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WelcomeWelcome
Greg HaglinGreg Haglin
IntroductionIntroduction
Tom JohnsonTom Johnson
If We Can Put a Man on If We Can Put a Man on the Moon – Delivering the Moon – Delivering
“Better, Faster, Cheaper” “Better, Faster, Cheaper” Results Results
John O’Leary
Ash Center for Democratic Governance and Innovation
Harvard Kennedy School of Government
John_O’[email protected]
Fleet Webinar June 17, 2010
3
The Challenge
Challenge: To create real public Challenge: To create real public value with diminishing resources:value with diminishing resources:
Revenue is down at all levelsRevenue is down at all levels Demand for public services already exceeds Demand for public services already exceeds
capacitycapacity Incremental improvements will be insufficient Incremental improvements will be insufficient
to meet the public’s needsto meet the public’s needs
4
The Response
A “Better, Faster, Cheaper” A “Better, Faster, Cheaper” approach that focuses relentlessly approach that focuses relentlessly on results. on results.
The “BFC” approach is a two-step The “BFC” approach is a two-step method of analyzing government method of analyzing government that can be applied to a variety of that can be applied to a variety of functional areasfunctional areas
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Steps of BFC Approach
Step 1: Reexamine and Step 1: Reexamine and rearticulate the public purpose of rearticulate the public purpose of every program.every program.
Step 2: Explore new ways of Step 2: Explore new ways of creating that public value using a creating that public value using a variety of “BFC” techniquesvariety of “BFC” techniques
BFC Approach: Step 1
Reexamine the public purpose of every Reexamine the public purpose of every program. program.
Articulate the goal of every activity in terms of the Articulate the goal of every activity in terms of the valuevalue being created for citizens. For example: being created for citizens. For example: Improved public health, not better Medicaid; Improved public health, not better Medicaid; Education for children, not just better public Education for children, not just better public
schools.schools. Maybe – safe, reliable mobility at the lowest Maybe – safe, reliable mobility at the lowest
cost – not more efficient fleet management cost – not more efficient fleet management
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“BFC” Approach: Step 2
Explore new ways of creating that public value Explore new ways of creating that public value using a variety of techniques:using a variety of techniques:
Competition/Outsourcing/Public-Private Partnerships Leverage Technology Change incentives for producers: Reward results, not effort Change incentives for consumers: Drive efficient behaviors Changing the rules of the game; revitalize the productive capacity by
altering the framework in which public action occurs
EXAMPLE 1– Instead of fleet maintenance, extend to use of “Zipcars” or other at will vehicles…
EXAMPLE 2 – Usage reports to identify “unneeded” vehicles.
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Effective Service Involves Both Government and
Private SectorThe “Privatization” or “Outsourcing” Debate
Reflects a False Choice
The Left
• Government employees should perform all public services
• Private contractors are often corrupt
• Citizens should receive similar services configured by government, not by choice
The Right
• Privatize everything
• Public sector always inefficient
• Private sector always better than public
• Privatizing makes government smaller
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Competitive Government Competitive Government PrinciplesPrinciples
Provide the structural foundation for competition• Activity Based Counting—If you don’t
know how much it costs to accomplish the outcome then you have no idea whether you are effective.
• Capital Budget with depreciation.• Measure, Measure, Measure-and reward
results• Watch and recognize the Small Items that
Help Make up the Culture• Contract procurement and program
management are new skills require sophistication and technical knowledge
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Contracting = New Contracting = New ChallengesChallenges
• Designing a contract that attracts bidders, aligns incentives.
• Treat existing employees fairly• Choosing the right vendor / partner• Measure, Measure, Measure-and reward
results• Deal with the unexpected• Document the results, both cost and
quality
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““If We Can Put a If We Can Put a Man on the Moon…”Man on the Moon…”
• Good Idea• Well designed plan• Get the “Go Ahead” • Implement effectively• Monitor Results
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Improving safety, lowering costs... One driver at a time.
Gale A. Blackburn Vice President, Marketing
Driver’s Alert, Inc.
