Market Engagement-RM6013Public Sector Vehicle Hire Solutions

15th October 2018

The contents of this document are confidential and the property of the Crown Commercial Service and

are not to be copied or circulated without the written authorisation of the Crown Commercial Service

Agenda, Housekeeping and CCS Overview by Simone Haider

CCCCS

13:00 Registration

13:15 Housekeeping & Introductions

13:20 Overview of Crown Commercial Services and the Travel Category

13:50 Current Vehicle Hire Solution - RM1062 Framework

14:00 New commercial agreement: Public Sector Vehicle Hire Solution – RM6013

14:35 The Tender Process, new Public Sector Contract and Next Steps

14:50 Break

15:10 Q&A

16:00 Close

Agenda

Housekeeping

Industry Day Objectives • To explain scope and technical requirements to potential providers

• To shape the requirements to include industry feedback where appropriate

Outputs• To gain potential provider awareness, engagement and opinion

• To explain buying landscape and relationship with other CCS agreements

• To understand risks and issues

• To inform of the procurement process

• To ensure industry is informed and prepared to respond to tender

Notes• No recording or photography of today’s meeting, as we remain in development - the final and accurate

version to bid against will be the published ITT.

• All communications and publications relating to this new procurement must be approved by Crown

Commercial Service.

Overview of CCS andTravel Category

CCCCS

Introducing Crown Commercial Service

We aim to help our customers save £2 billion between 2016 and 2020

We help organisations across the entire public sector save time and money on buying their everyday goods and services…

commercial expertise

supporting frontline services

customerfocused

bulk buying power

significant savings

Our focus and priorities

Maximising commercial benefits

Focusing on our customers

Strengthening the UK economy through effective policy delivery

CCCCS

Our customers

Devolved Administrations

HealthEducation

Local Government

Charities / Third Sector

Emergency Services

Government Departments

Housing Associations

Significant growth potential

£6.7bn £6.3bn

Primary focus to date has been on common goods and services procurement for central government.

Biggest opportunity in WPS – CCS manages only c9% of common goods and services.

Central Government £10bn Wider Public Sector £70-80bn

45%use CCS services

37,000potential customers

2,100potential customers

55%use CCS services

The areas we work in

£520m

savings by

2019/20

digital future

network services

software

technology products & services

employee services

professional services

workforce

construction

utilities & fuels

workplace

£520m

savings by

2019/20

£420m

savings by

2019/20

£540m

savings by

2019/20

contact centres

financial services

fleet

information content management

marketing, communications& research

travel

How we work

Turning category strategies into commercial agreements:

Developing and managing commercial agreements:

Industry engagement and market research

Strategic supplier relationships

Aligning customer needs to market opportunities

Benchmarking and savings: focus on total operating costs

Managing the procurement process

eAuctions and aggregation

Supplier performance management

Contract management

Category advice and guidance

Strategic category team Procurement operations team

SMEs:Level the playing field for small businesses

Support prompt payment manifesto commitment - develop new policy which links eligibility for government contracts to complying with principles of the Prompt Payment Code

Growth:Ensure government procurement drives vfm, economic growth and jobs

Simplification:Embed the flexibilities of the new regulations; cut red tape – be compliant

Simplify CCS documentation and processes e.g. the Public Sector Contract

Transparency:Enable more transparent commercial information via open contracting data

Deliver initiatives on anti-corruption and beneficial ownership

Delivering policy priorities

The Crown Marketplace programme: our vision for the future

Online service will be intuitive and easy to

useTransform how the public sector buys

common goods and services Meeting customer

needs and delivering great user experiences

Travel, Accommodation, Vehicle Hire, Meetings & Venue Find Managed Spend FY 2017/18

Pillar Corporate Solutions

Category Travel, VH & VF

Sector WPS CG TOTAL

Total Market size & opportunity (£ million) 900 800 1,700

Total Spend under CCS management (£m) 98 594 692

Vehicle Hire Public Sector Size & Op. (£m) 79 62 141

VH Spend under CCS management (£m) 10 50 60

Travel Category Solutions:

RM6016 - Public Sector Travel & Venue SolutionsRM1062 - Vehicle Hire Services

Scope of Services• Rail Travel• Air Travel• Hotel & Accommodation• Vehicle Hire • Venue Find & Supporting Services

• Travel Ancillary Services i.e. Visa, Passport, Ferry etc.

