CONTRACT HIRE WITH MAINTENANCE OF COMMERCIAL VEHICLES UP TO 7.5 TONNES FRAMEWORK AGREEMENT Ref. JAW/22/04 Introduction On 23 August 2005 Braintree District Council on behalf of the Procurement Agency for Essex (PAE) let a framework agreement for the contract hire with maintenance of commercial vehicles up to 7.5 tonnes: Lloyds TSB Autolease S&B Commercials Plc Translinc Ltd Following an OJEU notice, the above companies were short-listed from a number of suppliers and a thorough evaluation process took place, taking into consideration numerous aspects, such as price, financial standing, policies, warranties, quality of vehicles, references etc. The contact details of each company can be found at Appendix A. Who can call on the Agreement? This agreement is available to all Procurement Agency for Essex (PAE) members, all Improvement and Development Agency (IDeA) Marketplace users, all Regional Centre of Excellence (RCE) members, and any other public sector authority. Specification The specification required by each participating Authority is a matter for them, and should be communicated concisely to the supplier when requesting a Quotation (see appendix B). The Master Hire Agreement detailing full particulars of this framework is attached at Appendix C.
Pricing Prices should be obtained by requesting a quotation from all three suppliers (suggested form of words at Appendix B). Ethics and Best Practice The pricing and details provided under this agreement are commercially confidential and should not be divulged to any third party. In particular, prices should under no circumstances be shared with other suppliers on or off the agreement, in an attempt to improve the price, or for any other reason. Using the agreement Participating Authorities should confirm their required specification with the chosen supplier(s), and agree on particulars such as delivery date, address etc. A sample request for quotation form is at Appendix B. Typically, when requesting a quotation for a vehicle, the following information should be provided to the supplier in respect of the specification: Type of vehicle Annual Mileage Period of Contract Hire Colour Seating Capacity Payload Expectation Gross Weight Train weight Wheelbase Drive configuration Transmission Engine type Steering Interior Extras Exterior Extras Payment terms.
Some Districts pay their rentals annually, in advance however other Districts differ. Payment terms should be set out clearly on the request for quotation. Furthermore, the rate payable for excess mileage may also vary between Districts and this too should be agreed, locally, in advance with the Supplier. When placing an order, it should be referenced to the terms and conditions of Braintree District Council Framework Agreement ref JAW/22/04. A sample Vehicle Order may be found at Appendix B. Once an order has been placed with a supplier, the value and chosen supplier must be advised to Braintree District Council for the purposes of general tender monitoring.
It is the responsibility of the Procuring Authority/Organisation, to publish the OJEU Award notice within the specified time frame. Further Information For further information about the Agreement, including terms and conditions, or its usage, please contact John Wickes at Braintree District Council 01376 551414 or by e-mail: John.wickes@braintree.gov.uk In addition Authorities having any difficulties with orders placed under this Framework Agreement which cannot be solved simply, should immediately contact the above.
APPENDIX A CONTACT DETAILS OF SUPPLIERS Lloyds TSB Autolease Dean Hedger Business Development Manager Blake House Hatchford Way Birmingham B26 3RZ Tel: 0161 447 7278 Mobile: 07771 835423 Fax: 0161 447 7356 Email: dean.hedger@lloydstsbautolease S&B Commercials Alan Yetts Truck Sales Start Hill Bishops Stortford Herts CM22 7DG Tel: 01279 712200 Fax: 01279 712260 Email: ayetts@sbcommercials.co.uk Translinc Limited Rob Kerridge Jarvis House 157 Sadler Road Lincoln LN6 3RS Tel: 01522 552999 Mobile: 07795 964472 Fax: 01522 552997 Email: rkerridge@translinc.co.uk
Appendix B Request for Quotation for Commercial Vehicles
Framework Agreement JAW/22/04
Braintree District Council, acting on behalf of the Procurement Agency for Essex has let a Framework Agreement dated 23 August 2005 for the Contract-Hire with maintenance of commercial vehicles up to 7.5 tonnes, and your Company is included within this Agreement. The potential usage of the Framework extends to in excess of 100 Authorities, depending on its competitiveness. It is therefore in the interests of all Parties for this quotation to be as keen as possible. You will have been previously advised by The Procurement Partnership (TPP) that the PAE are members of their group, and where it is in the interests of the participating Authority, the TPP rebates should be utilised. Please quote for the following giving an indication of lead time and expiry date: Specification Quantity Price Payment Terms Delivery Requirements
Please also be aware that the terms and conditions of the above Framework will be fully applicable to any subsequent supply contract which may result from this request to quote. You should address any queries on the requirement and return your quotation to: Name: Address: Tel: Email
Vehicle Order Quotation Reference: Quotation Date: Supplier: Participating Authority: Please provide the following: Vehicle (s) Annual Finance Charge Annual Service Charge Total Annual Charge Period of Hire Contract Mileage Excess Mileage Charge Payment Term Delivery Requirements
(Where a supplier is required to complete a delivery by an agreed date, and failure to do so will involve the participating Authority in incurring costs, these pre-estimated, potential costs must be communicated to the supplier, and it must be made clear that in the event of late delivery the recovery of these costs will be sought from the Supplier, under the terms of the Framework Agreement)
Delivery contact: Delivery address: Signature: Please confirm your acceptance of this offer at your earliest convenience.