5340 N. Federal Highway, Lighthouse Point, FL 33064
800-741-5454 (extension: 416)
Ed Ed FinneganFinnegan
State Auto Insurance State Auto Insurance
Program OfficerProgram Officer
Risk Management ServicesRisk Management Services
Department of Administrative Department of Administrative ServicesServices
State of GeorgiaState of Georgia
We self-insure for Workers’ Comp, Property, General We self-insure for Workers’ Comp, Property, General Liability and Auto losses.Liability and Auto losses.
$160,000,000. per year in operating costs.$160,000,000. per year in operating costs.
$26 Billion in Property Coverage.$26 Billion in Property Coverage.
Were we in the private sector, we would be the 25Were we in the private sector, we would be the 25thth largest largest insurance company in the world.insurance company in the world.
Our Fleet/Our Our Fleet/Our ExposureExposure
Over 20,000 vehiclesOver 20,000 vehicles Steve Saltzgiver is the Director.Steve Saltzgiver is the Director. We also cover 125,000 state We also cover 125,000 state
employees while performing employees while performing their official duties in ANY their official duties in ANY vehicle.vehicle.
Comprehensive Loss Comprehensive Loss Control Program Control Program
We passed a law allowing us to bill We passed a law allowing us to bill premium to the 160 agencies based premium to the 160 agencies based on their loss experience, rather than on their loss experience, rather than their head count.their head count.
The CLCP addresses Loss Control The CLCP addresses Loss Control measures in 9 areas, one of which is measures in 9 areas, one of which is Auto.Auto.
The Auto The Auto ComponentComponent
Driver Qualification ProgramDriver Qualification Program Accident Review PanelAccident Review Panel Report My Driving ProgramReport My Driving Program We provided deductible and We provided deductible and
premium incentives and training premium incentives and training to cut losses.to cut losses.
0
100
200
300
400
500
600
700
800
FY-08 FY-09 Fy-10
Three Year Claims Three Year Claims CountCount
FY-08 to FY-09, 14% drop in losses.
FY-09 to FY-10, 13.5% drop in losses.
Monetary Effect of the Monetary Effect of the CLCPCLCP
Estimated saving for Auto-Estimated saving for Auto-related losses 1.6 Million.related losses 1.6 Million.
Driver’s Alert provided an Driver’s Alert provided an instant training library available instant training library available to ALL employees.to ALL employees.
Cost of Driver’s Alert: $130,000.Cost of Driver’s Alert: $130,000.
Real ValueReal Value We are saving lives and avoiding injuries.We are saving lives and avoiding injuries. We are giving the public a voice in how We are giving the public a voice in how
we use tax dollars.we use tax dollars. It’s like having a supervisor riding in It’s like having a supervisor riding in
15,000 vehicles.15,000 vehicles. We are better trained and more aware of We are better trained and more aware of
our responsibilities.our responsibilities. We are the Face of the State.We are the Face of the State.
Driver’s AlertDriver’s Alert They are one part of our solution.They are one part of our solution. Had a call Had a call duringduring a theft of a vehicle! a theft of a vehicle! Identified 100 employees that account Identified 100 employees that account
for 16% of our calls.for 16% of our calls. Pointed out trends: lane change, no Pointed out trends: lane change, no
signals, drifting= phone use.signals, drifting= phone use. Allowed us to pinpoint training and Allowed us to pinpoint training and
reduce claims.reduce claims. Great Job!Great Job!
Ed FinneganEd Finnegan 404-463-7490404-463-7490 [email protected]
www.doas.ga.gov All programs are up and available. All programs are up and available.
Please feel free to use any part.Please feel free to use any part.
