Telkom maintenance at risk

[Kevin Lancaster]

Telkom maintenance at risk: report

A Sunday Times report suggests that Telkom may have to hand back its maintenance vehicles used by technicians

 

[Beri]

BEE again

 

[genetic]

BEE again

What's this got to do with BEE?

 

[MickeyD]

BEE again

I would say it's a purely financial decision ... Telkom need to reduce costs and if Bidvest offer the same benefits at a better rate then it makes sense to change suppliers.

 

[MickZA]

Definitely sounds as though Daimler Fleet Management are throwing their toys out the cot because they lost out to Bidvest this time round.

 

[Glipsie]

Definitely sounds as though Daimler Fleet Management are throwing their toys out the cot because they lost out to Bidvest this time round.

This all sounds a bit weird. The contract is awarded to a new company (Bidvest), but months later they haven't supplied the vehicles for which the contract was awarded? How do you bid for something like this (and win) if you cannot supply ...?

 

[MickZA]

O'Sullivan said Daimler claimed the technician vans were excluded from the handover period deal.

"Telkom contends that the notion that the actual vehicles would not be included in the 'lead out' period is ... illogical," she said.

Seems Daimler were given the opportunity to rebid but were still not competitive.

There's always a handover period - you don't just remove Telkoms equipment from 6,000 vehicles and reinstall in new vehicles on a single day.

 

[genetic]

This all sounds a bit weird. The contract is awarded to a new company (Bidvest), but months later they haven't supplied the vehicles for which the contract was awarded? How do you bid for something like this (and win) if you cannot supply ...?

It does not happen overnight.

 

[bekdik]

Maybe Daimler should just increas the premium by 1000% for the lead in period ...

 

[MickeyD]

Maybe Daimler should just increas the premium by 1000% for the lead in period ...

Contract ...

This comes from way back... In 2000 Telkom outsourced its fleet to debis (DaimlerChrysler) on a 5 year contract and it has been renewed ever since then. Except now!

South Africa: Telkom signs contract to outsource vehicle fleet

By Kgamanyane Maphologela
Johannesburg — Telkom has signed a five-year, R5bn deal with German-based debis Fleet Management, a division of DaimlerChrysler, to outsource its 19 000- strong vehicle fleet, which will see the foreign based company running SA's single largest fleet of vehicles.

Telkom's outsourcing programme is part of a broader plan to overhaul the telecoms utility in time to meet the challenges of the local phone market being deregulated in 2002.

http://allafrica.com/stories/200003200013.html

 

[Glipsie]

It does not happen overnight.

Sure. Any idea when the contract was awarded? I can't find any dates so I can only guess that it was last year (when the tender was awarded to bidvest). That would make this a couple of months.

 

[MickeyD]

Sure. Any idea when the contract was awarded? I can't find any dates so I can only guess that it was last year (when the tender was awarded to bidvest). That would make this a couple of months.

Bidvest and debis were informed about the awarding of the tender towards the end of 2014.

In March 2015 Telkom informed debis of the 3 month lead out period, starting 1 April 2015.

 

[Hemi300c]

If this is is the case:-Doesn't anyone in government or parastatals understand that reading and understanding a contract is important.

 

[marine1]

If this is is the case:-Doesn't anyone in government or parastatals understand that reading and understanding a contract is important.

Because usually it's just about kick backs

 

[MickeyD]

Because usually it's just about kick backs

Nope. And they have a pretty decent legal team...

 

[marine1]

Nope. And they have a pretty decent legal team...

No what I mean is GVT departments usually don't care. It's all about back hands. Not telkom specifically.

 

[MickeyD]

Telkom wins fleet management court battle

Johannesburg - A fleet management business has lost its court battle with Telkom over a contract dispute.

Daimler Fleet Management (DFM) - a subsidiary of Mercedes Benz Financial Services that trades as Debis Fleet Management - launched a court action against Telkom after losing a contract to supply the telecom company's national team of field technicians with 6 000 vehicles.

DFM won a contract in 2000 to manage Telkom’s fleet of vehicles in South Africa. Telkom renewed the contract in 2008 and then extended it twice in 2012 and 2013.

But Telkom then placed its fleet management business out on tender last year and Bidvest won the contract.

Telkom said its contract with DFM made provision for a three month “lead out” phase after the expiry of the contract.

A dispute arose, however, between the two companies over whether vehicles used by Telkom’s national team of technicians were included in this lead out phase.

DFM subsequently launched a court action to obtain “clarity regarding certain important topics relating to the expiry of the agreement”, a spokesperson for the fleet management company told Fin24 earlier this month.

But the High Court in Pretoria on Friday ruled against DFM on the matter and ordered that Daimler pay the costs, including those of Telkom.

“The court denied DFM’s application and found in favour of Telkom, which DFM will abide by. We will study the judgement and proceed accordingly,” Jeanette Clark, manager for group external affairs and communication at Mercedes-Benz South Africa, told Fin24.

DFM's existing agreement with Telkom expired on March 31 2015, but has continued amid the court battle.

Subsequently, Telkom says the court’s decision opens the way for a transition of the fleet management contract to Bidvest.

“We are pleased the judge concurred with our view and that our transition to Bidvest will continue to be undertaken in a seamless and professional manner,” Jacqui O’Sullivan, the managing executive for group communication and public relations at Telkom, told Fin24.

Gareth van Zyl, Fin24

Source: http://www.fin24.com/Tech/Companies/Telkom-wins-fleet-management-court-battle-20150424