Source: CCS MISO data 2018; Total spend for CG provided by HMT. Total spend for WPS provided for WPS TMS framework

Travel Category Spend Vehicle Hire Spend

Managed travel spend comprises 41% of the total CG + WPS travel spend. CG’s mandated policy means a higher proportion of spend goes through the contracted suppliers than it does in WPS. There is a huge opportunity

to deliver best value for money and cost benefits to taxpayers in both areas.

Travel Strategic Key Aims & Objectives

• Improve transparency and increase access to potential savings on fees and fares / rates• Increase the adoption of online booking solutions to reduce service cost and embrace time-saving technology• Embrace internal and external innovation opportunities including e.g. the Government/Crown Marketplace

Cost Optimisation

• Create more seamless, efficient and cost-effective routes to booking travel• Improve customer service, supply chain efficiency and choice of fares / rates

Customer Experience

• Leverage data to inform strategy and underpin supplier negotiations; an understanding of total spend and spend opportunity will help us to design the optimum strategy to achieve lower costs

• Leverage data to benchmark customers and provide MI to inform choices made; analysis will identify behaviours that are driving spend and offer insights on how to address these behaviours to reduce total costs

• Leverage data to support and efficient Government Policy delivery

Business Intelligence

Delivering best value for money and customer service excellence whilst ensuring continuous improvement is achieved and measured within the industry spend sector.

CCS’s Travel New digital platform - DigiTS

CCS UsersCustomers

Solution 1 Rail Provider

www.gov.uk

CCS Website

Solution 3Air Provider

Solution 2Acc. Provider

Solution 4 TMCs

Solution 5Venue Find

RM6016 and RM6013 Providers Booking Tools

Service Punch Outs

Vehicle Hire Solution

Implications for the new Vehicle Hire Commercial Agreement:• Single Sign On (SSO) Integration between DigiTs and Suppliers online booking tool

• MI Integration between Suppliers and DigiTs ( model to be confirmed)

Vehicle Hire Strategy &

Procurement Approachby Vasco Neves

CCCCS

Current Framework

Vehicle Hire Solution -RM1062

Expires September 2019

CCCCS

Lot Structure Lot # Lot name # Suppliers

1 UK vehicle hire: 5

•Standard passenger cars in a range of makes, models and engine size ranges. Offering a choice of diesel or

petrol, auto or manual transmission, and electric or ultra low emission vehicles

•Light commercial vehicles, up to and including, vehicles with a maximum payload of 3.5 tonnes

•Hire service of on-road 4-wheel drive vehicles, with electric or manual drive capability

2UK 4x4 wheel vehicle

hire5

•4x4 wheel drive vehicles, with electric or manual 4x4 wheel drive capability

•These vehicles have full off-road capability, and can have a tow bar with the ability to tow up to 3.5 tonnes

3 UK minibus hire 4 •Self drive 9 to 17 seater minibuses

4

(HGVs) / heavy

commercial vehicles

over 3.5 tonnes hire

3

•National coverage and some international hire of HGVs

• including all the correct operator licenses and permits meeting the appropriate legislation in the UK and Europe

(where applicable)

5 UK car share 5•Car share solutions and expert support to help you design car share solutions

•Includes access to pay as you go, short term hires, shared vehicle assets etc.

6International vehicle

hire4

•Vehicles hire includes standard passenger cars in a range of makes and models, and engine size range

•Offering a choice of diesel or petrol, auto or manual transmission

•Light commercial vehicles, up to and including vehicles with a maximum payload of 3.5 tonnes, 4-wheel drive

vehicles, with electric or manual 4-wheel drive on road capability, Minibuses, off road 4 x 4 vehicles and Luton

box vans with tail lift

•The latter can be used for off road use for military exercises

More info: https://ccs-agreements.cabinetoffice.gov.uk/contracts/rm1062

Spend and Customers

2017/2018 FY RM1062 Spend by Sector 2017/2018 FY RM1062 Spend by Category

2017/18FY

Spend per

Framework

New commercial agreement

Public Sector Vehicle Hire Solution –RM6013

Potential Commencement May 2019CCCCS

Key Government Policy Changes

UK Rental Vehicle Security Scheme (RVSS)(Best practice for Central Government and Wider Public Sector)• Currently under ministerial approval, expected to be sign off by January 19: “DfT has been working

with number of stakeholder within government and the vehicle hire sector to develop a 10 point Code of Practice”

Modern Slavery Act (When your turnover is more than £36 million, you are legally obliged to have a statement)

What is the Modern Slavery Act reporting requirement?