This offer is placed in accordance with the Framework Agreement for the contract hire with maintenance of commercial vehicles up to 7.5 tonnes reference JAW/22/04, let by Braintree District Council on behalf of the Procurement Agency for Essex. The terms and conditions will be strictly as outlined in the Framework Agreement.
Appendix C
MASTER HIRE AGREEMENT
FRAMEWORK AGREEMENT FOR THE CONTRACT HIRE WITH MAINTENANCE OF COMMERCIAL VEHICLES. TENDER REF.: JAW/22/04
CONTENTS
1 2 3 4 5 6 7 8 9 Definitions and Particulars Delivery and Inspection Motoring Assistance and Road Fund Licence Rental and Other Charges Insurance and Indemnity Use of a Vehicle Maintenance Termination of the Agreement Miscellaneous
PART 1
Definitions and Particulars
1. 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 In this Agreement the following expressions shall have the meanings stated:“Company” “Contract Documents” “Contract Mileage” “Contract Period” “Council” [The Company on the Framework Agreement] All parts of this Agreement the Tender Documents and the Vehicle Order As shown on a Vehicle Order 4 years [The Participating Authority] The excess mileage charge shown on a Vehicle Order Period of as shown in a Vehicle Order The trade value as shown in the Glass’s Guide or other similar publication published immediately before the occurrence of the Total Loss as determined by the Council’s insurance company or their consulting engineer The rental figure(which includes a service charge) shown in a Vehicle Order Physical destruction of or economically irreparable damage to a Vehicle or theft of a Vehicle
“Excess Mileage Charge” “Hire Period” “Pre Loss Value” -
1.9
“Rental Charge”
-
1.10
“Total Loss”
-
1.11
“Vehicle”
-
Each vehicle described in a Vehicle Order including all component parts, accessories, alterations and replacement parts The form of document attached to this Agreement as the Appendix setting out the details of the Vehicle, its Rental, Period of Hire, Excess Mileage Charge and Contract Mileage
1.12
“Vehicle Order”
-
2. 3.
This Agreement is made on the date hereof and is made between the Council and the Company This Agreement together with any Vehicle Orders constitutes the entire agreement between the Council and the Company and is deemed to be accepted when the Council accepts a Vehicle. Any variations to this Agreement shall be binding only if recorded in a document signed by an authorised signatory of the Council and the Company If any provision of this Agreement is contrary to law or unenforceable for any reason then that provision shall be deemed deleted and the remainder of this Agreement shall remain in full force All prices set out in the Vehicle Order are exclusive of VAT The Company shall let and the Council shall take on lease the Vehicles as described and on the terms and conditions stated in the Vehicle Orders and in this Agreement The Council, if it so wishes and the Company so agree may take on lease from time to time further Vehicles by entering into further Vehicle Orders subject to the terms and conditions in this Agreement The Vehicle Order will set out the details specific to any Vehicle ordered by the Council. The terms of a Vehicle Order unless manifestly wrong will be conclusive between the parties of the details specific to the Vehicle (including Rental and Contract Period) unless the Council brings any error or dispute to the Company’s attention within 7 days of the date on the Vehicle Order
4.
5. 6.
7.
8.
AS WITNESS the hands of the duly authorised signatories of the Council and the Company the day and year first before written Signed on behalf of the Council by [ ] in the presence of:- …………………………….. Witness Address Occupation ……………………………. ……………………………. …………………………….
Signed on behalf of the Company by [ ] in the presence of:Witness Address Occupation ……………………………. ……………………………. …………………………….
……………………………….
