**Guide to Federal Fleet Management**

[]{#_Hlk115687958 .anchor}**[Section 1]{.underline}**

**Guide Organization and How to Navigate**

Federal fleet management incorporates five areas of competency that
Fleet Managers require to perform as professionals:

-   Legal Requirements

-   General Management

-   Fleet Asset Management

-   Fleet Operations Management

-   Risk Management

In turn, each competency incorporates numerous sub-competencies, and the
sub-competencies incorporate an array of tasks that Fleet Managers must
either know about or be able to perform. Broadly defined, "competencies"
are the knowledge, skills, attitudes, values, motivations, and beliefs
people must have to do their jobs. More specifically, everything you do
rests upon the legal basis for fleet management within the Federal
Government, and we address that subject first, because that competency
establishes the foundation for your job and many of its key
responsibilities.

The organization of this *Guide* follows this design (competencies and
sub-competencies), and you can click on any Table of Contents topic to
jump directly to the related discussion. You will find a complete
listing of the contents of the *Guide* following this introduction; and
at the start of each competency section, you will find the same type of
table to enable you to move within a section.

We have tapped public and private sector electronic resources in
preparing the *Guide*, and we include links to many of these source
documents and information on fleet management. To enable you to find the
information you seek more easily, we have grouped all these links into a
single table, which follows this introduction; at the start of each
competency section, you will find the same type of table. We have also
provided brief descriptions of the content the links take you to. Where
useful, we have also inserted links into the content of the *Guide*.
Links to private sector information sources should not be interpreted as
promotion or acceptance of the content by the General Services
Administration or the Federal Government.

This is not a legal document or an encyclopedia; rather, it is a *Guide
to Federal Fleet Management* (GFFM), a map designed to point you in the
right direction while providing you with some description of the
landscape. Our intention is to add information over time based upon your
requests, upon new (or changes in) laws and regulations, and upon
developments affecting the fleet management profession. Let us know what
topics you would like to see added so that this *Guide* can better meet
your needs.

This *Guide* is part of a comprehensive training and education program
for Federal Fleet Managers; consequently, it is one tool in GSA's
educational support system for managers with fleet responsibilities.
Design, content, and means of delivery to you, the user, are meant to
meet immediate informational needs in concrete (as opposed to abstract)
subject matter for individuals, not to replace interactive training
(whether conference, classroom or on-line).

**[Table of Sections]{.underline}**

Click on any section title to jump to that section.

[**Section 1**](#_Hlk115687958)

[**Guide Organization and How to Navigate**](#_Hlk115687958)

[**Section 2**](#_Hlk115688089)

[**The Legal Basis for Federal Fleet Management**](#_Hlk115688089)

[**Section 3**](#_Hlk115688228)

[**General Management**](#_Hlk115688228)

[**Section 4**](#_Hlk115691582)

[**Fleet Asset Management**](#_Hlk115691582)

[**Section 5**](#_Hlk115691679)

[**Fleet Operations Management**](#_Hlk115691679)

[**Section 6**](#_Hlk115691723)

[**Risk Management**](#_Hlk115691723)

**[Table of Links]{.underline}**

Click on any link to jump to the site. Note that this master table
contains some links not found in the following sections of the Guide.