Act s54 of the MSA requires all “commercial organisations” that turn over more than £36m pa publish an annual Slavery and Human Trafficking Statement (TISC), saying what they have done in the year to address risks to human rights in their supply chains, or that they have done nothing.

Your TISC will need to meet the legal minimum requirements of:

• being signed by a director and having the approval of the board

• being linked to prominently from the home page on your website (if you have a website)

• being dated and produced within 6 months of your most recent annual report and accounts.

If you are obligated to have a modern slavery statement, and you do not have one, we will not allow

you onto the framework. If the statement you do have does not meet the legal minimum requirements, you will not be allowed onto the framework.

Strategy and Scope

To support all public sector authorities with their Vehicle Hire requirements and

policies by establishing a commercial agreement that includes:

• Single Sign On integration with the CCS Digital strategy through DigiTS / Crown Market Place for a

unique point of access to all travel services bookings/ reservation providing real time competitive

pricing

• Access to a full range of vehicle categories and ancillaries services through specialist lots or single

suppliers solutions

• Seamless integration across all commercial arrangements (Travel and cross categories)

• Gain greater visibility of public sector fleet spend patterns through improved MI and reassure

compliance with government standards

• Access to overseas provision

• Options for more flexible contracts where required

Customer Journey

Travel Requirement

Fleet Requirement

Vehicle Hire (RM…)Vehicle Lease & Fleet

Management (RM…)

Vehicle Purchase

(RM…)

• Purchase of owned

Vehicle Fleet

• Leased vehicles (contract

terms of 2 years plus)

• Route to supply of flexi-

rent and ad hoc rental

requirements

• Daily rental (1- 28 days)

• Flexi Rent (typically 28

days plus)

• Car Club/Car Share

Vehicle Scope:

• All vehicle types

• All fuel trains

• Fleet customers will take a blended approach across all three frameworks to optimise their fleet usage

to meet their operational requirements

• Flexi Rental is a key fleet requirement to support seasonal requirements of operational fleet – proposal

is to access this via the Vehicle Hire Framework or sub-contracted via the Vehicle Lease & Fleet

Management Framework. Is this the right approach? Should we include a flexi rent lot within vehicle

lease as well to support a more regional approach?

Potential stand alone projects

through

Dynamic Purchasing System

(DPS)

Via legacy model

RM6013

Timeline - 2018/2019FY

New opportunities- Long Term Flexi Rental

Route to Market options Providing more choice

UK Vehicle

HireUK 4x4UK

MinibusUK HGV’s

UK Car

share

Int.

Vehicle Hire

RM1062

Framework Opportunities Local / Regional Self-Drive VH

Central Government, Wider Public Sector and Third Sector

• Passenger Transport – Regional Taxi &

Coach: Timeline Q3/Q4 2018/2019FY

• Local / Regional Self-Drive VH: Timeline

2019/2020FY

Passenger Transport – Regional Taxi & Coach

Other Travel

related CCS

agreements:

• Vehicle Lease &

Fleet Management

Fuel Cards

• EV’s Charge

• Vehicle Purchase

• Payment Solutions

• Insurance

• Expenses Solutions

Q3 18-19 Q4 18-19 Q1 19-20 Q2 19-20 Q3 19-20

O N D J F M A M J J A S O N D

Government Interface Development

High Level Procurement Timeline

StrategicPlanning

Market Engagement

Sourcing Phase

Customer Engagement

Marketing of New Arrangements Phase - WPS

Marketing of New Arrangement Phase - CG

Implementation - WPS

Implementation - CG

As at October 2018, plans are in place to issue the ITT in January 2019 and to award in May 2019

Set Up/ContractingPhase

Lot Structure Description Suppliers Availability Requirements

1 UK Car & LCV 5 Car – 2 hours, MPV, EV, Hybrid, LCV – 4 hoursRates agreed up-front at framework; must be able to serve

whole of UK; must be able to offer all vehicle categories within

scope of Lot; online booking required.2 UK Car, LCV, 4x4 &

Minibus

3 Car – 2 hours, MPV, EV, Hybrid, 4x4, LCV – 4

hours, Minibus – 8 hours

3 UK Long Term Flexi

Rental Car, LCV, 4x4,

Minibus, HGV

3 24 hours - dependent upon complexity of

vehicle

Rental above 28 days only, rates for standard build car and

LCV agreed up-front at framework; flexible early termination;

costs for conversion to be agreed at Call Off depending on

requirements. Online booking tool TBC.