PART 2
Delivery and Inspection
1. The Company will deliver the Vehicle free of charge to the Council’s premises on a date to be specified by the Council. The Vehicle shall be fitted with front floor mats and the Company shall provide the Council with a comprehensive driver’s information pack covering all aspects of the services offered and the driver’s responsibilities, including a service authorisation card (or equivalent) The vehicle shall be inspected thoroughly at the point of delivery. Any faults or defects should be notified to the contractor immediately and a note of the faults or defects made on the Delivery Sheet which also requires a signature. Once a vehicle has been accepted at point of delivery, no right of rejection exists. Notwithstanding this, the Company will work with the Council to rectify any issues concerning the specification or condition of the vehicle identified after delivery. The Council shall be entitled to the benefit of any conditions or warranties including rights under the Sale of Goods Act 1979, as amended which may have been given by the manufacturer or supplier thereof EXCEPT where such conditions, warranties or rights are expressly excluded by law or by the manufacturer or supplier
2.
3.
PART 3
Motoring Assistance and Road Fund Licence
Motoring Assistance
1. 1.1 1.2 The Company shall arrange and obtain for each and every Vehicle throughout the Hire Period:Full AA or RAC cover to include Home-Start and Relay. If required by the Council European Travel and Emergency Breakdown cover to include:Freephone English speaking Emergency Centre Road side assistance anywhere in Europe Emergency Labour costs Location and despatch of any necessary spare parts required Vehicle repatriation if required Emergency Car Hire Emergency Credit Facilities Additional Hotel and Travel Expenses Medical Expenses Cover for loss, theft or damage to personal effects Extra Caravan/Trailer Cover Winter Sports Cover
Road Fund Licence
2. The Company shall ensure that each and every Vehicle is properly registered and licensed and that all duties, fees and charges in connection herewith have been duly paid, satisfied or discharged.
PART 4
Rental and Other Charges Rental Payments
1. The Council shall pay to the Company on delivery of the Vehicle, the Rental Charge set out in the Vehicle Order and thereafter shall punctually pay to the Company the Rental Charge as specified in a Vehicle Order
Mileage Charges
2. 2.1 2.2 This Agreement will operate on the basis of a pooled mileage arrangement for over or under Contract Mileage. This will operate as follows:Vehicles returned through early termination will be excluded from the pooling arrangement. Pooling arrangements will be calculated on termination and will apply to all vehicles. The initial calculation will be on a quarterly basis on 31st March for the three calendar months preceding and so on. The rate to be charged or rebated will be as specified on the Vehicle Order
2.3
PART 5
Insurance and Indemnity Insurance
1. The Council shall keep the Vehicle insured against loss, destruction, damage or theft to its Pre Loss Value against all insurable risks under a standard form of comprehensive policy The Council shall pay all premiums due under the policy or policies of insurance effected in Clause 1 and shall within 14 days of a written request produce to the Company evidence of the policy or policies The Company shall be notified in writing as soon as the Council is made aware of a Total Loss. The Council shall then pay to the Company:All arrears of the Rental Charge and Service Charge due prior to receipt of the Total Loss settlement proceeds from the insurance company, The sum of money equal to the Pre Loss Value of the Vehicle; and The sum of money calculated in accordance with the provisions of Clause 6 in Part 8 If the insurance company shall repudiate payment of any claim arising from an accident to the Vehicle due to the default or neglect of the Council, the Council shall be responsible for the payment to the Company of the cost of restoring the Vehicle to proper order and condition
2.
3. 3.1 3.2 3.3 3.4
Indemnity
4. The Council shall indemnify the Company against all liability to third persons for death, personal injury and damage to or loss of property arising directly out of the Council’s use of a Vehicle
PART 6
Use of a Vehicle
1. The Council shall use the Vehicle in a normal and proper manner and shall not cause it to suffer excessive deterioration by overloading, driving badly, insufficient fluids or driving in an overheated condition. The Vehicle shall not be occupied by a greater number of persons than it is constructed to accommodate nor driven or used by any person for carrying passengers for hire or reward nor for the purpose of racing, pacemaking, rallying, reliability trials or speed testing nor in any manner constituting a breach of any regulations or order relating to the driving and/or use of a motor vehicle. The Council shall not allow anyone to drive the Vehicle unless the driver is the holder of a current full driving licence and the Vehicle is covered by a comprehensive policy of insurance. The Council shall not loan, sell or offer for sale, assign, mortgage, pledge or otherwise deal with or part with possession of the Vehicle. The Council shall ensure that the Vehicle is as safely and securely parked or stored as is possible. The Council shall grant to the Company any reasonable facilities to inspect the Vehicle so as to ascertain its general condition and efficiency. The Council shall use its best endeavours to ensure that the Vehicle odometer is not altered. The Council shall notify the Company in the event of any fault to or replacement of the odometer and shall provide the Company with a record of the mileage recorded on the date of the replacement. The Council shall be responsible for regularly checking all fluid levels of the Vehicle and for keeping the Vehicle in a clean and satisfactory condition and shall be responsible for payment of all accounts for petrol or other fuels and topping up oils between services. The Council shall be responsible for checking that the Vehicle and tyres on the Vehicle conform to any legal requirement in force from time to time. The Council shall be responsible for ensuring that the condition of the Vehicle complies with the current applicable regulations governing construction and
2.