Fleet Ideas for Fleet Ideas for SuccessSuccessJune 17, 2010June 17, 2010
WebinarWebinar
John E. AlleyJohn E. AlleyDeputy Director, Deputy Director,
Fleet ServicesFleet ServicesCity of San Diego, City of San Diego,
(619) 527-6020(619) 527-6020
OutlineOutline
Business Process Reengineering (BPR)Business Process Reengineering (BPR) Internal Service Funds for GF Internal Service Funds for GF
DepartmentsDepartments Fleet Creep – How to reduce your FleetFleet Creep – How to reduce your Fleet Other Ideas for running your Fleet like a Other Ideas for running your Fleet like a
businessbusiness
Business Process Business Process ReengineeringReengineering
What BPR is NotWhat BPR is Not What is BPR What is BPR What are the BPR FundamentalsWhat are the BPR Fundamentals Organizing for a BPROrganizing for a BPR BPR ActivitiesBPR Activities How long does the process takeHow long does the process take How long does it take to implementHow long does it take to implement
What is BPR is NotWhat is BPR is Not It is not reorganizingIt is not reorganizing It is not downsizingIt is not downsizing It is not incremental improvement or It is not incremental improvement or
superficial changes; it is about superficial changes; it is about dramatic leaps in performancedramatic leaps in performance
What is BPRWhat is BPR A radical approach to business process A radical approach to business process
redesignredesign BPR is the redesign of work processes BPR is the redesign of work processes
(activities, services or functions) for (activities, services or functions) for substantial improvement.substantial improvement.
These work processes can be offered These work processes can be offered within or between divisions and within or between divisions and departments.departments.
BPR focuses on rethinking from the BPR focuses on rethinking from the ground up, finding more efficient ways of ground up, finding more efficient ways of working including eliminating work that is working including eliminating work that is unnecessary.unnecessary.
BPR FundamentalsBPR Fundamentals The Mission is to Create Value for CustomersThe Mission is to Create Value for Customers It is an Organization’s Processes that Create It is an Organization’s Processes that Create
Value for its CustomersValue for its Customers Success Comes from Superior Process Success Comes from Superior Process
Performance Performance Superior Process Performance is Achieved by Superior Process Performance is Achieved by
having Superior Process Design, the Right having Superior Process Design, the Right People to Perform it, and the Right People to Perform it, and the Right Environment for them to Work inEnvironment for them to Work in
Organizing for a BPROrganizing for a BPR
Identify Sponsor and Team LeadersIdentify Sponsor and Team Leaders Organize Teams along Function Organize Teams along Function
LinesLines Pick the most knowledgeable and Pick the most knowledgeable and
productive members for the teamsproductive members for the teams Organize a PlanOrganize a Plan Define ActivitiesDefine Activities
BPR ActivitiesBPR Activities
Conduct “AS IS” Process MappingConduct “AS IS” Process Mapping Gather Benchmarking InformationGather Benchmarking Information Conduct “TO BE” Process MappingConduct “TO BE” Process Mapping Conduct a SWOTConduct a SWOT Develop MEODevelop MEO Present MEOPresent MEO Approve MEOApprove MEO Meet & ConferMeet & Confer
Time LineTime Line It took from April 2006 to May 2007It took from April 2006 to May 2007 Aggressive Time LineAggressive Time Line Some City organizations are still Some City organizations are still
working on their BPRworking on their BPR Meet & Confer – Major time Meet & Confer – Major time
investmentinvestment We are still discovering things “we We are still discovering things “we
did not know, that we did not know!”did not know, that we did not know!” Expect a time line of 12-24 monthsExpect a time line of 12-24 months
ResultsResults Consolidation of three fleets into one Consolidation of three fleets into one
organizationorganization SavingsSavings
35 Full Time Equivalent (Staff)35 Full Time Equivalent (Staff) $3.5 Million Annually$3.5 Million Annually Eliminated two Unclassified PositionsEliminated two Unclassified Positions
Established the Internal Service Fund Established the Internal Service Fund for all GF Departmentsfor all GF Departments
One Organization responsible for One Organization responsible for FleetFleet
New OrganizationNew Organization
Internal Service Fund Internal Service Fund (ISF)(ISF)
An Internal Service Fund in place for An Internal Service Fund in place for all Departments except Police & Fireall Departments except Police & Fire
Police & Fire had an Police & Fire had an overage/mileage fleet of 50-75%overage/mileage fleet of 50-75%
Under the ISF, Public Safety took on Under the ISF, Public Safety took on a #1 Prioritya #1 Priority
Police will take another 1-2 years Police will take another 1-2 years Fire will take another 4-7 yearsFire will take another 4-7 years Lease-Purchase a good financial toolLease-Purchase a good financial tool
Fleet CreepFleet Creep We ALL Face It!We ALL Face It! Establish a fix set of Criterion to startEstablish a fix set of Criterion to start SD uses 5K Miles or 500 Operating SD uses 5K Miles or 500 Operating
HoursHours Run a report twice a yearRun a report twice a year Establish a positive working rapport w/ Establish a positive working rapport w/
customerscustomers Take into account customer restrictionsTake into account customer restrictions Use the authority of the ExecutiveUse the authority of the Executive Savings of $12 MillionSavings of $12 Million
Ideas to ConsiderIdeas to Consider Customer Visits / Rapport / TrainingCustomer Visits / Rapport / Training Benchmarking – Fleet AnswersBenchmarking – Fleet Answers Consortium Buying PowerConsortium Buying Power Staff, Fuel, Parts – Highest Costs – Staff, Fuel, Parts – Highest Costs –
Know the detailsKnow the details Printers versus CopiersPrinters versus Copiers Fleet Replacement Policy – LifecyclesFleet Replacement Policy – Lifecycles Invest in your Staff ProfessionalismInvest in your Staff Professionalism Recycling – Tires, Oil, Paper, etc.Recycling – Tires, Oil, Paper, etc.
