Georgia to Save Millions of Dollars with Improved Management of State Vehicles

Governor Perdue Pledges to Reduce Fleet by 2,000 Cars before June 30, 2005

ATLANTA, GA – The state of Georgia plans to save millions of dollars with more effective and efficient management of an estimated 21,000 government vehicles, thanks to reforms announced today by Governor Sonny Perdue. Two fleet management task forces of the Commission for a New Georgia, and an implementation team of state agency administrators, recommended the reforms to the Governor. Governor Perdue’s four specific goals include:

• Collect accurate data on the cost of operation, utilization, acquisition and disposal of state vehicles; and the enforcement of policy for assigning cars to individuals and their use for commuting
• Reduce the state fleet by 2,000 cars before June 30, 2005
• Reduce commuting mileage by 25 percent, and
• Search for cost-saving opportunities through outsourcing and/or pilot projects.

“Thanks to the work of the Commission for a New Georgia, we will save Georgia taxpayers millions of dollars and make more effective and efficient use of state-owned vehicles for the benefit of our citizens,” said Governor Sonny Perdue. “The total projected cost savings from improved fleet management is about $10 million in the first year, with an additional $20 million in avoided maintenance costs over the next three years.”

The Governor will issue an Executive Order to start the process of completely overhauling the state’s management of its widely dispersed fleet of an estimated 21,000 government vehicles. The four directives of the Executive Order are:

• Direct fleet oversight agencies to tighten and enforce policy on the assignment and use of state vehicles by individuals. More effective enforcement of policy could result in savings of nearly $210,000 a year. This will also remove the exception that allows agency heads automatic assignment of vehicles, whether or not they meet the policy criteria, resulting in an additional estimated savings of $208,000 a year. The order requires agency heads to personally certify compliance with policy, and substantially reduce commuting mileage. Other issues include clarifying the criteria for state employees assigned vehicles designated for On-Call and First Responder use. The order also directs equitable assignment of law enforcement vehicles, which are often assigned by differing standards.
• Direct the Office of Fleet Management (OFM) to implement a statewide fleet management software system, which will be used by all state agencies. The system would be designed to improve cost-efficiency, track the state fleet, and support informed business decisions on acquisition, maintenance, utilization, and replacement of state vehicles. Systematic smart management will save an estimated $2,271,765 over four years.
• Direct all agencies to identify under-utilized vehicles, which are driven less than 6,000 miles in a one-year period, and justify their need. With this information, OFM is directed to develop an accurate count and plan of disposal for surplus vehicles. If 10 percent of the entire state fleet were sold, the one-time proceeds, plus annual savings on upkeep, would total $6-7 million.
• Order OFM to consolidate of Capitol Hill vehicle use through a single motor pool or total outsourcing of motor pool operations, whichever is more cost-efficient. Direct OFM to investigate the feasibility of pooling and outsourcing in other locations in Georgia, as well.

In addition to the Executive Order, Governor Perdue will pursue legislation that transfers the Office of Fleet Management (OFM) to the Office of Planning & Budget (OPB) from the Department of Administrative Services (DOAS). The Governor also intends to appoint a Fleet Management Advisory Council of agency and private industry representatives to guide policy and practices.