UK public services to buy tyres from Michelin and Dunlop

London - Michelin UK and Goodyear Dunlop Tyres Ltd are now the only contracted and preferred suppliers of tyres and related services to all UK public service organisations, including police, schools, health service, armed forces and local authorities.

The two companies have signed a three-year contract - with an optional one-year extension - with the Office of Government Commerce (OGC). The deal is worth up to €70 million per year and means that any public service organisation has immediate access to contracted prices and terms when buying tyres and related services from these two organisations. However, public service organisations are still free to use other suppliers, if they feel they can achieve better value or service from alternative suppliers.

Michelin will operate its services through its retail subsidiary, ATS Euromaster, while Dunlop will operate through Goodyear-Dunlop's Hi-Q operations.

The initial tender documents suggested the contract would represent, "a volume of £29 million (€43 million) in year 1 increasing to an estimated £50 million (€73 million) in year 3."

However, a spokeswoman for the NHS PASA said this is a new contract, so it is not yet clear how much of the potential business will go to the contracted suppliers. She added, however, that the aim is for most of the potential business to use the contracted suppliers, as the PASA believed the terms to be especially good for public service organisations.

In a statement, the OGC said Michelin and Dunlop were selected as approved supplier following a 12-month tendering period. Throughout the process the OGC worked closely with NHS PASA, which was identified as the lead authority as work had already commenced on its own framework agreement, ensuring it had the capacity and expertise to guide the project.

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Download Tyres guidance notes from OGC / NHS PASA