SHAH ALAM: Leased BMW superbikes for military police. The Army’s military police – Kor Polis Tentera Di Raja – took delivery of 40 BMW R1250RT super bikes today. The superbikes are under lease from Syarikat Ammo Defence Sdn Bhd under a RM13.7 million Letter of Award.
The tender for the superbikes was published in June, this year. Interestingly the release by Tentera Darat said the leasing period was for five years, but the tender notice said it was for a four-year period only. That said the leasing period could have been extended for another year during the negotiation process.
It is interesting to note only one potential bidder took part in the site visit, which is mandatory to bid for the tender. It is likely that Syarikat Ammo Defence was the only bidder. It is also interesting to note that the company took around three months to supply, test and deliver the forty superbikes as per the tender specifications. Ammo Defence had also supplied similar BMW superbikes to the police.
KOR POLIS TENTERA DIRAJA DIMANTAPKAN LAGI
KUALA LUMPUR : Panglima Tentera Darat (PTD), Jeneral Tan Sri Dato’ Seri Zamrose bin Mohd Zain telah menyempurnakan Perasmian Penyerahan Motosikal Penguatkuasa Kor Polis Tentera Diraja (KPTD) Model BMW R1250RT yang diadakan di Padang Kawad Pusat Latihan Kor Polis Tentera Diraja (PULAPOT), Setapak pada 22 Disember 2022.
Majlis Perasmian Motosikal Penguatkuasa Kor Polis Tentera Diraja (KPTD) ini diadakan sebagai manifestasi kepada usaha berterusan yang dilaksanakan oleh Tentera Darat Malaysia bagi mempertingkatkan tahap kesiagaan dan keupayaan KPTD.
Tentera Darat Malaysia telah meluluskan perolehan 40 buah motosikal penguatkuasa secara sewaan daripada Syarikat Ammo Defence Sdn Bhd untuk tempoh lima tahun bagi membantu KPTD melaksanakan tugas kepolisan dengan berkesan. Model BMW R1250RT adalah motosikal dari kelas sport touring yang menawarkan kuasa kelajuan dan keselesaaan serta ciri-ciri keselamatan bagi tunggangan jarak jauh.
Pelaksanaan rancangan untuk perolehan motosikal penguatkuasa melalui perkhidmatan sewaan ini adalah bertepatan dengan Tonggak Pertama Perintah Ulung PTD Ke-28 iaitu “Kelangsungan Misi dan Kesiagaan” yang memberi penekanan kepada peningkatan keupayaan mobiliti dan logistik berpandukan kepada penjajaran aset sedia ada.
As for leasing vehicles, this has been common practise by government departments for the decade or so as it is supposed to be cheaper overall. The MPs had also taken delivery of Honda Civics under a leasing programme, the last year or so.
–Malaysian Defence
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View Comments (28)
Waste of money. Isn’t a Honda good enough?
The Honda CB1300 in the US is more expensive by US1000 dollars compared to the BMW which retailed in Malaysia for RM136K due to higher taxes. I assume the cost of a CBX1300 in MY, retail, will be in the same ballpark
13.7 million ringgit equals to RM342,500 for each BMW.
RRP in malaysia is RM146,500. Surely a fleet buy of 40 bikes would get plenty of discounts. Also usually supplying to the government means deferred/unpaid import duties & taxes.
Service cost for 5 years/50,000km (BMW service inclusive) - RM6,271
http://www.bmw-motorrad.com.my/en/service/service-inclusive.html#/section-service-packages-pricing
That is a hefty profit margin. Congrats to the supplier.
Yup but then the Army do not have to pay for mechanics, maintenance and spare parts.
Leasing = RM 342,500 per bike
Outright buy from BMW MY = RM 142,500
LOL! The paintwork and barely there mods must have cost them another 200k.
Yup but then the Army do not have to pay for mechanics, maintenance and spare parts. Marhalim Abas.
I was about to comment the same but Marhalim beat me to it. Leased goods are ready for use but don't belong to user. So maintenance is included in the contract like when we lease Xerox copiers. We tend to forget there are advantages here to outright buys.
5 years of warranty, servicing, consumables, and spares wouldn't have costed as much as the bike itself. As a benchmark, regular civvie leasings would cost nearly as much as buying the vehicle and this is after factoring the maintenance and spares. It doesn't make sense when the lease cost is higher than buying as leased vehicles does not become their property after the lease expires.
@KC Wong
Only Government (and GLC?) owned vehicles gets tax, duties & excise exempted. For private businesses, even those dealing with Government, would need to get from local franchiser or via AP.
This has been explained many times already - the difference between CAPEX (or development budget) and OPEX (or operating budget). In this case, its unlikely to be RM13.7m upfront, but assuming on a straight line basis, RM2.74m per year over 5-years. An advantage of leasing (in this case) is, after 5-years the Army can lease new bikes. If the Army buys the bikes, they will be used so long as they remain functioning (i.e., until they fall apart). But the biggest advantage of leasing which should have been obvious by now is, leasing means the Army doesn't have to go through the government procurement and budgeting process when maintaining the bikes - the lessor will handle it. Government signs a 5-year contract today, the government pays the lessor according to contractual terms. Lessor will handle the rest. If the Army buys them outright, each year and each time ad-hoc repairs are needed, they have to go through the government procurement process - always a challenge. As to the higher cost? Mark-up by agent and standard industry mark-up for non-individual lessee.
Joe,
Even say with excise duties paid, all in costs with extended warranties and BMW official servicing for 5 years would be not more than RM170K. Those RT after 5 years time could still be sold off for around RM70-80K.
All in, a great business contract for the winning company.
It doesn’t make sense when the lease cost is higher than buying as leased vehicles does not become their property after the lease expires.
(joe)
Actually some taxis are leased out to driver's when they can't buy a taxi outright. After the lease period expires, the driver either pay a token sum to effect a change in ownership to the driver or that the taxi reverts to the driver when the lease is up. You can expect to pay a higher taxi rental to the owners if the latter option is chosen. Perhaps something along similar lines is also involved in a military lease.
@KC Wong
Yes indeed.
@Taib
Those you mention are Lease/Rent-to-Buy agreements, whereby after the lease period said vehicle becomes property of the lessor. More typical lease agreements meant, ownership of said vehicles still remain property of the lease company whereby after contract ends, the agent has to provide a new vehicle if the lease is renewed.
Im not sure about this MP bike deal, but I guessing its the latter rather than the former arrangements.