Fleet Procurement 2027 - Lease Model

March 3, 2026 Assistant Director of Assets and Environment (Officer) Key decision Approved View on council website

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Summary

...proceed with the next stage of the procurement process using a lease model contract for the Council's fleet requirements.

Full council record
Content

 Following Pre Procurement
Market Engagement, to proceed with the next stage of the
procurement process based on a lease model contract to fulfil the
Councils requirement for fleet to undertake both statutory and
non-statutory. 

 
A further delegated decision will be required
once the costs are known.

Reasons for the decision

 Following approval on the
11th
of November 2025
at the Executive Meeting, delegated authority was given to the
Assistant Director for Assets and Environment in consultation with
the Executive Member for Assets, Waste and Environmental Services
and Executive Director of Finance and Performance (s151 Officer) to
procure and sign necessary documents as part of the procurement
process.

 

Pre Procurement Market Engagement
sought feedback on the complexity of the Councils’ fleet
requirements, suitable commercial options and mitigation of risks
associated with advancements in vehicle technology, build times,
availability of specialist vehicles and capacity of specialist
providers.

 

The overwhelming feedback from the
market was that leasing provided the greatest benefit to the
Councils requirement for specialist vehicles, security of build
slots and flexibility to benefit from future advances in
alternative fuel sources.

 

Leasing allows the Council to
maintain a modern and efficient fleet without the long-term
financial weight that comes with purchasing vehicles outright.
Predictable annual, quarterly or monthly payments support long term
financial planning and remove the risk of sudden spikes in
spending.

 

The ability to replace vehicles on
a structured cycle ensures that the fleet remains reliable, safe,
and compliant with evolving environmental standards. This is
particularly relevant as the Council transitions to lower emission
or zero emission vehicles. Leasing shifts the burden of
depreciation to the leasing provider, which protects the Council
from the financial impact of declining asset values and changing
technology. The lease will incorporate full servicing and
inspection requirements, this will reduce downtime, support
consistent service delivery, and lower the administrative load on
internal teams. It also enables access to specialist support and
ensures that vehicles receive timely servicing, which helps extend
their life and performance while reducing unexpected
failures.

 

Leasing provides flexibility as
service models evolve; the Council can adapt its fleet mix more
easily than if it owned the vehicles outright.

 

A mixed model of both leased and
owned vehicles increases risk to the Authority where multiple
procurements may be required throughout the existing lease period.
This may be necessary to replace vehicles that suffer catastrophic
failure, accident damage or where they do not fulfil the
anticipated life expectancy. The depreciation of the fleet will
also be factored into the Councils financial plan.

 

Supporting Documents

Record of Delegated Decision - Lease.pdf

Details

OutcomeRecommendations Approved
Decision date3 Mar 2026