14 December 2006 | Antony Barton

Fifteen manufacturers have agreed to supply central government with vehicles over the next four years, in a deal estimated to be worth £1 billion.

Thirty-eight governmental organisations are involved in the framework agreement, the second biggest cross-government procurement contract ever.

The Department for Work and Pensions worked with the OGC to forge the deal and more public-sector bodies are encouraged to join.

The OGC expects this deal to save the government at least £100 million. It claims that departments could save up to £700 on the average vehicle if they work as one and offer big volumes of committed spend.

Departments will refer to the OGC's vehicle costing model to determine their current fleet's whole-life cost and carbon footprint. This will enable them to decide what quantity and types of vehicles to purchase in order to meet efficiency and environmental criteria.

The DWP estimates it will save 4,500 tonnes of CO2 and 15 per cent on price.

Departments will have the option of purchasing the vehicles or establishing leasing contracts, with a typical duration of three years.

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