Notice Information
Notice Title
Fleet services
Notice Description
Management of fleet and related services To view this notice, please click here: https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=985759408
Procurement Information
MTVH seeks to retain SG Fleet for maintenance of its existing fleet vehicles and any new requirements for the next 5 years to October 2030. The below summary outlines options and costs and benefits: Option 1 - Extend existing & new requirements Cost / benefit to MTVH: + PS42k profit share AND + mileage credits PS248k Technical issues: Advantage - further innovation eg. EV charging Option 2 - Extend existing requirements and re-tender new requirements Cost / benefit to MTVH: + PS42k profit share; + mileage credits PS248; Economies of scale reduced by spreading over two suppliers Technical issues: Management of x2 systems Business disruption: Operational downtime for switch over Impact on customer service response time Option 3 - retender ALL requirements Cost / benefit to MTVH: Settle existing vehicles PS3.8m: Long term ROI: Uncertain cost over-runs Technical issues: No other company will take on existing vehicles: Training and knowledge transfer: Regulatory and legal compliance checks Business disruption: Operational downtime for switch over; Impact on customer service response time Existing fleet justification for retaining SG Fleet: -Benefit from the 50% profit share when the vehicles are de-leased. Average at PS600 p/ vehicle, therefore potential of PS42k in profit share credits. -MTVH will not be charged the first PS150.00 for damage/ excess wear and tear per vehicle, in accordance with the BVRLA Guide. Based on an average of 8.6% of the fleet having damage, potential savings are PS903. -MTVH will receive mileage credits back when the vehicle is de-leased, this is for mileage that have been paid for and as part of the lease and not used. Based on milage readings from Sept 2025 and projected to the contract end date, a total of 1,034,571 miles hasn't been used. Payment for any excess mileage at the rate of 20.00/ (some at 15.00) pence (plus VAT) per one mile for the first 10,000 excess miles and 30.00/ (some at 22.51) pence (plus VAT) per mile. Therefore, potential saving of PS247,207. -In total MTVH could potentially receive approx PS248,152k in credits. -Savings/ cost avoidance we've benefited from in the last 4 years with SG Fleet are: oModul Safestowe issue PS40k (sourced circa x40 safestowes to prevent delays) oModul Compensation PS2k (donated to Molly Higgins Charity) oExpansion Project Vehicle delivery (Axis TUPE) which avoided further soft costs (hires), potentially PS35.5k (based on x35 vehicles for 1 month). oYTD saved PS10.5k in SMR (service, maintenance & repair) savings / goodwill (based on 2024/25 YTD figures) oExtend current 21-plate vehicle contracts to 60 months, saving circa PS46k (till end of contact) Terminating would result in having to settle all current vehicle lease contracts, estimated PS3.8m (as of Sept 2025). Total Gross Value: PS12m (over 5 years) (based on 2024/25 YTD figures, includes all vehicle costs). If we were looking to change supplier, the vehicles are all on individual contracts (some recent ones on 5 year-leases), the start date dependent on when they were received. We would need to pay off the individual contracts if we were to terminate or phase out until contract expiry. New fleet requirements: In order to undertake a comparison of SG Fleet vs average market rate for new vehicles using manufacturers and specifications required, we must account for MTVH specification, technical work to accommodate and allow for business disruption. All vehicle suppliers are going to source the vehicles form the same place, directly from the manufacturers. -Existing vehicles will need to stay with SG Fleet. New providers won't except existing fleet vehicles originally from another fleet provider. If that was an option, the lease contracts would need to be settled prior to a transfer, costing the business an estimated PS3.8m (as of Sept 2025). -Training and Knowledge Transfer oStaff Training: Employees need to be trained on the new provider's system, which can involve a learning curve and potentially reduce productivity in the short term. oKnowledge Gaps: The team is used to working with the current provider's system, and there might be challenges in transferring that knowledge. Documentation, support from the new provider, and training programs can help mitigate this, but would potentially reduce productivity. -Regulatory and Compliance Issues oLegal and Regulatory Compliance: As we operate in a heavily regulated industry, ensuring that the new provider complies with all relevant regulations (e.g. environmental standards, safety protocols, etc.) is a key consideration. oFleet Certification and Inspection Records: If there are certifications or inspections that need to be updated or transferred, keeping track of these can be complex. -Operational Downtime oTransition Period: The