+-----------------------------------------------------------------------+
| FirstGov.gov ^TM^ is the U.S. Government\'s official web portal.      |
+-----------------------------------------------------------------------+
| <http://www.firstgov.gov/>                                            |
+-----------------------------------------------------------------------+
| GSA.gov is the official web portal for the General Services           |
| Administration.                                                       |
+-----------------------------------------------------------------------+
| <http://www.gsa.gov/Portal/gsa/ep/home.do?tabId=0>                    |
+-----------------------------------------------------------------------+
| Motor Vehicle Management programs and policies, which fall under      |
| GSA's Office of Governmentwide Policy, can be accessed via this       |
| direct link, or you can reach it through GSA's web portal by placing  |
| your cursor over Policy on the menu bar of the home page. At this     |
| site, you have links to key information, including regulations,       |
| bulletins, fleet services, reports, FAST, EPAct, alternative fuels,   |
| and more.                                                             |
+-----------------------------------------------------------------------+
| <http://www.gsa.gov/Portal/gsa/ep/channelView.do?page                 |
| TypeId=8203&channelPage=/ep/channel/gsaOverview.jsp&channelId=-13175> |
+-----------------------------------------------------------------------+
| GSA Fleet Drive-thru is a web portal that allows GSA customers to     |
| report vehicle mileages, generate vehicle inventory reports, and      |
| input information and accounting classifications for vehicles to      |
| expedite billing. Access to this system is available via this link.   |
+-----------------------------------------------------------------------+
| <http://gsaa0.fss.gsa.gov/milexpw/>                                   |
+-----------------------------------------------------------------------+
| GSA Federal Supply Schedule 751 - Provides commercial lease options   |
| or open market leases for automobiles and light trucks.               |
+-----------------------------------------------------------------------+
| <http://www.gs                                                        |
| aelibrary.gsa.gov/ElibMain/ScheduleSummary?scheduleNumber=751&id=139> |
+-----------------------------------------------------------------------+
| This link takes you to the portal for the Surface Deployment and      |
| Distribution Command (SDDC) where you can access many military        |
| transportation and logistics links.                                   |
+-----------------------------------------------------------------------+
| <http://www.sddc.army.mil/Public/Home>                                |
+-----------------------------------------------------------------------+
| In 1986, SDDC was tasked with managing the rental car program for the |
| Federal Government. SDDC implemented the U.S. Government Rental Car   |
| Agreement. Because of this agreement, travelers with a travel order   |
| or Government-sponsored charge card receive superior rates when       |
| renting for official business. The agreement has many benefits other  |
| than rates, such as unlimited mileage, reduced age restriction and    |
| collision damage waiver insurance.                                    |
+-----------------------------------------------------------------------+
| <http://www.sddc.army.mil/public/Passenger/>                          |
+-----------------------------------------------------------------------+
| Obtain official U.S. Government tags from the U.S. Department of      |
| Justice, UNICOR, Federal Prison Industries, Inc. The UNICOR portal    |
| describes the transportation services available through the           |
| organization.                                                         |
+-----------------------------------------------------------------------+
| <http://www.unicor.gov/index.cfm>                                     |
+-----------------------------------------------------------------------+
| NISH is a national nonprofit agency whose mission is to create        |
| employment opportunities for people with severe disabilities by       |
| securing Federal contracts through the Javits-Wagner-O\'Day (JWOD)    |
| Program for its network of community-based, nonprofit agencies.  The  |
| JWOD Program is a coordinated effort by the [Committee for Purchase   |
| From People Who Are Blind or Severely                                 |
| Disabled](http://www.jwod.gov/), [National Industries for the Blind   |
| (NIB)](http://www.nib.org/) and NISH-Creating Employment              |
| Opportunities for People with Severe Disabilities                     |
+-----------------------------------------------------------------------+
| [www.nish.org](http://www.nish.org/)                                  |
+-----------------------------------------------------------------------+
| Working through a national network of more than 600 local service     |
| providers, many of which already have security clearances and onsite  |
| operations at Federal facilities and military installations, NISH and |
| its JWOD partners assist U.S. military and Federal fleet and          |
| logistics management organizations.                                   |
+-----------------------------------------------------------------------+
| <https                                                                |
| ://www.nish.org/NISH/Rooms/DisplayPages/LayoutInitial?Container=com.w |
| ebridge.entity.Entity%5BOID%5B9A02124F29C97944AB7B1087148E434F%5D%5D> |
+-----------------------------------------------------------------------+
| The gateway to statistics from over 100 U.S. Federal agencies.        |
+-----------------------------------------------------------------------+
| <http://www.fedstats.gov/>                                            |
+-----------------------------------------------------------------------+
| The U.S. Government Printing Office disseminates official information |
| from all three branches of the Federal Government. This link provides |
| access to the United States Code, the Code of Federal Regulations,    |
| and more.                                                             |
+-----------------------------------------------------------------------+
| <http://www.gpoaccess.gov/index.html>                                 |
+-----------------------------------------------------------------------+
| The link below provides an alternative site for accessing the United  |
| States Code. This version is generated from the most recent           |
| *official* version made available by the U.S. House of                |
| Representatives. Search capabilities enable users to locate any Code  |
| citation in this *Guide*. The *Guide* cites specific sections of the  |
| Code throughout, but does not provide specific links to the sections. |
+-----------------------------------------------------------------------+
| <http://www4.law.cornell.edu/uscode/>                                 |
+-----------------------------------------------------------------------+
| Administrative law is published in the Code of Federal Regulations    |
| (CFR).                                                                |
+-----------------------------------------------------------------------+
| <http://www.access.gpo.gov/nara/cfr/cfr-table-search.html>            |
+-----------------------------------------------------------------------+
| Congress enacted the repeatedly amended Federal Property and          |
| Administrative Services (FPAS) Act in 1949 (40 U.S.C. 471-535 and     |
| other U.S.C. sections), establishing GSA as a central organization to |
| provide an economic and efficient system for the procurement, supply, |
| and disposal of surplus property, and performance of related          |
| functions. The Act sets forth requirements for the management and     |
| disposal of Government property, including excess property (property  |
| under the control of any Federal Agency, but which it no longer       |
| needs) and surplus property (excess property not required for the     |
| needs of any Federal Agency). It provides a foundation for fleet      |
| management through property management law.                           |
+-----------------------------------------------------------------------+
| <http://epw.senate.gov/fpasa49.pdf>                                   |
+-----------------------------------------------------------------------+
| The FMR is the successor regulation to the Federal Property           |
| Management Regulation (FPMR). It contains updated regulatory policies |
| originally found in the FPMR. However, it does not contain FPMR       |
| material that described how to do business with the GSA.              |
+-----------------------------------------------------------------------+
| <http://www.gsa.                                                      |
| gov/Portal/gsa/ep/programView.do?pageTypeId=8199&ooid=14205&programPa |
| ge=%2Fep%2Fprogram%2FgsaDocument.jsp&programId=8922&channelId=-14864> |
+-----------------------------------------------------------------------+
| On passenger use of Government-provided vehicles, go to this link.    |
+-----------------------------------------------------------------------+
| <htt                                                                  |
| p://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelI |
| d=-16529&specialContentType=FMR&file=FMR/FMRTOC102-__5.html#wp436256> |
+-----------------------------------------------------------------------+
| Title 36 Part 1192 - provides ADA accessibility guidelines for        |
| transportation vehicles.                                              |
+-----------------------------------------------------------------------+
| <http://www.access.gpo.gov/nara/cfr/waisidx_03/36cfr1192_03.html>     |
+-----------------------------------------------------------------------+
| This edition of the FTR is the \"working copy\" of the official 41    |
| Code of Federal Regulations (CFR), chapters 300-304, which implements |
| statutory requirements and Executive branch policies for travel by    |
| federal civilian employees and others authorized to travel at         |
| Government expense.                                                   |
+-----------------------------------------------------------------------+
| <http://www.gsa.                                                      |
| gov/Portal/gsa/ep/programView.do?pageTypeId=8199&ooid=14161&programPa |
| ge=%2Fep%2Fprogram%2FgsaDocument.jsp&programId=8955&channelId=-14863> |
+-----------------------------------------------------------------------+
| Published by the Office of the Federal Register, National Archives    |
| and Records Administration (NARA), the *Federal Register* is the      |
| official daily publication for rules, proposed rules, and notices of  |
| Federal Agencies and organizations, as well as Executive Orders and   |
| other presidential documents.                                         |
+-----------------------------------------------------------------------+
| <http://www.gpoaccess.gov/fr/>                                        |
+-----------------------------------------------------------------------+
| The FAR was established to codify uniform policies for acquisition of |
| supplies and services by Executive Agencies. Statutory authorities to |
| issue and revise the FAR have been delegated to the Procurement       |
| Executives in DOD, GSA and NASA. The GSA Federal Acquisition Policy   |
| Division maintains the FAR Secretariat to act as the publication and  |
| administrative support arm of the FAR.                                |
+-----------------------------------------------------------------------+
| <http://www.arnet.gov/far/>                                           |
+-----------------------------------------------------------------------+
| The reporting procedures of Standard Form 82, Agency Report of Motor  |
| Vehicle Data are now accomplished through use of the [Federal         |
| Automotive Statistical Tool (FAST)                                    |
| System](http://fastweb.inel.gov/).  Per the requirements of [OMB      |
| Circular A-11 Exhibit 33 Section                                      |
| 33.9](http://www.whitehouse.gov/omb/circulars/a11/2002/S33.pdf),      |
| Federal Agencies must report annually on their motor vehicles in the  |
| Motor Vehicle Exhibit (also referred to as Exhibit 33).  Agencies use |
| [FAST](http://fastweb.inel.gov/) to report their planned vehicle      |
| acquisitions and disposals as well as their vehicle acquisition and   |
| fleet operating costs.                                                |
+-----------------------------------------------------------------------+
| <http://fastweb.inel.gov/>                                            |
+-----------------------------------------------------------------------+
| Executive Orders are official documents, numbered consecutively,      |
| through which the President of the United States manages the          |
| operations of the Federal Government. The text of Executive Orders    |
| appears in the daily [*Federal                                        |
| Register*](http:                                                      |
| //www.archives.gov/federal-register/the-federal-register/about.html). |
| All Executive Orders, including #13149, Greening the Government       |
| Through Federal Fleet and Transportation Efficiency, can be found via |
| the link below.                                                       |
+-----------------------------------------------------------------------+
| <http:/                                                               |
| /www.archives.gov/federal-register/executive-orders/disposition.html> |
+-----------------------------------------------------------------------+
| For the Executive Order and detailed information on EPAct and #13149, |
| a link to FAST, and helpful guidance relating to alternative fuels    |
| and alternative fuel vehicles, click on the following EPA link.       |
+-----------------------------------------------------------------------+
| <h                                                                    |
| ttp://www.eere.energy.gov/vehiclesandfuels/epact/federal/index.shtml> |
+-----------------------------------------------------------------------+
| EO 12764 - Standards of Ethical Conduct.                              |
+-----------------------------------------------------------------------+
| <http://www.usog                                                      |
| e.gov/pages/laws_regs_fedreg_stats/lrfs_files/exeorders/eo12674.html> |
+-----------------------------------------------------------------------+
| Title 41 Chapter 101 - Guidance for performing lease versus purchase  |
| calculations.                                                         |
+-----------------------------------------------------------------------+
| <http://www.access.gpo.gov/nara/cfr/waisidx_98/41cfr101-25_98.html>   |
+-----------------------------------------------------------------------+
| OMB Circular A-94 - provides guidance for lease-purchase analysis.    |
+-----------------------------------------------------------------------+
| <http://www.whitehouse.gov/omb/circulars/a094/a094.html>              |
+-----------------------------------------------------------------------+
| Clean Air Act as amended in 1990.                                     |
+-----------------------------------------------------------------------+
| <http://www.epa.gov/oar/oaq_caa.html/>                                |
+-----------------------------------------------------------------------+
| H.R.776, Energy Policy Act of 1992***.***                             |
+-----------------------------------------------------------------------+
| <http://thomas.loc.gov/cgi-bin/query/z?c102:H.R.776.ENR>:             |
+-----------------------------------------------------------------------+
| Public Law 103-62 - Government Performance and Results Act of 1993    |
| (GPRA) - establishes need for strategic planning and performance      |
| measurement in the Federal Government.                                |
+-----------------------------------------------------------------------+
| <http://www.orau.gov/pbm/links/PL103_62.pdf>                          |
+-----------------------------------------------------------------------+
| To learn more about light and heavy-duty alternative fuel vehicles    |
| available, go to the Vehicle Buyer's Guide.                           |
+-----------------------------------------------------------------------+
| <http://www.ccities.doe.gov/vbg>                                      |
+-----------------------------------------------------------------------+
| To identify stations in user's geographic areas, go to the AFV        |
| Fueling Station Locator.                                              |
+-----------------------------------------------------------------------+
| <http://www.eere.energy.gov/afdc/infrastructure/locator.html>         |
+-----------------------------------------------------------------------+
| To gather data on average costs for all fuel types, go to the         |
| Alternative Fuel Price Report.                                        |
+-----------------------------------------------------------------------+
| [www.afdc.doe.gov/documents/pricereport/pricereports.h                |
| tml](http://www.afdc.doe.gov/documents/pricereport/pricereports.html) |
+-----------------------------------------------------------------------+
| The National Association of Fleet Administrators, Inc. (NAFA) is a    |
| not-for-profit, individual membership professional society serving    |
| the needs of Members who manage fleets of automobiles, SUVs, trucks,  |
| vans, and a wide range of specialized mobile equipment for            |
| organizations in the United States and Canada. NAFA\'s Full and       |
| Associate Members are responsible for the specification, acquisition, |
| maintenance and disposal of more than 3.5 million vehicles. More      |
| "traditional" fleet vehicles of passenger cars, vans, and SUVs        |
| managed by members total 1.4 million and account for \$45 billion     |
| dollars in assets, plus a quarter million police sedans; 58,000-plus  |
| emergency vehicles; and 386,000 pieces of specialty equipment used by |
| public service fleets, as well as commercial ones.                    |
+-----------------------------------------------------------------------+
| <http://www.nafa.org/>                                                |
+-----------------------------------------------------------------------+
| The National Truck Equipment Association (NTEA), established in 1964, |
| currently represents over 1,600 companies that manufacture,           |
| distribute, install, buy, sell and repair commercial trucks, truck    |
| bodies, truck equipment, trailers and accessories. Buyers of work     |
| trucks and the major commercial truck chassis manufacturers also      |
| belong to the Association.                                            |
+-----------------------------------------------------------------------+
| <http://www.ntea.com/>                                                |
+-----------------------------------------------------------------------+
| Each week, AutomotiveDigest.com delivers multiple newsletters to key  |
| executives in the automotive industry. You can subscribe online to    |
| these free electronic fleet and automotive industry publications.     |
+-----------------------------------------------------------------------+
| <http://www.automotivedigest.com/>                                    |
+-----------------------------------------------------------------------+
| This link takes you to numerous articles written by the fleet         |
| consultants of Mercury Associates Inc. (e.g., "Understanding Your     |
| Fleet Costs" and "Effective Ways for Increasing Fleet Utilization").  |
+-----------------------------------------------------------------------+
| [http://www.mercury-assoc.com/resources/#fleet%20                     |
| management](http://www.mercury-assoc.com/resources/#fleet management) |
+-----------------------------------------------------------------------+
| This link takes you to fleet information and free electronic          |
| newsletters (including Government Fleet) from Bobit Publications.     |
+-----------------------------------------------------------------------+
| <http://www.fleet-central.com/t_home.cfm>                             |
+-----------------------------------------------------------------------+
| WardsAuto has auto data, auto news and analysis for the worldwide     |
| providers of cars and trucks. Here you\'ll find the latest articles   |
| and archives vital to each industry job: car designers, product       |
| planners, vehicle engineers, auto parts and material suppliers, auto  |
| manufacturers, marketers, dealers and more. This public site is the   |
| gateway to comprehensive service for subscribers and to other Ward\'s |
| resources.                                                            |
+-----------------------------------------------------------------------+
| <http://wardsauto.com/home/index.htm>                                 |
+-----------------------------------------------------------------------+
| Inside Line provides detailed, on-line information on vehicles and    |
| manufacturers and a free electronic newsletter.                       |
+-----------------------------------------------------------------------+
| <http://www.edmunds.c                                                 |
| om/insideline/?synpartner=edmunds&pageurl=www.edmunds.com/insideline> |
+-----------------------------------------------------------------------+
| This link is the electronic outlet for Transport Topics. You can sign |
| up for free electronic newsletters covering various subjects, such as |
| light and medium duty trucks, utility fleet management, and much      |
| more. An archive index enables you to search for articles published   |
| by Transport Topics since 2002.                                       |
+-----------------------------------------------------------------------+
| <http://ttnews.com/>                                                  |
+-----------------------------------------------------------------------+
| The American Public Works Association (APWA) is an international      |
| educational and professional association of public agencies, private  |
| sector companies, and individuals dedicated to providing high quality |
| public works goods and services. Originally chartered in 1937, APWA   |
| is the largest and oldest organization of its kind in the world, with |
| headquarters in Kansas City, Missouri, an office in Washington, D.C., |
| and 67 chapters throughout North America.                             |
+-----------------------------------------------------------------------+
| <http://www.apwa.net/>                                                |
+-----------------------------------------------------------------------+
| This link takes you to fleet services content for the American Public |
| Works Association (APWA). The Fleet Services Committee of the APWA    |
| focuses on fleet management and vehicle/equipment maintenance &       |
| acquisitions.                                                         |
+-----------------------------------------------------------------------+
| <http://www.apwa.net/About/TechSvcs/Fleet/>                           |
+-----------------------------------------------------------------------+
| The link below takes you to *California Fleet News*, a fleet          |
| management newsletter that has been published for almost 30 years and |
| has over 6,000 national and international readers. The newsletter is  |
| published six times annually in both print and electronic editions.   |
| You can sign up for free electronic delivery and access other fleet   |
| industry information.                                                 |
+-----------------------------------------------------------------------+
| <http://www.fleetnews.com/>                                           |
+-----------------------------------------------------------------------+
| This Industry Data Finder link will point you to resources specific   |
| to Automotive Industries, such as Cars & Trucks, Automotive Parts &   |
| Accessories, Tires, and Automotive Engines. This link is only one     |
| database within the online catalog for the Cole Library and the       |
| libraries on the Troy campus. The Cole Library Web site provides      |
| access to online information sources and databases. Some links are    |
| restricted, but many of those that are not will take you to useful    |
| content.                                                              |
+-----------------------------------------------------------------------+
| <http://www.rh.edu/dept/library/industry/auto.htm>                    |
+-----------------------------------------------------------------------+
| Link to the Council of Supply Chain Management Professionals. This    |
| association includes the role of Logistics Management, the activities |
| of which typically include inbound and outbound transportation        |
| management, fleet management, warehousing, materials handling, order  |
| fulfillment, logistics network design, inventory management,          |
| supply/demand planning, and management of third party logistics       |
| services providers.                                                   |
+-----------------------------------------------------------------------+
| <http://www.cscmp.org/>                                               |
+-----------------------------------------------------------------------+
| The National Private Truck Council (NPTC) is a trade association      |
| devoted exclusively to the interests of the private, corporate        |
| trucking fleet industry and its professional practitioners. Training  |
| (including on-line, web-based materials) and certification are        |
| available through this organization.                                  |
+-----------------------------------------------------------------------+
| [www.nptc.org](http://www.nptc.org/)                                  |
+-----------------------------------------------------------------------+
| The Association of Equipment Management Professionals provides a      |
| Certified Equipment Manager (CEM) designation, which is a recognized  |
| standard for judging the qualifications of a manager of heavy         |
| off-road equipment or manager of municipal/government fleets.         |
+-----------------------------------------------------------------------+
| [www.aemp.org](http://www.aemp.org/)                                  |
+-----------------------------------------------------------------------+
| The United States Army Logistics Management College (ALMC) was        |
| established in 1954. Its role is to develop and present quality       |
| education programs in logistics science, management science, and      |
| acquisition management to personnel of the Department of Defense,     |
| other Federal agencies, and foreign governments. In addition, ALMC    |
| offers research and consulting services that contribute to materiel   |
| readiness and improve acquisition and logistics management. It also   |
| provides information services for use throughout the Federal          |
| Government.                                                           |
+-----------------------------------------------------------------------+
| <http://www.almc.army.mil/>                                           |
+-----------------------------------------------------------------------+
| The Alternative Fuels Data Center is a collection of information on   |
| alternative fuels and the vehicles that use them. Alternative fuels   |
| described here are those defined by the [Energy Policy Act of         |
| 1992](http://www.eere.energy.gov/vehiclesandfuels/epact), including   |
| biodiesel, electricity, ethanol, hydrogen, natural gas, and propane.  |
| This site has more than 3,000 documents in its database, an           |
| interactive fuel station mapping system, current listings of          |
| available alternative fuel vehicles, and lots of alternative fuels    |
| information and related links. Content also covers hybrid electric    |
| vehicles, idle reduction technologies, fuel blends, and fuel economy. |
| The AFDC is sponsored by the U. S. Department of Energy\'s [Clean     |
| Cities](http://www.eere.energy.gov/cleancities) and [Energy Policy    |
| Act of 1992                                                           |
| (EPAct)](http://www.eere.energy.gov/vehiclesandfuels/epact) fleet     |
| programs.                                                             |
+-----------------------------------------------------------------------+
| <http://www.eere.energy.gov/afdc/>                                    |
+-----------------------------------------------------------------------+
| The Hybrid Electric Vehicle Cost Calculator Tool allows fleets to     |
| evaluate the full costs and benefits of a hybrid electric vehicle     |
| (HEV) in comparison to a conventional vehicle. Fleets also may use    |
| the tool to determine the cost and benefits of a fleet of HEVs versus |
| a fleet of conventional vehicles. The tool assesses both capital and  |
| operating costs, over the lifetime of use, as well as greenhouse      |
| gases and other air emissions. Outputs are provided per vehicle, per  |
| year, and per mile.                                                   |
+-----------------------------------------------------------------------+
| <http://www.eere.energy.gov/cleancities/hev/cost_calc.html>           |
+-----------------------------------------------------------------------+
| A source for news and information on the rapid advances in natural    |
| gas, biofuel, battery-electric, hybrid and fuel cell vehicles. Free   |
| e-newsletters are available. The links page covers numerous federal   |
| information sources. A comprehensive link list of Regional Clean      |
| Cities Program sites may be useful.                                   |
+-----------------------------------------------------------------------+
| <http://www.altfuels.com/>                                            |
+-----------------------------------------------------------------------+
| The Office of the Federal Environmental Executive maintains lists of  |
| known commercial sources of re-refined oil on its web site to make it |
| easier to purchase re-refined oil for your fleet vehicles. Here is    |
| the link to the commercial sources information. (E.O. 13149 contains  |
| a requirement that agencies purchase re-refined oil and retread       |
| tires.)                                                               |
+-----------------------------------------------------------------------+
| <http://www.ofee.gov/recycled/recycled.htm>                           |
+-----------------------------------------------------------------------+
| USCAR is the umbrella organization of DaimlerChrysler, Ford and       |
| General Motors, which was formed in 1992 to further strengthen the    |
| technology base of the domestic auto industry through cooperative     |
| research. Information also includes programs associated with various  |
| Federal Agencies such as the Department of Energy and the Department  |
| of Commerce.                                                          |
+-----------------------------------------------------------------------+
| <http://www.uscar.org/index.htm>                                      |
+-----------------------------------------------------------------------+
| Defense Transportation Regulation (DTR) DOD Regulation 4500.9-R-Part  |
| I Passenger Movement                                                  |
+-----------------------------------------------------------------------+
| <http://www.transcom.mil/j5/pt/dtr.html>                              |
+-----------------------------------------------------------------------+
| Army site to search for publications. Motor Transportation, a PDF     |
| file, is Series 58. Travel and other transportation publications can  |
| also be accessed via the search engine. The Army Publishing           |
| Directorate portal is <http://www.usapa.army.mil/>.                   |
+-----------------------------------------------------------------------+
| <http://www.usapa.army.mil/USAPA_PUB_search_P.asp>                    |
+-----------------------------------------------------------------------+
| Air Force site for 24 series transportation publications.             |
+-----------------------------------------------------------------------+
| <http://www.e-publishing.af.mil/pubs/publist.asp?puborg=AF&series=24> |
+-----------------------------------------------------------------------+
| This link provides a portal to the Navy\'s Civil Engineering Support  |
| Equipment (CESE) Program. The Navy\'s vehicle and equipment fleets    |
| are centrally managed by the Naval Facilities Engineering Command and |
| its field offices; Transportation Equipment Management Centers. The   |
| individual Navy commands are responsible for administration           |
+-----------------------------------------------------------------------+
| <https://portal.navfac.navy.mil/po                                    |
| rtal/page?_pageid=181,3462073,181_3462094&_dad=portal&_schema=PORTAL> |
+-----------------------------------------------------------------------+
| This links jumps you directly to Navy fleet management policies as    |
| well as links to many source of fleet information, including          |
| commercial leasing, alternative fuels, and GSA Fleet.                 |
+-----------------------------------------------------------------------+
| <https://portal.navfac.navy.mil/po                                    |
| rtal/page?_pageid=181,3462073,181_3462105&_dad=portal&_schema=PORTAL> |
+-----------------------------------------------------------------------+
| The U.S. Coast Guard motor vehicle manual.                            |
+-----------------------------------------------------------------------+
| <http://www.uscg.mil/ccs/cit/cim/directives/CIM/CIM_11240_9B.pdf>     |
+-----------------------------------------------------------------------+
| APHIS: Animal and Plant Health Inspection Service motor vehicle       |
| manual.                                                               |
+-----------------------------------------------------------------------+
| <http://www.a                                                         |
| phis.usda.gov/mrpbs/manuals_guides/property/motor_vehicle_manual.pdf> |
+-----------------------------------------------------------------------+
| Bureau of Reclamation Federal Property Management Regulations link.   |
+-----------------------------------------------------------------------+
| <http://www.usbr.gov/recman/FPMR/index.htm#38>                        |
+-----------------------------------------------------------------------+
| NIST: National Institute of Standards and Technology motor vehicle    |
| policy.                                                               |
+-----------------------------------------------------------------------+
| <http://www.nist.gov/admin/mo/adman/207.HTM#2.07.04>                  |
+-----------------------------------------------------------------------+
| NOAA: National Oceanic and Atmospheric Administration motor vehicle   |
| policy.                                                               |
|                                                                       |
| <http://www.pps.noaa.gov/New_menu/acquisition.htm>                    |
+-----------------------------------------------------------------------+
| NIH: National Institutes of Health Policy Manual, 26101-38 --         |
| Official Use of Government Motor Vehicles, Release Date: 08/15/02.    |
+-----------------------------------------------------------------------+
| <http://www1.od.nih.gov/oma/manualchapters/acquisitions/26101-38/>    |
+-----------------------------------------------------------------------+
| DOE: Department of Energy Title 41\--Public Contracts and Property    |
| Management, Chapter 109\--Department of Energy Property Management    |
| Regulations, Part 109-38\--Motor Equipment Management                 |
+-----------------------------------------------------------------------+
| <http://www.access.gpo.gov/nara/cfr/waisidx_00/41cfr109-38_00.html>   |
+-----------------------------------------------------------------------+
| FWS: Fish & Wildlife Service Vehicle and Equipment Management (Parts  |
| 320-329), Motor Vehicle Management (Part 320).                        |
+-----------------------------------------------------------------------+
| <http://www.fws.gov/policy/ser300.html>                               |
+-----------------------------------------------------------------------+
| U.S. Attorneys 3-13.000 Procurement/Property Management, including    |
| motor vehicle management.                                             |
+-----------------------------------------------------------------------+
| <http                                                                 |
| ://www.usdoj.gov/usao/eousa/foia_reading_room/usam/title3/13musa.htm> |
+-----------------------------------------------------------------------+
| IRS: Internal Revenue Service, Part 1. Administration, Chapter 14.    |
| Real Estate and Facilities Management, Section 7. Motor Vehicle       |
| Management.                                                           |
+-----------------------------------------------------------------------+
| <http://www.irs.gov/irm/part1/ch11s08.html>                           |
+-----------------------------------------------------------------------+
| Department of Veterans Affairs Transportation and Traffic Management. |
+-----------------------------------------------------------------------+
| <http://www1.va.gov/oamm/policy/7240h.htm>                            |
+-----------------------------------------------------------------------+
| U.S. Geological Survey Manual, 409.1 -- Personal Property -- Vehicle  |
| Management.                                                           |
+-----------------------------------------------------------------------+
| <http://www.usgs.gov/usgs-manual/400/409-1.html>                      |
+-----------------------------------------------------------------------+
| The Gov Online Learning Center, commonly known as *Go Learn*, is a    |
| fully integrated "learning center of excellence with e-Training       |
| courseware and performance- support tools." It includes free access   |
| to e-Learning products and services, directly to desktops via the Gov |
| Online Learning Center, which includes approximately 55 e-courses,    |
| 15,000 searchable learning objects (self contained, complete subjects |
| which can be used for just-in-time learning, research and problem     |
| solving), a library of online books, access to live instructors and   |
| subject matter experts for desktop applications, several              |
| custom-developed courses that are provided free to all Federal        |
| agencies, and access to competency management tools. The catalog of   |
| free resources covers: Communication, Customer Service, E-Learning,   |
| Human Resources, IT Security, Leadership, Legislatively Mandated &    |
| Agency Required Topics, Management, PC and Business Applications,     |
| Personal Development, Problem Solving and Decision Making, Project    |
| Management, Support Professionals, Team Building, Test Prep.          |
+-----------------------------------------------------------------------+
| [www.GoLearn.gov](http://www.GoLearn.gov/)                            |
+-----------------------------------------------------------------------+
| Established in 1921 by the Secretary of Agriculture, the mission of   |
| the Graduate School, USDA, is to improve the performance of           |
| Government and to provide opportunities for individual lifelong       |
| learning through education, training and related services. The        |
| Graduate School does not grant degrees, but it does offer             |
| certification for selected disciplines. Although associated with      |
| USDA, the Graduate School is self-sustaining through tuitions and     |
| fees and receives no Federal funds. Various courses, such as those in |
| property management, are relevant to Federal Fleet Managers.          |
+-----------------------------------------------------------------------+
| [www.grad.usda.gov](http://www.grad.usda.gov/)                        |
+-----------------------------------------------------------------------+
| The U.S. General Services Administration\'s Federal Acquisition       |
| Institute (FAI) Online University has developed an internet-based     |
| course for contracting officer representatives (CORs) entitled the    |
| COR Mentor. The course is available at no charge for use by both      |
| public and private-sector acquisition communities. The FAI Online     |
| University offers 18 certificates for different COR duties, such as   |
| participating in post-award orientations, monitoring contractor       |
| performance and administering the property clause.                    |
+-----------------------------------------------------------------------+
| [http://www.faionline.com](http://www.faionline.com/)                 |
+-----------------------------------------------------------------------+
| This link takes you to an on-line source for car prices and other     |
| vehicle cost information.                                             |
+-----------------------------------------------------------------------+
| <http://www.car-prices-costs.com/>                                    |
+-----------------------------------------------------------------------+
| This link takes you to one of the most comprehensive independent      |
| sources of automotive information, including car reviews, a ranking   |
| of vehicles by fuel use, crash data, tire safety, even latest U.S.    |
| road conditions.                                                      |
+-----------------------------------------------------------------------+
| <http://www.theautochannel.com/>                                      |
+-----------------------------------------------------------------------+
| The Kelly Blue Book site is a key source of new and used vehicle      |
| pricing information.                                                  |
+-----------------------------------------------------------------------+
| <http://www.kbb.com/>                                                 |
+-----------------------------------------------------------------------+
| The Edmunds.com site is a key source of new and used vehicle pricing  |
| information.                                                          |
+-----------------------------------------------------------------------+
| <http://www.edmunds.com/>                                             |
+-----------------------------------------------------------------------+
| This link takes you to a source of comprehensive automobile make and  |
| model information.                                                    |
+-----------------------------------------------------------------------+
| <http://www.intellichoice.com/>                                       |
+-----------------------------------------------------------------------+
| A consumer guide to leasing produced by the Federal Reserve Board.    |
+-----------------------------------------------------------------------+
| <http://www.federalreserve.gov/pubs/leasing/resource/default.cfm>     |
+-----------------------------------------------------------------------+
| The Federal Highway Administration (FHWA) is a part of the U.S.       |
| Department of Transportation and is headquartered in Washington,      |
| D.C., with field offices across the United States. Its top priorities |
| are to make transportation safer and more secure, to reduce traffic   |
| congestion, and to preserve the environment. FHWA links accessed      |
| through the Links menu tab may be especially useful, which includes   |
| links to all State transportation web sites.                          |
+-----------------------------------------------------------------------+
| <http://www.fhwa.dot.gov/index.html>                                  |
+-----------------------------------------------------------------------+
| The Bureau of Transportation Statistics falls under the Department of |
| Transportation. Its web site provides a comprehensive list of         |
| research resources, including links to all transportation libraries   |
| and to the research departments of vehicle manufacturers, to name a   |
| few.                                                                  |
+-----------------------------------------------------------------------+
| <http://www.bts.gov/>                                                 |
+-----------------------------------------------------------------------+
| This link provides a search function for millions of articles,        |
| including many on automobiles and on fleet management (both public    |
| and private sector).                                                  |
+-----------------------------------------------------------------------+
| <http://www.findarticles.com/>                                        |
+-----------------------------------------------------------------------+
| This link takes you to the Department of Transportation portal where  |
| you can access content on automobiles, trucking, truck driving, and   |
| much more.                                                            |
+-----------------------------------------------------------------------+
| <http://www.dot.gov/>                                                 |
+-----------------------------------------------------------------------+
| This link takes you to the portal for the National Highway Traffic    |
| Safety Administration (NHTSA, part of the Department of               |
| Transportation) and its research and information vehicles and highway |
| safety.                                                               |
+-----------------------------------------------------------------------+
| <http://www.nhtsa.dot.gov/>                                           |
+-----------------------------------------------------------------------+
| The U.S. DOT\'s Transportation Safety Institute offer self-paced      |
| training for motor carriers over the Internet. Administrators,        |
| drivers, safety managers, mechanics, owner/operators, auditors, and   |
| inspectors can access training on the Federal Motor Carrier Safety    |
| Regulations (FMCSRs Title 49) anytime, anyplace, 365 days a year.     |
+-----------------------------------------------------------------------+
| <http://www.motorcarriertraining.com/>                                |
+-----------------------------------------------------------------------+
| GSA\'s National Safety Program - Driver Safety & Vehicle Operation    |
| Video Library. It\'s free.                                            |
+-----------------------------------------------------------------------+
| <http://www.gsa.gov/Port                                              |
| al/gsa/ep/contentView.do?noc=T&contentType=GSA_BASIC&contentId=16052> |
+-----------------------------------------------------------------------+
| The Federal Motor Carrier Safety Administration (FMCSA) was           |
| established as a separate administration within the U.S. Department   |
| of Transportation on January 1 to provide safety resources for DOT    |
| and OSHA compliance. You can access regulations and training          |
| materials through this link.                                          |
+-----------------------------------------------------------------------+
| <http://www.nsc-dot.com/>                                             |
+-----------------------------------------------------------------------+
| This link takes you to OSHA's portal and information affecting        |
| hazardous materials and employee safety.                              |
+-----------------------------------------------------------------------+
| <http://www.osha.gov/>                                                |
+-----------------------------------------------------------------------+

**[Table of Contents]{.underline}**

Click on any section title, any section Table of Contents or any listed
topic under any Table of Contents to jump to that topic.

