Michelin and Goodyear Dunlop Chosen for Pan-Govt Supply Agreement
Michelin, with its service partner ATS Euromaster, has been appointed as one of two suppliers of tyres and associated services in a three-year framework agreement for a pan-government tyre sourcing initiative led by the NHS Purchasing and Supply Agency (NHS PASA), in conjunction with the Office of Government Commerce (OGC). The other supplier is understood to be Goodyear Dunlop who will service the agreement through its HiQ and Truck Force retail networks. According to sources close to the arrangement, the contract is divided equally between the two suppliers.
Available to all Public Sector Organisations (PSOs) across the UK – encompassing a combined vehicle parc of more than 300,000 vehicles, ranging from cars and motorbikes to vans, trucks and earthmovers – the deal represents the largest tyre framework agreement of its type ever established in the UK. It also includes the option of a 12 month extension until January 2011 and is estimated to be worth tens of millions of pounds.
The agreement has been set up to deliver significant efficiencies as a result of combined volumes, additional leverage and collaborative working between central government departments and wider public bodies nationwide.
The contract will see a complete range of Michelin Group brands fitted, including Michelin, BFGoodrich and Kleber tyres, together with Remix remould truck tyres. The contract will be serviced through nationwide distributor ATS Euromaster, also part of the Michelin Group, which has 490 service centres across the country and a fleet of 1,200 mobile service vans.
Steve Newton, Procurement Manager in the OGC Fleet Commodity Team, explains: “We are very pleased to be awarding this framework, as part of our strategic approach to management of the fleet category on behalf of the public sector. Collaborative deals like this are key to the Government’s strategy for delivering best value for money for the taxpayer.
“This tyre framework agreement has the potential to change the way every PSO views tyre expenditure, with benefits ranging from combined group purchasing strength to cost efficiencies for individual organisations by avoiding time-consuming duplicate procurement processes. This new framework agreement gives all PSOs access to framework suppliers which have been selected following a comprehensive evaluation of their product quality, service quality, value for money and environmental credentials,” he adds.
The new framework agreement is open to all PSOs across the UK, including the Environment Agency, Her Majesty’s Revenue & Customs, British Fire and Rescue Services, Ambulance Trusts, Her Majesty’s Prison Service and more than 600 local authorities.
As part of the framework agreement, all cars and light commercial vehicles visiting ATS Euromaster centres will benefit from the option of a free, no obligation, ten-point health check covering tyre tread depth, tyre condition, tyre pressure, primary brake inspection, battery, exhaust, shock absorbers, oil, lights and windscreen wipers and screen-wash levels.
Michelin was selected as an approved supplier following an extensive 12-month tendering period. Throughout the process the OGC worked closely with NHS PASA, which was identified as the lead authority as work had already commenced on its own framework agreement, ensuring it had the capacity and expertise to guide the project.