Scottish Water has gone out to tender with a contract for the provision of leased vehicles with an estimated value of £18.4 million.

The framework is split into two lots:

Lot 1 - Company Leased Vehicles (£10.4 million)

The water company is seeking to appoint a single pan Scotland provider for the provision of company lease cars for its employees in a mix of both jobs needs and user choice.

The successful supplier will be required to provide a full end-to-end management service for Scottish Water and its employees which will require robust processes and procedures both within and out of hours.

There is an expectation that all vehicles provided under the agreement will be EV in multiple vehicle model options – small, medium, large & cross-over (SUV type)

The supplier will be required to take full responsibility and ownership for the management of the service, including:

• Accident management
• Downtime management
• Tyre provision
• 24/7 breakdown service
• Windscreen replacement
• Consultancy service
• Vehicle maintenance
• Online Portal – reporting, quotes, account data
• Dedicated account manager
• Downtime management
• Provide competitive lease market rates.
• Compliance of CO2 within public sector procurement guidelines.

The estimated net value range of expenditure under this lot is £8 million - £10.4 million based on historic service spend and envisaged usage under the next framework period. The spend profile is expected to grow through the duration of the framework agreement as new subsequent lease agreements are purchased through the appointed provider. However, there is no guarantee of any minimum volume of work under the framework.

Lot 2 - Employee Salary Sacrifice Car Scheme (£8 million)

The water company is looking to appoint a single pan Scotland provider, for the provision of an employee salary sacrifice car scheme - all vehicles to be leased under the agreement will be EV.

The successful supplier will be expected to provide a fully managed service including:

• Provision of EV vehicles
• Provision of multiple vehicle model options
• All servicing and maintenance
• Fully comprehensive motor insurance
• Annual road fund licence
• Replacement tyres
• Accident management
• Roadside assistance including European cover
• Competitive lease market rates

The scheme must comply with all applicable legal requirements, including adherence to HMRC tax regulation and provide the Scottish Water payroll team with all relevant data in a timely manner.

The supplier will also be required to have a web based portal for employees to access the vehicles available via their salary sacrifice scheme. In addition, they will also be expected to support the water company with promotion campaigns to target uptake of the scheme to eligible employees.

The estimated net value range of expenditure under this lot is £6 million- £8 million, based on historic service spend and envisaged usage under the next framework period. Again, the spend profile is expected to grow through the duration of the framework agreement as new subsequent lease agreements are purchased. As with Lot 1, there is no guarantee of any minimum volume of work under this framework agreement.

Initial Framework Agreement term for both Lots is 48 months, with up to four further years worth of extension options.

Time limit for receipt of tenders or requests to participate is 14 July 2025.

The procurement documents and questionnaires for both Lots can be accessed by logging in through the Scottish Water Atamis e-sourcing portal and Registering Interest on the Provision of Leased Vehicles advert.

(https:atamisscottishwater.my.salesforcesites.comProSpend__CS_PublicLandingPageSearchType=Projects)