Department of Administrative Services OFFICE OF FLEET MANAGEMENT STRATEGIC PLAN SUMMARY

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Department of Administrative Services
OFFICE OF FLEET MANAGEMENT

STRATEGIC PLAN SUMMARY VISION March 2007
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Plan to Redevelop the Office of Fleet
Management (OFM)

• Follow Governors Executive Order dated January
  12, 2005 outlining functions of OFM
• Build new positions to lead OFM with an
  experienced, strategically focused Fleet Director
  and analyze/understand fleet data.
• Centralize Fleet Management function within the
  state.
• Coordinate efforts with OPB to set policy and
  procedures to maximize lifecycle value of state
  vehicles
• Utilize technology to monitor Total Cost of
  Ownership for state vehicles

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Total Cost of Ownership

• Factors to be considered
• Acquisition Costs (purchasing, leasing or
  financing)
• Fuel Costs
• Maintenance Costs
• Spare Parts
• Warranty
• Reliability
• Fit for Intended Use
• Disposal Value

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Fleet Directors Initial Focus

• Define needed organizational structure for modern
  Fleet Management Office
• Translate states vision into actionable items
  prioritized according to importance and impact
• Develop comprehensive communication plan to
  garner statewide support among Fleet Managers and
  Agency Heads
• Involve agencies and universities to become part
  of the solution
• Develop baseline metrics and benchmarks to
  measure performance improvements
• Utilize technology to analyze and assist in
  managing the States fleet aggressively and
  proactively

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Case Studies Abound

• Many other states have efforts underway to
  enhance Fleet Management (WI, KY, SC, TX, UT,CO,
  MS, IL, VA)
• Anticipated outcomes include
• 10-15 reduction in fleet size through
  Forced/Effective Planning
• Developing Utilization standards can help prevent
  under-utilization or over-utilization of
  vehicles, both of which are costly (State of
  Colorado has program to effectively remove
  vehicles operated above or below set utilization
  standards)
• Risk reduction through comprehensive driver
  qualification process
• Use of Accident Review Boards and Fleet Review
  Committees
• Leasing and financing alternatives have potential
  to significantly reduce acquisition costs
• Higher vehicle disposal values due to shorter
  ownership cycles
• Properly scheduled maintenance can reduce repair
  and operating costs
• Comprehensive review of vehicle take-home
  policy

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Fleet Management Goals

• Short term
• Re-organize and identify new skill sets needed
  within OFM organization
• Increase agency use of current maintenance
  contract by 20
• Enroll existing new fleet staff in training
• Finalize roll out of current Maximo system
• Develop statewide Fleet Management Council
• Fully engage and endorse Governors Executive
  Order from 1/12/05
• Medium term
• Publish a state Fleet Manual to direct fleet
  usage
• Develop annual vendor evaluation to support
  annual contract renewal process
• Aggressively increase education and guidance to
  agencies (fraud, waste, maintenance, TCO)
• Increase certification levels of Fleet staff
• Fully engage and endorse Governors Executive
  Order from 1/12/05

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Fleet Management Goals

• Long term
• Alter procurement methodology for vehicles (deal
  directly w/manufacturers, lease-purchase)
• Create incentives for agencies to maximize
  vehicle disposal values.
• Work closely with Risk Management to identify
  driver safety training opportunities reduce
  cost
• Fully engage and endorse Governors Executive
  Order from 1/12/05

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Fleet Management System

• Maximo System is near initial completion stage
• IBM performance issues have impacted roll-out
• Initially, system will track most fuel usage,
  some maintenance costs utilization of certain
  state vehicles
• Numerous limitations will still exist with system
• Much manual data entry will be required initially
• Future system development required to deliver all
  necessary data to properly manage states fleet