GPS fuel card solution planned to help public sector make savings
System will replace expiring fuel cards and associated services framework which ends in August
The Government Procurement Service has issued a pre-tender for a framework agreement contract to supply and maintain a fuel card solution that includes an online management information system.
The procurement, which has an estimated contract value of £1.3bn is to replace the Fuel Cards & Associated Services framework which is due to expire in August 2013 and covers the purchase of fuel and any other associated services across all public sector organisations.
The current agreement has over 2,500 customers and uses 50,000 cards, with clients ranging from the MoD to individual schools. Around a third of the volume is used by the emergency services.
The fuel cards framework agreement provides a cash-free way to purchase fuel. Prices are based on what the customer pays at the forecourt on the day of delivery and a rebate is possible based on volume, payment type and speed of payment. A savings rebate of around £1 million per annum is paid directly back to customers.
Invoices from the fuel cards system show details of every transaction enabling public sector organisations to reduce the time spent on administration, and give them more control over fuel expenditure and information to make savings.
The current agreement has a throughput of 240 million litres annually, equating to approximately £300m or just over £1bn over the four years of the framework agreement.