RAC plc, the motoring and vehicle services company, announces that the Amey Lex Consortium (ALC), a partnership between Amey plc, the support services specialist, and Lex Defence Ltd, RAC plc's defence fleet management and logistics subsidiary, has been selected as preferred bidder for the Ministry of Defence C Vehicle Capability Private Finance Initiative (PFI) programme. The programme revenue is projected to be worth in excess of £500 million over the 15 year contract period.
RAC plc, the motoring and vehicle services company, announces that the Amey Lex Consortium (ALC), a partnership between Amey plc, the support services specialist, and Lex Defence Ltd, RAC plc's defence fleet management and logistics subsidiary, has been selected as preferred bidder for the Ministry of Defence C Vehicle Capability Private Finance Initiative (PFI) programme. The programme revenue is projected to be worth in excess of Ł500 million over the 15 year contract period.
The C Vehicle programme will provide all construction vehicles, plant and equipment that is typically used by the military for engineering projects and equipment/material handling to the British Armed Forces. This group of vehicles include cranes, excavators, bulldozers, and mechanical handling equipment, such as forklift trucks.
The Consortium will deliver an innovative service, rather than a procurement based solution, building on the extensive service and support experience of both partners. ALC will rationalise the MoD's C Vehicle Fleet from over 3,500 to a size of approximately 2,500 vehicles. ALC will then maintain and manage the fleet and provide associated services, including spares support and inventory management, a comprehensive management information system, equipment documentation and training for operators and instructors. The service is to be provided mainly to the British Army, including units supporting the Royal Air Force and the Royal Marines, on a worldwide basis.
Peter Harris, Group Managing Director, responsible for Lex Defence, stated: "We are extremely pleased to have the opportunity to further build on our growing partnership with the MoD. Our success with Amey in this consortium reflects the synergy of our service offerings and our ability to provide significant operational capability for the benefit of our MoD customers."
Mel Ewell, Chief Executive Officer of Amey, said: "We are delighted that the MoD has selected us as the Preferred Bidder for this ground breaking fleet contract. This reflects on the strength and innovation of the services offered in partnership with Lex Defence, as well as the calibre of our professional team and their understanding of the MoD's objectives."
Lord Bach, Minister for Defence Procurement commented "The C Vehicle bid is the largest PFI bid involving front line operational land capability for the British Armed Forces. In order to ensure best value for money for tax payers, we placed this contract open to competition. ALC, building on the existing strong arrangements with Amey and Lex Defence, was able to offer a superior solution that met our requirements in a cost effective way."
Enquiries:
Peter Harris, Group Managing Director, Manufacturer Support Services, RAC plc. Tel: 01628 843739
Niall Addison, Group Finance and Investor Relations Manager, RAC plc. Tel:07764 624701