[**Section 2**](#_Hlk115688089)

[**The Legal Basis for Federal Fleet Management**](#_Hlk115688089)

[**Section 2 Table of Contents**](#_Hlk115761939)

[**2.1 Useful Links**](#OLE_LINK2)

[**2.2 Basis for Federal Fleet Management in Law and
Regulation**](#hlk115760964)

[**2.3 Sources of Information on Laws and Regulations**](#hlk115761010)

> [**2.3.1 Federal Register**](#hlk115761036)
>
> [**2.3.2 Code of Federal Regulations**](#hlk115761066)
>
> [**2.3.3 FPMR and FMR**](#hlk115761097)
>
> [**2.3.4 Federal Acquisition Regulation (FAR)**](#hlk115761116)
>
> [**2.3.5 Individual Agency Regulations**](#hlk115761165)
>
> [**2.3.6 GSA Reports and Bulletins**](#hlk115761193)

[**2.4 Public Law 99-272**](#hlk115761330)

[**2.5 Fleet Management Systems**](#hlk115761351)

[**2.6 Additional Laws & Executive Orders**](#hlk115761410)

> [**2.6.1 Summary of Key AFV Related Legislation**](#OLE_LINK3)

[**Section 3**](#_Hlk115688228)

[**General Management**](#_Hlk115688228)

[**Section 3 Table of Contents**](#_Hlk115836169)

[**3.1 Useful Links**](#hlk115836217)

[**3.2 Who Needs a Full-Time Fleet Manager?**](#hlk115836261)

[**3.3 Roles of the Fleet Manager**](#hlk115836289)

[**3.3.1 Manager**](#hlk115836325)

[**3.3.2 Supervisor**](#hlk115836352)

[**3.3.3 Communicator**](#hlk115836392)

[**3.3.4 Financial Analyst**](#hlk115836417)

[**3.3.5 Vehicle Technician**](#hlk115836448)

[**3.3.6 Procurement Officer**](#hlk115836479)

[**3.3.7 Vehicle Disposal Manager**](#hlk115836532)

[**3.3.8 Trainer**](#hlk115836562)

[**3.4 Overview of Fleet Management Responsibilities**](#hlk115836598)

####### [3.4.1 Federal Fleet Management as Logistics Management ](#_Hlk115836631) [3.4.2 Federal Fleet Management as Transportation Management](#_Hlk115836661)

####### [3.4.3 Federal Fleet Management as Property Management](#_Hlk115836733)

####### [3.4.4 The Fleet Management Process](#_Hlk115836774)

####### [3.5 Fleet Management in the Federal Government](#_Hlk115836814)

####### [3.5.1 Policy Development and Application](#_Hlk115836868)

####### [3.5.2 Asset Management](#_Hlk115836904)

####### [3.5.3 Fleet Services Delivery](#_Hlk115836940)

[**3.6 Fleet Management Issues**](#hlk115836976)

####### [3.6.1 Vehicle Selection](#_Hlk115837012)

####### [3.6.2 Fleet Cost and Operating Data](#_Hlk115837047)

####### [3.6.3 Commercial or In-house Fleet Management](#_Hlk115837087)

[**3.7 Standards of Ethical Conduct**](#hlk115837130)

[**3.8 Contracting and Procurement**](#hlk115837170)

[**3.8.1 Role of the Contracting Officer (CO)**](#hlk115837225)

[**3.8.2 Elements of a Contract**](#hlk115837260)

[**3.8.3 Selecting a Contract Type**](#hlk115837399)

[**3.8.4 Characteristics of Contract Types**](#hlk115837282)

[**3.8.5 Time and Materials and Labor-Hour Contracts**](#hlk115837511)

[**3.9 Policies & Procedures**](#hlk115837545)

[**3.9.1 Some Policy Issues**](#hlk115837580)

[**3.10 Communication**](#hlk115837689)

[**3.11 Information Technology**](#hlk115837729)

[**3.11.1 Some Advantages of a Fleet Management Information System
(FMIS)**](#hlk115837769)

> [**3.11.2 Meaningful Management Reports without Tons of
> Paper**](#hlk115837798)

[**Section 4**](#_Hlk115691582)

[**Fleet Asset Management**](#_Hlk115691582)

[**Section 4 Table of Contents**](#_Hlk115838606)

[**4.1 Useful Links**](#_Hlk116890809)

[**4.2 Best Practices: Vehicle Acquisition, Replacement and
Disposal**](#hlk116890834)

> [**4.2.1 Acquisition**](#hlk116890854)
>
> [**4.2.2 Replacement and Disposal**](#hlk116890880)

[**4.3 Fleet Composition**](#_Hlk116890908)

[**4.3.1 Needs Assessment Process**](#_Hlk116890938)

[**4.3.2 The Current State**](#hlk116890972)

[**4.3.3 Accomplishing the Agency Mission and the Duration of the
Need**](#hlk116891011)

[**4.3.4 Vehicle Utilization**](#hlk116891039)

[**4.3.5 Breakeven Analysis**](#hlk116891074)

[**4.4 Alternative Fuel Vehicles (AFV)**](#hlk116891115)

[**4.4.1 Summary of Key AFV Related Legislation**](#hlk116891151)

[**4.4.2 Reduce Petroleum Consumption for Your Fleet**](#hlk116891192)

[**4.4.3 Choosing an AFV**](#hlk116891237)

> [**4.4.4 Types of Alternative Fuels, Vehicles, Configurations and
> Infrastructure**](#hlk116891268)

[**4.4.5 Exemptions**](#hlk116891315)

[**4.4.6 Calculating Average Fuel Economy for Your
Fleet**](#hlk116891361)

[**4.5 Acquisition**](#hlk116891401)

[**4.5.1 Use of Public Transportation**](#hlk116891448)

[**4.5.2 Privately Owned Vehicles (POV)**](#hlk116891492)

[**4.5.3 Motor Pool Use in Lieu of Permanent
Assignment**](#hlk116891883)

[**4.5.4 Excess Vehicles**](#hlk116891940)

[**4.5.5 Seized/Forfeited Vehicles**](#hlk116891993)

[**4.5.6 Federal Acquisition Standards**](#hlk116892026)

[**4.5.7 Vehicle Mix**](#hlk116892095)

[**4.5.8 Additional Standards**](#hlk116892234)

[**4.5.9 Vehicle Justification**](#hlk116892284)

[**4.5.10 Controlling the Costs of Acquisition**](#hlk116892365)

[**4.5.11 Federal Fleet Leasing and Purchasing**](#_Hlk116892493)

[**4.5.12 Commercial Leasing: Lease Contracts and Lease
Financing**](#hlk116892599)

[**4.6 GSA Fleet Services**](#hlk116892652)

[**4.6.1 Maintenance and Repair Services**](#hlk116892706)

[**4.6.2 Fuel, Oil and Charge Card Services**](#hlk116892787)

[**4.6.3 Shuttle and Driver Services**](#hlk116892826)

[**4.6.4 Agency Chargebacks for GSA IFMS Services**](#hlk116892867)

[**4.6.5 Contractor Chargebacks for GSA IFMS Services**](#hlk116892901)

[**4.7 Disposal**](#_Hlk116892972)

[**4.7.1 Exchange/Sale of Motor Vehicles**](#_Hlk116893023)

[**4.7.2 Temporary Vehicle Storage**](#hlk116893094)

[**4.7.3 Reporting Motor Vehicles for Exchange/Sale**](#hlk116893142)

[**4.7.4 Preparing Motor Vehicles for Sale**](#hlk116893222)

[**4.7.5 Marketing Motor Vehicle Sales**](#hlk116893264)

[**4.7.6 Excess Motor Vehicles**](#hlk116893311)

[**4.7.7 Transfer of Government-owned Vehicle Title**](#hlk116893361)

[**Section 5**](#_Hlk115691679)

[**Fleet Operations Management**](#_Hlk115691679)

[**Section 5 Table of Contents**](#_Hlk115838842)

[**5.1 Useful Links**](#_Hlk116893475)

[**5.2 Consistent Classification Codes, Data Elements, and Terminology
-- A Federal Fleet Best Practice**](#_Hlk116893493)

[**5.3 Classification System and Equivalent-Unit Comparisons -- A Best
Practice**](#hlk116893518)

[**5.4 Contractor Use of Government Vehicles and
Equipment**](#hlk116893553)

[**5.5 Policies and Procedures -- A Best Practice**](#hlk116893586)

[**5.6 Cost Chargeback System -- A Best Practice**](#hlk116893610)

[**5.7 The Basics of Vehicle Costs**](#hlk116893648)

[**5.7.1 Fuel**](#hlk116893673)

[**5.7.2 Oil**](#hlk116893715)

[**5.7.3 Maintenance**](#hlk116893768)

[**5.7.4 Tires**](#hlk116893797)

[**5.8 Performance Measures for Effective Fleet
Management**](#hlk116893848)

[**5.9 Record Keeping and Cost Control**](#hlk116893887)

[**5.9.1 Accountable Inventory Items**](#hlk116893938)

[**5.9.2 Motor Vehicle Inventory and Control**](#hlk116893975)

[**5.9.3 Federal Reporting**](#hlk116894027)

[**5.9.4 Federal Automotive Statistical Tool (FAST)**](#hlk116894115)

[**5.9.5 GSA Fleet Drive-Thru**](#hlk116894159)

[**5.9.6 Direct Fleet Costs**](#hlk116894198)

[**5.9.7 Indirect or General Fleet Costs**](#hlk116894241)

[**5.9.8 Operations Reporting**](#hlk116894315)

[**5.9.9 Federal Vehicle Inventory Standards**](#hlk116894363)

[**5.9.10 Recording of License Plate Numbers**](#hlk116894419)

[**5.9.11 Maintenance and Service Records**](#hlk116894452)

[**5.9.12 Charge Cards**](#hlk116894495)

[**5.10 Receipt of Motor Vehicles**](#hlk116894523)

[**5.10.1 Deficiency Reporting**](#hlk116894566)

[**5.10.2 Vehicle Identification Form**](#hlk116894605)

[**5.10.3 Vehicle Warranties**](#hlk116894663)

[**5.10.4 Notification of Vehicle Defects**](#hlk116894695)

[**5.10.5 Vehicle Registration, Identification and
Exemptions**](#_Hlk116894739)

[**5.11 Vehicle Assignment and Use**](#hlk116894787)

[**5.11.1 Vehicle Assignment**](#_Hlk116894836)

[**5.11.2 Official Use versus Incidental Use**](#hlk116894896)

[**5.11.3 Traffic Law Violation**](#hlk116894934)

[**5.11.4 POVs (privately owned vehicles)**](#hlk116894963)

[**5.11.5 Unauthorized POV Use**](#hlk116895101)

[**5.12 Fleet Charge Cards**](#hlk116895253)

[**5.12.1 GSA Fleet and the Fleet Charge Card**](#hlk116895296)

[**5.12.2 Charge Card Authorizations**](#hlk116895326)

[**5.13 Vehicle Utilization**](#hlk116895364)

[**5.13.1 Heavy Duty Equipment**](#hlk116895418)

[**5.13.2 Using Utilization for Fleet Right-Sizing**](#hlk116895459)

[**5.14 Maintenance and Repair**](#_Hlk116895497)

[**5.14.1 Best Practices**](#_Hlk116895553)

[**5.14.2 Vehicle Needs Determination**](#hlk116895607)

[**5.14.3 Objectives of a Fleet Maintenance Program**](#hlk116895658)

[**5.14.4 Scheduled and Unscheduled Maintenance**](#hlk116895720)

[**5.14.5 Four Approaches to Federal Fleet Maintenance**](#hlk116895832)

[**5.15 Fuel Management**](#_Hlk116895934)

[**5.15.1 Fuel Management Best Practices**](#_Hlk116895968)

[**5.15.2 Fuel Consumption**](#hlk116896027)

[**5.15.3 Performance Measures**](#hlk116896102)

[**5.16 Motor Pool Management**](#_Hlk116896149)

[**5.16.1 Best Practices**](#_Hlk116896248)

[**5.16.2 Assignment through Use of Dispatch or Shared Vehicle Usage
(Pools)**](#hlk116896296)

[**5.16.3 Motor Pool Performance Measures**](#hlk116896346)

[**5.16.4 Rental: A Motor Pool Alternative?**](#hlk116896396)

[**Section 6**](#_Hlk115691723)

[**Risk Management**](#_Hlk115691723)

[**Section 6 Table of Contents**](#_Hlk115839196)

[**6.1 Useful Links**](#_Hlk116896451)

[**6.2 Safety Management: Drivers & Vehicles**](#hlk116896465)

[**6.2.1 Risk Management and Accident Management
Programs**](#hlk116896488)

[**6.2.2 Insurance Coverage**](#_Hlk116896535)

[**6.2.3 Motor Vehicle Safety**](#hlk116896586)

[**6.2.4 Driver Training**](#hlk116896624)

[**6.3 Safety Management: Garage Operations**](#_Hlk116896674)

[**6.3.1 In-House Maintenance Shop Safety**](#_Hlk116896734)

[**6.4 Crash Management**](#_Hlk116896776)

[**6.4.1 Accidents and Claims**](#_Hlk116896811)

[**6.5 Hazardous Materials**](#_Hlk116896856)

[**6.5.1 Employees\' Right to Know about Hazardous
Materials**](#_Hlk116896891)

[**6.5.2 The Fleet Manager\'s Responsibility**](#hlk116896929)

[**Attachments**](#_Hlk116896985)

[**Attachment 1: Communication**](#_Hlk116896998)

[**Attachment 2:**](#_Hlk116991677)

[**Primer on Primary Motor Vehicle Systems**](#_Hlk116991677)

[]{#_Hlk115688089 .anchor}**[Section 2]{.underline}**

**The Legal Basis for Federal Fleet Management**

This section covers the legal basis for fleet management within the
Federal Government. Click on any of the topic links below to go to the
related content.

