Car Scrappage Scheme

Birmingham City Council would like to invite car scrappage companies to attend a ‘supplier day’ at 1 Lancaster Circus Queensway, Birmingham, B4 7DJ on 17.9.2019 to help inform an invitation to tender for a car scrappage partnership with the Council. The Council will gratefully receive comments and suggestions on the scrappage scheme outlined below. Description of the Scheme Birmingham is on a journey to clean air. A Clean Air Zone (CAZ) will be enforced from mid-2020 and Birmingham City Council (BCC) has been awarded government clean air funding to encourage drivers of non-compliant vehicles to either scrap their vehicle and upgrade to a newer compliant vehicle, or to scrap their vehicle and adopt public transport as a primary means of travel. A grant of up to 2 000 GBP will be available to workers in the CAZ who are below a set income threshold. In return for scrapping their vehicle they will have a choice of either 2 000 GBP in mobility credit (for use on public transport) or 2 000 GBP towards a compliant vehicle. In order to ensure maximum scheme take up, and maximise the choices available to those eligible for the scheme, the Council is looking to procure a partner to manage the scrappage of vehicles, ensure the sale of compliant vehicles, and pass on the benefits of the government grant on its behalf. This would require the scrappage partner to have an agreement with a consortium of car dealerships through whom they could ensure, and evidence, the application of the 2 000 GBP grant. The Council would seek to have an agreement with the successful provider to reimburse the driver 2 000 GBP upon receipt of: 1) A certificate of destruction of the non-compliant vehicle; and 2) Proof of the discounted purchase of a compliant vehicle. For clarity, the value of the grant is independent of the scrap value of the non-compliant vehicle. Only compliant vehicles valued at over 2 000 GBP can be purchased. The Council anticipates that the value of the scrap vehicles will be sufficient to cover the costs of the scrappage provider. There will be no requirement to pass on the value of the scrap vehicle to the customer. The Council has funding for up to 5 420 vehicles to be scrapped. The purpose of procuring a partner is to ensure a transparent and secure audit trail for all expenditure whilst minimising the administrative burden on the Council. This will also avoid making payments to individuals and significantly mitigate against the risk of fraud. As a minimum, the scrappage partner will be expected to: — guarantee that vehicles will be disposed of through an Authorised Treatment Facility (ATF), — have an association with a consortium of second hand car dealerships through which those eligible can purchase a compliant car with a value greater than 2 000 GBP. They will ensure the 2 000 GBP discount is applied at the point of sale, pre-VAT, and exclusive of any finance arrangements which may follow, — provide the Council with a single point of payment and regular invoicing (through a COGA) to avoid the need for multiple agreements with multiple car dealerships, — be able to evidence the above in sufficient detail to comply with the Council’s due diligence and audit requirements. It addition, it would be desirable if they we able to: — provide additional mobility credit options (EV charging, park and ride, bike scheme access, etc).