John E. AlleyJohn E. AlleyDeputy Director, Deputy Director,
Fleet ServicesFleet ServicesCity of San Diego, City of San Diego,
(619) 527-6020(619) 527-6020
Place Image Here
100 Best Fleets100 Best FleetsMaximizing Your Fleet Maximizing Your Fleet ResourcesResources
LEASE PLAN
Today’s AgendaToday’s Agenda
Government Fleet Goals and Objectives
Helping You Reach Your Goals
Solutions Employed LeasePlan Leadership Strategic Fleet
Management Benchmarking
Consulting Reporting Maintenance &
Repair Management Accident
Management Fuel Management
Review of Government Fleet Goals & Review of Government Fleet Goals & ObjectivesObjectives
Current State Desired State
Reduced tax revenue Budget shortages Delayed purchases Unhappy stakeholders Unsafe work conditions Unusable assets
Meet goals & objectives Acquire vehicles as
needed Provide optimum service
within budget Provide safe and reliable
vehicles
First Things First – The First Things First – The “O” Word“O” Word
Maximize Your Fleet Resources What Is The Most Efficient Way To
Accomplish Your Goals? How Does It Work At Home?
Yard Work Electrical Plumbing Major Construction
How Can Outsourcing Work For You?
Fleet ServicesFleet Services
Maintenance & Repair Management
Accident & Risk Management
Fuel Management Fleet Consulting Acquisition and Disposal
Acquisition ManagementAcquisition Management
• Acquire Vehicles With Transparent Pricing Formula
• Potential Savings Over “State Bid” Pricing
• Reduced Acquisition Administration
• Single Source For All Makes And Models
• 100% of Manufacturer Incentives Passed to Fleet
Benefits to Government FleetsBenefits to Government Fleets
Measure fleet performance
Data analytics Improve efficiencies Reduce spend Enhance savings Validate decisions Drive down total
cost of ownership
Fleet Forum Webinar of Fleet Forum Webinar of Best Business Practices Best Business Practices
and Innovations from the and Innovations from the 100 Best Fleets100 Best Fleets
FLEET COST SAVING FLEET COST SAVING IDEAS IDEAS
COST SAVING IDEAS COST SAVING IDEAS
Dave Vasquez Dave Vasquez Currently - Manager Fleet Services Currently - Manager Fleet Services
SECO Energy Sumterville , Florida . SECO Energy Sumterville , Florida . Formally - Fleet Maintenance Formally - Fleet Maintenance
Director Director
Lake County – Tavares, Florida. Lake County – Tavares, Florida. Winner - 2010 NAFA Larry Goill Winner - 2010 NAFA Larry Goill
Award Award
Assignment Assignment Justification Model Justification Model
Vehicle Justification Vehicle Justification Model Model
Calculates Justification for a Vehicle AssignmentCalculates Justification for a Vehicle Assignment Uses Cost of Capital and Actual Vehicle CostUses Cost of Capital and Actual Vehicle Cost Defines cost of ownership by year, month and Defines cost of ownership by year, month and
mile mile Identifies Business versus Commuting UsageIdentifies Business versus Commuting Usage Calculates Business versus Commuting Costs Calculates Business versus Commuting Costs Uses variable data and adjustable LC parametersUses variable data and adjustable LC parameters Defines Fuel, Maintenance, and Insurance Costs Defines Fuel, Maintenance, and Insurance Costs Uses Maintenance costs based on Accumulated Uses Maintenance costs based on Accumulated
MileageMileage
Hi Dave,I love what you have done with this spreadsheet model. I think your
improvements are significant enough that they could win you a Larry Goill Quality Fleet Ideas Award so consider submitting it. It is gratifying to see some of my work put to use helping improve fleet management elsewhere. Oddly enough seeing that you are also presenting a labor rate development model, I won a Larry Goill Award the first year it was so named for a budget model spreadsheet that I developed in St. Louis County to set my fully-burdened labor rates, parts markup, fuel markup and commercial markup.
