Govt car suppliers unveiled

Economic Development Minister Steven Joyce has announced a new panel of suppliers for the all-of-government (AOG) vehicles contract with effect from July 1. The current deal has been in place for five years and has generated savings of about $30 million for 264 agencies. The new contract has been broadened to include operational vehicles for NZ Police and the crown’s VIP fleet. All public-sector organisations can participate in AOG contracts. Three vehicles in the new contract are hybrids – Toyota’s Prius and Camry plus Mitsubishi’s Outlander PHeV. The government claims the new contract is future-proofed to accommodate additional hybrids and electric vehicles as the demand for them and “their cost-efficiency continues to develop”. In the 12 months to March 2015, agencies spent $128m on 4,550 vehicles and associated purchases, says Joyce. “Purchase levels under the new contract are expected to save $10m a year compared with market rates,” he adds. “This new contract aims to provide fit-for-purpose, safe vehicles at the lowest cost of ownership. 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. Talks recently concluded with seven suppliers shortlisted from the AOG’s vehicles request for proposal process and continue with two further suppliers including the preferred one for the VIP fleet, which will be announced by the Department of Internal Affairs in due course. Contracts are for an initial five-year term with an option to renew for a further half-decade. They have been awarded to Ford, Holden, Hyundai, Mazda, Mitsubishi, Suzuki and Toyota.