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Van usage - and consequently carbon emissions - is rising in the UK and lower carbon van models have yet to be developed or penetrate the market in a significant way.  We consider that there is a potentially substantial market in the UK for lower carbon highly fuel efficient van models and we hope to encourage and help accelerate the market introduction in the UK of lower carbon and more fuel efficient vans by:

· Providing opportunities for the high profile trialling and demonstration of innovative lower carbon options

· Providing a potential market for large scale orders from the public sector for lower carbon options - subject to successful initial Phase 1 trials.

The programme provides an opportunity for your company to demonstrate its lower carbon technologies for vans in a range of high profile locations and major public sector fleets. We hope this will not only provide useful information about real world performance but a valuable showcase for your technology and products - with obvious potential for follow-on sales.

Moreover, award of a Phase 1 framework agreement creates the potential for extension to Phase 2 (delivery of much larger volumes of vehicles across the public sector), if the Phase 1 demonstrations are successful. Phase 2 orders will be subject to mini-competition across all eligible framework suppliers.

Of course, the decision to tender is entirely at the discretion of each company, but those that do not tender may miss out on these commercial opportunities.

Firstly the European Commission has made clear its intent to develop mandatory fleet average CO2 standards for (N1) light goods vehicles - in a similar manner to its existing proposals for new cars.

In the UK we are working with SMMT to allow accessible and user-friendly publication of new van CO2 data - this data was made publicly accessible in the Spring of 2009. We have also commissioned wider research on van CO2 emissions under different load conditions and test cycles. This will inform wider policy development in this area.

Overall we expect that there will be increasing domestic and European policy focus on addressing CO2 emissions from vans and we hope that this programme will provide an early opportunity for van manufacturers to get ahead of the game in developing and trialling lower carbon options with financial support from the Department for Transport.

There is significant interest in and appetite for lower carbon options from a wide range of purchasers - including significant public sector and private commercial fleets for lower carbon options.

However at the present time there are limited options available for van purchasers who wish to purchase a lower carbon and more fuel efficient option - and there is uncertainty about the carbon and fuel savings that could be achieved from lower carbon options, their costs and reliability.

These considerations make it difficult for fleet managers and other van purchasers to commit to procurement of lower carbon options on a large scale. We consider that the trialling and demonstration of lower carbon options in a range of high profile locations, with independent monitoring of performance and fuel economy - can therefore play a significant role in helping to establish and demonstrate the potential of lower carbon options and accelerate interest from public and private sector purchasers. Our programme is also structured so as to create the potential for a larger Phase 2 roll out across the public sector for fully commercial vehicles operating over the long term.

The process will be fully open and competitive at all stages and fully compliant with EU rules. We welcome bids from all suppliers able to meet the specifications and award criteria will neither directly or indirectly consider the location or perceived nationality of technology development or manufacturing facilities.

Suppliers were selected following receipt and evaluation of final tenders against the following high level evaluation criteria:

• compliance with the vehicle specification and terms and conditions
• price
• anticipated carbon savings of the vehicles in question
• level of innovation and technological development
• performance and reliability issues
• credibility of plans for mass market commercialisation

Individual weightings against each criterion were set out in the final tender documentation.

Both options may be supported in the first demonstration phase of the programme.

The Department for Transport can provide no guarantees in relation to the potential impact of future policy changes on the development of the programme and procurement process. However, in the event of any policy change impacting negatively on the programme, we would expect that any pre-existing contractual obligations and associated financial commitments would be honoured.

A framework agreement is an agreement between a contracting authority and a contractor which establishes the terms (including price) under which the contractor will enter into contracts with a contracting authority in the period during which the framework agreement applies.

When awarding a contract on the basis of a framework agreement neither the contracting authority nor the contractor can include in that contract terms that are substantially amended from the terms laid down in the framework agreement.

The participating public sector organisations will buy or lease vehicles under the terms and conditions of the framework agreement. Firm committed orders will be placed in Phase 1 of the programme.

