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Motor vehicles

Part of: Vehicles All-of-Government

The All-of-Government (AoG) motor vehicles contract provides fit-for-purpose, safe vehicles, including electric vehicles (EVs), at the lowest possible total cost of ownership across the life of the vehicle.

Key details

Status

Current View dates

Type

All-of-Government

Lead agency

Ministry of Business, Innovation and Employment

What's covered

The motor vehicles contract covers passenger and light commercial vehicles split into 14 vehicle sub-classes and two restricted specialised sub-classes, covering a range of vehicle body style, transmission and fuel options to meet fit for purpose requirements.

Passenger Light commercial Specialised
Sub-compact 2WD Utility Limousine
Compact 4WD Utility or Wagon Police Prime 1
Medium 4WD Large  
Large Cargo Van - Small  
AWD/SUV - Medium Cargo Van - Medium  
AWD/SUV - Large Cargo Van - Large  
  Minibus - Medium  
  Minibus - Large  

The contract includes a provision to add additional suppliers of electric vehicles (EVs) to a sub-panel.  

For this contract EVs means:

  • battery electric vehicles (BEVs)
  • Plug-in hybrid electric vehicles (PHEVs).

What's not covered

  • Fleet management services
  • Leasing services and financing arrangements
  • Rental vehicles
  • Specialised modification and fit-out requiring engineering services
  • Services related to the disposal of vehicles (except as a potential value-add from suppliers of vehicles)
  • Staff personal purchases 

How it works

You can purchase vehicles best suited to your needs from any or all suppliers on the panel. The vehicles available through this contract are listed in the vehicles catalogue.

Vehicles in the vehicles catalogue are ranked according to their Total Cost of Ownership (TCO). A vehicle's TCO looks at value for money across its whole-of-life costs.

Key elements of the TCO model are:

  • purchase price
  • registration, re-licensing and RUC (if applicable)
  • fuel costs
  • WOF
  • scheduled servicing and maintenance (excluding consumables)
  • tyre replacement
  • residual value.

The TCO model does not include unscheduled servicing, accessories, replacement panel parts, servicing parts, depreciation, insurance or Fringe Benefit Tax.

Features and benefits

It is a simple and flexible solution that reduces the complexity and cost of procurement for agencies and suppliers, while providing continuous improvement in technology, service delivery, cost-effectiveness and performance.

All suppliers offer at least:

  • a warranty of at least three years/100,000km as standard
  • a minimum four years/100,000km extended warranty as an option
  • service plan options of 80,000km and 100,000km
  • roadside service for mechanical breakdowns during the warranty period (including any extended warranty period).

The contract also provides the option to buy some related services such as service plans, light fit-outs etc.

Each vehicle must be:

  • crash test rated by the Australasian New Car Assessment Programme (ANCAP) or the European New Car Assessment Programme (Euro NCAP) or equivalent standard to a five- star rating for passenger vehicles and a four-star rating for light commercial vehicles; or
  • if the vehicle has not been crash-test rated by ANCAP or Euro NCAP, it must be supplied with equivalent safety features to those meeting the above ratings.

The vehicles catalogue shows the safety ratings. Most light commercial vehicles on the vehicles catalogue now exceed the minimum four-star rating and meet the five-star rating.

If your fleet ownership model is to lease your vehicles, you can still benefit from this contract. While leasing services are out of scope, your contracted/preferred leasing provider can purchase vehicles at AoG rates on your behalf and you benefit through better monthly leasing costs.

This contract supports the government’s priority to transition to a net zero emissions economy by 2050, by including electric vehicle and low emission vehicle options.

Motor vehicles broader outcomes

Savings and costs

Savings

Agencies who participate in the motor vehicles contract don't need to go through a full procurement process of their own, which saves time, effort and cost.

The TCO for each vehicle is subject to a number of moving elements, which makes accurately forecast savings based on the TCO difficult. Reported savings are calculated using the purchase price of the base vehicle (excluding On Road Costs (ORC) and accessories).

We have projected an average 7% savings (net of the AoG administration fee) on the baseline market rate (the best rate available to agencies outside of AoG). The vehicles catalogue shows discounts from the recommended retail prices.

Agencies can further reduce their fleet costs by using the information and guidance provided to make informed, cost-effective purchasing decisions.

Contract resources

 

Costs

Most AoG contracts include an administration fee. This fee is a simple, effective and transparent way of recovering the cost of developing, sourcing, implementing and managing AoG contracts.

An administration fee of 1.5% applies to the base vehicle cost (excluding on-road costs and accessories) and is detailed in a separate column within the vehicles catalogue for each vehicle.

Suppliers collect the administration fee and pass it on to MBIE - agencies don't need to make any payments to MBIE. 

Dates and renewal details

Start date:
Current term end date:
Contract Terms:
Five years + two rights of renewal. The first one is for a three-year term, and the second one is for two years.
Renewals left: none

Joining AoG contracts

To be able to purchase from this contract agencies and schools first need to join.

Joining AoG contracts

​​Roles and responsibilities

Each participant in this contract has responsibilities that they must meet as part of that contract.

Roles and responsibilities

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