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MoD's DE&S arm to upgrade Phoenix fleet management system

David Bicknell Published 29 September 2014

Tender issued for framework contract worth between £40m and £140m to manage 17,000 vehicles and 200,000 rental bookings


The Defence Equipment & Support (DE&S) arm of the Ministry of Defence (MoD) has issued a tender for a framework contract for a real-time passenger information system.

The six-year contract, which has an estimated value of between £40m and £140m, appears to be for Phoenix II, an upgrade of the existing Project Phoenix system.

According to a Crown Commercial Service case study, in August 2011 the MoD awarded a four year contract, Project Phoenix, for the management of its fleet using lot 8 of the Vehicle Lease framework (RM858).

The MoD then employed a fleet of over 15,000 vehicles to support its daily business in the UK. This fleet had previously been provided via a 10 year private finance initiative (PFI) contract and a new service provider needed to be appointed to manage the MoD fleet. The requirements expected of this provider include:

  • Flexible use of transport - pooling and sharing of vehicles.
  • Intelligent booking and scheduling software.
  • Optimisation of the size and shape of the fleet.
  • An intuitive and value adding Management Information System (MIS).
  • Use of telemetry to capture accurate utilisation and safety data.
  • Increased utilisation of the fleet to reduce overall costs.

It appears from the latest framework tender that the size of the fleet has now grown to over 17,000 vehicles, with 200,000 rental bookings made each year.

The fleet management service includes a requirement for an information system for booking and management information, as well as optimisation and scheduling, maintenance, repair, registration, taxation and insurance, telematics, and safety management.

The original Project Phoenix was forecast to deliver £43.6m of savings over its four year duration, with additional benefits gained through the aid of telemetry, an intelligent booking service and improved scheduling of assets against demand to enable the current fleet to reduce in size over the next few years, further reducing costs. An eAuction programme is said to have saved over £1m on replacement vehicles.

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