Vehicle
fleet - Environment Canterbury
Summary
Environment Canterbury uses a vehicle evaluation matrix to assist with purchasing vehicles. The evaluation matrix produces an adjusted price by awarding points to a number of criteria broader than up-front purchase price, such as fuel efficiency, warranty, potential resale value and fuel type.
Key drivers
One of the environmental issues facing the Canterbury region is air pollution and a plan is currently being developed to address this issue. As such, Environment Canterbury aims to ensure that its procurement process for vehicles takes into consideration air pollution impacts.
The evaluation matrix also ensures that lifetime costs, rather than up-front costs are considered during purchase, with the opportunity for cost savings to be made over the life of the vehicle.
Project detail
To assess the vehicles the evaluation matrix uses a points system where 1 point equals 1%. The vehicle is scored against a range of criteria that add up to 100, for example, a vehicle may score 6 points for having ABS braking and 0 points for not having ABS braking. Once a vehicle is scored using this system, the initial tender price is reduced by the total % scored by the vehicle.
For example, the up-front cost of a vehicle may be $20,000. It may then score 40 points from the possible 100 based on the scoring matrix. The total price is then reduced by 40% resulting in the final evaluation price being $12,000 (or a 40% reduction on $20,000).
In the 2003 vehicle evaluations 15% of points were awarded based on fuel efficiency. Fuel consumption for vehicles varies based on open road as opposed to urban usage. Both fuel consumption patterns were factored into the calculations with 60% of the 15% being allocated to open road and 40% for urban. The points were awarded as follows:
Fuel urban roads (litre/km)
| Car performance (km/litre) | Points |
|---|---|
| < 7.0 | 6 |
| 7.0 - 8.0 | 4 |
| 8.1 - 9.0 | 2 |
| 9.0 | 0 |
Fuel open (litre/km)
| Car performance (km/litre) | Points |
|---|---|
| < 5.0 | 9 |
| 5.0 - 6.0 | 6 |
| 6.1 - 7.0 | 3 |
| > 7.0 | 0 |
The evaluation matrix is a mandatory part of council's vehicle evaluation and the lowest evaluated or adjusted price is accepted.
Key challenges
One of the key challenges identified early was the gaining of the fuel efficiency information. The figures used for fuel consumption are gained from a number of sources include the EU or Australian standards and the Australian Greenhouse Office. Since introducing this system the fuel efficiency information available has increased from 20% to 90% for cars, however the information available for commercial vehicles is still low.
Outcomes of Project
Fleet purchases in 2003, utilising the evaluation matrix, resulted in the purchase of the most fuel efficient vehicle. However, the overall fuel consumption for the fleet has not decreased as Environment Canterbury's total fleet has grown with demand. One of the challenges faced is to reduce increasing demand. As indicated above, the evaluation matrix is a mandatory part of council's vehicle evaluation and the lowest evaluated or adjusted price is accepted. The operational needs rather than fuel however, determine any change to the make-up of the fleet.
