WA Government fleet contract winners and losers

– By Victoria Nelson –

Last week at the 2018 Australasian Fleet Conference and Exhibition the rumours were circulating by lunchtime on the first day about the winners and losers in the WA Government fleet contract which was announced on the 17th May.

SG Fleet had been the main provider of fleet management services since before they went public; and they have had the contract long before the term millennials was invented. The current contract started in 2010 but when the announcement was posted on the WA Tenders website their name was missing.

For the industry this is a massive shock because SG Fleet is seen as the company governments choose after their success with the Federal Government in 2013, NSW State Fleet in 2016, QLD Government Novated Leasing Panel and ACT Government plus multiple water and electrical utilities.

With an estimated 9,000 vehicles under management for the WA Government, the loss of this contract may have a significant impact on future revenues of SG Fleet.

The closing date for submissions was February 2018 so it has been a tense few months for the 34 suppliers that submitted a response because the contract value is estimated at $280 million.

There was a change in the rules for the contract this time. Previously the contract (CUA 019510) only covered fleet management and vehicle disposal services. For fleet management the agencies had a choice between SG Fleet and Fleetcare. For vehicle disposals and inspections they could use Pickles Auctions or Manheim. This time the range of services listed in the contract was much broader.

The government website stated:

“The objective is to establish a procurement framework based on a Head Agreement “umbrella” arrangement that covers eight (8) related vehicle fleet services Contract Panels. The significant advantage of having this framework is that it will enable Government to contract for the eight (8) services at the same time and enable all Respondents to see clearly and appreciate how these services would interact to meet the business needs of Government”.

The eight service categories are:

• Fleet Management Services
• Motor Vehicle Inspection Services
• Motor Vehicle Disposal Services
• Telematics (In-vehicle Monitoring Systems)
• Vehicle Booking System
• Tyre Supply and Fitting Services
• Aftermarket Vehicle Accessories
• Unscheduled Maintenance and Repairs

The contract will start on 1st July 2018 with an initial period of three years and options to extend until 2027. The successful contractors are listed below.

For more information visit the WA Government website.