[]{#_Hlk115761939 .anchor}**[Section 2 Table of Contents]{.underline}**

[**2.1 Useful Links**](#OLE_LINK2)

[**2.2 Basis for Federal Fleet Management in Law and
Regulation**](#hlk115760964)

[**2.3 Sources of Information on Laws and Regulations**](#hlk115761010)

> [**2.3.1 Federal Register**](#hlk115761036)
>
> [**2.3.2 Code of Federal Regulations**](#hlk115761066)
>
> [**2.3.3 FPMR and FMR**](#hlk115761097)
>
> [**2.3.4 Federal Acquisition Regulation (FAR)**](#hlk115761116)
>
> [**2.3.5 Individual Agency Regulations**](#hlk115761165)
>
> [**2.3.6 GSA Reports and Bulletins**](#hlk115761193)

[**2.4 Public Law 99-272**](#hlk115761330)

[**2.5 Fleet Management Systems**](#hlk115761351)

[**2.6 Additional Laws & Executive Orders**](#hlk115761410)

> [**2.6.1 Summary of Key AFV Related Legislation**](#OLE_LINK3)

[]{#OLE_LINK2 .anchor}**[2.1 Useful Links]{.underline}**

+-----------------------------------------------------------------------+
| Congress enacted the repeatedly amended Federal Property and          |
| Administrative Services (FPAS) Act in 1949 (40 U.S.C. 471-535 and     |
| other U.S.C. sections), establishing GSA as a central organization to |
| provide an economic and efficient system for the procurement, supply, |
| and disposal of surplus property, and performance of related          |
| functions. The Act sets forth requirements for the management and     |
| disposal of Government property, including excess property (property  |
| under the control of any Federal Agency, but which it no longer       |
| needs) and surplus property (excess property not required for the     |
| needs of any Federal Agency). It provides a foundation for fleet      |
| management through property management law.                           |
+-----------------------------------------------------------------------+
| <http://epw.senate.gov/fpasa49.pdf>                                   |
+-----------------------------------------------------------------------+
| Public Law 766 authorizes GSA to operate motor vehicle pools and      |
| directs the Administrator to report the unauthorized use of           |
| Government-owned vehicles. It is codified in Title 40, Chapter 10,    |
| Subchapter II, § 491, Motor vehicle pools and transportation systems, |
| accessed through the link below.                                      |
+-----------------------------------------------------------------------+
| [http://www4.law.cornell.edu/uscode/search/display.html?terms=Se      |
| ction%20491&url=/uscode/html/uscode40/usc_sec_40_00000491\-\-\--000-. |
| html](http://www4.law.cornell.edu/uscode/search/display.html?terms=Se |
| ction 491&url=/uscode/html/uscode40/usc_sec_40_00000491----000-.html) |
+-----------------------------------------------------------------------+
| Administrative law is published in the Code of Federal Regulations    |
| (CFR).                                                                |
+-----------------------------------------------------------------------+
| <http://www.access.gpo.gov/nara/cfr/cfr-table-search.html>            |
+-----------------------------------------------------------------------+
| The FMR is the successor regulation to the Federal Property           |
| Management Regulation (FPMR). It contains updated regulatory policies |
| originally found in the FPMR. However, it does not contain FPMR       |
| material that described how to do business with the GSA.              |
+-----------------------------------------------------------------------+
| <http://www.gsa.                                                      |
| gov/Portal/gsa/ep/programView.do?pageTypeId=8199&ooid=14205&programPa |
| ge=%2Fep%2Fprogram%2FgsaDocument.jsp&programId=8922&channelId=-14864> |
+-----------------------------------------------------------------------+
| This edition of the FTR is the \"working copy\" of the official 41    |
| Code of Federal Regulations (CFR) chapters 300-304, which implements  |
| statutory requirements and Executive Branch policies for travel by    |
| federal civilian employees and others authorized to travel at         |
| Government expense.                                                   |
+-----------------------------------------------------------------------+
| <http://www.gsa.                                                      |
| gov/Portal/gsa/ep/programView.do?pageTypeId=8199&ooid=14161&programPa |
| ge=%2Fep%2Fprogram%2FgsaDocument.jsp&programId=8955&channelId=-14863> |
+-----------------------------------------------------------------------+
| Published by the Office of the Federal Register, National Archives    |
| and Records Administration (NARA), the *Federal Register* is the      |
| official daily publication for rules, proposed rules, and notices of  |
| Federal Agencies and organizations, as well as Executive Orders and   |
| other presidential documents.                                         |
+-----------------------------------------------------------------------+
| <http://www.gpoaccess.gov/fr/>                                        |
+-----------------------------------------------------------------------+
| Motor Vehicle Management programs and policies, which fall under      |
| GSA's Office of Governmentwide Policy, can be accessed via this       |
| direct link, or you can reach it through GSA's web portal by placing  |
| your cursor over Policy on the menu bar of the home page. At this     |
| site, you have links to key information, including regulations,       |
| bulletins, fleet services, reports, FAST, EPAct, alternative fuels,   |
| and more.                                                             |
+-----------------------------------------------------------------------+
| <http://www.gsa.gov/Portal/gsa/ep/channelView.do?page                 |
| TypeId=8203&channelPage=/ep/channel/gsaOverview.jsp&channelId=-13175> |
+-----------------------------------------------------------------------+
| The FAR was established to codify uniform policies for acquisition of |
| supplies and services by Executive Agencies. Statutory authorities to |
| issue and revise the FAR have been delegated to the Procurement       |
| Executives in DOD, GSA and NASA. The GSA Federal Acquisition Policy   |
| Division maintains the FAR Secretariat to act as the publication and  |
| administrative support arm of the FAR.                                |
+-----------------------------------------------------------------------+
| <http://www.arnet.gov/far/>                                           |
+-----------------------------------------------------------------------+
| The reporting procedures of Standard Form 82, Agency Report of Motor  |
| Vehicle Data are now accomplished through use of the [Federal         |
| Automotive Statistical Tool (FAST)                                    |
| System](http://fastweb.inel.gov/).  Per the requirements of [OMB      |
| Circular A-11 Exhibit 33 Section                                      |
| 33.9](http://www.whitehouse.gov/omb/circulars/a11/2002/S33.pdf),      |
| Federal Agencies must report annually on their motor vehicles in the  |
| Motor Vehicle Exhibit (also referred to as Exhibit 33).  Agencies use |
| [FAST](http://fastweb.inel.gov/) to report their planned vehicle      |
| acquisitions and disposals as well as their vehicle acquisition and   |
| fleet operating costs.                                                |
+-----------------------------------------------------------------------+
| <http://fastweb.inel.gov/>                                            |
+-----------------------------------------------------------------------+
| Executive Orders are official documents, numbered consecutively,      |
| through which the President of the United States manages the          |
| operations of the Federal Government. The text of Executive Orders    |
| appears in the daily [*Federal                                        |
| Register*](http:                                                      |
| //www.archives.gov/federal-register/the-federal-register/about.html). |
| All Executive Orders, including #13149, Greening the Government       |
| Through Federal Fleet and Transportation Efficiency, can be found via |
| the link below.                                                       |
+-----------------------------------------------------------------------+
| <http:/                                                               |
| /www.archives.gov/federal-register/executive-orders/disposition.html> |
+-----------------------------------------------------------------------+
| For the Executive Order and detailed information on EPAct and #13149, |
| a link to FAST, and helpful guidance relating to alternative fuels    |
| and alternative fuel vehicles, click on the following EPA link.       |
+-----------------------------------------------------------------------+
| <h                                                                    |
| ttp://www.eere.energy.gov/vehiclesandfuels/epact/federal/index.shtml> |
+-----------------------------------------------------------------------+
| EO 12764 - Standards of Ethical Conduct.                              |
+-----------------------------------------------------------------------+
| <http://www.usog                                                      |
| e.gov/pages/laws_regs_fedreg_stats/lrfs_files/exeorders/eo12674.html> |
+-----------------------------------------------------------------------+
| Clean Air Act as amended in 1990.                                     |
+-----------------------------------------------------------------------+
| <http://www.epa.gov/oar/oaq_caa.html/>                                |
+-----------------------------------------------------------------------+
| H.R.776, Energy Policy Act of 1992***.***                             |
+-----------------------------------------------------------------------+
| <http://thomas.loc.gov/cgi-bin/query/z?c102:H.R.776.ENR>:             |
+-----------------------------------------------------------------------+
| Public Law 103-62 - Government Performance and Results Act of 1993    |
| (GPRA) - establishes need for strategic planning and performance      |
| measurement in the Federal Government.                                |
+-----------------------------------------------------------------------+
| <http://www.orau.gov/pbm/links/PL103_62.pdf>                          |
+-----------------------------------------------------------------------+
| Defense Transportation Regulation (DTR) DOD Regulation 4500.9-R-Part  |
| I Passenger Movement                                                  |
+-----------------------------------------------------------------------+
| <http://www.transcom.mil/j5/pt/dtr.html>                              |
+-----------------------------------------------------------------------+
| Army site to search for publications. Motor Transportation, a PDF     |
| file, is Series 58. Travel and other transportation publications can  |
| also be accessed via the search engine. The Army Publishing           |
| Directorate portal is <http://www.usapa.army.mil/>.                   |
+-----------------------------------------------------------------------+
| <http://www.usapa.army.mil/USAPA_PUB_search_P.asp>                    |
+-----------------------------------------------------------------------+
| Air Force site for 24 series transportation publications.             |
+-----------------------------------------------------------------------+
| <http://www.e-publishing.af.mil/pubs/publist.asp?puborg=AF&series=24> |
+-----------------------------------------------------------------------+
| This link provides a portal to the Navy\'s Civil Engineering Support  |
| Equipment (CESE) Program. The Navy\'s vehicle and equipment fleets    |
| are centrally managed by the Naval Facilities Engineering Command and |
| its field offices; Transportation Equipment Management Centers. The   |
| individual Navy commands are responsible for administration           |
+-----------------------------------------------------------------------+
| <https://portal.navfac.navy.mil/po                                    |
| rtal/page?_pageid=181,3462073,181_3462094&_dad=portal&_schema=PORTAL> |
+-----------------------------------------------------------------------+
| This links jumps you directly to Navy fleet management policies as    |
| well as links to many source of fleet information, including          |
| commercial leasing, alternative fuels, and GSA Fleet.                 |
+-----------------------------------------------------------------------+
| <https://portal.navfac.navy.mil/po                                    |
| rtal/page?_pageid=181,3462073,181_3462105&_dad=portal&_schema=PORTAL> |
+-----------------------------------------------------------------------+
| The U.S. Coast Guard motor vehicle manual.                            |
+-----------------------------------------------------------------------+
| <http://www.uscg.mil/ccs/cit/cim/directives/CIM/CIM_11240_9B.pdf>     |
+-----------------------------------------------------------------------+
| APHIS: Animal and Plant Health Inspection Service motor vehicle       |
| manual.                                                               |
+-----------------------------------------------------------------------+
| <http://www.a                                                         |
| phis.usda.gov/mrpbs/manuals_guides/property/motor_vehicle_manual.pdf> |
+-----------------------------------------------------------------------+
| NIST: National Institute of Standards and Technology motor vehicle    |
| policy.                                                               |
+-----------------------------------------------------------------------+
| <http://www.nist.gov/admin/mo/adman/207.HTM#2.07.04>                  |
+-----------------------------------------------------------------------+
| NOAA: National Oceanic and Atmospheric Administration motor vehicle   |
| policy.                                                               |
|                                                                       |
| <http://www.pps.noaa.gov/New_menu/acquisition.htm>                    |
+-----------------------------------------------------------------------+
| NIH Policy Manual, 26101-38 -- Official Use of Government Motor       |
| Vehicles, Release Date: 08/15/02.                                     |
+-----------------------------------------------------------------------+
| <http://www1.od.nih.gov/oma/manualchapters/acquisitions/26101-38/>    |
+-----------------------------------------------------------------------+
| Title 41\--Public Contracts and Property Management, Chapter          |
| 109\--Department of Energy Property Management Regulations, Part      |
| 109-38\--Motor Equipment Management                                   |
+-----------------------------------------------------------------------+
| <http://www.access.gpo.gov/nara/cfr/waisidx_00/41cfr109-38_00.html>   |
+-----------------------------------------------------------------------+
| FWS: Fish & Wildlife Service Vehicle and Equipment Management (Parts  |
| 320-329), Motor Vehicle Management (Part 320).                        |
+-----------------------------------------------------------------------+
| <http://www.fws.gov/policy/ser300.html>                               |
+-----------------------------------------------------------------------+
| U.S. Attorneys 3-13.000 Procurement/Property Management, including    |
| motor vehicle management.                                             |
+-----------------------------------------------------------------------+
| <http                                                                 |
| ://www.usdoj.gov/usao/eousa/foia_reading_room/usam/title3/13musa.htm> |
+-----------------------------------------------------------------------+
| IRS: Internal Revenue Service, Part 1. Administration, Chapter 14.    |
| Real Estate and Facilities Management, Section 7. Motor Vehicle       |
| Management.                                                           |
+-----------------------------------------------------------------------+
| <http://www.irs.gov/irm/part1/ch11s08.html>                           |
+-----------------------------------------------------------------------+
| Department of Veterans Affairs Transportation and Traffic Management. |
+-----------------------------------------------------------------------+
| <http://www1.va.gov/oamm/policy/7240h.htm>                            |
+-----------------------------------------------------------------------+
| U.S. Geological Survey Manual, 409.1 -- Personal Property -- Vehicle  |
| Management.                                                           |
+-----------------------------------------------------------------------+
| <http://www.usgs.gov/usgs-manual/400/409-1.html>                      |
+-----------------------------------------------------------------------+

**[2.2 Basis for Federal Fleet Management in Law and
Regulation]{.underline}**

[]{#hlk115760964 .anchor}"Statutory law" and "administrative law" are
the foundation for the fleet management function in the Federal
Government. The United States Code (USC), which contains the laws passed
and amended by Congress, is the source of "statutory law." Federal,
Departmental, and Agency regulations, which implement or apply the
statutory law, are termed "administrative law."

Both statutory law and administrative law are legally binding; that is,
they form the legal basis for a Federal Fleet Manager's actions. More
importantly, they require that the business of fleet management occur
within a legal framework, so Fleet Managers need a working knowledge of
the pertinent regulations.

The Federal Property and Administrative Services Act of 1949, as
amended, most directly affects property management. Effective July 1,
1949, Section 2 of the Act states:

> It is the intent of the Congress in enacting this legislation to
> provide for the Government an economical and efficient system for (a)
> the procurement and supply of personal property and non-personal
> services, including related functions such as contracting, inspection,
> storage, issue, specifications, property identification and
> classification, transportation and traffic management, establishment
> of pools or systems for transportation of Government personnel and
> property by motor vehicle within specific areas, management by public
> utility services, repairing and converting, establishment of inventory
> levels, establishment of forms and procedures, and representation
> before Federal and State regulatory bodies; (b) the utilization of
> available property; (c) the disposal of surplus property; and (d)
> records management.

The Act also established The General Services Administration under Title
I, Section 101 (a):

> There is hereby established an agency in the executive branch of the
> Government which shall be known as the General Services
> Administration.

Public Law (PL) 766 amended the Act to authorize GSA to operate motor
vehicle pools and directed the Administrator to report the unauthorized
use of GOVs (Government Owned Vehicles). PL 766 also authorized the U.
S. Civil Service Commission to regulate operation of GOVs.

Section 204(c) of the Act gave the Administrator of GSA authority to:

> . . . prescribe such regulations as he deems necessary to effectuate
> his functions under this Act, and the head of each executive agency
> shall cause to be issued such orders and directives as such deems
> necessary to carry out such regulations.

Under this legislative authority, the Administrator of GSA established
the Federal Property Management Regulations (FPMR) System. The heads of
Executive Agencies, for the most part, have issued supplementing and
implementing regulations to the FPMR, according to Section 204(c).

The FPMR is codified. This means it is published officially in the Code
of Federal Regulations (CFR), described below. Some Agencies have also
codified their regulations in the CFR. Irrespective of whether an Agency
codifies its regulations in the CFR, if they are written as implementing
or supplementing material of the FPMR, they have the same impact and are
considered "administrative law."

**[2.3 Sources of Information on Laws and Regulations]{.underline}**

[]{#hlk115761010 .anchor}Policies, regulations and procedures
continuously change. Causes of change vary. Some occur because Congress
passes new laws or repeals existing laws. Other changes occur because of
direction from or emphasis by the Executive Department. Keeping in mind
that GSA is responsible for prescribing fleet management regulations for
Executive Agencies, let us examine how these regulation changes reach
you, the individual who implements fleet management. To stay current on
changes, monitor the following sources of information:

**[2.3.1 Federal Register]{.underline}**

[]{#hlk115761036 .anchor}The *Federal Register* is a daily publication
that makes available to the public those regulations and legal notices
issued by Federal Agencies. These include:

-   Presidential Proclamations

-   Executive Orders

-   Federal Agency documents having general applicability and legal
    effect

-   Documents that an Act of Congress requires be published

-   Other Federal Agency documents of public interest

When GSA issues implementing regulations that affect the fleet
management responsibilities of Executive Agencies, it must publish them
in the *Federal Register*. When any Federal Agency issues policies and
procedures regarding prop­erty that directly affect the public, these
also must be pub­lished in the *Federal Register*.

In addition, related material on handling of property that does not
affect the public may be published in the *Federal Register* if its
inclusion will provide a logical and comprehensive statement of the
Agency\'s property-management policies and procedures. Publication in
the *Federal Register* constitutes the initial announcement of official
change to existing fleet management regulations.

Regulations published in the *Federal Register* are in loose-leaf form,
while those published in the Code of Federal Regulations are in
accumulated form.

**[2.3.2 Code of Federal Regulations]{.underline}**

[]{#hlk115761066 .anchor}The Code of Federal Regulations (CFR) is a
codification (which means integrated into the entirety of the published
CFR and organized in conformity with its standards) of the general and
permanent rules published in the *Federal Register* by the Executive
Departments and Agencies. It is kept up to date by individual issues of
the *Federal Register*.

To estab­lish the latest version of any given rule, you should check both
publications. You can determine any amendments made since the last
revision date of the Code by consulting the cumulative \"List of CFR
Sections Affected,\" issued monthly, and the \"Cumulative List of Parts
Affected,\" issued daily in the *Federal Register*. These two lists
refer readers to the *Federal Register* page where they can find the
latest amendments of a rule.

The CFR is divided into 50 titles, which represent broad areas subject
to Federal regulations (examples are administration, personnel,
commercial practices, foreign relations, energy, national defense,
public welfare, etc.). Each title is divided into subtitles and
chapters, the latter usually bearing the name of the issuing Agency.
Each chapter is further subdivided into parts covering specific,
regulatory areas.

**[2.3.3 FPMR and FMR]{.underline}**

[]{#hlk115761097 .anchor}The focus of our attention in the CFR is Title
41 \-- Public Contracts and Property Management, Subtitle C \-- Federal
Property Management Regulations System. Chapters 101 and 102 under this
subtitle cover the Federal Property Management Regu­lations (FPMR) and
the Federal Management Regulations (FMR).

In brief, the FPMR System (Subtitle C of Title 41 of the CFR) consists
of:

-   Property management policies and procedures for Government Agencies
    prescribed by the Administrator of General Services (i.e., Chapter
    101 of the FPMR).

-   Implementing and supplementing regulations of various Agencies,
    which expand upon related FPMR material (Chapters 102 through 149).
    Supplementing regulations cover material for which no counterpart
    exists in the FPMR.

Federal Property Management Regulation (FPMR) Subchapter G,
Transportation and Motor Vehicles, Parts 101-38 and 101-39 provide
regulations governing Motor Equipment Management and Inter Agency
Federal Fleet Management Systems (now known as GSA Fleet). These
chapters implement various requirements of Public Law and Executive
Orders.

