Examples include hybrid vehicles and those that use liquefied petroleum gas (LPG), biodiesel, or electrically charged batteries.

Electrically powered vehicles rely mainly on electricity produced from fossil fuels to recharge their batteries. CO₂ is emitted as the electricity is produced but the car will be emission free.

Across the UK there are several commercial auction websites that provide guidance on cost effective vehicle disposal.

Benchmarking within fleet management needs to focus not only on financial information but also on environmental issues, fuel usage, service delivery, user feedback and vehicle specifications.

Examples of benchmarking are set out below.

The UK Government’s Renewable Transport Fuel Obligation requires at least five per cent of the fuel sold at petrol pumps to be biofuel by 2010.

Vehicle manufacturers’ warranties will usually allow blends of up to five per cent biodiesel to be used in their engines.

In the event that a vehicle breaks down, drivers should have a phone number to call and should have the following information to hand:

• vehicle registration number;
• location of vehicle;
• contact telephone number;
• vehicle make, model and colour; and
• description of problem.

Organisations also need to consider whether their drivers have access to mobile telephones.

From 6 April 2002, the Government introduced a reform to company car taxation which linked the Benefit in Kind (BIK) charge for company cars, registered from 1 January 1998, as a percentage of the car's price and the CO₂ emissions. The CO₂ figure remains unaltered for the life of the vehicle. The Society of Motor Manufacturers provides a calculation table.

The Energy Saving Trust has produced a guide to help reduce emissions from diesel vehicles.

The CO₂ emissions from hybrid vehicles, gas powered (eg LPG) vehicles and from those using biofuels are generally less than from petrol and diesel engines.

The Act took effect on 6 April 2008. Organisations can be found guilty of corporate manslaughter as a result of serious management failures resulting in a gross breach of their duty of care. A breach of a duty of care can include the failure to provide vehicles used in delivering public services.

A useful guide to the corporate manslaughter act 2007 and business vehicle use.

Failure to comply with the Act could result in the loss of life, serious injury as well as considerable penalties or fines.

For example an organisation may want to calculate the costs and benefits of fitting tracking devices to gritter vehicles. Costs include the purchase of the tracking device, fitting the device, the ongoing revenue costs and the costs of training employees. Benefits would include improved knowledge about which roads had been gritted and at what time, improved safety for road users and the potential reduction in accidents.

• fuel, oil, water;
• tyres and wheel nuts;
• mirrors, indicators, horn;
• wipers, washers, windscreen;
• tachograph unit (if relevant);
• speedometer;
• brakes and electrical couplings;
• lights, reflectors;
• battery;
• steering, brakes;
• fire extinguisher;
• seat belts; and
• first aid box.

The policy considers:

• movement to a disposal site;
• depreciation;
• damage;
• insurance;
• commission;
• preparation;
• sales administration;
• security;
• parking;
• unexpired road tax;
• auction fees; and
• speed of sale, as a general rule, costs are minimised the faster a vehicle is sold.

The rules include a driving limit of 10 hours in any period of 24 hours and a duty limit of 11 hours in any period of 24 hours.

All drivers should be given a copy of the handbook and they should be required to sign a declaration to say they have received it. They should read and understand the handbook and keep it with them when using fleet vehicles. The handbook should contain:

• details of the risks associated with driving;
• organisation’s policy on driving eg use of mobile phones or satellite navigation equipment;
• general advice on safe driving eg on topics such as driver tiredness;
• advice on efficient or defensive driving which aims to save fuel and reduce the likelihood of accidents;
• advice on what to do in the event of an accident; and
• emergency contact details for breakdown, tyres and windscreen.

• driver licence and endorsement details;
• training undertaken;
• accident history;
• whether a fuel card has been issued;
• entitlement to drive specific vehicle types; and
• information to support car schemes such as car grade and driver’s financial contribution.

Several public sector organisations use fleet management software to manage driver records.

• safe and fuel efficient driving training;
  

  Case study: Wales & West Utilities

• use of ancillary equipment such as water hoses on fire engines and grit spreading equipment;
• manual handling;
• operation of tail lifts – Gwent Healthcare NHS Trust conducts this training for its staff;
• legislation updates – organisations such as the Freight Transport Association (FTA) are a useful source of information. Details of the high level requirements of legislation should be included in updates in newsletters.
• familiarisation with new vehicles;
• 4x4 training;
• trailer towing;
• Blue Light training; and
• the Minibus Driver Assessment Scheme (MIDAS) – Blaenau Gwent CBC has in-house trainers.

The use of fuel cards allows organisations to monitor fuel use as the associated system can generate usage reports and highlight unusual purchases or trends.

• unleaded petrol – 48.35 pence per litre;
• ultra low sulphur diesel - 48.35 pence per litre;
• bio diesel – 28.35 pence per litre; and
• LPG – 12.21 pence per litre.

Such programmes include driver training in fuel efficient driving techniques, accurate recording of fuel economy, driver league tables on fuel economy, a fuel supplier review, an increase in information on fuel usage and a publicity campaign to raise awareness of the importance of fuel efficiency. A comprehensive fuel management programme is not a short-term solution because measurable improvements are not usually evident until at least six to eighteen months after implementation.

Some organisations have successfully used speed limiters and have reduced fuel consumption by around 20 per cent.

It is often easy to convert vehicles to run on LPG but it is important to select appropriate vehicles for conversion, ensure trials are undertaken and check manufacturers’ warranty details.

