Govt working to conclude new fleet contract with winning bidder

Evaluations of RFPs have been made at a few stages that include technical and commercial assessments

by RAHIMI YUNUS/ pic by TMR FILE

THE government is currently negotiating with the winning bidder of the multimillion vehicle fleet concession contract and priority will be given to Proton car models.

Treasury secretary general Tan Sri Ahmad Badri Mohd Zahir said the decision by the tender evaluation committee has been submitted to the Cabinet for consideration and approval.

“The negotiation process is in progress with the bidder to conclude the concessions for Malaysian government fleet management of vehicles and priority will be given to Proton cars for the use of ministers and deputy minister, and not Toyota Vellfire as it had been widely claimed,” Ahmad Badri said in a statement on Saturday.

He said eight companies had tabled requests for proposal (RFP) and evaluations have been made at a few stages that include technical and commercial assessments.

The tender evaluation committee comprised senior civil servants from various agencies including the Malaysian Public Works Department, Economic Planning Unit which is now known as the Economic Affairs Ministry, Valuation and Property Services Department and the Finance Ministry.

“To manage the government fleet in the future, the government has decided to have the concessionaire selected through RFP that was implemented openly. In other words, there was no limited tender or direct award of the tender was practiced,” Ahmad Badri said.

Spanco Sdn Bhd’s 25-year concession for fleet management ended on Dec 31, 2018, but the company had been given an extension until the end of 2019.

The Malaysian Reserve (TMR) previously reported that Naza Group of Cos-Berjaya Corp Bhd consortium was leading the pack to secure the deal, according to sources.

An industry source confirmed with TMR that the consortium has received a letter of intent from the government.

The race for the lucrative fleet contract was intense last year with at least four major parties tendering for the project including Spanco, Naza-Berjaya consortium, DRB-Hicom Bhd and Sime Darby Bhd.

In a document previously sighted by TMR, Putrajaya seeks between 1,600 and 2,730 vehicles for the next six years, including Proton X70, Persona and Saga, as well as Honda Accord and Toyota Vellfire.

But the vehicles listed are not in the Naza-Berjaya consortium list of vehicles. Both Naza and Berjaya have their stables of vehicles.

A source said new vehicle purchases could start in the second quarter of next year to kick off the new concession.

The source said the new fleet concession would not be more than 20 years.

It was reported that a 15-year concession will involve 12,500 vehicles, with an estimated value of RM300 million annually starting after the fifth year.

In November, Deputy Finance Minister Datuk Amiruddin Hamzah said the value of the new concession would be comparable to the previous one.

“The priority is to replace police cars. 70% of the new government vehicles will be Proton cars, which is owned by DRB-Hicom,” the source added.