The FPMR governs and guides Federal Agencies in prescribing regulations,
policies, and procedures pertaining to the management of property and
other programs and activities of the type GSA administers, except
procurement and contract matters contained in the Federal Acquisition
Regulation (FAR, discussed below). They apply to all Federal Agencies to
the extent specified in the Federal Property and Administrative Services
Act or other applicable law, and are developed in consultation with the
affected Agencies.

So where does the FMR come in? GSA is rewriting the regulations in the
FPMR into a plain-language, question-and-answer format for the FMR. The
FMR replaces and supersedes the FPMR. You can jump to the FMR,
Subchapter B -- Personal Property, Part 102-34 -- Motor Vehicle
Management at this link:
<http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelId=-16530&specialContentType=FMR&file=FMR/FMRTOC102-_34.html#wp436256>.

**[2.3.4 Federal Acquisition Regulation (FAR)]{.underline}**

[]{#hlk115761116 .anchor}Issued by GSA, the FAR consists of acquisition
policies and procedures for Government Agencies. They appear as Chapter
1 of Subtitle A of Title 48 of the CFR, the Federal Acquisition
Regulation System. As in the FPMR, succeeding chapters contain
implementing and supplementing acquisition regulations issued by
individual Agencies.

**[2.3.5 Individual Agency Regulations]{.underline}**

[]{#hlk115761165 .anchor}Generally, as with the FAR, most Agencies
supplement the FPMR and the FMR by issuing their own, Agency-specific
property management regulations. Most are not published in the CFR, so
they are not codified, but they typically conform with the CFR numbering
system, including the chapter number assigned to that Agency. As noted
above, chapters in the CFR have been reserved for use by the Federal
Agencies to codify their property management regulations; for example,
Chapter 105 for the General Services Administration, Chapter 109 for the
Department of Energy, and so on. We provide links to a number of these
chapters in the Useful Links, above.

Unless law directed to your Agency authorizes a specific exception, your
Agency must conform to the rules established in the FPMR/FMR. Even when
authorized as an exception by law, the rules your Agency uses will
approximate those stated in the FPMR/FMR.

Controlling Agencies, such as the Office of Management and Budget (OMB)
and the General Accountability Office (GAO), also periodically issue
binding instructions on the management of property. These rules,
although generally not incorporated into the FPMR/FMR, are usually
included in the Agency issuances.

**[2.3.6 GSA Reports and Bulletins]{.underline}**

[]{#hlk115761193 .anchor}GSA publishes and issues many guides,
standards, reports and directories about specific fleet management
subjects. Several examples are shown here, and you will find these and
others discussed elsewhere in this *Guide*.

**2.3.6.1 Federal Fleet Report**

GSA is charged with preparing and issuing the Federal Fleet Report
(FFR), which summarizes fleet data submitted by Agencies and reported to
Congress. The report is used to evaluate and analyze operations and
management of the Federal Fleet. Many Federal Fleet Managers use this
report to benchmark their operations against those of other Federal
organizations.

FMR § 102-34.355 establishes the responsibility of all Federal Agencies
to develop policies and procedures for maintaining and reporting
inventory, cost and operating data on Government-owned and-leased
vehicles. The reporting requirements of Standard Form 82, Agency Report
of Motor Vehicle Data, are now accomplished through the Federal
Automotive Statistical Tool (FAST) system. The Federal Fleet Report
derives from the FAST system.

All Agencies must report vehicle inventory and commercial leasing
information. Large fleets (over 2,000 vehicles) must also report on
cost, mileage and fuel used; small fleets may report these data
voluntarily. Whether a fleet is large or small depends on the management
structure within the Agency; consequently, a single Agency may have
multiple fleets, including large, small, or both.

**2.3.6.2 Bulletins & Standards**

Among its Bulletins, GSA has published Federal Standards for
Automobiles, Light and Medium Trucks. Standards for automobiles and
light and medium trucks are published in Federal Standards Number 122
(sedans and station wagons), 307 (light truck 4x2), 292 (light truck
4x4) and 794 (medium truck). The purpose of these and comparable
documents is to achieve a practical degree of standardization in the
Federal automotive fleet while recognizing the wide range of vehicles
required to meet the needs of various Agencies.

**[2.4 Public Law 99-272]{.underline}**

[]{#hlk115761330 .anchor}Public Law 99-272 (the Consolidated Omnibus
Budget Reconciliation Act of 1985) required the President, the Director
of the Office of Management and Budget (OMB), the Administrator of GSA,
and the Comptroller General of the United States and the heads of
Federal Agencies to take action to improve the management and efficiency
of the Federal Fleet and to reduce its cost of operation. Consequently,
PL 99-272 had a major impact on Federal Fleet Management. Some outcomes
included:

-   Establishment of uniform cost elements for use by Agencies in
    accumulating necessary data for fleet studies

-   Detailed and informative fleet studies

-   Initial steps toward fleet consolidation

-   Improved fleet management

-   More efficient and economical vehicle support at the lowest cost
    possible

Changes resulting from PL 99-272 were reflected in revisions to the Code
of Federal Regulations (CFR) 101.39. Specifically, GSA Fleet was
restructured to provide more efficient and economical vehicle support at
the lowest cost possible to the Federal Government. Today, GSA is
charged with identifying opportunities for the consolidation of motor
vehicle fleets, related equipment and facilities, and related
administration and management functions. GSA's continuing goal is to
control the size and cost of the Government\'s motor vehicle fleet.

**[2.5 Fleet Management Systems]{.underline}**

[]{#hlk115761351 .anchor}FPMR 101-39 covers GSA Fleet (the Interagency
Fleet Management System or IFMS), which comprises GSA's provision of
motor vehicles and related services to Executive Branch Agencies. (Note
that the word "system" does not, in this case, refer to a computer
program or software but to a comprehensive set of fleet-related
processes.)

**[2.6 Additional Laws & Executive Orders]{.underline}**

[]{#hlk115761410 .anchor}Congress has passed additional key legislation,
and the Executive Branch has issued Executive Orders impacting the
Federal Fleet Manager and Federal Fleet Management operations. We will
reference many of these laws and Executive Orders elsewhere in this
*Guide* when we address relevant fleet management topics.

**[Additional Laws Relating to Federal Fleet Management]{.underline}**

+-----------------------+-----------------------+-----------------------+
| ###### Focus          | ###### Law            | ###### Key Aspects    |
+=======================+=======================+=======================+
| **Accessibility**     | [Americans with       | There are minimum     |
|                       | Disabilities Act      | guidelines and        |
|                       | (ADA) of              | requirements for      |
|                       | 1990](                | accessibility         |
|                       | http://www.usdoj.gov/ | standards for         |
|                       | crt/ada/pubs/ada.txt) | transportation        |
|                       |                       | vehicles required to  |
|                       |                       | be accessible by the  |
|                       |                       | Americans With        |
|                       |                       | Disabilities Act      |
|                       |                       | (ADA) of 1990.        |
+-----------------------+-----------------------+-----------------------+
| **Contracting**       | McNamera-O-Hare       | Contracting for       |
|                       | Service Contract Act  | services.             |
|                       | of 1965               |                       |
+-----------------------+-----------------------+-----------------------+
| **Environmental       | [Alternative Fuels    | Section 400AA calls   |
| Management**          | Act of                | for the Federal       |
|                       | 1988](htt             | Government to acquire |
|                       | p://www.afdc.nrel.gov | the maximum number of |
|                       | /documents/amfa.html) | passenger automobiles |
|                       |                       | and light duty trucks |
|                       |                       | powered by alcohol,   |
|                       |                       | dual energy, natural  |
|                       |                       | gas or dual energy    |
|                       |                       | natural gas vehicles  |
|                       |                       | as is practical.      |
|                       |                       | (These vehicles shall |
|                       |                       | be supplied by        |
|                       |                       | original equipment    |
|                       |                       | manufacturers.)       |
+-----------------------+-----------------------+-----------------------+
|                       | [Clean Air            | Cleaner Fuels         |
|                       | Act](http://www.epa.  |                       |
|                       | gov/oar/oaq_caa.html) | Clean Fuel Cars       |
|                       | (CAAA)                |                       |
|                       |                       | Specific requirements |
|                       |                       | for maintenance and   |
|                       |                       | inspection programs.  |
+-----------------------+-----------------------+-----------------------+
|                       | [Energy Policy Act of | 75% of the Federal    |
|                       | 1992                  | Fleet acquired after  |
|                       | (EPAct)]              | 1999 shall be         |
|                       | (http://apps.fss.gsa. | Alternative Fuel      |
|                       | gov/environ/offical-d | Vehicles.  EPAct      |
|                       | ocs/epact-title1.cfm) | requires the          |
|                       |                       | Department of Energy  |
|                       |                       | (DOE) to implement an |
|                       |                       | Alternative Fuel      |
|                       |                       | Fleet Program.        |
+-----------------------+-----------------------+-----------------------+
|                       | [The Energy Policy    | Requires dual-fueled  |
|                       | Act of                | vehicles acquired     |
|                       | 2005](http://frwe     | under EPAct to be     |
|                       | bgate.access.gpo.gov/ | operated with         |
|                       | cgi-bin/getdoc.cgi?db | alternative fuels;    |
|                       | name=109_cong_bills&d | establishes minimum   |
|                       | ocid=f:h6enr.txt.pdf) | energy efficiency     |
|                       |                       | standards on 16       |
|                       |                       | products; expands the |
|                       |                       | ENERGY-STAR® Program; |
|                       |                       | permanently           |
|                       |                       | authorizes Energy     |
|                       |                       | Savings Performance   |
|                       |                       | Contracts at DOE, DoD |
|                       |                       | and VA; directs the   |
|                       |                       | Federal Government to |
|                       |                       | use more renewable    |
|                       |                       | energy.               |
+-----------------------+-----------------------+-----------------------+
|                       | [Comprehensive        | These laws require    |
|                       | Environmental         | compliance in the     |
|                       | Response,             | areas of              |
|                       | Com                   | environmental         |
|                       | pensation](http://www | management.           |
|                       | .epa.gov/superfund/ac |                       |
|                       | tion/law/cercla.htm)\ |                       |
|                       | [and Liability Act    |                       |
|                       | (CERCLA)](http://ww   |                       |
|                       | w.epa.gov/superfund/a |                       |
|                       | ction/law/cercla.htm) |                       |
|                       |                       |                       |
|                       | [Emergency Planning   |                       |
|                       | and Community         |                       |
|                       | Right-to-Know Act     |                       |
|                       | (EPCRA)](http://      |                       |
|                       | www4.law.cornell.edu/ |                       |
|                       | uscode/42/ch116.html) |                       |
|                       |                       |                       |
|                       | [Resource             |                       |
|                       | Conservation and      |                       |
|                       | Recovery Act          |                       |
|                       | (RCRA)](http://www    |                       |
|                       | .epa.gov/rcraonline/) |                       |
+-----------------------+-----------------------+-----------------------+
| **Financial           | [Government           | Each Agency must have |
| Accountability**      | Performance and       | a Strategic Plan      |
|                       | Results Act (GPRA) of | defining the          |
|                       | 1993](h               | long-term general     |
|                       | ttp://www.orau.gov/pb | goals and objectives  |
|                       | m/links/PL103_62.pdf) | that its programs     |
|                       |                       | should accomplish.    |
|                       |                       | From this, an Annual  |
|                       |                       | Performance Plan is   |
|                       |                       | created which         |
|                       |                       | specifies the         |
|                       |                       | measurable goals to   |
|                       |                       | be accomplished in    |
|                       |                       | the coming year to    |
|                       |                       | achieve the long-term |
|                       |                       | goals. After the      |
|                       |                       | close of the fiscal   |
|                       |                       | year, an Annual       |
|                       |                       | Performance Report    |
|                       |                       | must be published     |
|                       |                       | indicating actual     |
|                       |                       | results compared with |
|                       |                       | the original goals.   |
+-----------------------+-----------------------+-----------------------+
|                       | [Chief Financial      | Established a CFO at  |
|                       | Officers Act of       | each Agency charged   |
|                       | 1990](http://thomas.l | with implementing     |
|                       | oc.gov/cgi-bin/query/ | effective accounting  |
|                       | z?c101:H.R.5687.ENR:) | and financial         |
|                       |                       | management systems.   |
|                       |                       | It also led to        |
|                       |                       | establishment of the  |
|                       |                       | Federal Accounting    |
|                       |                       | Standards Advisory    |
|                       |                       | Board (FASAB).  One   |
|                       |                       | FASAB standard now    |
|                       |                       | requires agencies to  |
|                       |                       | implement managerial  |
|                       |                       | cost accounting       |
|                       |                       | systems that can      |
|                       |                       | report the full costs |
|                       |                       | -- and from that, the |
|                       |                       | unit-costs -- of all  |
|                       |                       | Government            |
|                       |                       | activities. This is a |
|                       |                       | direct connection to  |
|                       |                       | the GPRA              |
|                       |                       | requirements, because |
|                       |                       | it links dollars to   |
|                       |                       | program activities,   |
|                       |                       | which, in turn,       |
|                       |                       | generate outputs,     |
|                       |                       | which result in       |
|                       |                       | outcomes -- thereby   |
|                       |                       | relating costs to     |
|                       |                       | results.              |
+-----------------------+-----------------------+-----------------------+
|                       | [Government           | Requires Agencies to  |
|                       | Management and Reform | have comprehensive    |
|                       | Act (GMRA) of         | financial statements  |
|                       | 1994](http://thomas   | that are audited.     |
|                       | .loc.gov/cgi-bin/quer |                       |
|                       | y/z?c103:S.2170.ENR:) |                       |
+-----------------------+-----------------------+-----------------------+
|                       | [Federal Financial    | Seeks to hold         |
|                       | Management            | Agencies accountable  |
|                       | Improvement Act of    | for complying with    |
|                       | 1996](h               | the FASAB accounting  |
|                       | ttp://frwebgate.acces | standards by          |
|                       | s.gpo.gov/cgi-bin/get | requiring the         |
|                       | doc.cgi?dbname=104_co | reporting of lack of  |
|                       | ng_public_laws&docid= | compliance.           |
|                       | f:publ208.104.pdf)**\ |                       |
|                       | **                    |                       |
+-----------------------+-----------------------+-----------------------+
| **Safety and Health** | [29 CFR 1910          | These laws require    |
|                       | Occupational Safety   | compliance in the     |
|                       | and Health            | areas of occupational |
|                       | Sta                   | safety and health.    |
|                       | ndards](http://www.os |                       |
|                       | ha.gov/pls/oshaweb/ow |                       |
|                       | astand.display_standa |                       |
|                       | rd_group?p_part_numbe |                       |
|                       | r=1910&p_toc_level=1) |                       |
|                       |                       |                       |
|                       | [29 CFR 1960 Basic    |                       |
|                       | Program Elements For  |                       |
|                       | Federal Employee      |                       |
|                       | Occupational Safety   |                       |
|                       | And Health Programs   |                       |
|                       | And Related           |                       |
|                       | Matters](h            |                       |
|                       | ttp://www.access.gpo. |                       |
|                       | gov/nara/cfr/waisidx_ |                       |
|                       | 01/29cfr1960_01.html) |                       |
+-----------------------+-----------------------+-----------------------+
| **Transportation**    | [Title 49             | Transportation of     |
|                       | Transportation        | hazardous material.   |
|                       | Chapter III - Federal |                       |
|                       | Highway               | Requirements for      |
|                       | Administration,       | Commercial Drivers    |
|                       | Department of         | Licenses (CDL) and    |
|                       | T                     | other key areas.      |
|                       | ransportation](http:/ |                       |
|                       | /www.access.gpo.gov/n |                       |
|                       | ara/cfr/waisidx_02/49 |                       |
|                       | cfrv4_02.html#301)**\ |                       |
|                       | **                    |                       |
+-----------------------+-----------------------+-----------------------+
|                       | [Motor Carrier Safety | Establishes Federal   |
|                       | Improvement Act of    | Motor Carrier Safety  |
|                       | 1999](ht              | Administration.       |
|                       | tp://www.fmcsa.dot.go |                       |
|                       | v/rulesregs/fmcsr/fin | Addresses Commercial  |
|                       | al/mcsimproveact.pdf) | Driver Licensing.     |
|                       |                       |                       |
|                       |                       | Issues rules to       |
|                       |                       | improve training and  |
|                       |                       | certify motor carrier |
|                       |                       | Safety Auditors.      |
+-----------------------+-----------------------+-----------------------+

