THE Ministry of Defence has this week invited some of the UK's biggest leasing and fleet management companies to tender for a 10-year outsourcing contract for its 10,000-strong 'white fleet'. The tender document for the business has just been published, and calls for the supply and management of vehicles to meet the MoD's needs, with the competing parties fighting to take responsibility for the sourcing, maintenance and disposal of vehicles.

Five consortia will pitch for the business: Fleetserv, a joint venture between Arriva, PHH Vehicle Management Services and Ryder; Forward Trust; GE Capital Fleet Services and TLS; Lex Service; and Venson. The MoD confirmed in September last year that it would look to outsource the supply and management of Army, Navy and RAF motorcycles, cars, vans, commercial vehicles, minibuses and coaches.

The Ryder/PHH Europe consortium which won the German contract has achieved savings of 27% for the MoD on the running of its 2,500 vehicles; and Lex Vehicle Leasing has saved the RAF 15% on the cost of running its 2,800-strong UK fleet. Now the MoD has divided the UK into four regions and asked different consortia to bid for the business.

The Scottish region, which has 1,300 vehicles, and the Central Region which has 3,500 vehicles, will be contested by Fleetserv, Forward Trust, GE Capital/TLS, and Lex.

Fleetserv, Lex, GE Capital and Venson will tender for the MoD's 600 vehicles in the London region; and Fleetserv, Forward Trust and Lex will pitch for the 2,900 vehicles in the Southern region. The MoD estimates that the total value of the 10-year contracts will be about £400 million, although each region will be treated separately. The tender committee will announce the winning companies in the summer.