LEASING VEHICLES THROUGH GSA FLEET

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A MAN A MISS A CAR A CURVE HE
KISSED THE MISS AND MISSED THE CURVE BURMA-SHAVE

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LEASING VEHICLES THROUGH GSA FLEET
Kevin Gibson
A Financial Business Management Branch
Presentation
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Trivia Game
Answer the Question and and Win Valuable Prizes...
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Top-10 Complaints
Survey says.

• 2. Auto Sales

4. Auto repairs
7. Auto leasing
1. Home Improvement Services 6. Mail order 3.
Household goods 8. Landlord-tenant disputes
5. Credit and lending 9. Utilities 10.
Travel/tourism Source NACAA and CFA
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OUR GOAL
BE THE BEST VALUE FOR FEDERAL GOVERNMENT
Balancing
Customer Service and
Costs
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Thankful for
?
?

• Our Customers
• Big Three
• Automotive Division
• Fleet Service Representatives

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SCOPE OF OPERATIONS

• 178,000 Vehicles
• Domestic/Overseas
• Business Type Funding
• Partner with Service Providers

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GSA FLEET VEHICLE PROFILE
178,000 Vehicles 2.0 Billion Miles
Major Customers Army Interior Energy
Navy Transportation Air Force
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How we buyChoice Contracts

• 70/30 Split
• Lowest price as equipped
• Documented justification for non-low
• C.F.R.

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How we buyChoice Contracts

• Brand A car with no options 12,000
• Brand B car with no options 12,200
• Cruise control on Brand A costs 500
• Cruise control on Brand B costs 200
• Brand A car with cruise control 12,500
• Brand B car with cruise control 12,400

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Lowest Cost Option
Sub-Compact Sedan - Std. Item 8C
FY01 Rate 145 mo.// 0.09 mile Replacement
3 yrs. or 36,000 miles
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Lowest Cost Option
Compact Sedan - Std. Item 9C
FY01 Rate 165 mo.// 0.10 mile Replacement
3 yrs. or 36,000 miles
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Lowest Cost Option
4x2 Pickup Truck - Std. Item 61
FY01 Rate 180 mo.// 0.125 mile Replacement
6 yrs. or 60,000 miles
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Lowest Cost Option
Passenger Sedan - Std. Item 20
FY01 Rate 201 mo.// 0.130 mile Replacement
6 yrs. or 60,000 miles
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Lowest Cost Option
4x4 Pickup Truck - Std. Item 46
FY01 Rate 228 mo.// 0.160 mile Replacement
6 yrs. or 60,000 miles
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Lowest Cost Option
4x4 Carryall - Std. Item 105
FY01 Rate 276 mo.// 0.140 mile Replacement
6 yrs. or 60,000 miles
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School Bus
GSA Fleet- drive one today!

• School buses offer you great load capacity,
• superior visibility, comfortable turning radius
  
• and heavy-duty life expectancy.
• Interested?! Contact your local GSA Fleet Service
• Representative.

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Rate Structure

• Monthly rate and Mileage Fee
• Guarantees future replacement
• Includes fuel
• Includes maintenance/repair
• Includes cost of our operation
• Includes cost to sell vehicle
• Goal is to keep rates at/below inflation
• No penalty for excessive mileage

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Rate Structure

• What they do NOT cover
• Vehicle Misuse/Abuse
• Unauthorized Purchases
• Accident Damage
• Maintenance/Replacement of Agency
• Owned Equipment
• Dispatching, Driver Services, etc.

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What Affects the Rates

• Inflation
• Vehicles, maintenance, fuel
• Implementing Temporary Fuel Surcharge
• Over maintaining vehicles
• Use of premium fuel
• Disposal market

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OPTIONAL EQUIPMENT RATESWHAT ARE THEY?

• Designed to help recover cost of additional
  options above base price of vehicle
• Located at back of rate bulletin

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Vehicle Acquisition Timeline

• Federal Vehicle 2001 Standards Conference May
  2001
• Meeting with Customers Spring/Summer
• Letters Sent to Customers Summer
• Choice Renewal July/August
• Awards Made November
• Call for Requisitions December
• Orders Sent to OEMs January/February
• Vehicle Deliveries Begin Spring - Summer

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Greening the Government
Presidential Executive Order (E.O.) 13149

• Signed on April 21, 2000
• Directed Federal agencies to take a leadership
  role in the reduction of vehicular petroleum
  consumption
• Reduce fleets annual petroleum consumption by at
  least 20 percent by the end of FY 2005, 3 MPG
  increase by 2005
• Through increases in fleet efficiencies and the
  use of alternative fuels

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COKEvs.PEPSI
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Have You Considered Rightsizing?

