New AOG vehicles contract to save $10 million a year

  • Steven Joyce
Economic Development

Economic Development Minister Steven Joyce has today announced a new panel of suppliers to the All-of-Government vehicles contract, effective from 1 July.

The current contract has been in place for five years and has generated savings of approximately $30 million for 264 government agencies. The new contract has been broadened and includes operational vehicles for New Zealand Police and the VIP transport fleet for the Crown.

In the 12 months to March 2015, agencies spent $128 million on 4550 vehicles and associated purchases, Mr Joyce says. “Purchase levels under the new contract are expected to produce savings of $10 million a year compared with market rates.”

All agencies that are part of the New Zealand public sector are eligible to participate in AoG contracts.

“This new contract aims to provide fit-for-purpose, safe vehicles for government at the lowest total cost of ownership,” Mr Joyce says. “It also reduces the complexity and cost of procurement for agencies and suppliers, while providing continuous improvement in technology, service delivery, cost-effectiveness and performance.

“Three of the vehicles in the new contract are hybrids – the Toyota Prius and the Toyota Camry plus the plug-in Mitsubishi Outlander PHeV. This new contract is future proofed to accommodate additional hybrids and electric vehicles as the demand for these vehicles and their cost-efficiency continues to develop.”

Negotiations have recently concluded with seven suppliers shortlisted from the AoG Vehicles Request for Proposal (RFP) process and continue with two further suppliers, including the preferred supplier for the VIP fleet. The Department of Internal Affairs will announce the decision on the supplier for the VIP fleet in due course.

Contracts have been awarded to:

  • Ford Motor Company of New Zealand Limited
  • Holden New Zealand (also the preferred supplier for operational vehicles for New Zealand Police)
  • Hyundai Motors New Zealand Limited
  • Mazda Motors of New Zealand Limited
  • Mitsubishi Motors New Zealand Ltd
  • Suzuki New Zealand Limited
  • Toyota New Zealand

Contracts are for an initial term of five years, with an option to renew for a further five years.