oD turns to private sector
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by Karen Miles • Fleet operators are set to compete for multi-millionpound Ministry of Defence opportunities in the new year as the armed forces turn to the private sector for more of their commercial vehicles.
The MoD is considering bids from fleet operators including Ryder, Lex Vehicle Leasing and Cowie Interleasing for the future ownership of London-based MoD vehicles ranging from staff cars and vans to HGVs. Drivers will remain in MoD employment.
The contract is due to be in place by next August and this pilot exercise is expected to spread throughout the UK to affect up to 100,000 support vehicles. Tenders will be conducted under Public Finance Initiative rules where the winner owns all the assets and charges the MoD for their use over a fixed contract term.
In a move designed to free the Army, Navy and Air Force of vehicle ownership, the MoD will revamp its non-combat truck fleets including tank transporters.
The changes have been encouraged by the Government's strategic defence review, published last summer, when Defence Secretary George Robertson appointed Sir Sam Cowan as chief of defence logistics to "properly co-ordinate and standardise our three support services for the first time".
Cowans's team will also supervise a bid for a private sector-financed tank transporter service. These will be the first operational combat vehicles to go out to tender under PFI rules.
It could also lead to military training for the contractor's drivers, who might have to drive their vehicles into combat zones, By 2002 the Army plans to have replaced its ageing fleet of 120 Scammell Commanders with vehicles capable of carrying Challenger tanks.
A tri-service storage and distribution organisation for all freight, weapons and explosives will begin work in April to handle the storage and transport of £3.7m worth of service assets, including books, uniforms and equipment.
Increased efficiency in the reduced network of seven UK storage sites and one site in Germany will effect a £30m saving over the next three to four years.
MoD sources admit the storage work could then go out to tender, although hauliers already carrying freight for the services should keep their work. The MoD says four consortia will be invited to tender.