Ministry of Finance Accountant General Dr. Yaron Zalika today announced that the Israel Government Procurements Administration has published a tender under which the government will switch to leasing its car fleet. The government and Israel Police currently operate over 3,000 vehicles purchased directly by the state and maintained by the Ministry of Finance vehicle administration.
The tender will cover all vehicles, except for specialized vehicles such as armored cars, motorcycles, buses, and so forth. The government will continue direct purchases of specialized vehicles through the vehicle administration, which is now being restructured.
“Globes” first reported the tender in early 2005. Publication of the tender was preceded by complex preparations, including a study of all aspects of spending on the procurement and maintenance of the government’s car fleet, and estimates of the vehicle administration’s current operating costs, which will serve as a comparison for the results of the tender.
The tender is being published despite strong opposition by the Israel Tax Authority, which has said that the rapid increase in Israel’s car leasing market in recent years has caused an over-concentration of power by the leasing companies, distorting the market and harming private consumers.
Published by Globes [online], Israel business news - www.globes.co.il - on August 9, 2006
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