I'd appreciate seeing your presentation file after you present and adjust it. It might make a great presentation to share with other chapters or to use as a Webinar.
Thank you for sharing your work with me and NAFA. If you enjoy education development and presenting, I'd love to discuss an appointment to a national committee with you. I have always found it fulfilling as a great opportunity to grow as a professional. Chris Christopher D. Amos, CAFMCommissioner of Equipment ServicesCity of Saint Louis, Missouri
COST
MONEY
FUEL
Insurance
MPG
Mileage
Commuting
DAYS
IRS Rate
That concludes my presentation on the That concludes my presentation on the vehicle justification model. vehicle justification model.
As you have seen - the model is designed As you have seen - the model is designed to simplify vehicle justification – making to simplify vehicle justification – making it hard to argue with the results. it hard to argue with the results.
It was recognized by NAFA as a simple It was recognized by NAFA as a simple method for helping control Fleet costs. method for helping control Fleet costs. Thank you. Thank you.
Best part … it is Free Best part … it is Free
Please send me an E-mail if you’d Please send me an E-mail if you’d like a free copy or if have any like a free copy or if have any questions. questions.
David .vasquez@secoeneDavid [email protected] rgy.com
352 -793 3801 ex. 1071 352 -793 3801 ex. 1071
Presenter Presenter
Greg HaglinGreg Haglin
Contract ManagerContract Manager
National Joint Powers AllianceNational Joint Powers Alliance® ® (NJPA)(NJPA)
Fleet WebinarFleet Webinar
June 17, 2010June 17, 2010
GOVERNMENTGOVERNMENT
HELPINGHELPING
GOVERNMENTGOVERNMENT
R.F.P. ?R.F.P. ?
Not for me!Not for me!
83
Who is NJPA ?Who is NJPA ?• NJPA is the National Joint Powers Alliance®NJPA is the National Joint Powers Alliance®
• A governmental agencyA governmental agency• Created by State statuteCreated by State statute• Governed by publicly elected boardGoverned by publicly elected board
• Directed to serve all:Directed to serve all:• GovernmentGovernment• Education Education • non-profitsnon-profits
• Membership - No cost, No obligation, No Membership - No cost, No obligation, No liabilityliability
• More than 31,000 member agenciesMore than 31,000 member agencies
NJPA - Our purposeNJPA - Our purpose
• Create efficiencies for youCreate efficiencies for you• NJPA offers governmental purchasing NJPA offers governmental purchasing
contracts, which were competitively bid contracts, which were competitively bid nationallynationally
• We bring buyers and suppliers togetherWe bring buyers and suppliers together
Contract Purchasing……..Contract Purchasing……..
• No need to establish and/or duplicate bid docs or No need to establish and/or duplicate bid docs or bidding and contract processbidding and contract process
• Your membership ties your agency to our procurement filesYour membership ties your agency to our procurement files
• National volume pricing and full line of National volume pricing and full line of contracted products contracted products
• Purchase through your local dealers, referencing Purchase through your local dealers, referencing our awarded contract on your p.o. our awarded contract on your p.o.
