MoD is back for more
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• The Ministry of Defence has asked for tenders for work worth hundreds of millions of pounds following proof that contracting out its transport can bring huge savings.
The ownership of thousands of non-military vehicles is on offer; they range from staff cars to trucks based in Scotland, Wales, the Midlands, London and the South--10-year contracts for the regions are expected to be operational by the end of the year.
Drivers will remain employed by the MoD.
The move follows two successful trials run as Public Finance Initiatives (PFIs). In Germany a consortium of Ryder Defence and PHH Vehicle Management saved the ministry 27% in its vehicle running costs: the MoD had been anticipating savings of 11%.
The other trial, involving the takeover of ICU vehicles in the UK by Lex Services—saved the MoD 15%.
In a PEI the assets are taken over by the contractor and the MoD pays for their use throughout the contract.
The MoD runs about 10,000 "white" (non-combat) vehicles in the UK and Germany. When they are all covered by 10-year contracts the work will have a total value of l,400m.