Brian Hayes, T.D., Minister of State with special responsibility for Public Service Reform and the Office of Public Works today (Friday 25 April) announced the launch of a Framework Agreement for the Supply of Fuel Charge Card Services to the public sector. The Framework Agreement was awarded to Topaz Energy Ltd, following a competitive tendering process undertaken by the Office of Government Procurement (OGP).
Speaking at the announcement, the Minister said: “Fuel charge cards offer public servants a cost effective way to obtain diesel, petrol and other oil products for their official vehicles. An Garda Sióchána and local authorities depend on the ability to purchase fuel, as and when required, in order to efficiently and effectively deliver vital public services. In addition, purchasing using a fuel charge card delivers greater efficiencies as it significantly reduces paper work for the user and invoicing for the supplier. I particularly welcome the fact that under this agreement, fuel card services will be delivered through a network comprising of hundreds of Small and Medium Enterprises (SMEs) in every County in Ireland.”
Along with the actual Fuel Cards, Topaz will also provide contracting authorities with detailed reports on their fuel usage and expenditure. The reports include vehicle registration details, odometer readings and amount of fuel purchased. This information will feed directly into the fleet management software of the Contracting Authorities. The Minister commented; “the vehicle usage data provided under this Framework Agreement provides public sector managers with valuable information that allows for strategic decision making in all areas relating to fleet management.”
The Framework Agreement will run for three years with an option to extend it for one further year until 2018.
The Minister concluded by saying, “this Framework Agreement ticks all of the boxes as far as broader Government strategy is concerned; it delivers value for money, develops administrative efficiencies and supports local SMEs at the heart of our communities.”
Ends
Notes to Editor:
1. Overview
· A Framework Agreement for the supply of fuel charge card services was concluded and awarded to Topaz Fuels Limited on 1 February 2014. The estimated value of the Framework Agreement is €20 million (net of Government duties, levies and VAT). The Framework Agreement will be in place for three years (until 31 January 2017) with an option to extend for a further year (until 31 January 2018).
· The Framework Agreement is open to the entire public sector and the main users are currently An Garda Sióchána, the Office of Public Works and several local authorities.
· It is estimated that Fuel Cards will purchase over seven million litres of diesel and three million litres of unleaded per year over the period of the Framework Agreement.
· Annual cost reductions of €166,000 on fuel, are expected under this Framework Agreement.
2. SME Participation
· This is a single supplier framework agreement delivered through a network of Topaz petrol stations, SMEs operating under the Topaz brand, other competitor oil companies (negotiated arrangement between the oil companies) and other SMEs. The network has a significant footprint in every county in Ireland. The total number of service stations in the network is 657. Of the 657 service stations 100 are owned by Topaz and the vast majority of the remainder are SMEs.
3. About Topaz
· Topaz is a 100% Irish owned company
· Topaz employ over 1,600 employees directly throughout the island of Ireland in their company owned business and over 4,000 individuals indirectly through their dealer network (SMEs) which consists of 210 dealers on the island of Ireland.