transition period itself may involve downtime where some vehicles are unavailable while being switched over. Minimizing operational disruptions is key to maintaining business continuity. oScheduling and Route Optimization: There could be temporary inefficiencies in route planning and scheduling as you adjust to the new provider's systems. -Cost Overruns oUnexpected Costs: Transitioning may involve hidden costs such as installation fees, integration expenses, or troubleshooting that weren't accounted for upfront. oLong-Term ROI: If the new provider offers lower rates but higher operational costs (due to inefficiencies, for instance), the long-term savings may not be as expected. -Customer Service and Support oResponse Time: The quality of customer service during the transition is crucial. A lack of prompt support can cause delays in addressing technical issues and system bugs. oOngoing Technical Support: Make sure the new provider offers sufficient ongoing technical support post-transition, especially as we may encounter any lingering issues. Diseconomies of scale - (all the above business case) PLUS internal costs and switching costs of changing supplier -Operative costs: oTime to switch into a new vehicle, based on 8 hours p/ Op, p/ Vehicle to swap at PS60 p/hr, based on 70 vehicles = PS33,600. -Fleet team admin costs: oRemoving & adding vehicles to all fleet systems (fleet central, insurance, parking & toll apps, Wex fuel cards, etc.) 30 mins p/ vehicle at a fleet admin rate of PS16.24 p/hr = PS568.40 Summary In summary, retaining SG Fleet as fleet provider through direct award and signing up to SG Fleet's Master Hire Agreement enables MTVH to: 1.Minimise business disruption and ensure seamless service delivery to residents 2.Ability to customise vehicles to required specification 3.Generate cost efficiencies 4.Enable a medium to long term re-procurement strategy
Notice Details
Publication & Lifecycle
- Open Contracting ID
- ocds-h6vhtk-05dcce
- Publication Source
- Find A Tender Service
- Latest Notice
- https://www.find-tender.service.gov.uk/Notice/072035-2025
- Current Stage
- Award
- All Stages
- Award
Procurement Classification
- Notice Type
- UK5 - Transparency Notice
- Procurement Type
- Standard
- Procurement Category
- Services
- Procurement Method
- Direct
- Procurement Method Details
- Direct award
- Tender Suitability
- Not specified
- Awardee Scale
- SME
Common Procurement Vocabulary (CPV)
- CPV Divisions
50 - Repair and maintenance services
-
- CPV Codes
50111000 - Fleet management, repair and maintenance services
50111100 - Vehicle-fleet management services
50111110 - Vehicle-fleet-support services
Notice Value(s)
- Tender Value
- Not specified
- Lots Value
- Not specified
- Awards Value
- £14,000,000 £10M-£100M
- Contracts Value
- Not specified
Notice Dates
- Publication Date
- 7 Nov 20253 months ago
- Submission Deadline
- Not specified
- Future Notice Date
- Not specified
- Award Date
- 7 Nov 20253 months ago
- Contract Period
- 9 Dec 2025 - 8 Nov 2030 4-5 years
- Recurrence
- Not specified
Notice Status
- Tender Status
- Complete
- Lots Status
- Complete
- Awards Status
- Pending
- Contracts Status
- Not Specified
Buyer & Supplier
Contracting Authority (Buyer)
- Main Buyer
- METROPOLITAN HOUSING TRUST LTD
- Contact Name
- Not specified
- Contact Email
- procurement@mtvh.co.uk
- Contact Phone
- Not specified
Buyer Location
- Locality
- LONDON
- Postcode
- N14 6PW
- Post Town
- North London
- Country
- England
-
- Major Region (ITL 1)
- TLI London
- Basic Region (ITL 2)
- TLI5 Outer London - East and North East
- Small Region (ITL 3)
- TLI54 Enfield
- Delivery Location
- Not specified
-
- Local Authority
- Enfield
- Electoral Ward
- Southgate
- Westminster Constituency
- Southgate and Wood Green
Further Information
Notice Documents
-
https://www.find-tender.service.gov.uk/Notice/072035-2025
7th November 2025 - Transparency notice on Find a Tender
Open Contracting Data Standard (OCDS)
View full OCDS Record for this contracting process
The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.
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EV charging Option 2 - Extend existing requirements and re-tender new requirements Cost / benefit to MTVH: + PS42k profit share; + mileage credits PS248; Economies of scale reduced by spreading over two suppliers Technical issues: Management of x2 systems Business disruption: Operational downtime for switch over Impact on customer service response time Option 3 - retender ALL requirements Cost / benefit to MTVH: Settle existing vehicles PS3.8m: Long term ROI: Uncertain cost over-runs Technical issues: No other company will take on existing vehicles: Training and knowledge transfer: Regulatory and legal compliance checks Business disruption: Operational downtime for switch over; Impact on customer service response time Existing fleet justification for retaining SG Fleet: -Benefit from the 50% profit share when the vehicles are de-leased. 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