Vehicle Hire - Preliminary Market Engagement (PME)

Portsmouth City Council (the "Council") is undertaking Preliminary Market Engagement (PME) in accordance with section 16 of the Procurement Act 2023 to inform a future competitive procurement for a managed vehicle hire solution predominantly for cars, MPVs, vans and minibuses to support Council operations across service areas. The PME exercise is intended to refine the procurement approach, service specification, performance requirements, contract duration and commercial strategy ahead of issuing a Tender Notice.

The Council is exploring the market for a managed vehicle hire solution to support Council operations across multiple service areas. The anticipated scope includes (but is not limited to): • Cars (small/medium/large), with a strong preference for hybrid models • MPVs • Vans (small/medium/large) • Minibuses (D1 and non D1 options) The service is expected to include booking and customer support arrangements (telephone, website and mobile application), delivery/collection (where applicable), availability management, breakdown/contingency arrangements, incident/accident/claims processes, performance reporting, and account management/governance.

The Council's current requirements include (indicatively): • A small number of hybrid hire vehicles to be kept permanently on site and capable of being dispatched within 30 minutes of any hire booking. • For home-delivery bookings, delivery must be to addresses within the Council's boundaries. • For all standard vehicle hires, delivery to the requested location must be completed within four working hours of the booking request. • Delivery across PO1 to PO17 postcode areas is expected to be included in the cost of hire (no additional charges). • The Council may also require delivery outside PO1 to PO17 up to a radius of 40 miles from the Council's boundaries (additional delivery costs to be evaluated as part of the future tender). Following completion of this PME process, the Council is currently targeting commencement of a formal procurement using the Open Procedure, via issue of a Tender Notice on 21 May 2026.

The Council will take appropriate steps to ensure that competition is not distorted by this engagement. For potential bidders who are not able to attend the teams meeting a copy of the presentation and recording will be provided in the document set of the future Tender process.

Local Government Reorganisation (LGR) As part of the wider Local Government Reorganisation (LGR), the Council is required to engage with neighbouring authorities to explore future requirements and needs, and to consider alignment of governance arrangements. The UK Government has confirmed its decision regarding local government reorganisation across Hampshire and the Isle of Wight.

Under the confirmed proposals, Portsmouth City Council will become part of a new larger unitary authority covering the areas of Gosport, Fareham and Havant and including Newlands, Horndean, Clanfield and Rowlands Castle. The new larger unitary authority is set to formally come into existence on 1 April 2028.

Portsmouth City Council as it currently exists will be legally dissolved on 31 March 2028. The new authority's service delivery model is not yet finalised, but it is expected that local authority service responsibilities will merge within the new boundary.

This could mean that the scope, demand and operational requirements for vehicle hire services may change over time depending on the governance and operating arrangements adopted. The opportunity value is expected to increase materially due to the wider geographic area and the potential integration of requirements from the merging authorities.

The Council reserves the right to modify the contract under Schedule 8 of the Procurement Act 2023 should the confirmed LGR arrangements require changes to scope, value and/or delivery structure. The estimated 5-year total contract value (including any extension options) is £950,000 excluding VAT; however, this may change if LGR implementation requires changes to the scope and/or delivery structure.

This figure is based on Portsmouth's current requirements only. The future contract is expected to include assignment/novation provisions.

These provisions are likely to allow the Council to transfer the contract to the new larger unitary authority (or other successor contracting authority), where required by LGR. For further details in respect of LGR, please see: https://www.portsmouth.gov.uk/services/council-and-democr...