**[Executive Orders Relating to Federal Fleet Management]{.underline}**

+-----------------------------------+-----------------------------------+
| **Executive Order**               | **Key Aspects**                   |
+===================================+===================================+
| [EO                               | Regulations relating to the       |
| 10579](http://www.arch            | establishment and operation of    |
| ives.gov/federal_register/codific | GSA Fleet                         |
| ation/executive_order/10579.html) |                                   |
| signed November 30, 1954          |                                   |
+-----------------------------------+-----------------------------------+
| [EO                               | Occupational Safety and Health    |
| 12196](http://www.arch            | Programs for Federal employees    |
| ives.gov/federal_register/codific |                                   |
| ation/executive_order/12196.html) |                                   |
| signed February 26, 1980          |                                   |
+-----------------------------------+-----------------------------------+
| [EO                               | Principles of Ethical Conduct for |
| 12731](http://www.usoge.g         | Federal Employees                 |
| ov/pages/laws_regs_fedreg_stats/l |                                   |
| rfs_files/exeorders/eo12731.html) |                                   |
| signed October 17, 1990           |                                   |
+-----------------------------------+-----------------------------------+
| [EO                               | Federal Energy Management         |
| 12759](                           |                                   |
| https://www.denix.osd.mil/denix/P |                                   |
| ublic/Legislation/EO/note75.html) |                                   |
| signed April 17, 1999; Revoked by |                                   |
| [EO                               |                                   |
| 13123](http:/                     |                                   |
| /www.epa.gov/fedsite/eo13123.htm) |                                   |
| signed June 3, 1999               |                                   |
+-----------------------------------+-----------------------------------+
| [EO                               | Federal Use of Alternative Fuel   |
| 12844](                           | Vehicles                          |
| https://www.denix.osd.mil/denix/P |                                   |
| ublic/Legislation/EO/note30.html) |                                   |
| signed April 21, 1993, superseded |                                   |
| by [EO                            |                                   |
| 13031](                           |                                   |
| https://www.denix.osd.mil/denix/P |                                   |
| ublic/Legislation/EO/note36.html) |                                   |
| December 13,1996                  |                                   |
+-----------------------------------+-----------------------------------+
| [EO                               | Increasing Seat Belt Use in the   |
| 13043](                           | United States                     |
| https://www.denix.osd.mil/denix/P |                                   |
| ublic/Legislation/EO/note70.html) |                                   |
| signed April 16, 1997             |                                   |
+-----------------------------------+-----------------------------------+
| [EO                               | Greening the Government through   |
| 13101](                           | Waste Prevention, Recycling, and  |
| http://www.ofee.gov/eo/13101.htm) | Federal Acquisition               |
| signed September 14, 1998         |                                   |
|                                   | Among other requirements,         |
|                                   | re-refined oil and retread tires  |
|                                   | must be purchased if available    |
|                                   | and practicable.                  |
+-----------------------------------+-----------------------------------+
| [EO                               | Greening the Government through   |
| 13123](http:/                     | efficient energy management       |
| /www.epa.gov/fedsite/eo13123.htm) |                                   |
| signed June 3, 1999               |                                   |
+-----------------------------------+-----------------------------------+
| [EO                               | Greening the Government through   |
| 13149](http:/                     | Federal Fleet and transportation  |
| /www.epa.gov/fedsite/eo13149.htm) | efficiency                        |
| signed April 21, 2000             |                                   |
|                                   | Federal Agencies must reduce the  |
|                                   | use of petroleum fuels in         |
|                                   | vehicles by 20% and assure that   |
|                                   | 75% of new light vehicle          |
|                                   | acquisitions are alternative      |
|                                   | fueled vehicles (AFVs), and that  |
|                                   | the majority of the fuels used by |
|                                   | the AFVs are alternative fuels.   |
+-----------------------------------+-----------------------------------+
| [EO                               | Directs Federal Agencies to       |
| 1                                 | purchase products that use        |
| 3221](http://frwebgate.access.gpo | minimal standby power when        |
| .gov/cgi-bin/getdoc.cgi?dbname=20 | possible.                         |
| 01_register&docid=01-19562-filed) |                                   |
| signed July 31, 2001              |                                   |
+-----------------------------------+-----------------------------------+

[]{#OLE_LINK3 .anchor}**[2.6.1 Summary of Key AFV Related
Legislation]{.underline}**

**CAAA (Clean Air Act Amendments of 1990)**

-   Clean fuel fleet requirements for achieving emission reductions

-   Applies to all fleets with 10+ vehicles capable of central fueling

-   Initially in 22 metro areas

-   Vehicles under 26,000 lb GVW

**EPAct (Energy Policy Act of 1992)**

-   Goal of petroleum reduction through AFV acquisition requirements and
    use

-   Currently applies to Federal, State and fuel-provider fleets with
    20+ vehicles capable of central fueling and located in 124
    Metropolitan Statistical Areas (MSA) with 250,000+ population

-   AFVs required for 75% of light-duty vehicle acquisitions

-   Exemptions for fleet size, geographic, non-MSA operation, vehicle
    mission (security or emergency)

-   Amended by Energy Conservation and Reauthorization Act of 1998
    (ECRA)

-   Requires each Agency to submit an annual AFV compliance report to
    Congress

-   Provides for biodiesel fuel use credits

**Energy Conservation and Reauthorization Act of 1998 (ECRA)**

-   Amends the Energy Policy Act of 1992 (EPAct) to allocate one EPAct
    AFV acquisition credit to a fleet or covered person for every 450
    gallons of biodiesel contained in biodiesel blends of at least 20%
    biodiesel by volume

-   The fuel must be purchased for use by the fleet or covered person in
    vehicles owned or operated by the entity that weigh more than 8,500
    pounds gross vehicle weight (GVW) rating

**EO #13149 (Executive Order #13149, Greening the Government through
Federal Fleet and Transportation Efficiency)**

-   20% reduction in annual petroleum consumption from the FY 1999
    baseline for each Agency's entire vehicle fleet by FY 2005

-   Use alternative fuel in AFVs the majority of the time by FY 2005

-   Increase average fuel economy of new light-duty acquisitions by 3.0
    mpg by FY 2005

-   Exemptions for security and emergency vehicles; annual compliance
    reports to DOE

-   Supersedes Executive Order #13031, Federal Alternative Fueled
    Vehicle Leadership

[]{#_Hlk115688228 .anchor}**[Section 3]{.underline}**

**General Management**

This section addresses the competency area of General Management. Click
on any of the topic links below to go to the related content.

[]{#_Hlk115836169 .anchor}**[Section 3 Table of Contents]{.underline}**

[**3.1 Useful Links**](#hlk115836217)

[**3.2 Who Needs a Full-Time Fleet Manager?**](#hlk115836261)

[**3.3 Roles of the Fleet Manager**](#hlk115836289)

[**3.3.1 Manager**](#hlk115836325)

[**3.3.2 Supervisor**](#hlk115836352)

[**3.3.3 Communicator**](#hlk115836392)

[**3.3.4 Financial Analyst**](#hlk115836417)

[**3.3.5 Vehicle Technician**](#hlk115836448)

[**3.3.6 Procurement Officer**](#hlk115836479)

[**3.3.7 Vehicle Disposal Manager**](#hlk115836532)

[**3.3.8 Trainer**](#hlk115836562)

[**3.4 Overview of Fleet Management Responsibilities**](#hlk115836598)

####### [3.4.1 Federal Fleet Management as Logistics Management ](#_Hlk115836631) [3.4.2 Federal Fleet Management as Transportation Management](#_Hlk115836661)

####### [3.4.3 Federal Fleet Management as Property Management](#_Hlk115836733)

####### [3.4.4 The Fleet Management Process](#_Hlk115836774)

####### [3.5 Fleet Management in the Federal Government](#_Hlk115836814)

####### [3.5.1 Policy Development and Application](#_Hlk115836868)

####### [3.5.2 Asset Management](#_Hlk115836904)

####### [3.5.3 Fleet Services Delivery](#_Hlk115836940)

[**3.6 Fleet Management Issues**](#hlk115836976)

####### [3.6.1 Vehicle Selection](#_Hlk115837012)

####### [3.6.2 Fleet Cost and Operating Data](#_Hlk115837047)

####### [3.6.3 Commercial or In-house Fleet Management](#_Hlk115837087)

[**3.7 Standards of Ethical Conduct**](#hlk115837130)

[**3.8 Contracting and Procurement**](#hlk115837170)

[**3.8.1 Role of the Contracting Officer (CO)**](#hlk115837225)

[**3.8.2 Elements of a Contract**](#hlk115837260)

[**3.8.3 Selecting a Contract Type**](#hlk115837399)

[**3.8.4 Characteristics of Contract Types**](#hlk115837282)

[**3.8.5 Time and Materials and Labor-Hour Contracts**](#hlk115837511)

[**3.9 Policies & Procedures**](#hlk115837545)

[**3.9.1 Some Policy Issues**](#hlk115837580)

[**3.10 Communication**](#hlk115837689)

[**3.11 Information Technology**](#hlk115837729)

[**3.11.1 Some Advantages of a Fleet Management Information System
(FMIS)**](#hlk115837769)

> [**3.11.2 Meaningful Management Reports without Tons of
> Paper**](#hlk115837798)

[]{#hlk115836217 .anchor}**[3.1 Useful Links]{.underline}**

  ------------------------------------------------------------------------------------------------------------------------------------------------
  The Gov Online Learning Center, commonly known as *Go Learn*, is a fully integrated "learning center of excellence with e-Training courseware
  and performance- support tools." It includes free access to e-Learning products and services, directly to desktops via the Gov Online Learning
  Center, which includes approximately 55 e-courses, 15,000 searchable learning objects (self contained, complete subjects which can be used for
  just-in-time learning, research and problem solving), a library of online books, access to live instructors and subject matter experts for
  desktop applications, several custom-developed courses that are provided free to all Federal agencies, and access to competency management
  tools. The catalog of free resources covers: Communication, Customer Service, E-Learning, Human Resources, IT Security, Leadership,
  Legislatively Mandated & Agency Required Topics, Management, PC and Business Applications, Personal Development, Problem Solving and Decision
  Making, Project Management, Support Professionals, Team Building, Test Prep.

  [www.GoLearn.gov](http://www.GoLearn.gov/)

  Established in 1921 by the Secretary of Agriculture, the mission of the Graduate School, USDA, is to improve the performance of Government and
  to provide opportunities for individual lifelong learning through education, training and related services. The Graduate School does not grant
  degrees, but it does offer certification for selected disciplines. Although associated with USDA, the Graduate School is self-sustaining through
  tuitions and fees and receives no Federal funds. Various courses, such as those in property management, are relevant to Federal Fleet Managers.

  [www.grad.usda.gov](http://www.grad.usda.gov/)

  The U.S. General Services Administration\'s Federal Acquisition Institute (FAI) Online University has developed an internet-based course for
  contracting officer representatives (CORs) entitled the COR Mentor. The course is available at no charge for use by both public and
  private-sector acquisition communities. The FAI Online University offers 18 certificates for different COR duties, such as participating in
  post-award orientations, monitoring contractor performance and administering the property clause.

  [http://www.faionline.com](http://www.faionline.com/)

  On passenger use of Government-provided vehicles, go to this link.

  <http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelId=-16529&specialContentType=FMR&file=FMR/FMRTOC102-__5.html#wp436256>
  ------------------------------------------------------------------------------------------------------------------------------------------------

**[3.2 Who Needs a Full-Time Fleet Manager?]{.underline}**

[]{#hlk115836261 .anchor}Monitoring and controlling all fleet-related
factors consumes considerable time and requires sound administrative
abilities. These responsibilities normally fall upon the Fleet Manager,
and demands on this professional position are rapidly increasing,
particularly in the Federal sector as ever higher costs and management
issues gain the attention of Congress, the Office of Management and
Budget, and heads of Federal Agencies.

Generally, in the private sector, fleets of about 200 or more owned
units require full-time fleet supervision. Leased fleets of about 500
units, where the lessor provides fleet maintenance management services,
typically require full-time fleet supervision. These fleet-size
rules-of-thumb become self-evident when management responsibilities
include an in-house maintenance program. Further, the larger the fleet,
the more support and resources Fleet Managers require. Fleets consisting
only of POVs (personally owned vehicles, which is better phrased as
"personally provided vehicles" due to the prevalence of consumer
leasing) do not require a Fleet Manager, and examples of such programs
do exist within the Federal Government.

Because the fleet executive alone must generally organize and maintain
the fleet transportation program, management of the fleet requires that
the professional be trained and experienced in basic business
competencies, including general management, finance, purchasing,
accounting, and risk management. The Fleet Manager must be able to
coordinate all fleet activities and assure satisfaction of both short-
and long-term organizational goals. The person assigned this role must
be familiar with a range of fleet management resources for the control
of locally operated vehicles or those located at widely scattered points
throughout the country or even globally.

Within the Federal Government, many Fleet Managers shoulder assignments
outside their fleet responsibilities. To the extent that this broadens
their experience, this can be good. But to the extent that this forces
the Fleet Manager not to spend sufficient time monitoring and
controlling the fleet, assigned "distractions" can mean that an
organization's fleet does not operate as efficiently and effectively as
it might. The fact is that most Federal Fleets require a full-time Fleet
Manager. A thorough reading of this *Guide* makes that clear.

**[3.3 Roles of the Fleet Manager]{.underline}**

[]{#hlk115836289 .anchor}Federal Fleet Managers come with various
titles, such as:

-   Vehicle Control Officer (VCO)

-   Motor Vehicle Officer (MVO)

-   Motor Vehicle Manager (MVM)

-   Motor Fleet Manager (MFM)

-   Transportation Officer (TO)

Titles will vary and so will tasks, but fundamental competencies remain
largely the same. A Fleet Manager must possess many competencies to
carry out the responsibilities of the position. In addition, the Fleet
Manager must constantly upgrade his or her skills and knowledge to
remain current with regulatory changes and technological advances. A
review of some of the roles you will play and the capabilities you must
possess provides an essential introduction to this management position.
These include:

-   Manager

-   Supervisor

-   Communicator

-   Public Relations Representative

-   Financial Analyst

-   Maintenance/Mechanical Expert

-   Procurement Specialist

-   Used Car Market Analyst

-   Trainer

Although the following review of competencies and tasks required to
perform effectively as a Fleet Manager is not all inclusive, it does
present an overview of the challenges you face and represents key
aspects of a Fleet Manager's job description.

**[3.3.1 Manager]{.underline}**

[]{#hlk115836325 .anchor}A Federal Fleet Manager is, by definition, a
Manager. Like every manager, you must serve the goals of the larger
organization, contributing to its overall success, while exercising
stewardship over the assets and resources under your care. This includes
both physical property and personnel. To ensure that you are an
effective Manager, you should not have \"tunnel vision,\" seeing only
the immediate tasks assigned, but also understand the place of Federal
Fleet Management in the big picture; that is, you must see the function
of the fleet within the larger organization and constantly look for ways
to improve fleet performance in pursuit of the organization\'s mission.
To ensure that you are an effective Manager, you must be able to deploy
your fleet personnel to the best effect, given budgetary, hiring and
other restrictions that affect staffing.

**[3.3.2 Supervisor]{.underline}**

[]{#hlk115836352 .anchor}As a Supervisor, an effective Federal Fleet
Manager prioritizes the work required, focusing on the most important
tasks first. Knowing what to do and in what order of importance, you
must be able to delegate responsibilities, motivate staff, and monitor
performance. To ensure that you are an effective Supervisor, you must
also look for opportunities to streamline operations and automate
processes wherever practical, so that the most work is accomplished with
the fewest resources.

**[3.3.3 Communicator]{.underline}**

[]{#hlk115836392 .anchor}As a Fleet Manager, you must be an effective
communicator both verbally and in writing, able to articulate clearly
and knowledgeably the fleet mission, goals, responsibilities, needs, and
challenges of the organization to upper management, your customers, your
staff, your peers, vehicle users, and the public. You must know and
understand laws and regulations governing many issues, such as vehicle
use, and be able to communicate appropriate information to different
individuals and audiences. In many cases, the Fleet Manager provides a
transportation service to the rest of the organization, particularly to
vehicle users and drivers. Consequently, a Federal Fleet Manager must
recognize his/her obligation to provide excellent customer service and
that requires open, honest and regular communication with your fleet
customers.

With financial and personnel resources significantly reduced for many
Government activities, competition for those scarce resources is often
intense; therefore, you must be able to communicate fleet-related needs
persuasively to obtain what is necessary to ensure that your
organization can fulfill its mission. You must continually promote care
for and safe operation of the vehicles for which you are responsible.
Many competing organizations and jurisdictions have motor-vehicle
responsibilities. As the Fleet Manager, you must not only be able to
communicate Federal policies and interests to State and local
governments but also to coordinate fleet operations with diverse
organizations while ensuring compliance with Federal laws and Agency
policies.

**[3.3.4 Financial Analyst]{.underline}**

[]{#hlk115836417 .anchor}As a Fleet Manager, you must be able to perform
as a financial analyst. To undertake such tasks as determining the most
cost-effective method of providing transportation to support the Agency
mission, comparing commercial versus in-house maintenance programs, and
determining optimum vehicle replacement cycles, a Fleet Manager must
possess competency in finance and cost-accounting. The Fleet Manager is
charged with controlling both fixed and variable expenses and must apply
cost analysis to achieve this control.

**[3.3.5 Vehicle Technician]{.underline}**

[]{#hlk115836448 .anchor}A Fleet Manager must understand mechanical
systems and maintenance requirements for vehicles. Maintenance
invariably heads the list of problems faced by Fleet Managers, and they
deal with the difficulties it presents in a myriad of ways and with
varying degrees of success. The mechanical systems of your fleet
vehicles, which can range from automobiles to special-use vehicles (for
example, fire trucks), generally will affect the maintenance program you
implement and monitor. If you are responsible for an in-house
maintenance program, competency with vehicle specifications and
mechanical systems, repair versus replace decision-making, and
preventive and predictive maintenance plans is essential. And that is
just the start, because a poorly managed maintenance program,
particularly when resources are tight and a fleet is aging, can not only
put drivers at risk but also the Agency's mission.

**[3.3.6 Procurement Officer]{.underline}**

[]{#hlk115836479 .anchor}A Fleet Manager must be able to perform as a
procurement officer. This requires you to be familiar with the Federal
Acquisition Regulation (FAR) and other, applicable Standards and
regulations governing procurement actions. Many Fleet Managers will most
likely be responsible for small purchases for their operation and may be
responsible for initiating vehicle procurement. Fleet Managers are often
involved in developing vehicle specifications, soliciting estimates,
evaluating bids, and implementing open-market procurements for supplies
and services. The latter may include maintenance and repair of the fleet
vehicles.

**[3.3.7 Vehicle Disposal Manager]{.underline}**

[]{#hlk115836532 .anchor}A Fleet Manager may need to understand and
analyze characteristics of used vehicles and the used-vehicle market.
For example, you may have to determine levels of vehicle reconditioning
prior to disposal. You will often be required to make decisions on which
vehicles in the fleet to replace and when to dispose of them,
particularly when your organization owns the vehicles.

**[3.3.8 Trainer]{.underline}**

[]{#hlk115836562 .anchor}A Fleet Manager must understand training and
perhaps even how to be an effective trainer. If you are responsible for
in-house maintenance and repair, you will have to ensure that mechanics
have the know-how to do their job. You may be involved with driver
training for fuel efficiency or safety. You role may include educating
customers and drivers on Federal laws and Agency policies, such as
official use of vehicles. You may conduct specialized operator training
or ensure that specialized trainers are available for each type of
vehicle to ensure compliance with your safety program and licensing
requirements.

**[3.4 Overview of Fleet Management Responsibilities]{.underline}**

[]{#hlk115836598 .anchor}Federal Fleet Management is unique in its
combination of the principles of:

-   Logistics

-   Transportation Management

-   Property Management.

