Salisbury Foundation Trust

FOI_8390

Internal Reference Number: FOI_8390

Date Request Received: 20/01/2025 00:00:00

Date Request Replied To: 13/03/2025 00:00:00

This response was sent via: By Email

Request Summary: commercial relationship with Vivup cycle to work provider

Request Category: Private Individuals

 
Question Number 1:
I'd like to make a request under the Freedom of Information Act for the following information which relates to the Trust's decision to provide a cycle to work scheme for employees using a company called Vivup, along with details of the current commercial relationship with them. Specifically, I would like to know the following:

• Details of the procurement process used to decide upon Vivup as a partner, including what consideration was made of the fact that compared to other schemes Vivup disadvantages employees who use it in the following ways:

o A large number of small bike retailers will not work with Vivup as they apply significantly higher fees to them (12.5%, more than twice the industry standard of 0-5%). Of those that do, many will pass on the additional fees to the consumer, making bikes purchased through the scheme significantly more expensive

o Vivup also apply a 12% 'transfer of ownership' fee at the end of the agreement which is taken from employees' net pay, whilst other schemes either charge a token £1 fee or nothing at all

o The result of these fees together is that employees paying basic rate tax will possibly see no benefit from the scheme at all, and higher rate taxpayers will see their potential savings cut from 42% to less than 30%

o Were these facts taken into consideration in the procurement process, and if so why was Vivup chosen over other suppliers who offer better value to employees?
 
Answer To Question 1:
This award was granted in compliance with an NHS England-approved framework for the provision of a comprehensive, end-to-end Employee Assistance managed service. It goes beyond a Cycle to Work scheme, incorporating managed services that include Cycle to Work, Discount Schemes, and a co-branded, configurable platform. This platform serves as a communication hub for employee benefits, messages, and other relevant content as determined by the Provider or Employer. Additionally, it offers voluntary discounts on a range of products selected by the Provider.

1a. "VIVUP partners with a wide range of cycling retailers, including:

A network of over 1,200 independent bike shops across the UK.
Evans Cycles – the UK’s largest specialist cycle retailer, with more than 60 stores nationwide.
Cycle Solutions – the UK’s leading specialist online Cycle to Work provider.
Halfords – the UK’s top bike retailer, with over 450 stores nationwide.
Tredz.co.uk – in partnership with Halfords, providing access to one of the UK’s largest online bike stores, offering a vast range of products found across independent retailers."

1b. VIVUP 's Cycle to Work scheme is a cost-neutral solution. The issues you have flagged will be raised at the trust's next contract review meeting.

1c. As above VIVUP 's Cycle to Work scheme is a cost-neutral solution. The issues you have flagged will be raised at the trust's next contract review meeting.

1d. "The decision to select Vivup was made as part of a broader procurement process aimed at securing an end-to-end employee benefits managed service provider. The objective was to streamline and enhance the overall benefits offering for employees by integrating multiple schemes under a single platform, improving accessibility, administration, and engagement.

While cost considerations, including retailer fees and end-of-agreement charges, were taken into account, the selection process also considered factors such as service quality, ease of use, supplier capability, and the ability to offer a comprehensive range of benefits beyond just the cycle-to-work scheme. Vivup was chosen based on its ability to provide a holistic benefits platform, ensuring employees have access to a wide array of discounts, salary sacrifice schemes, and wellbeing support, rather than solely on the cycle-to-work scheme fees.

It is acknowledged that some small retailers may choose not to work with Vivup due to its fee structure, and that employees may face additional charges in some cases. However, the overall aim of the procurement was to provide a seamless and fully managed benefits service that delivers value across multiple areas, rather than focusing solely on one specific scheme."
 
Question Number 2:
• Details of the current commercial arrangement or contract between Salisbury Hospital and Vivup - specifically are there any exclusivity agreements which would legally or practically make it impossible to run a ride to work scheme through an alternative provider at the same time? If so, what is the scheduled termination date of this arrangement?
 
Answer To Question 2:
During the Term, the Provider shall be the exclusive provider of all services. The Employer shall not seek or make similar services available to their Employees from other external providers unless prior written approval is obtained from the Provider. Non-competing benefits will be hosted via the Vivup Software at no additional charge.
 
Question Number 3:
• Details of the risk analysis applied by the trust, considering that using a cycle to work supplier which does not allow a whole market choice of bike, and applies financial penalties to employees who use it (compared to other providers) may directly conflict with the stated aim of the Trust to move towards net zero carbon emissions and encourage sustainable travel to work, as stated in the Trust's Green Plan
 
Answer To Question 3:
When the Trust sought a comprehensive Employee Assistance managed service, Cycle to Work was evaluated alongside other offerings. The selection process determined that the current provider best met the Trust’s requirements while balancing individual employee needs, even if not all needs could be fully addressed.

Vivup was chosen as the supplier due to its extensive range of bicycles and participating retailers, as well as its customisable, co-branded platform that aligned with our broader objectives. Our Sustainability Team continues to monitor risks and explore improvements to support our journey toward net-zero carbon emissions and promote sustainable commuting.

The feedback received will be considered as we reassess our requirements and take the service back to market.
 
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