The Office of Government Commerce (OGC) has produced guidance on the appropriate use of the grey fleet. A key issue for organisations to consider are corporate manslaughter issues as the employer has a duty of care to ensure these vehicles are safe.

See also corporate manslaughter.

• the use of telephones or video conferencing;
• travelling with others;
• using a pool or hire car; and
• using public transport.

Commercial route planning software is an option for planning complex journeys and services.

The terms of a lease are likely to involve a fixed monthly payment in return for use of the vehicle. The contract is likely to specify certain conditions on the use of the vehicle, such as a pre-agreed mileage limit with a penalty fee charged for every mile driven over this limit. It is therefore crucial to estimate the mileage as accurately as possible.

Future legislation includes Driver Training Directive in September 2008 passenger vehicle drivers and Euro 5 emission standards for cars and vans in September 2009 for goods vehicle drivers.

For hired and leased vehicles, maintenance is usually part of the fixed monthly charge but this is not always the case.

For cars, the service interval usually follows manufacturers’ guidelines.

Vehicles over 3,500 kg gross weight which are not exempt from testing are tested annually at either a goods vehicle testing station or a designated operator workshop.

The following vehicles are exempt from the O Licence:

• Police - all vehicles;
• Fire - all vehicles;
• Ambulance - all vehicles; and
• Local authorities’ vehicles used for snow clearance or the distribution of salt on roads.

If an O Licence is held it is important to keep it up to date with details including a named officer, numbers of vehicles and trailers and details of the maintenance arrangements. This covers public sector bodies. Anyone operating small goods vehicles, defined as one with a gross plated weight of not more than 3.5 tonnes (or 1,552 kg unladen if there is no plated weight) is excluded.

If a vehicle is being returned to the leasing company, good planning is required to ensure that the replacement vehicle is ordered in sufficient time. If this does not happen additional monthly payments will be charged and potentially excessive mileage charges made. Organisations should identify the optimum replacement time by undertaking a ‘whole-life costing’ exercise.

When deciding on vehicle specification an appropriate cross-section of users should be involved to ensure optimal vehicle specification.

Similarly, the software package used to support the fleet may be over specified and have unused features.

Business use of an organisation’s vehicle is use of the vehicle to perform some aspect of a job required by an employer. It can include making deliveries or collections and travelling between offices and sites during the working period.

Professional organisations – these organisations provide information, guidance and networking opportunities to fleet managers and users. Examples include:

• The Freight Transport Association (FTA);
• Road Haulage Association (RHA); and
• Institute of Road Transport Engineers (IRTE).

If the prohibition is immediate, the vehicle cannot be moved on the public highway. Depending on the seriousness of the defect, prohibition of the vehicle can be delayed for up to 10 days allowing the vehicle to be moved on the public highway until the date specified.

To remove the prohibition, the vehicle must pass an MOT test. The MOT certificate and PG9 must then be presented at a local police station so that a clearance notice can be issued.

The Fleet Management Strategy should include:

• business need for a fleet;
• service provision;
• vehicle acquisition and disposal policy;
• performance monitoring;
• environmental issues;
• fuel use;
• working across internal departments;
• working with partner organisations; and
• resource management.

Analogue tachographs record the information on a paper chart and digital tachographs record the information electronically. All vehicles which require tachographs, registered after 1 May 2006, are fitted with digital tachographs.

O Licence operators are required to monitor the outputs of tachographs to ensure compliance, for example, with the driver hours rules.

• engines that emit less CO₂;
• electric and hybrid vehicles;
• vehicle tracking devices;
• vehicle mounted cameras;
• more efficient tyres; and
• vehicle design to improve safety in the event of accidents.

Once the tender offers are received they are reviewed to ensure they meet the required criteria. Following internal consultation a decision is taken on selection.

Purchases through central contracts such as those facilitated by Value Wales already comply with the OJEU requirements.

As part of the Vehicle Defect Rectification Scheme (VDRS), the Police may stop a vehicle which they suspect has an illegal defect. The driver then has 14 days to rectify the defect to avoid prosecution. This does not apply if the vehicle has been involved in an accident, has four or more defects or the police officer considers the defect so severe that it falls outside the scheme.

A discounted VED rate is available for vehicles that qualify for a Reduced Pollution Certificate (RPC) because of their low emissions.

A vehicle registered before 1 October 2006 and adapted to achieve a higher emission standard, by fitting a particulate trap to the exhaust system or fitting a new engine, may receive a RPC. Vehicles fitted with Euro 5 engines with nitrous oxide sensing, which controls torque limitation, can also benefit from a RPC as long as they are registered in the UK by 1 October 2009.

Vehicles exempt from VED are fire service vehicles, ambulances, NHS vehicles and police vehicles.

The systems allow a journey history to be recorded and stored for future analysis. Such systems are useful for checking whether vehicles are being used appropriately ie during permitted hours or for identifying the closest vehicle to provide a service, for example an emergency repair.

Modern vehicle tracking systems also include communication systems.

• cost of procurement/tendering;
• lease cost or depreciation;
• maintenance;
• fuel/mileage;
• taxation;
• insurance;
• monthly payment;
• disposal value;
• early termination cost;
• internal/external fittings; and
• decals or paint.

Procurement decisions should also include non-financial factors such as the availability of support and other quality issues.

Whole-life costing also helps to identify the optimum replacement time.