-   Federal Fleet Management as Logistics

[]{#_Hlk115836631 .anchor}**[3.4.1 Federal Fleet Management as Logistics
Management\
]{.underline}**We can define "logistics" as a supply chain process
focused on planning, implementing, and controlling the efficient and
effective movement and storage of goods. It also encompasses related
shipping services and information ranging from the point of origin to
the point of consumption. For purposes of Federal Fleet Management, the
\"goods\" are motor vehicles and related supplies; the \"services\" may
include leasing, maintenance, and disposal; and the \"related
information\" includes such tasks as Federal Fleet management reporting.
Many Federal Fleet Managers are responsible for shipment of household
goods for relocating employees of the Federal Government, and this is
one example of the inter-relationship of logistics with fleet
management. Logistics is a critical part of the Federal Fleet Management
business process.

####### [3.4.2 Federal Fleet Management as Transportation Management]{.underline}

[]{#_Hlk115836661 .anchor}Federal Fleet Management involves meeting the
transportation needs of small to large groups. It does not differ from
the transportation of goods in the sense that estimating for
transportation needs, budgeting, asset management, fueling, repairs,
accident management and replacements are all variables that require
attention. Transportation Management is a critical part of the Federal
Fleet Management business process.

####### [3.4.3 Federal Fleet Management as Property Management]{.underline}

[]{#_Hlk115836733 .anchor}We can broadly define "property management" as
those functions of the Government that deal with the acquisition,
control, protection, utilization and disposition of Government property.
The field of property management is interdisciplinary in the true sense
of the word. Property managers must not only be familiar with the
materials and equipment for which they are responsible, they also must
be able to forecast the needs of the activities they support. In
addition, property managers must always be aware of their responsibility
to the public. The Government's property, be it real or personal,
represents a capital asset that must be effectively maintained,
protected, controlled, used and disposed of. In sum, property management
covers eight fundamental tasks:

-   Planning for property needs

-   Acquisition of property

-   Receipt of property

-   Storage of property

-   Distribution of property

-   Proper utilization and care of property

-   Property accounting control

-   Disposition of property, as well as other secondary or integral
    functions that affect the property of the Government.

Note that "proper utilization and care of property" in property
management translates into "use, utilization, and maintenance" in fleet
management. The words "use" and "utilization" also carry specific
meanings. "Use" refers to the application of the vehicle to get work
done, whether that work is carrying passengers or cargo. "Utilization"
refers to the extent to which a vehicle is used, such as mileage, number
of trips, and number of hours. Use and utilization are fundamental
factors in selecting vehicle types and in allocating vehicles.

####### [3.4.4 The Fleet Management Process]{.underline}

[]{#_Hlk115836774 .anchor}The fleet management process begins with
determining the vehicle needs of the organization. Key among the array
of factors you will consider in sizing the fleet (in terms of both
overall number of vehicles and vehicle type) are the organization's
mission and whether the need will be short-term (perhaps met by rentals
or unassigned motor pool units) or long-term (perhaps met by lease or
purchase).

After assessing vehicle needs, you will take the next step in the
process -- determining how best to satisfy the need; that is, to acquire
the needed vehicles or provide necessary transportation services (e.g.,
shuttle buses). Key options you will most likely consider include:

-   Obtaining necessary vehicles from GSA Fleet

-   Agency purchase

-   Leasing from private industry

-   Other sources

-   Some combination of the above

Following need determination and acquisition, you must turn your
attention to vehicle utilization and implementation of appropriate
controls to ensure effective fleet management. This includes, at a
minimum:

-   Administrative Control (ensuring optimum utilization and legal
    vehicle use)

-   Maintenance Control (ensuring performance of preventive maintenance)

-   Expense Control (ensuring cost-effective vehicle operation,
    > maintenance, and fueling)

The final step in the fleet management process is disposal (which
typically also requires replacement). Such variables as type of vehicle,
leased versus owned, change in organization mission, operational
requirements, and cost will influence the disposal decision. Taken
together, these steps comprise a typical fleet management life cycle, a
high-level model of the fundamental tasks you will perform. We will
cover these steps in detail later in this *Guide*.

####### [3.5 Fleet Management in the Federal Government]{.underline}

[]{#_Hlk115836814 .anchor}To a greater or lesser degree, Federal Fleet
Management requires you to work in three key areas:

-   policy development and application,

-   asset management, and

-   delivery of fleet services.

####### [3.5.1 Policy Development and Application]{.underline}

[]{#_Hlk115836868 .anchor}Many Federal Fleet Managers work on policy and
guidance at the Federal, Agency and Departmental levels. They strive to
ensure that appropriate vehicles are available and operational so that
the Agency mission can be achieved. At the same time, they must ensure
effective accountability and financial responsibility for the fleet.

####### [3.5.2 Asset Management]{.underline}

[]{#_Hlk115836904 .anchor}Federal Fleet Managers have life-cycle
management (cradle to grave) responsibilities for their organization's
motor-vehicle assets. The primary classes of motor vehicle assets are:

-   sedans

-   station wagons

-   ambulances

-   buses

-   4x2 light trucks

-   4x4 light trucks

-   medium trucks

-   heavy trucks

Additionally, some Federal Fleets require management of special purpose
equipment, such as truck tractor/trailers, earth-moving equipment,
construction/maintenance equipment, fire-fighting equipment, and
weight-handling and railway equipment. Vehicles in these classes support
Federal Agency civilian, military and postal service missions in
domestic and foreign locations worldwide.

Fleet Managers generally implement management processes based upon asset
classes. This is necessary because fundamental fleet decisions will vary
by class, such as type of vehicle to acquire, when to replace, how and
when to maintain, and whether to repair or replace. Vehicle-related
metrics also differ by class, such as fuel efficiency, mileage or hours
of use, and cost-per-mile. Based upon Agency mission requirements and
defensible vehicle justification, Federal Fleet Managers should apply
life-cycle costing techniques to evaluate purchase, lease and rental
options for the units in these respective vehicle classes, thereby
determining best value for the Federal Government.

####### [3.5.3 Fleet Services Delivery]{.underline}

[]{#_Hlk115836940 .anchor}Some Federal Fleets provide fueling and
maintenance/repair services to their customers, while others rely on
public or private sector suppliers to deliver such necessary services.
Some Federal Fleets acquire and manage motor pool vehicles to meet the
short-term transportation needs of their organizations, while other
Federal Fleets rely on personally owned vehicles (POVs, and reimburse
drivers for business use) or on daily rental vehicles.

For Federal Fleets that provide essential vehicle services, Federal
Fleet Managers work with their customers to define their transportation
needs, set expected service levels and determine appropriate performance
measures. Services may include vehicle assignment through purchase,
lease or rental as well as motor pool, fueling and maintenance/repair
services. Customer service surveys generally are used to verify that
fleet operations meet expectations, identify new customer requirements
and opportunities to streamline processes and overall fleet operations.

Federal Fleet Managers must develop tracking and reporting techniques
for both costs and assets. They must also use information technology to
collect and monitor operational data, and then use this data in the
application of performance measures and key ratios to size up the
efficiency of their fleets.

**[3.6 Fleet Management Issues]{.underline}**

[]{#hlk115836976 .anchor}While Public Law and regulations provide the
parameters for many fleet management issues you will have to address,
time constraints, funding, and Agency programs are among the additional
factors that will affect your ability to achieve organizational and
fleet goals.

####### [3.6.1 Vehicle Selection]{.underline}

[]{#_Hlk115837012 .anchor}You can find the standards for automobiles and
light and medium trucks published in Federal Standards Number 122
(sedans and station wagons), 307 (light truck 4x2), 292 (light truck
4x4) and 794 (medium truck). As noted earlier in the *Guide*, the
purpose of these documents is to achieve a practical degree of
standardization in the Federal Fleet, yet be responsive to Agencies'
needs for a range of vehicle types. These standards establish
classifications for various types and sizes of vehicles, general
requirements, and the equipment authorized for Government use.

FMR 102-34.45 provides that, except for exempted vehicles, Executive
Agencies shall acquire vehicles that:

a)  achieve maximum fuel efficiency,

b)  meet minimum body size and engine size specifications, and

c)  possess the minimum optional equipment needed.

The classifications established in Federal Standard 122 apply.

####### [3.6.2 Fleet Cost and Operating Data]{.underline}

[]{#_Hlk115837047 .anchor}Each owning Agency is responsible by law to
develop systems to identify, collect, and analyze data regarding all
costs, including obligations and outlays, incurred in the operation,
maintenance, acquisition, and disposition of motor vehicles (40 USC
902). In addition, FMR 102-34.355 requires Federal Agencies to use
Standard Form 82, Agency Report of Motor Vehicle Data, to ensure
uniformity of reporting thru the FAST system. This form includes the
\"direct costs\" of operations and maintenance and the \"indirect
costs\" not readily associated with specific vehicles.

Accounting and funding methods affect the accumulation of necessary
data. A Fleet Manager must capture, aggregate, analyze and use cost data
for vehicles and operations for which he/she is responsible.

####### [3.6.3 Commercial or In-house Fleet Management]{.underline}

[]{#_Hlk115837087 .anchor}Public Law 99-272 required, among other
things, the President, the Director of the Office of Management and
Budget (OMB), the Administrator of GSA, the Comptroller General of the
United States, and the heads of Federal Executive Agencies to take
certain actions to improve the management and efficiency of the Federal
Fleet and to reduce its cost of operation. Consequently, comprehensive
and detailed studies were required to compare an Agency\'s motor vehicle
operations with:

1.  use of GSA Fleet,

2.  contracting with a qualified private fleet management firm, and

3.  use of any other means less costly to the Government.

Uniform cost elements in terms of obligations, outlays, or accruals were
established for use by Agencies in accumulating necessary data when
conducting these studies.

**[3.7 Standards of Ethical Conduct]{.underline}**

[]{#hlk115837130 .anchor}Along with all other Government employees,
Federal Fleet Managers must be concerned with ethics and address ethical
issues in the performance of their duties. Questions often arise
regarding senior-management use and home-to-work use (commutation) of
Government-provided vehicles, fleet charge card use, and vehicle use for
political activities. What\'s the watchword? If it feels wrong, it
usually is.

As for personal performance, Federal Fleet Managers must conduct
themselves in accordance with the Standards of Ethical Conduct
stipulated in Executive Order #12764, signed April 12, 1989 (as modified
by Executive Order \# 12731). Also consult your Agency's internal ethics
regulations.

**[3.8 Contracting and Procurement]{.underline}**

[]{#hlk115837170 .anchor}Federal Fleet Managers should understand the
role of the Contracting Officer, the elements of a contract, the process
for selecting a contract type and the contract types they are likely to
encounter. This is only a review of these key topics. We recommend going
directly to the FAR (Federal Acquisition Regulation) for further
information.

**[3.8.1 Role of the Contracting Officer (CO)]{.underline}**

[]{#hlk115837225 .anchor}FAR 2.101 defines a Contracting Officer (CO) as
a person with the authority to enter into, administer and/or terminate
contracts. Only a Contracting Officer can bind the Government
contractually. Only a Contracting Officer can modify a Government
contract. Only a Contracting Officer, usually with approval from higher
authority, can direct a contractor to stop work.

**[3.8.2 Elements of a Contract]{.underline}**

[]{#hlk115837260 .anchor}A contract is a legally enforceable agreement
between two or more parties. Every contract has these . . .

+-----------------------+-----------------------+-----------------------+
| **Basic Elements**    |                       |                       |
+-----------------------+-----------------------+-----------------------+
| **Offer**             | **The promise of      | **The communication   |
|                       | performance**         | must be intended as   |
|                       |                       | an offer. The         |
|                       |                       | contractor makes the  |
|                       |                       | offer and is the      |
|                       |                       | offeror, the          |
|                       |                       | Government makes the  |
|                       |                       | acceptance and is the |
|                       |                       | offeree.**            |
|                       |                       |                       |
|                       |                       | **An offer must be    |
|                       |                       | complete in all its   |
|                       |                       | essential terms.**    |
|                       |                       |                       |
|                       |                       | **An offer must be    |
|                       |                       | communicated to the   |
|                       |                       | offeree.**            |
|                       |                       |                       |
|                       |                       | **An offer must be as |
|                       |                       | clear and unambiguous |
|                       |                       | as possible. If terms |
|                       |                       | are so imprecise as   |
|                       |                       | to be open to two or  |
|                       |                       | more meanings, courts |
|                       |                       | will either a) read   |
|                       |                       | the clause against    |
|                       |                       | the drafter of the    |
|                       |                       | clause or b) void the |
|                       |                       | contract in its       |
|                       |                       | entirety if the terms |
|                       |                       | cannot be defined. ** |
|                       |                       |                       |
|                       |                       | **An offer terminates |
|                       |                       | upon rejection,       |
|                       |                       | expiration of a       |
|                       |                       | stated or reasonable  |
|                       |                       | period of time,       |
|                       |                       | death, insanity,      |
|                       |                       | revocation by the     |
|                       |                       | offeror, or           |
|                       |                       | acceptance.**         |
+-----------------------+-----------------------+-----------------------+
| **Acceptance**        | **The offeree agrees  | **Acceptance occurs   |
|                       | to buy the product or | when an               |
|                       | service at the        | Agency-appointed or   |
|                       | offeror\'s price**    | warranted Contracting |
|                       |                       | Officer agrees to     |
|                       |                       | accept the price and  |
|                       |                       | terms offered by the  |
|                       |                       | contractor.**         |
+-----------------------+-----------------------+-----------------------+
| **Consideration**     | **The price bargained | **A contract that     |
|                       | for and offered**     | lacks consideration   |
|                       |                       | is null and void.**   |
|                       |                       |                       |
|                       |                       | **\                   |
|                       |                       | The Government\'s     |
|                       |                       | consideration is the  |
|                       |                       | product or service    |
|                       |                       | provided by the       |
|                       |                       | contractor.**         |
|                       |                       |                       |
|                       |                       | **\                   |
|                       |                       | The contractor's      |
|                       |                       | consideration is the  |
|                       |                       | price paid for the    |
|                       |                       | product or service.** |
+-----------------------+-----------------------+-----------------------+
| **Legal and Possible  | **The objective is    | **If the objective is |
| Objective**           | the purpose of the    | illegal or            |
|                       | contract**            | impossible, the       |
|                       |                       | contract is void.**   |
+-----------------------+-----------------------+-----------------------+
| **Competent Parties** | **Both parties to the | **As a rule, infants  |
|                       | contract must have    | (persons under the    |
|                       | the legal capacity to | age of 18), insane    |
|                       | enter into a          | persons, and those    |
|                       | contract**            | under the influence   |
|                       |                       | of drugs lack the     |
|                       |                       | requisite mental      |
|                       |                       | capacity to contract  |
|                       |                       | and their contracts   |
|                       |                       | are voidable.**       |
+-----------------------+-----------------------+-----------------------+

**[3.8.3 Selecting a Contract Type]{.underline}**

[]{#hlk115837399 .anchor}The process of selecting a contract type starts
with knowing the:

-   Types of contracts available for use

-   Requirement (supply or service) to be procured

-   Market place

The Contracting Officer (CO) should have a sound understanding of these
areas to ensure selection of the appropriate contract type. To that end,
as part of the acquisition planning process, the CO typically reviews
the:

-   Acquisition history of the supplies or services

-   Description of the requirement. (See FAR 7.103)

By analyzing the item description and specification or elements of the
Statement of Work (SOW) for services, the Contracting Officer can relate
performance and cost-risks involved to the types of contracts available.
This may be an interactive process, and your fleet management knowledge
and expertise can contribute to the CO's understanding and
decision-making, particularly if the CO is new to fleet-related
procurements.

**[3.8.4 Characteristics of Contract Types]{.underline}**

[]{#hlk115837282 .anchor}Many types of contracts exist, but we will
examine only four types that Federal Fleet Managers are most likely to
encounter as they work with a Contracting Officer to meet their mission
requirements:

-   Firm-Fixed Price (FPP) Contracts

-   Performance-Based Contracts (PBC)

-   Indefinite Delivery Contracts

-   Time and Materials and Labor-Hour Contracts

**3.8.3.1 Firm-Fixed Price (FPP)**

A firm-fixed-price (FFP) contract provides for a price that is not
subject to adjustment due to the contractor's cost experience during the
performance of the contract. Use of such a contract places maximum risk
on the contractor and provides the maximum profit incentive for
effective cost control and contract performance. Because the contractor
assumes all the risk, the administrative burden placed on the Government
is minimal. (See FAR 16.202.) A firm-fixed-price contract is usually
issued as a purchase order (PO). A price adjustment to this contract
type requires a contract modification, which the CO must approve. This
approach ensures on-going oversight of costs and performance by the CO.

**3.8.3.2 Performance-Based Contracts (PBC)**

Federal Fleet Managers increasingly will encounter more
performance-based contracts (PBC) for services. Based upon measurable
performance requirements, a PBC should incentivize the contractor to
improve its performance, thereby benefiting both the Federal Government
and the contractor.

A performance-based contract is structured around the purpose of the
work to be performed rather than how the work is to be performed. The
Government's focus is on measuring the outcome of a contractor\'s
efforts rather than managing those efforts to achieve a desired outcome.
(See FAR 37.6 and The Performance-Based Contracting Desk Reference.)

**3.8.3.3 Indefinite Delivery Contracts**

Indefinite delivery contracts are classified as definite quantity,
indefinite quantity or requirements contracts. These contracts may
provide for any appropriate cost or pricing arrangement under FAR Part
16.

