Purpose

This report seeks approval to
award a contract for the replacement of 22 x 17 Seater minibuses
that are beyond their economic working life.

Content

1.       Agreed
to the 6-year rental contract of 22 x 17-Seater Minibuses from
London Hire Limited (company registration number 1773149) at a
total cost of £2,308,474.00 in accordance with Contract
Standing Order (CSO) 28.3. The award period is anticipated to start
from 1 September 2024 for a six (6) year term, with the option to
return the vehicles after year 3 (3)

2.       Agreed
to the disposal of 17 individual Royal Borough of Greenwich
minibuses in accordance with the Leader’s general scheme of
delegation under Part 3 Schedule A of the Council’s
Constitution.

3.       Noted
that all of the items will be sold individually at auction in order
that best value can be achieved from each sale process. It is
anticipated that the value of each item will be in the region of
£13k, totalling approximately £221k.

4.      Noted that all
22 vehicles are operated by GS Plus Passenger Services which
undertakes transport operations on behalf of Children’s
Services and Adults and Health Services. The Council owns 17 of the
vehicles due for replacement and GS Plus owns the remaining 5
vehicles. With agreement from Corporate Finance and GS Plus, all 22
replacement vehicles will be under Council ownership and form part
of the Vehicle Replacement Programme (VRP).

5.       Noted that this procurement of 22 contract
rental vehicles was conducted using The Procurement
Partnership’s (TPPL) Bus and Coach Purchase framework
agreement.

6.        Noted that in
line with the Fleet Replacement Plan, which was agreed by Cabinet
on 22nd July 2020, these 22 vehicles will be replaced with like for
like Euro VI diesels, which are fully compliant with TfL’s
Low Emissions Zone (LEZ). Furthermore, the vehicles will utilise a
Hydro-Treated Vegetable Oil (HVO)/diesel fuel mix, which is a
greener alternative to diesel.

7.       Noted
that the Electric Minibus market is in its infancy and the
Birchmere Centre’s electrical capacity, charging
infrastructure and the significant capital cost increase make
purchasing Electric Minibuses untenable for the Council’s and
GS Plus’ Fleet at present. As part of the Fleet Replacement
Plan, consultancy support provided a route map for a whole fleet
electrification plan and its supporting infrastructure and power
requirement, which is forming part of a larger-scale Birchmere
renovation strategy. The flexible contract rental of the vehicles
will enable the vehicles to be returned early should the EV
infrastructure project complete prior to 2030 and the transition to
electric alternatives be a viable option.

8.       Noted that
the number of Zero-Tail Pipe-Emission vehicles have been maximised
in other tenders within the Vehicle Replacement
Programme.

9.       Noted that the Fleet & Waste Strategy team has
researched the potential impacts of Brexit on vehicle purchasing.
The industry’s position is clear in that any rise in costs
associated with Brexit would be passed on to the purchaser.
Therefore, additional fees are payable by the Royal Borough in the
event of imposed trading tariffs following Brexit, although this is
unlikely due to the agreed UK-EU trade agreement.