• A valid alternative for purchasing agents that A valid alternative for purchasing agents that won’t use “piggy-backing” or negotiated bidswon’t use “piggy-backing” or negotiated bids
• CHOICE…… is an option municipals deserveCHOICE…… is an option municipals deserve• Products you wantProducts you want• Ability to standardize - reduction of parts inventoryAbility to standardize - reduction of parts inventory• ““Just in time” inventory in some casesJust in time” inventory in some cases
Features & Benefits of Features & Benefits of LeasingLeasing
California StatuteCalifornia StatuteTitle 1 Div. 7 Chapter. 5 Article 1Title 1 Div. 7 Chapter. 5 Article 1
§ 6500 Gov't. § 6500 Gov't. As used in this article, "public agency" includes, but is not As used in this article, "public agency" includes, but is not
limited to, the federal government or any federal limited to, the federal government or any federal department or agency, this state, another state or any department or agency, this state, another state or any state department or agency, a county, county board of state department or agency, a county, county board of education, county superintendent of schools, city, public education, county superintendent of schools, city, public corporation, public district, regional transportation corporation, public district, regional transportation commission of this state or another state, or any joint commission of this state or another state, or any joint powers authority formed pursuant to this article by any of powers authority formed pursuant to this article by any of these agencies. these agencies.
……continued…continued…
§ 6502 Gov't. § 6502 Gov't. If authorized by their legislative or other governing bodies, two If authorized by their legislative or other governing bodies, two
or more public agencies by agreement may jointly exercise any or more public agencies by agreement may jointly exercise any power common to the contracting parties, power common to the contracting parties, even though one or even though one or more of the contracting agencies may be located outside this more of the contracting agencies may be located outside this statestate. It shall not be necessary that any power common to the . It shall not be necessary that any power common to the contracting parties be exercisable by each such contracting contracting parties be exercisable by each such contracting party with respect to the geographical area in which such power party with respect to the geographical area in which such power is to be jointly exercised. For purposes of this section, two or is to be jointly exercised. For purposes of this section, two or more public agencies having the power to conduct agricultural, more public agencies having the power to conduct agricultural, livestock, industrial, cultural, or other fairs or exhibitions shall livestock, industrial, cultural, or other fairs or exhibitions shall be deemed to have common power with respect to any such fair be deemed to have common power with respect to any such fair or exhibition conducted by any one or more of such public or exhibition conducted by any one or more of such public agencies or by an entity created pursuant to a joint powers agencies or by an entity created pursuant to a joint powers agreement entered into by such public agencies. agreement entered into by such public agencies.
Membership ListMembership List
• NJPA has more than 31,000 members nationallyNJPA has more than 31,000 members nationally• To access membership list: To access membership list: www.njpacoop.org• Click on the “marketing button” on the home Click on the “marketing button” on the home
pagepage• Click on “membership” and enter the password Click on “membership” and enter the password
“value”“value”• Bookmark this site - it is updated periodically Bookmark this site - it is updated periodically
Closing thoughts…… Closing thoughts…… • NJPA may not be the answer to all of your budget NJPA may not be the answer to all of your budget
issues, but we can help in some areas.issues, but we can help in some areas.• Visit our website to reach your own comfort level Visit our website to reach your own comfort level
with our agency and our contract purchasing with our agency and our contract purchasing alternatives.alternatives.
• Read your local purchasing laws regarding Read your local purchasing laws regarding contract (cooperative) purchasing.contract (cooperative) purchasing.
• Contact your local dealer for pricing, using their Contact your local dealer for pricing, using their NJPA awarded contract.NJPA awarded contract.
• Why not start today by joining NJPA?Why not start today by joining NJPA?• ……another look at some purchasing solutions another look at some purchasing solutions
available to you…available to you…
92
Thank You!Thank You!
Greg HaglinGreg Haglin
Contract ManagerContract Manager
National Joint Powers AllianceNational Joint Powers Alliance® (NJPA)® (NJPA)
200 First Street NE200 First Street NE
Staples, MN 56479Staples, MN 56479
(218) 894-5488(218) 894-5488
www.njpacoop.org