3.
4. 5. 6. 7.
8.
9. 10.
use of motor vehicles and any amendments thereto. 11. The Council shall indemnify the Company against all reasonable and proper costs that the Company may incur as a result of legislation requiring any modification of the Vehicle during the Contract Period. The Council shall also indemnify the Company against any liability that may fall on the Company as a result of legislation for the payment of fines or penalties in respect of parking driving or other offences while the Vehicle is on lease to the Council. The Council will pay an administration charge of £20.00 in addition to the statutory charge made in each case where the Company has to pay any unpaid parking fines or other fixed penalties. The Company will not levy an administration charge where parking fines or fixed penalty offences, including GATSO camera speeding offences are referred to the issuing authority. The Company may from time to time withdraw any troublesome Vehicle by mutual agreement and substitute for it another vehicle of similar model provided that the mileage of such substituted Vehicle does not exceed materially the indicated mileage of the Vehicle. Every such substituted Vehicle shall be deemed to be hired under the terms of this Agreement and the relevant Vehicle Order.
12.
13.
14.
PART 7
Maintenance
1. The Company shall arrange for the Vehicle to properly maintained and serviced in accordance with the manufacturer’s recommendations at a garage that is an authorised agent of the manufacturer. If it is in the best interests of both the Council and the Company that vehicles are serviced or repaired by a suitable, vetted independent service provider the Company must ensure that such an arrangement do not impact upon the vehicle’s warranty entitlement. The Company shall pay for and indemnify the Council against the cost of the following servicing and repairs due to fair wear any tear:Normal mechanical repairs including the cost of all replacement parts for all mechanical and electrical failure Services as recommended by the manufacturer of the Vehicle The replacement of all batteries, exhausts and tyres All labour charges relevant to the Company’s liabilities in respect of clauses 2.1, 2.2 and 2.3. The Company shall provide a 24 hour help-line to the Council throughout the whole of the Contract Period. The Company shall ensure that M.O.T. reminder notices are issued to the Council at least three months prior to the M.O.T. test for a Vehicle.
2. 2.1 2.2 2.3 2.4 3. 4.
PART 8
Termination
1. 1.1 The Company shall be entitled to terminate this Agreement or the hire of any or all Vehicles before the end of their respective Hire Period if:The Council fails to pay any sum payable under this Agreement for the Vehicle or if there is any breach by the Council of any term or condition contained in this Agreement The Council shall do or cause to be done any act or thing whereby the rights of the Company under this Agreement are prejudiced or put in jeopardy. There is carried out an extraordinary audit by the Audit Commission pursuant to the Local Government Finance Act 1982 If the Company does terminate the hire of any or all Vehicles the Company may upon giving reasonable notice terminate this Agreement and any other agreement relating to the hire of motor vehicles. Whereupon the Company may at any time thereafter retake possession of any Vehicle and may remove the same from any property where it shall then be kept and for this purpose may enter into or upon such property and seize and carry away any Vehicle and use all such lawful force as shall be necessary to effect this object. The determination of the hiring under this part shall not affect the Company’s right to recover from the Council any monies due to the Company or any damages for breach of this Agreement or any Vehicle Order. Notwithstanding the provisions of Clause 1 either party shall be entitled to terminate this Agreement at any time subject to it giving to the other six months written notice. On the termination of this Agreement all duties and responsibilities of the parties hereto shall continue as contained herein until the last Vehicle has completed its full Hire Period and is returned to the Company provided always that this Clause in no way affects the Company’s rights under Clause 3 above. The Council shall be entitled to terminate the hire of any or all Vehicles before the end of their respective Hire Period if-
1.2 1.3 2.
3.
4
5.
5.1 5.2
It gives to the Company 14 days notice in writing of its intention to terminate and Pays to the Company:All arrears of the Rental Charge, Service Charge and any Excess Mileage Charge due up to the date of termination or Total Loss A sum of money determined in accordance with the provisions of Clause 6 below
6.
Where a Hire Period is terminated or where there has been a Total Loss:-
2 YEAR PERIOD Termination Month of Contract
1-3
3 YEAR PERIOD
Charge in Monthly Rentals 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.0
Termination Month of Contract 1-3 4-6 7-9 10-12 13-15 16-18 19-21 22-24 25-27 28-30 31-33 34-
Charge in Monthly Rentals 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0
4-6 7-9 10-12 13-15 16-18 19-21 22-24