• Executive Order and CFR Compliance
• EO 13149
• CFR 101.38 -103
• Saves you money
• Save taxpayer money

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Snapshot of TaxesMedian One- and Two-Income
Families
1998 Stats
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Neon 11,075
Stratus 13,373
Caravan 17,509
Cherokee 18,532
Expedition 25,384
Suburban 30,032
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Interior
Make/Model Volume MPG Class Ford
Escort 87.2 n/a Sub-Compact Ford
Contour 90.2 30 Compact Dodge Neon
90.3 32 Sub-Compact Oldsmobile
Alero 91 29 Compact Honda Civic 91.4 CNG
TBD Pontiac Grand AM 91 28
Compact Chevy Cavalier 91.5 29
Sub-Compact Chevy Corsica 92.7 n/a
Compact Ford Focus 94.1 33
Sub-Compact Dodge Stratus 95.9 28
Compact Chevy Malibu 98.6 27
Compact Ford Taurus 104.7 28 Midsize
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Dag-Nab it!!!
All I wants is a full size sedan.
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Interior Dimensions
Mid-Size Large Taurus Crown
Vic Head Room (Ft/Rr) 40.0/38.1
39.4/38.0 Leg Room (Ft/Rr) 42.2/38.9
42.5/39.6 Shoulder Room (Ft/Rr) 57.3/56.6
60.8/60.3 Hip Room (Ft/Rr) 54.5/55.7
57.1/58.7
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4x4 vs. 4x2 Cost and MPG
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4x4 vs. 4x2

• Cost
• MPG
• Traction/Off Road Ability
• Image
• Taxpayer Perception

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How come I cant
get a vehicle built with all the options listed
in the Federal Standards?

• Answers
• Its too expensive
• The manufacturers did not bid it

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AFV User Program
GSA provides up to 4M in funding DOE provides
funding for infrastructure/ marketing
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GSA FLEET IS AT YOUR SERVICE

• Controlling costs/keeping rates low
• Tracking purchases better
• Standardizing customer letters
• Identifying methods to improve MPG

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CONSOLIDATINGYour Vehicles with GSA FLEET
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WHY CONSOLIDATE?

• Significant Savings Realized
• - Limited funds to purchase
• vehicles
• - Fleet has aged, maintenance
• costs have increased
• - Vehicles become less fuel
• efficient
• - Fleet mix is inappropriate for
• mission
• - Commercial leasing is costly

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CONSOLIDATION BENEFITS

• Best non-agency option
• Guaranteed vehicle replacement
• GSA assumes financial risk
• Flexibility in fleet configuration
• Modernized fleet
• AFV customer planning assistance
• Automated information systems

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CONSOLIDATION PARTNERS
U.S. Army Corps of Engineers U.S. Marines U.S.
Army Europe U.S. Navy U.S. Air Force Department
of Energy
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PHASES OF CONSOLIDATION

• GSA/Customer dialogue
• Agency analysis/decision
• Identify vehicle inventory
• Business case profile approved
• Memorandum of understanding
• Establish timeline
• Interagency support agreements

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Customer Responsibilities

• Operate vehicles as if it were yours
• Obtain scheduled PM services
• Maintain vehicle appearance cleanliness
• Avoid vehicle misuse/abuse
• Report all accidents promptly to the AMC

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Customer Responsibilities (cont..)

• Use self-service fuel pumps
• Use regular unleaded fuel
• No smoking in Government vehicles
• Safeguard keys and credit card
• Pay GSA Fleet bill promptly

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GSA Fleet
and Customers working together

• Contact the local Fleet Service Representative
• Fleet Service Representatives are the key to
  resolving customer concerns
• Visit GSA Fleet on the Internet at

www.fss.gsa.gov/vehicles/leasing
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How to reach GSA Fleet
General Services Administration Fleet Management
Division 1941 Jefferson Davis Highway Crystal
Mall Building 4 Rm. 819 Arlington, VA
22202 Phone [phone] Fax (703)
305-7258
Internet www.fss.gsa.gov/vehicles/leasing