In Phase 2 of the programme the framework agreement will be for the supply of fully commercial vehicles to the broader public sector. Firm order volumes cannot be guaranteed but we expect public sector demand to be high and grant funding from the lower carbon vehicle procurement programme to be available to support high volume roll out of the vehicles across the public sector. During Phase 2 orders will only be placed following a mini competition between all providers able to meet the order specification.

At the time of purchase or lease of the vehicles. Leasing payments may be periodic.

All the programme funds will support the additional costs to public sector organisations in procuring or operating low carbon vehicles. In general such organisations fall outside state aid rules, with some exceptions (e.g. Royal Mail). Where state aid rules apply to participating organisations, relevant state aid caps on levels of grant support will apply.

The programme is not at this stage funding private sector procurement of low carbon vehicles, Nor will grant payments be made directly to vehicle suppliers, manufacturers, technology providers or leasing companies.

The programme is not an R&D programme and we do not expect to see companies seeking to recover general R&D costs in their bids.

We recognise that low volume production of innovative vehicles may be more expensive than mass production phases and further that support for such vehicles in a trial may imply some additional costs. At the same time we hope that companies will value the opportunities the programme provides for high profile real world demonstration of emerging lower carbon options.

The procurement is a competitive process and the most competitive bids will be successful.

No. We recognise that Phase 1 vehicles are likely to be more expensive given the smaller volumes. Equally the process is competitive and we will select the best proposals against the evaluation criteria - which include price. The programme will not support new vehicle concept development activity and is not 'funded R&D'.

Any Phase 2 framework agreement will be awarded following the assessment of vehicle performance and CO2 savings achieved in Phase 1.

As part of the tender process suppliers will be required to provide indicative pricing for high volume production under Phase 2. This proposed pricing, subject to further potential mini-competition, would be the starting basis for the award of Phase 2 framework agreements. Firm order volumes will not be guaranteed at this stage but we expect public sector demand to be high and grant funding from the lower carbon vehicle procurement programme to be available to support high volume roll out of the vehicles across the public sector.

The Department reserves the right not to award any Phase 2 framework agreements, or to re-tender Phase 2 to a wider set of suppliers if we consider that the market as a whole has developed significantly and this would offer better value for public sector purchasers.

The programme aims to show the successful trial of suppliers and technology [Phase 1]. This will lead to larger [Phase 2] volumes. In Phase 1 the purchase target is 200 vehicles, which has been exceeded as 210 vehicles have been ordered. Approximately 2/3 of the orders are for low carbon vans. Typically operators take between 5 and 20 vehicles. The ITT requires a graduated pricing / volume structure.

Evidence suggests this kind and size of van to be the most commonly used in the UK and we therefore consider this type of vehicle to have significant scope for commercial roll out of a lower carbon option.

Any proposals must meet the vehicle specification in order to be considered.

This is the minimum reduction to be achieved on NEDC. Proposals which achieve more than this are welcomed.

The target is set to allow suppliers to have the option of proposing both modestly and more ambitiously lower carbon options to the programme -balancing additional capital cost and CO2 reduction considerations.

Yes - proposals of this kind were welcomed at the bidding stage, providing they met the requirements as set out in the specification. The cost of any necessary additional re-charging infrastructure to support a plug-in hybrid trial may be met from programme funds.

Proposals for on-board technologies to improve fuel consumption in real world driving conditions were welcomed. However this should be in addition to the minimum required reduction in CO2 on NEDC.

The aim with the lower carbon van is to reduce the tank-to-wheels CO2 emitted in operation, using the NEDC cycle as a comparative reference. For this to be meaningful, the battery state of charge must be the same at the end of the test as it was at the beginning. The appropriate section of ECE Regulation 101 will be used to ensure that the CO2 figure is repeatable and that battery energy is not being used for direct motive power, thereby skewing the carbon output of the vehicle. Full details of this procedure can be found at:

http://www.unece.org/trans/main/wp29/wp29regs101-120.html#110a2

The objective of this lower carbon van element of the procurement is to demonstrate vehicles which may be rolled out in high volumes across the public sector within a relatively short time frame. This programme will help to increase vehicle efficiencies and facilitate near term mass market introduction of lower carbon van options in the UK. We recognise that a range of alternative fuel technologies may be applied to vans and other vehicles and do not rule out supporting these further in future through the low carbon vehicle procurement programme or other Government programmes.

