Fleet Management Final Presentation

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• Average age of fleet 8.5 years

• No accurate statewide information on maintenance costs

• Information for managing fleet is scattered and inconsistent

• Agency-based vehicle managementinformation systems operate separately

• Responsibility fragmented

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DOAS Office ofFleet Mgt.Statewide

• No centralized plan for making optimal disposal/replacement

• 2.6 million commute miles reported in 2003

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Utilize Fleet Anywhere (FA) system across all agencies

Current Problem• Fleet Anywhere (FA) purchased – not fully utilized

• No central tracking system

• No measurement of statewide fleet utilization

• Cannot determine annual operating cost by vehicle type

Vision

Discussion/Rationale

• Utilize existing FA system to track all state vehicles leading to lower operating costs, increased utilization, lower procurement costs, and improved fuel and maintenance contracts

• FA provides reports, keeps maintenance histories, tracks usage, and captures all associated costs

• Utah’s FA reduced cost by 26% over 4 years

• Georgia owns 25,000 FA licenses– DOT holds 13,000– Remaining 12,000 not fully utilized

• Partial FA functionality used by GBI, Dept. of Public Safety, and Corrections

Potential Maintenance Cost Reductions for GA Fleet (based on Utah Fleet results)

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Evaluate total cost of vehicle ownership past economic life

• Average age of GA fleet is 8.5 years vs. Utah’s 3.6 years

• 60% of Georgia fleet > 6 years (12,712)• Costs for additional 2.5 years: ~$3,000 per vehicle • Excess cost is potentially $15M annually

Vision


• Fleet Anywhere provides vehicle specific data for analysis of when to surplus a vehicle

• Private sector business practice–Evaluate vehicle lifecycle analysis on

individual basis –Consider criteria beyond age or mileage

• Evaluate cost to maintain vs. purchase vs. lease –Develop financial analysis tool

• Change budget process to support vehicle replacement policy based on operating cost

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Current Problem

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Centralize authority to Office of Fleet Management

Current Problem

• Create a protected internal service fund for vehicle purchase and maintenance

• Create one statewide vehicle pool

• Empower Office of Fleet Management to manage and enforce fleet policy


Vision

• One statewide fleet with one set of standards for procurement, assignment, utilization, maintenance, and disposal that yields lowest possible cost per mile

• 3-5 year business plan

• Inconsistent and inefficient approach to managing vehicles

• Operating costs, utilization, and policy compliance vary widely across agencies

Future Vision

Lease from OFM

TrackMonitor complianceReportPurchaseTrackMaintainDisposeMotor pool

Governor's Office

Agency 1Fleet

Duties

Agency 2Fleet

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Lease from OFM

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• Virginia implemented in 1989– Prior to policy, hundreds of commuting employees– By 2003, only 60 commuting employees

• Eliminate agency head exception• Modify “on call” exception to reflect

– On-call 24 hours– First responder– History of being called >10 times over 6 months

• Charge and reimburse employees for commuting miles at IRS rate of $0.375/mile

Modify and enforce vehicle assignment and commuting policy

Current Problem• 4,505 individually assigned vehicles• Excessive commuting miles

– 870 employees reported commuting miles– 2.6 million miles/year

Vision• Statewide compliance with assignment and

commuting policy• Eliminate unnecessary assigned vehicles


Source: GA Dept of Administrative Services, Office of Fleet Management 2003 Audit of State Fleet; VA, BearingPoint interview with William M. Colavita, VA Dept. of Transportation, Office of Fleet Management.

2003 Commute Miles per Employee

870 X 2900 miles per commuter (GA)

60 X 2000 miles per commuter (VA)

870 Commuting Vehicles 60 Commuting Vehicles

Ratio: 14.5 : 1

GeorgiaPopulation 8.4M (2001)

VirginiaPopulation 7.2M (2001)

120,000

2.6 million

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Potential annual savings of $25 million when fully implemented (based on historical data from Utah)

Documents

Fleet Management Final Presentation