The Ministry of Business, Innovation and Enterprise has announced the latest of its ‘all of government’ vehicle supply agreements – with two brands now out of the running, and another joining.
The deal provides pre-approved options and pricing for vehicle supply for all government departments and agencies. Terms run for five years.
This year seven brands have been successful – Ford, Holden, Hyundai, Mazda, Mitsubishi, Suzuki and Toyota. Mazda is new to the catalogue, but Volkswagen and Skoda are no longer part of the arrangements.
MBIE would not release pricing or the specific models involved in the tender – noting it was commercially sensitive and only available to agencies through the secure inSource system. Details are updated quarterly.
Passenger vehicles must meet a minimum 5 star ANCAP (or equivalent) safety rating. For the light commercial vehicles the minimum safety rating is 4 stars, although over half of on catalogue light commercial vehicles now meet the maximum 5 star rating.
Vehicles on the catalogue have been selected based on the best Total Cost of Ownership (TCO) over a 5 year/100,000km ownership period.
The current contract has been in place for five years and has generated savings of approximately $30 million for 264 government agencies. The new contract has been broadened and includes operational vehicles for New Zealand Police and the VIP transport fleet for the Crown.
In the 12 months to March 2015, agencies spent $128 million on 4550 vehicles and associated purchases.
Steven Joyce, the minister responsible for MBIE, expects the new contracts to save $10 million a year over market rates.
“This new contract aims to provide fit-for-purpose, safe vehicles for government at the lowest total cost of ownership,” Joyce says. “It also reduces the complexity and cost of procurement for agencies and suppliers, while providing continuous improvement in technology, service delivery, cost-effectiveness and performance.
“Three of the vehicles in the new contract are hybrids – the Toyota Prius and the Toyota Camry plus the plug-in Mitsubishi Outlander PHeV,” he explains. “This new contract is future proofed to accommodate additional hybrids and electric vehicles as the demand for these vehicles and their cost-efficiency continues to develop.”
While the VIP limo deal has yet to be completed, Holden New Zealand has been confirmed as the supplier of vehicles to the Police for at least the next five years.
Holden has held the current contract to supply vehicles to Police since 2006, including Holden Commodore as patrol vehicles and the SV6 model being used for highway patrol duties.
Holden New Zealand managing director, Kristian Aquilina says it has been an honour to provide police with great vehicles over many years.
“We feel very privileged to have been involved in the supply of Holdens for our police service over several years and are pleased that this will continue,” says Aquilina.
“This announcement is exciting for an iconic brand like Holden and shows that Commodore is not only relevant today but will also be relevant in the future.”
Holden New Zealand was unable to indicate what information Police have received about the future of the Commodore model once it ends production in two years.
