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Permission to procure waste collection vehicles
up to the value of £12,080,000 via The Procurement
Partnership Ltd (TPPL) buying club accessing the North East
Procurement Organisation ('NEPO') Framework Agreement for the
supply of Heavy Goods Vehicles(HGVs) (NEPO224),– Lot 2
(Vehicle Conversions up to 44t) to both support the waste review
and be consistent with the Fleet Strategy, and to delegate the
permission to award to the Director of Resources

Reasons for the decision

Waste are undertaking a service review which
will harmonise the way in which the material is collected across
Cumberland. To do this, the fleet will also need to be
harmonised.
In addition to this, some of the current fleet
is reaching the end of its life expectancy as a full time front
line service vehicle and in keeping with the Fleet Strategy is due
replacement. Other vehicles are reaching the end of their lease or
are being hired to cover keep the service running. Replacing these
vehicles will standardise the fleet position and ensure a reliable
and continued provision of statutory waste services, reducing
expenditure on older vehicles and associated down-time, which can
impact instantly on service performance, leading to complaints from
residents, damage to reputation, and avoidable costs for remedial
action.   Newer vehicles also allow
for the introduction of improved safety measures and more efficient
modern engines contribute to improved air quality, reduced carbon
emissions in support of the Council’s carbon reduction
targets.   Investing in new
vehicles is also viewed positively by the Council’s
hard-working staff delivering priority services for the people of
Cumberland

Alternative options considered

To not procure new vehicles and continue
running this high profile statutory service whilst relying on an
aging fleet. This option has been rejected due to the higher
maintenance costs operating an older fleet, the unreliability as
the vehicle wears out, the additional costs to hire specialist
vehicles in (£1200 p/w), the negative impact on the service,
Council reputation, residents and visitors of Cumberland. Staff
feel undervalued as there is no investment in their day to day
operation.
Waste is undertaking a review of their
service, to ensure the vehicles are fit for purpose and equipped
for the changes ahead, to not procure is not a viable option.
 
Lease/Hire – These are not considered
appropriate for the following reasons:
·      
This is an uneconomical option of acquiring vehicles and does not
give the leaser/hirer direct control of the vehicle as it is never
under their ownership.
·      
The cost of leasing will not reap dividends as there is no asset at
the end of its lifespan to sell and recoup some value at
disposal. 
·      
Significant costs imposed by the lease/hire companies when the
vehicle is not returned in line with the BVRLA fair wear and tear
standard, or significant costs paid getting the vehicles to meet
the BVRLA fair wear and tear standard.
In this case, capital budget is allocated to
support the purchase of the vehicles