Perth company Fleetcare will more than double the number of vehicles it provides to the state government after securing a new sole supplier contract, after previously sharing the work with ASX-listed SG Fleet Group.
Under the new contract, which comes into effect in July, Western Australia-based Fleetcare will provide about 9,000 vehicles, up from the current 4,400.
Previously, the contract had been shared by SG and Fleetcare, but the government said it had retendered the contract as part of the budget process following a review of the existing policy and operating model.
Fleetcare chief executive Nigel Malcolm said it was pleasing to secure the work as a local business.
“It’s nice to be recognised for the work we’ve done and the ability that we’ve got,” he said
“To win that work off SG is a pretty significant thing to do.”
Mr Malcolm said the new contract would account for about 20 per cent of the company’s fleet.
In a statement to the ASX, SG said the loss of revenue was not material for the company.
“The contract represented 0.47 per cent of SG Fleet’s revenue over the last 12 months,” SG said.
Under the new tendering process, the government has categorised fleet management services, with Bibra Lake-based Pickles Auctions winning the vehicle inspection and disposal services contracts.
A panel of four companies have been appointed to the telematics contract, which relates to in-vehicle monitoring, including Fleetcare, Pintpoing Communications, Ezy2c and Mix Telematics.
Bridgestone Australia and Goodyear & Dunlop Tyres won the tyre supply and fitting services contract.
