Provinces will procure vehicles together
AMHERST – Nova Scotia is partnering with New Brunswick on the future purchase of light-duty vehicles, according to a provincial press release. The stated goal is to reduce costs by combining volumes and standardizing specifications.
Local dealerships likely won’t be affected by the bulk buying procedure.
Ford dealer Jim Hatheway said fleet purchases made by provincial governments are negotiated with manufacturers on a national scale. Local dealers have little to do with it, except to arrange delivery and servicing.
“I don’t see that it will change much,” he said.
One change he doesn’t anticipate is big savings for the two provinces. Hatheway said the large discount already given to provinces likely won’t change much – virtually no difference, he said – when two provinces band together to buy.
The government release claimed the four Atlantic provinces have realized $28 million in savings over the past four years on school bus purchases thanks to joint procurement.
“Nova Scotians expect government to make smart, efficient purchases to save money while improving the quality of goods and services,” Premier Darrell Dexter is quoted saying. “This partnership shows how the Atlantic Procurement Agreement [established in 1993] is working and to create sustainable opportunities for businesses in this region.”