Agenda item

Report of Corporate Director for Communities, Environment and Resident Services

Andrew Smith, Assistant Fleet Manager, presented the report which seeks permission to establish and manage a Dynamic Purchasing System (DPS) for the provision of Ultra Low Emission Vehicle (ULEV) and Hybrid type vehicles.

The following points were highlighted and responses provided to member’s questions:

a)  The market and technology for ULEV and Hybrid type vehicles is developing rapidly across all types of vehicles, and so a different, more flexible approach to procurement is sought from the current framework structure;

b)  Establishing a DPS does not require NCC to commit to any spend, but the agreed structure has a longer lifespan than the current framework procurement system and the added flexibility may also allow enable access to the developing technology, including that which enables current diesel vehicles to be reconditioned to electric;

c)  For a small cost-covering commission charge, the proposed DPS will be accessible to all other public sector contracting bodies to run their own mini-tender competition, including with external and newly emerging providers;

d)  The service specification of the DPS will allow for supply and maintenance of vehicles;

e)  99% of the types of vehicles needed, can now be purchased as ULEV or hybrid;

f)  Members should be assured that all providers wishing to tender will still be subject to the same due diligence, standards and financial checks;

g)  Nottingham City Council is currently at the forefront of expanding the electric and ULEV fleet with advice and guidance sought by other Authorities for their own projects.

Resolved

1)  to approve undertaking a procurement process to establish an Ultra Low Emission Vehicle Dynamic Purchasing System for all UK public sector contracting authorities with respect to Ultra-Low Emission Vehicle cars, light vans and passenger carrying vehicle purchases;

2)  to delegate authority to the Corporate Director for Communities, Environment and Resident Services to:

(a)  enter into the initial Ultra-Low Emission Vehicle Dynamic Purchasing System to the Director of Resident Services;

(b) sign all call-off orders under the terms of the Dynamic Purchasing System.

Reasons for recommendations

o  The benefits of establishing a DPS, rather than a framework are:

§  a DPS is open during its lifecycle, which means new providers can apply to the DPS at any point in time. There is no limit to the number of providers that can be admitted onto the DPS;

§  there is not a fixed pricing schedule meaning that there is constant competitive tension. Not having a fixed pricing schedule shares the risk of market volatility between the supply chain and Council;

§  constant competition for the supply of vehicles with an overarching specification;

§  avoiding the risk of over-specification and limiting future offers;

§  There is no limit on the number of providers accepted onto each vehicle lot. Suppliers can apply for any and all vehicle type lots:

§  Individual or multiple vehicles can be bought under the terms of the DPS;

§  The structure of the DPS considers not only any future fleet requirements, but those of other Council departments (Greenspace, WhyNott Transport, Zebra projects), with the rebate payable by users of the DPS is (on average) 0.5% lower than third party framework and DPS providers and nationally accessible by all public sector contracting bodies.

Other options considered in making recommendations

o  Renew the framework in its current structure – this option was rejected to enable the supply base to grow and to offer the client team assurances of their needs being met via a compliant procurement mechanism. A framework is also limited in its potential maximum length, four years. A DPS can be longer and the criteria used should maximise the chance of ‘future-proofing’ the arrangements for the proposed term;

o  Undertake ad-hoc tenders at the point of demand – this option was rejected to avoid any duplication of work and to ensure all vehicle purchases are going through a compliant procurement mechanism with a specification created with the Council in mind;

o  Access external third-party frameworks at the point of demand – this option was rejected to avoid any duplication of work and to be paying any rebate fees to third parties as opposed to benefitting from rebates paid to the Council by 3rd party users of the DPS. Creating our own DPS also provides a way to ensure all vehicle purchases are going through a compliant procurement mechanism with a specification created with the Council in mind.