Report of the Corporate Director of Development and Growth and the Corporate Director of Commercial and Operations
Chris Carter, Head of Transport Strategy, introduced the report on ULEV Vehicle and Infrastructure Procurement seeking approval to undertake two procurement exercises, one to procure a fleet of Ultra Low Emission Vehicles and one for the supporting infrastructure. The report also detailed plans to establish frameworks and make them available to all UK public sector authorities to use.
(1) To approve undertaking a procurement process to establish an Ultra Low Emission Vehicle (ULEV) framework for all UK public sector contracting authorities with respect to ULEV cars, light vans, minibuses and taxi purchase;
(2) To approve undertaking a procurement process to establish a framework for all UK public sector contracting authorities with respect to ULEV charge point infrastructure purchase;
(3) To delegate authority to enter into the ULEV framework contract award to the most advantageous tenders received to the Corporate Director of Commercial and Operations;
(4) To delegate authority for the initial ULEV infrastructure contract award to the most advantageous tenders received to the Corporate Director of Development and Growth;
(5) To delegate authority to the Corporate Director of Commercial and Operations to award call off contracts under the ULEV vehicle framework; and
(6) To delegate authority to each of the Corporate Director for Commercial and Operations and the Corporate Director of Development and Growth to award call off contracts under the charge point infrastructure framework.
Reasons for decision
1) The council has an ambition to transition 22% of its fleet to Ultra Low
Emission Vehicles (ULEV) by 2020 to support the council’s wider transport and air quality objectives. With 50 vehicles already converted and a further 50 vehicles to be added to the fleet by December 2019, the council is well on the way to meeting its target. Due to a lack of availability of ULEV options through existing frameworks, procurement of the council’s ULEV cars and vans has been undertaken through single procurement exercises. In order to allow for better value for money and efficiency, the council proposes to create a ULEV fleet framework comprising cars, vans, minibuses and taxis for a four year duration. Establishing a UK public sector authorities’ framework has the added benefit for other councils’ and public sector fleet operators to purchase cars and blue light service vehicles. Specifications for each of the vehicle types have been devised to ensure that a wide range of vehicle manufacturers can tender for the opportunity to form part of the framework.
2) Currently there are many frameworks available to the public sector to
purchase ULEV charge point infrastructure, but few if any can be used by EU funded projects as they are not OJEU compliant. Nottingham City Council is part of the EU funded Interreg CleanMobilEnergy project which will see the introduction of 40 vehicle to grid compatible charge points cited at Eastcroft Depot. The council will need to procure these units. Given the fast evolving nature of the market, new suppliers are bringing technology to the market all the time. Establishing a framework will allow for all public sector authorities to purchase the latest technology.
3) The Government launched its Road to Zero Strategy in 2018 with a target for all new internal combustion engine sales to cease by 2040. The shift to ULEVs is also taking place in local authority policies as part of plans to improve air quality. By leading the two procurement exercises, the council can apply a 1% rebate for sellers to generate income with every use of the frameworks.
Other options considered
The council could consider doing nothing. This would result in a breach in the
terms and conditions for various sources of external grant funding which has
been awarded to purchase ULEV vehicles and associated infrastructure in
order to achieve the council’s clean air objectives. This option has been
rejected as it risks a loss of funding and damage to the council’s reputation.
The second option would be for the council to procure both ULEV vehicles
and infrastructure for council only projects. Given the known market
opportunities around ULEV fleets and required infrastructure this would result
in a lost opportunity to achieve best value for money and would also lose the
potential for income generation through the 1% rebate. This option was
rejected as delivering less value for money.