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Australian Government Fleet Monitoring Body

The Australian Government Fleet Monitoring Body is responsible for the management of the contracts for the provision of vehicle fleet management and finance services to Australian Government departments and agencies. As foreshadowed in the 2002–03 Annual Report, the Fleet Monitoring Body's principal task for 2003–04 has been the management of the tender process to replace the existing contract with LeasePlan.

The tender was preceded by a scoping study, comprehensive industry consultation and a due diligence process. The request for tender was publicly released on 9 May 2003 and tenders closed on 26 June 2003. The tender evaluation was conducted with the assistance of representatives from a number of departments and agencies including the Department of Defence (Defence) and the Australian Taxation Office (ATO). A Steering Committee comprised of representatives from Finance, Defence, Centrelink and the ATO provided high-level guidance to the evaluation.

On 30 October 2003, the Special Minister of State, Senator the Hon Eric Abetz, announced the selection of LeasePlan as the preferred tenderer. On 15 January 2004, following a series of contract negotiations, Senator Abetz signed the Fleet Management Agreement (FMA) with LeasePlan. The six-year agreement governs the provision of motor vehicle fleet management and associated services to approximately 8,000 leased vehicles (used by 77 government departments and agencies) and 6,000 owned vehicles (primarily used by Defence).

The FMA delivers cost savings through lower fleet management fees and reduced interest costs. Additional benefits arise from the greater price certainty, improved administrative efficiency and enhanced services and contractual conditions. The FMA will also see a range of benefits flowing to Australian industry, including small and medium enterprises in rural and regional Australia. In its Industry Development Plan, LeasePlan has agreed to make greater use of service firms in rural and regional Australia, where government vehicles are used to support the delivery of a range of government services. The FMA has the added facility of cost recovery arrangements which allow Finance to recover from departments and agencies the costs of providing contract management and related services. This is done through the application of a small fee per month for each vehicle leased under the contract. Finance has put in place new contract management arrangements to support its role in this area.

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