4 UK 4x4 3 All – 4 hours

Rates agreed up-front at framework; must be able to serve

whole of UK; must be able to offer all vehicle categories within

scope of Lot; online booking required.

5 UK Minibus 3 All – 8 hours

6 UK HGV 3 All – 8 hours

7 UK Car Share 4 Varies on the

8 UK Cars, LCV’s, 4x4 &

Mini Buses and Car share

3 Varies on the car share model (eg dedicated

pool, shared pool), daily rental reflecting lot 1 & 2

9 International (LCV, 4x4,

Minibus)

4 Varies by region Rates agreed up-front at framework:;must be able to offer all

vehicle categories within scope of Lot; online booking

required.

Lot Structure Lot 1 – UK Cars, LCV’s Only

Lot 2 - UK Car, LCV’s, 4x4 & Minibus

Lot 3 - UK Long Term Flexi Rental Car, LCV’s, 4x4, Minibus, HGV’s

Lot 4 – UK 4x4 wheels Only

Lot 5 – UK Mini Bus Only

Lot 6 – UK HGV’s Only

Lot 7 - UK Car Share

Lot 8 – UK Cars, LCV’s, 4x4 & Mini Buses and Car share

Lot 9 – International (LCV’s, 4x4, Mini Bus)

5

Number

suppliers

to be

awarded

per lot3

3

3

3

3

4

3

4

Key questions for consideration:

Lot 7 – Focus on Car Club scheme for

business centric as well for community

service ?

Lot 7 & 8 – Can we introduce your Car

Club technology in Departments vehicle

owned using the departments

telematics?

Lot 2, 7 & 8 – Opportunity to combine in

a single Lot with car club as an option

and subject for further competition?

Other Notes:

• Length of contract (3 + 1 year)

• Inclusion of annual variation of price

(VOP) clause (but requiring evidence

and capped, not an automatic uplift)

The Tender Process, new Public Sector Contract and Next Steps

CCCCS

The Tender Process

● Follows UK Public Procurement Regulations for frameworks

● Open procedure

● OJEU Contract Notice and Formal Invitation to Tender issue

● Use of electronic tendering via CCS eSourcing Suite BravoSolution system and of new Public Sector Contract and Bid Pack

● Communication must be channelled through CCS eSourcing Suite (BravoSolution) system

32

New Public Sector Contract and Bid Pack

A degree of change within the terms and conditions, but not technically much different

Principles:

- Concise, simple and clear

- Written in plain English

Benefits:

- Core terms circa 20 pages (previously 105 pages)

- Consistency and no repetition

- Clarity on terms applicable at Framework or Call Off (or both)

- Framework Award only 5 pages and Call Off only 7 pages (both have options to refer to other

Schedules, where relevant)

- Clarity on non-changing Core terms and optional Special terms

Standard CCS T&C’s to be share

ahead of the OJEU release for

supplier review.

33

Things you can do now:

● Register with Contracts Finder and Tenders Electronic Daily (TED) for alerts relevant to your business area

● Monitor alerts from Contracts Finder and Tenders Electronic Daily (TED) for those relevant to your business area

● Register on CCS’s Bravo Solution page

● Monitor CCS Procurement Pipeline pages for more information

Q&A

Lot 7 – More focus on Car Club scheme for community and less business centric?

Lot 7 & 8 – Can we introduce your Car Club technology in Departments vehicle owned using the departments

telematics?

Lot 2, 7 & 8 – Opportunity to combine in a single Lot with car club as an option and subject for further

competition?

Flexi Rental - Is this the right approach? Should we include a flexi rent lot within vehicle lease as well to

support a more regional approach?

Modern slavery Act - We want to promote an understanding of the risks in the sector. We want to work with

you to agree a way forward to improve identification and management of this risk

Thank you.

travelprocurement@crowncommercial.gov.uk

Public Sector Vehicle Hire Solutions

https://ccs-agreements.cabinetoffice.gov.uk/node/7377

Contact details