The lower carbon van specification is for a more fuel efficient and lower carbon van capable of running on conventional fossil fuels. The objective of this particular procurement is not to demonstrate new or novel hydrogen or fuel cell technologies.

Any proposals must meet the vehicle specification to be considered.

It is anticipated that the all-electric vans will be used in a predominantly urban environment, so the range will be assessed using the ECE Regulation 101 test procedure for pure electric vehicles. Full details of this procedure can be found at:

http://www.unece.org/trans/main/wp29/wp29regs101-120.html#110a2

Yes - this may be an eligible cost within a trial. Proposals would need to demonstrate the necessity and proportionality of any proposed re-charging infrastructure.

Infrastructure costs will be considered for the all-electric van procurements only. The programme will consider costs for infrastructure necessary to undertake the all-electric van trial (in the form of electric charging points) as eligible for grant support. It is anticipated that the grant value awarded to any organisation for this purpose will be less than 10% of the total grant awarded to the organisation for this aspect of the programme.

We wish to assess the performance and operation of van models before financially supporting their wider roll out across the public sector.

While the minimum demonstration period is one year, this may be extended subject to the mutual agreement of Cenex, the participating public sector organisation, the vehicle supplier and the DfT.

The Programme will consider the position and make a judgement on a case by case basis.

Only if the intended use of the charging point was for a vehicle in the LCVPP programme at the time of installation.

Please download the grant claim form from the LCVPP website. Please ensure you include the following documents once you have completed the form.

1. Copy of Supplier’s Invoice
2. Copy of remittance note for proof of vehicle payment.
3. Proof of discount for conventional comparator vehicle (unless already provided).
4. Delivery note covering each vehicle covered by this grant claim.

Please cross-check the total grant claimed with the grant calculation spreadsheet already agreed with Cenex.

No, No, the cost of these units is excessively high and the effect on the battery life from fast charging still needs further investigation.

No, the vehicles need to be insured for the full value of the vehicle as supplied.

The demostration period for vehicles within the programme is 3 years.

This activity will be coordinated by Cenex, and the exact nature of the monitoring will be dependent upon the technology in question. For lower carbon vans, there will be a requirement to record mileage and fuel volume at every refuelling, and this will be cross-correlated with recorded data from a small subset of instrumented vehicles.

For the all-electric vans, the equivalent monitoring will be to record charging energy and range achieved between charges.

Details of the chassis dynamometer testing required at periodic intervals within the trial are detailed within the specification, and the cost of this external testing will be covered by programme funds.

Suppliers provided separate pricing in their bids for maintenance and servicing, including for those elements of which are specific to the lower carbon technologies proposed. Some participating public sector organisations may wish to do their own regular maintenance and servicing for the conventional elements of the vehicle.

The contract will require vehicle suppliers to repair the vehicles within 24-48 hours or provide a conventional replacement vehicle of a comparable size and equivalent or better performance capability.

The default arrangement will be that vehicles are returned to suppliers at the end of the trial. Vehicle suppliers will need to agree to this as one of the conditions of participation in the programme.

Mitsubishi are to provide stakeholders with a data template that stakeholders are to complete and send back to Mitsubishi on a montly basis.

Stakeholders are to complete a template which is to be collected by Toyota on a regular basis. The vehicles are to be monitored in this way for the 3 years of the demonstration.

DfT, Cenex, and participating public sector organisations will carry out publicity activities.

We have no objections to vehicle suppliers undertaking further publicity activities - though would require that Cenex, participating public sector organisations and the DfT be informed in advance of any significant publicity activities and given the opportunity to comment on any proposals made.

We have no general objections to this, though any such branding must be with the consent of the host public sector organisation and subject to this not compromising the operational requirements of the vehicle.

Yes - this is an important part of the publicity and dissemination activities of the programme. Vehicle suppliers must accept this as part of the terms and conditions of their participation in the programme.

While overall CO2 and high level performance information will be made publicly available, commercially sensitive technological information will be respected.