Ministry of Defence to save £100M through new fleet management contract.
A £47M contract to manage the fleet of lease and hire vehicles will save the Ministry of Defence £100M.
The contract, which has been awarded to Babcock, follows the Defence Secretary’s instruction last year that the cost of vehicle hire was reviewed and reduced.
Babcock manage the “white fleet” of cars, vans, trucks and specialist vehicles on behalf of the MOD, covering the UK and Northern Europe, as well as short-term hire around the world.
The MOD uses the vehicles to transport equipment or personnel around the country, often to areas not readily accessible by public transport. The vehicles, which support military operations or training exercises, are also used for operational taking such as mountain rescue and emergency support to civil authorities and the civilian communities.
The vehicles were recently used to assist with flood relief.
The initial service is due to begin in September, followed by Northern Ireland in October and the rest of the world in April 2017.
Defence Secretary Michael Fallon said: “Defence has the strongest incentive to be efficient. Every pound that we save on vehicle hire will be reinvested into a defence budget that keeps Britain safe. I want to see us meet and exceed the £100m target.”
Brigadier Colin McClean, the Army’s Head of Equipment, based at Andover, said: “The use of lease and hire vehicles is an important part of Defence’s overall ability to both train for and deliver its operational taskings and I know I speak for soldiers, sailors and airmen when I say that we look forward to working very closely with Babcock and in particular to achieving financial savings through the more efficient use of this vehicle fleet.”
The contract with Babcock will cover the management of the fleet, including the procurement of vehicles via the Crown Commercial Services, incident management, administrative services, including vehicle registration, and service, maintenance and repair management.