Fleet Management Final Presentation

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fleet management presentation

Text of Fleet Management Final Presentation

1 Commission for a New GeorgiaTask Force Executive SummaryFleet ManagementApril 13, 20042 Commission for a New GeorgiaFleet Management Key Findings 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 fragmentedTotal Miles Per Vehicle10 30 50 70 90 110 130 150 170 190 210 230 250Miles (000)Number of Vehicles16001400120010008006004002000SedansOther20,979 Total Vehicles15,7445,235 Passenger 3,0787301,4274,505 AssignedIndividually AssignedUnassignedIndividually assigned with < 14,000 miles per yearNon-passengerCurrent SituationPurchaseTrackMaintainDisposeMotor poolAgency 1FleetDutiesPurchaseTrackMaintainDisposeMotor poolAgency 2FleetDutiesTrackMonitorComplianceReportGovernor's OfficeDOAS Office ofFleet Mgt.Statewide No centralized plan for making optimal disposal/replacement 2.6 million commute miles reported in 20033 Commission for a New GeorgiaFleet Management Recommendation #1Utilize Fleet Anywhere (FA) system across all agenciesCurrent 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 typeVisionDiscussion/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 Utahs 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)$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,0002000 2001 2002 20034 Commission for a New GeorgiaEvaluate total cost of vehicle ownership past economic life Average age of GA fleet is 8.5 years vs. Utahs 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 annuallyVisionDiscussion/Rationale Fleet Anywhere provides vehicle specific data for analysis of when to surplus a vehicle Private sector business practiceEvaluate 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 costFleet Management Recommendation #2Current Problem2004 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 2004 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 198020001800160014001200100080060040020002000180016001400120010008006004002000SedansOtherAverage Optimal Disposal PointOwnership CostsOperating CostsYearCosts$0$2,000$4,000$6,000$8,000$10,000$12,000$14,000$16,000$18,000$20,0000 1 2 3 4 5 6 7 8 9 10Utah Vehicle DisposalDisposal pointModel Year of VehiclesGeorgia Fleet by Model YearNumber of Vehicles5 Commission for a New GeorgiaFleet Management Recommendation #3Centralize authority to Office of Fleet ManagementCurrent 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 policyDiscussion/RationaleVision 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 agenciesFuture VisionLease from OFMTrackMonitor complianceReportPurchaseTrackMaintainDisposeMotor poolGovernor's OfficeAgency 1FleetDutiesAgency 2FleetDutiesDOAS Office ofFleet Mgt.StatewideCurrent SituationPurchaseTrackMaintainDisposeMotor poolAgency 1FleetDutiesPurchaseTrackMaintainDisposeMotor poolAgency 2FleetDutiesTrackMonitorComplianceReportGovernor's OfficeDOAS Office ofFleet Mgt.StatewideLease from OFM6 Commission for a New GeorgiaFleet Management Recommendation #4 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/mileModify and enforce vehicle assignment and commuting policyCurrent Problem 4,505 individually assigned vehicles Excessive commuting miles 870 employees reported commuting miles 2.6 million miles/yearVision Statewide compliance with assignment and commuting policy Eliminate unnecessary assigned vehicles Discussion/RationaleSource: 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 Employee870 X 2900 miles per commuter (GA)60 X 2000 miles per commuter (VA)870 Commuting Vehicles 60 Commuting VehiclesRatio: 14.5 : 1GeorgiaPopulation 8.4M (2001)VirginiaPopulation 7.2M (2001)120,0002.6 million0500,0001,000,0001,500,0002,000,0002,500,0003,000,000GA VA7 Commission for a New GeorgiaFleet Management Key Challenges to Implementation-Resistance to a centralized control of fleet-Ability to change current State fleet budgeting process-Implementation timeline required-Lack of available information to perform accurate cost analysis of the current maintenance expenses-Cultural change required both internal and external (local vendors)-Determine criteria for purchase of vehicles, leases, and reimbursement8 Commission for a New GeorgiaTask Force MembersDanny O'DwyerUnited Parcel ServiceGeorge WaltherUnited Parcel ServiceRandy ManeyFieldale Farms, ManagerRon KirbyUnited Parcel Service, VP of Fleet OpsChip WhiteGeorgia Tech, Exec Director of Logistics InstituteJohn BentonPeeples Industries, CFOFrank ArgenbrightAirServ, Chairman of Fleet OperationsAlbert Wright, Co-ChairmanUnited Parcel Service, VP of Engineering CorporateAaron EstisBearing PointKen LeeUnited Parcel Service, VP of International SecurityBill HightowerBellSouth, AVP of Network Services, LogisticsKen QuiggFlowers Foods, Director of LogisticsTiffany Callaway-FerrellAGL Resources, Manger of LNG OperationsMarion BeachamShaw Industries, Transportation ManagerDon Burdeshaw, Co-ChairmanGeorgia Power (Retired)9 Commission for a New GeorgiaFleet Management Summary of Recommendations and Next Steps-Utilize Fleet Management System across all agencies 1st Step > Evaluate existing Fleet Anywhere contract based on statewide implementation-Evaluate total cost of vehicle ownership past economic life 1st Step > Compile accurate statistics of the operating and ownership cost to identify the optimum vehicle life and determine capital costs-Centralize authority to Fleet Management Office 1st Step > Develop statewide five-year business plan-Modify and enforce vehicle assignment and commuting policy 1st Step > Validate current vehicle assignments and commuting milesPotential annual savings of $25 million when fully implemented (based on historical data from Utah)