to maintaining business continuity.\noScheduling and Route Optimization: There could be temporary inefficiencies in route planning and scheduling as you adjust to the new provider\u2019s systems.\n-Cost Overruns\noUnexpected Costs: Transitioning may involve hidden costs such as installation fees, integration expenses, or troubleshooting that weren\u0027t accounted for upfront.\noLong-Term ROI: If the new provider offers lower rates but higher operational costs (due to inefficiencies, for instance), the long-term savings may not be as expected.\n-Customer Service and Support\noResponse Time: The quality of customer service during the transition is crucial. A lack of prompt support can cause delays in addressing technical issues and system bugs.\noOngoing Technical Support: Make sure the new provider offers sufficient ongoing technical support post-transition, especially as we may encounter any lingering issues.\nDiseconomies of scale \u2013 (all the above business case) PLUS internal costs and switching costs of changing supplier\n-Operative costs:\noTime to switch into a new vehicle, based on 8 hours p/ Op, p/ Vehicle to swap at \u00a360 p/hr, based on 70 vehicles = \u00a333,600.\n-Fleet team admin costs:\noRemoving \u0026 adding vehicles to all fleet systems (fleet central, insurance, parking \u0026 toll apps, Wex fuel cards, etc.) 30 mins p/ vehicle at a fleet admin rate of \u00a316.24 p/hr = \u00a3568.40\nSummary\nIn summary, retaining SG Fleet as fleet provider through direct award and signing up to SG Fleet\u2019s Master Hire Agreement enables MTVH to:\n1.Minimise business disruption and ensure seamless service delivery to residents\n2.Ability to customise vehicles to required specification\n3.Generate cost efficiencies\n4.Enable a medium to long term re-procurement strategy",
    "procurementMethodRationaleClassifications": [
      {
        "id": "additionalRepeatExtensionPartialReplacement"
      }
    ],
    "status": "complete",
    "title": "Fleet services"
  }
}