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Purchase of Fleet Vehicles
Children and Young People’s
Department
Background Information
15th July 2005
Background
Home to school special educational need transport contracts were put out to tender
by the CSA throughout the Spring and Summer Terms in order to ensure that
transport is commissioned at the best value.
The cost of several of these contracts was significantly higher than was considered
reasonable and the CSA undertook an exercise to determine what an ‘in-house’
option would cost and whether there would be any savings which might be derived
from extending the existing Council fleet.
Proposal One: The purchase of two additional wheelchair adapted vehicles
External Costs
The cost of awarding five contracts to transport children and passenger assistants to
and from Woodlands Special School to private transport operators amounted to
£66,370.
In-House Costs
The cost of bringing these services in-house would necessitate the re-allocation of an
existing fleet vehicle and the purchase of two new vehicles. The cost to the CSA of
this option would be £49,270. Generating a saving of £17,100.
However in addition this financial saving, by bringing the service ‘in-house’ the CSA
would be enabled to acquire vehicles which had:
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Additional spare capacity to accommodate ‘new to area’ children,
Enhanced operational flexibility,
A CSA owned and operated vehicle would have additional use during
evenings, weekends and out of term-time at only marginal cost, and
Would be designed to maximise the safe evacuation of children in the event
of an emergency.
The in-house cost includes the annual capital lease cost of purchasing the preferred
vehicles, insurance, diesel, repair and maintenance costs as well as the costs
incurred by the employment of additional drivers.
md/h/vehiclepurhcase.doc
Options
The CSA sought a vehicle, which had a low floor and rear-ramp access to the rear,
which would enable loading and unloading of passengers without reliance on the
operation of a tail-gate lift. Similarly, recent risk assessments made an alternative
exit to the vehicle desirable to ensure that children might be evacuated from the
vehicle in the event of an emergency via a double-door, ramped entrance at the front
of the vehicle.
There is a very specialist market for these vehicles and the CSA worked with the
CVMU Manager to identify a suitable vehicle and supplier. Two vehicles were given
serious consideration the Bluebird Tucana and the TVAC Spirit.
When the two vehicles were compared the consensus was that the TVAC Spirit was
the best long-term option for the CSA to invest in as it had:
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Large capacity, being able to accommodate up-to 7 wheelchair passengers
and (due the design of the vehicle) allow for speedy evacuation.
More readily available spare parts and maintenance as TVAC is based in
Leyland, opposed to Bluebird, which is located in Scarborough.
TVAC is a long-established firm as opposed to Bluebird, which has only been
established within the past couple of years.
It was the CVMU Manager’s assessment that the Spirit would be easier to
maintain and TVAC a more reliable and accessible partner.
Consequently the CSA has identified the TVAC Spirit as the preferred vehicle to be
incorporated onto the Council’s fleet.
Procurement Manager’s Advice
The advice highlighted a number of issues already considered by the CSA e.g. risk
assessment of buying specialist vehicles, contingency arrangement, and availability
of revenue funding. However, with these issues addressed the contract rules allow
for ‘fast-tracking’ of urgent items. The Procurement Manager identified that the need
is clearly urgent as the vehicles are required for September 2005 and the nature of
the vehicles is specialist and consequently the use of ‘fast-tracking’ is appropriate in
these circumstances.
Recommendations
To purchase 2 TVAC Spirit minibuses at a cost of £61,925 per vehicle and for this
amount to be subject to capital leasing, costing the CSA £21,053 per annum. Total
cost of the CSA ‘in-house’ operation of the contract £49,270.
TVAC can guarantee delivery within 6 weeks as a result of a ‘window of opportunity’
afforded by short term capacity within the company’s outstanding order
commitments. However, this guarantee can only apply if the order is placed as a
matter of some urgency.
Proposal Two: The purchase of MPV
External Costs
md/h/vehiclepurhcase.doc
The cost of awarding two contracts the first to transport children and passenger
assistants to and from Beacon School, Skelmersdale and the second to undertake
lunchtime transport for children on supported nursery placements would be £20,920.
In-House Costs
The cost of bringing these services in-house would necessitate the purchase of a
Multi Purpose Vehicle (MPV). The cost to the CSA of this option would be £17,444.
Generating a saving of £3,476.
However in addition this financial saving, by bringing the service ‘in-house’ the CSA
would be enabled to acquire vehicles which had:
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The opportunity to absorb other transport contracts thereby generating
additional future savings.
The acquisition of additional capacity for use by the Authority out of ‘termtime’.
The in-house cost includes the annual capital lease cost of purchasing the preferred
vehicles, insurance, diesel, repair and maintenance costs as well as the costs
incurred by the employment of additional drivers.
Options
The CSA requested that he CVMU Managers identify and undertake a mini-tender to
identify the most appropriate vehicle to deliver the CSA’s requirements, whilst also
considering purchase cost, long-tem residual value and appropriateness to add to the
Councils’ fleet.
The market was tested and the preferred vehicle was the Ford Galaxy 1.9Tdi Zetec ,
the lowest tender for supply of this vehicle was £15,500.
Recommendations
To purchase 1 Ford Galaxy 1.9Tdi Zetec at a cost of £15,500 and for this amount to
be subject to capital leasing, costing the CSA £3,220 per annum. Total cost of the
CSA ‘in-house’ operation of the contract £17,444.
The CVMU Manager has secured a supplier who will deliver the vehicle within 5
weeks form date of order.
Overall Recommendations
To purchase three vehicles generating a saving of £20,576 per annum.
md/h/vehiclepurhcase.doc