  ----------------------------- -----------------------------------------
  **Indefinite Delivery         **Description**
  Contract Type**               

  **Definite Quantity**         **The quantity of supplies or services
                                for a fixed period is known but the time
                                of delivery is not (indefinite delivery,
                                definite quantity).**

  **Indefinite Quantity**       **Provides for an indefinite quantity,
                                within stated limits, of supplies or
                                services to be furnished during a fixed
                                period, with deliveries or performance to
                                be scheduled by placing orders with the
                                contractor (indefinite delivery,
                                indefinite quantity, often referred to as
                                an IDIQ).**

  **Requirements**              **Provides for filling all actual
                                purchase requirements of designated
                                Government activities for supplies or
                                services during a specified contract
                                period, with deliveries or performance to
                                be scheduled by placing orders with the
                                contractor. Differs from indefinite
                                quantity to the extent that no minimum
                                quantity is stated, and maximum
                                quantities are stated only if feasible.**
  ----------------------------- -----------------------------------------

[**3.8.5 Time and Materials and Labor-Hour Contracts**]{.underline}

[]{#hlk115837511 .anchor}Time and materials and labor-hour contracts are
agreements wherein the Government agrees to pay a certain fixed amount
per hour of labor plus material at cost (not applicable to a labor-hour
contract where there is no material). The very nature of such contracts
can discourage efficiency and therefore requires constant Government
surveillance to see that the number of hours is kept to a reasonable
level. Such contracts must include ceilings, which contractors can
exceed only at their own risk. (See FAR 16.6.)

**[3.9 Policies & Procedures]{.underline}**

[]{#hlk115837545 .anchor}Throughout the *Guide*, we discuss many
specific policy areas. Here we review general fleet policies and some
selected policy issues revolving around use of Government-provided
vehicles.

If an organization lacks a fleet policy, an important task of the Fleet
Manager is to develop a recommended policy, obtain input from
organization peers, and secure approval of the policy from upper
management. If a policy exists but hasn't been reviewed for two years or
more, you should review it for updating based upon changes from outside
or inside your organization. Consider incorporating the new or updated
policy into the CFR. If you do not incorporate the policy into the CFR,
consider adopting the numbering and organization of the CFR for
consistency across the Federal Government. The policy should be
accessible to all electronically, and you should ensure that an
electronic process is available for submitting either comments on the
policy or recommendations for clarification or change.

A number of sound management reasons underlie the value of preparing and
communicating a policy:

-   Encourages planning and goal setting

-   Details effective problem-solving strategies

-   Provides supervisors with standard guidelines

-   Promotes teamwork; reduces squabbling

-   Reduces management and driver downtime

-   Reduces crisis communication

-   Contributes to employee and organization success

-   Reduces supervisor and employee anxiety

-   Improves control over costs and operations

-   Standardizes processes in multiple locations

-   Reduces confusion, questions, errors

An effective and reasonable fleet policy rests upon a foundation of
goals and objectives that have been a) identified, b) sifted through by
management, and c) found to be compatible with organization goals for
cost-control while fulfilling the organization's mission. All too often,
organizations fail to ask many basic questions, including:

1.  Why does the organization need a fleet?

2.  What is the purpose of the fleet?

3.  What will our fleet needs be for the next two years?

4.  How should we acquire, maintain, monitor, and dispose of our fleet?

5.  What are the goals and objectives of each of these functions
    (answers to this question directly shapes operational policy)?

6.  How many classifications of fleet vehicles do we/should we have?

7.  Do different goals and objectives pertain to these classifications
    of fleet vehicles?

8.  Should different policies define the management of these
    classifications of fleet vehicles?

The two primary goals of any fleet are 1) to provide employees with
appropriate transportation that meets work requirements and 2) to
provide that transportation in the most cost-effective manner. Fleet
policies are instituted to support these goals.

Today's Fleet Managers navigate through constantly changing conditions.
They must chart and react to changes in vehicles and to types of
vehicles available; in laws and regulations; in fuel supplies, types,
and costs; and in the financial health of their organization. Typically,
the charting leads to an update of organizational policies. In the
corporate sector, Fleet Managers tend to update fleet policies every two
years due to these forces of change.

Policy updates can take one of two forms. They can be patches placed
over gaps that have suddenly appeared, which means the policy as a whole
remains largely as it was, or they can be policy overhauls. Patching is
essential to keeping a policy up-to-date, and it can work for a time;
however, effective cost control, the mobility needs of the organization,
changes in laws and regulations, changes in the size of the workforce,
and so on, generally require broad policy review and more sweeping
reconstruction.

Any organization with a policy that has not been thoroughly reviewed for
five years or more is almost certainly relying on an instrument that is
inadequate. To control costs and ensure a successful fleet operation,
these organizations should undertake an extensive review and revision of
their fleet policies.

**[3.9.1 Some Policy Issues]{.underline}**

[]{#hlk115837580 .anchor}A number of policies associated with vehicle
use present special challenges, and a Federal Fleet Manager must know
the applicable laws and regulations and his or her role in enforcement.

**3.9.1.1 Official Use of GOV**

Officers and employees of the Federal Government shall use
Government-owned or

-leased motor vehicles for official purposes only; i.e., to further the
mission of the Agency. \"Official purposes\" does not include
transportation of an officer or employee between his or her home and
place of employment, unless authorized under the provisions of 31 USC
1344 (or other applicable law). A copy of any written approval shall be
maintained at the appropriate level within the Agency, and a copy
furnished to GSA if GSA Fleet provides the vehicle concerned.

A Federal Fleet Manager should ensure that the Agency has established
procedures to monitor and control the use of its vehicles at all times.
Officers and employees entrusted with a motor vehicle are responsible
for the proper care, operation, maintenance, and protection of the
vehicle. Any officer or employee who uses or authorizes the use of such
vehicle for other than official purposes is subject to a suspension of
at least one month or, up to and including, removal by the head of the
Agency (31 USC 1349).

Agencies and their units (Bureaus, Centers, etc.) are responsible for
ensuring that employees of authorized contractors and subcontractors use
Government-owned or -leased motor vehicles for official purposes only.
This starts with maintaining and monitoring an inventory of all
vehicles, their locations, and other pertinent asset and utilization
data.

The authorizing Agency must also ensure that contractors use the
vehicles solely in the performance of the Government contract; that the
contractors establish and enforce suitable penalties for their employees
who use or authorize the use of such vehicles for other than official
purposes; and that appropriate provision is made for the contractor to
assume vehicle costs for non-contract utilization.

**3.9.1.2 Traffic Law Violations**

Operators of Government-furnished vehicles are required to become
familiar with and obey all motor vehicle traffic laws of State(s) and
local jurisdictions in which they operate. Payment of fines imposed on a
Government employee for an offense committed while in the performance of
official duty is the employee\'s personal responsibility. This includes
fines imposed for parking violations (however, reimbursement of parking
fees is normally allowed). Except when the scope of their employment
dictates otherwise (e.g., law enforcement or emergency use), operators
of Government motor vehicles shall obey posted speed limits.

**3.9.1.3 Home-To-Work Use of Government-Provided Vehicles**

By statute, certain Federal officials are authorized home-to-work
transportation, as are employees who meet certain statutory criteria as
determined by their Agency head. The Federal officials authorized by
statute are the President, the Vice-President, and other principal
Federal officials and their designees, as provided in 31 USC 1344(b) (1)
through (b) (7). Those employees engaged in field work, or faced with a
clear and present danger, an emergency, or a compelling operational
consideration may be authorized home-to-work transportation as
determined by their Agency head. No other employees are authorized
home-to-work transportation. For details, go to:
<http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelId=-16529&specialContentType=FMR&file=FMR/FMRTOC102-__5.html#wp436256>

An employee authorized home-to-work transportation may share space in a
Government passenger carrier with other individuals, provided that the
passenger carrier does not travel additional distances as a result of
such sharing and is consistent with Agency policy. When a Federal Agency
establishes its space-sharing policy for passenger carriers, the Agency
should consider its potential liability for and to those individuals.
Home-to-work transportation does not extend to the employee's spouse,
other relatives, or friends unless they travel with the employee from
the same point of departure to the same destination and this use is
consistent with the Federal Agency's policy.

Determinations and authorizations must be submitted to the following
Congressional Committees:

(a) Chairman, Committee on Governmental Affairs, United States Senate,
    Suite SD-340, Dirksen Senate Office Building, Washington, DC
    20510-6250; and

(b) Chairman, Committee on Governmental Reform, United States House of
    Representatives, Suite 2157, Rayburn House Office Building,
    Washington, DC 20515-6143.

Agencies must report determinations and authorizations to Congress no
later than 60 calendar days after approval. Subsequent determinations
may be consolidated into a single report and submitted quarterly.
Responsibilities for documenting use of home-to-work transportation
include maintaining logs or other records necessary to verify that any
home-to-work transportation was for official purposes. Each Agency may
decide the organizational level at which the logs should be maintained
and kept. The logs or other records should be easily accessible for
audit and should contain:

(a) Name and title of employee (or other identification, if
    confidential) using the passenger carrier;

(b) Name and title of person authorizing use;

(c) Passenger carrier identification;

(d) Date(s) home-to-work transportation is authorized;

(e) Location of residence;

(f) Duration; and

(g) Circumstances requiring home-to-work transportation.

**[3.10 Communication]{.underline}**

[]{#hlk115837689 .anchor}Today's effective Fleet Manager must understand
management styles and be able to modify behavior patterns to convince or
persuade or coerce those with whom they must deal. Consider, for
example, the importance and variability of voice, posture, poise, and
tactfulness when dealing with employees at differing levels of the
organization, as well as employees of different, and sometimes
difficult, personality.

In verbal exchanges, tone of voice can determine whether a discussion
will be productive. Generally, a calm, deliberate tone is most
successful. Losing one's "cool" and adopting a challenging tone is most
often not effective, particularly when communicating with upper
management.

Efforts to persuade decision-makers to your point of view regarding
vehicle acquisitions or replacements, budget, or implementing a new
fleet policy require a businesslike presentation: a calm tone and
supporting facts. Logic cannot persuade when it is shouted. Instead,
emotion takes over and reasoning goes out the door. Presentations to
your management, to be successful, must be organized, factual, and
verbally straight-forward.

All managers are communicators. The typical manager spends 80% of his or
her time involved with communicating in one form or another.

Follow this link, [Attachment 1: Communication](#_Hlk116896998) , for a
discussion of strategic and technical communication and prose-writing
considerations.

**[3.11 Information Technology]{.underline}**

[]{#hlk115837729 .anchor}We discuss ways in which computers and software
contribute to successful management of a fleet throughout this *Guide*.
Here we provide a general management review of computer software
considerations.

**[3.11.1 Some Advantages of a Fleet Management Information System
(FMIS)]{.underline}**

[]{#hlk115837769 .anchor}For large fleet operations, electronic data
input and processing is virtually a necessity to manage effectively.
Some of the advantages of implementing such a solution are:

-   Large volumes of information can be input and statistically analyzed

-   Dispersed fleet operations work with standardized data definitions,
    data input fields, and data reports

-   Statistical history enables comparisons over time (longitudinal
    statistical reports), across organizational divisions, and from
    driver to drivers

-   Managers can more speedily identify problems and unearth answers to
    management questions

-   Query programs enable flexibility for selecting and extracting data
    and reporting in different formats and from different statistical
    perspectives

-   Computer-generated numbers carry an aura of truth and can thereby
    lend credence to strong policy enforcement or recommendations for
    changes in policies or programs

**[3.11.2 Meaningful Management Reports without Tons of
Paper]{.underline}**

[]{#hlk115837798 .anchor}Too often, organizations invest considerable
sums of money in hardware and software so they can generate data-reports
that will contribute to controlling costs and making management
decisions -- and merely build piles of unread paper or "piles" of
e-mailed reports that go into software file folders with scant or no
attention. Proper planning and asking the right questions will result in
management reports that are meaningful.

Organizations should periodically ask this question of those who receive
either manual or electronic reports: "Do you look at this report and do
you use the information it contains?" If the answer is no, determine
whether a different report or different data would prove more useful.
Alternatively, stop preparing and communicating the report.

As is true of most management decisions, you must define your needs: Who
needs to know, and what needs measurement? Generally, the answers will
fall into one of two categories: expense tracking and budgeting, and
policy development and compliance. Two types of reports will supply the
information:

1.  Properly designed historical and informational reports provide the
    data necessary to budget and to predict trends in expenditure
    patterns;

2.  Well thought out exception and action reports will pinpoint problem
    areas so that management can take appropriate action.

**3.11.2.1 Expense Tracking and Budgeting**

In the areas of expense tracking and budgeting, two objectives are
fundamental: to monitor spending and to project spending. When
determining categories of information and types of reports, identify who
will need the reports for monitoring and budgeting. Will the reports go
to upper management or to field managers, will they go to fleet managers
or to users of your fleet services? Knowing who should receive the
reports will enable you to identify categories of information essential
for making management decisions and setting budgets.

Decision-makers will want to know the total expenses in previous years
and year-to-date for key categories of information. Of course, the key
categories of information must be identified and systems put in place to
track data.

The ability to compare expenditures with comparable metrics from both
the public and private sectors can be useful in pinpointing problem
areas for management targeting. Even greater precision in making these
comparisons can be revealing, such as measuring expenditures against
organizations of similar size, with the same type of vehicles, or even
reporting-units without the same organization in different parts of the
country.

A key management question that should rise out of the reports is whether
the expense experience justifies the type of fleet financing (leasing,
ownership, etc.) and management methodology.

Executive summaries should provide an organization "snap shot" of the
fleet operation. These reports should be simple (but not simplistic).
Programs that enable use of graphics can prove invaluable to
communicating quickly and persuasively.

**3.11.2.2 Policy Development and Compliance**

In the area of policy development and compliance, a fundamental
objective is to control costs. A Fleet Manager cannot control costs that
are not identified, and the key to accomplishing that is to know what
costs to control and to implement systems and processes to assure that
the costs are gathered and monitored. A crucial management effort in
building a successful system that will, in turn, yield successful
exception and management reports is to gather valid data. Fleet Managers
must be able to identify where garbage data comes from and how to
minimize mistakes. Poorly designed paper or on-line report forms for
drivers to fill out or unclear communication to drivers about the forms
or the organization's expectations can undermine the value of any
attempt at computerization or report generation.

**3.11.2.3 Factors to Keep in Mind When Shopping for Software**

As organizations and Fleet Managers turn to computerization of fleet
management, they should recognize that an information system is a
powerful tool to affect change. Develop goals and objectives at the
outset. Indeed, implementing a system should force a review of fleet
management practices, operational procedures, and staffing needs, as
well as the goals of the fleet organization. For example, computers and
the information power they furnish can affect job performance and tasks,
not only among the fleet staff but most likely throughout the
organization. Therefore, the decision to implement a fleet management
information system carries internal political ramifications which the
Fleet Manager should recognize, carefully weigh, and prepare to deal
with. Indeed, one key question to ask is: "What fleet operation
functions have the greatest potential for return on investment if
automated?" The answer not only identifies the value of computerization
but also points out procedures, and perhaps even staffing, that may
change.

Another fact to appreciate when considering a FMIS is that information
is an asset, and, like any asset, it must be managed. This not only
involves data input but also knowing what types of operational support
and management reporting will contribute to your effective management of
the fleet.

A FMIS will only do what it is capable of doing and what one asks it to
do. Consequently, Fleet Managers must determine what reporting
capabilities they will want and select a system capable of capturing and
generating the desired data. For example, Fleet Managers should seek to
acquire an information system that assists in identifying all fleet
costs, because cost identification precedes effective fleet management.

Selecting a FMIS is not simple. Like interviewing many new employees to
find one who offers the most to the fleet staff, Fleet Managers must
consider their software choices and narrow the field according to their
needs.

To meet your needs, you must know them: this cannot be overstressed.
Match the functions of your fleet with the functionality of the software
program being considered. Those shopping for fleet software programs
should take into account their anticipated increase or decrease in fleet
size for at least three years, five if possible. The danger is in
selecting an expensive program that is too powerful or an inexpensive
program that will not meet functionality needs three to five years out.
The objective is to select an expandable and flexible system that can
grow with the needs of the fleet and its management.

Before going out to bid, define the problems you want to solve and check
systems on the market to ensure they have functionality that will help
you solve them. Generally, decision-makers in asset management or
finance will have a list of system "to-do's," but you are the fleet
professional, and you must ensure that the system will deliver what you
need to manage the fleet, not just meet the informational needs of other
units within the organization.

Avoid unrealistic expectations. A sophisticated fleet software program
can accomplish many important tasks, but it cannot make decisions for a
Fleet Manager or provide immediate staff and cost reductions. It does
not work miracles.

[]{#_Hlk115691582 .anchor}**[Section 4]{.underline}**

**Fleet Asset Management**

This section addresses the competency area of Fleet Asset Management, so
it focuses on the key fleet subcompetency areas of fleet composition,
acquisition and disposal. Some Federal Fleet Managers spend most, if not
all, of their time on these work areas. Because tasks associated with
operation of the vehicle (fueling, maintenance, accident management, to
name a few) occur in the field, fleet personnel at geographically
dispersed locations are more likely to spend most of their time on those
work areas.

For discussion of Fleet Operations Management, follow this link to
[Section 5](#OLE_LINK1), which focuses on such topics as performance
measures for effective fleet management, receipt of motor vehicles,
vehicle assignment and use, vehicle utilization, maintenance and repair,
and other operational tasks.

Click on any of the topic links below to go to the related content.

[]{#_Hlk115838606 .anchor}**[Section 4 Table of Contents]{.underline}**

[**4.1 Useful Links**](#_Hlk116890809)

[**4.2 Best Practices: Vehicle Acquisition, Replacement and
Disposal**](#hlk116890834)

[**4.2.1 Acquisition**](#hlk116890854)

[**4.2.2 Replacement and Disposal**](#hlk116890880)

[**4.3 Fleet Composition**](#_Hlk116890908)

[**4.3.1 Needs Assessment Process**](#_Hlk116890938)

[**4.3.2 The Current State**](#hlk116890972)

[**4.3.3 Accomplishing the Agency Mission and the Duration of the
Need**](#hlk116891011)

[**4.3.4 Vehicle Utilization**](#hlk116891039)

[**4.3.5 Breakeven Analysis**](#hlk116891074)

[**4.4 Alternative Fuel Vehicles (AFV)**](#hlk116891115)

[**4.4.1 Summary of Key AFV Related Legislation**](#hlk116891151)

[**4.4.2 Reduce Petroleum Consumption for Your Fleet**](#hlk116891192)

[**4.4.3 Choosing an AFV**](#hlk116891237)

[**4.4.4 Types of Alternative Fuels, Vehicles, Configurations and
Infrastructure**](#hlk116891268)

[**4.4.5 Exemptions**](#hlk116891315)

[**4.4.6 Calculating Average Fuel Economy for Your
Fleet**](#hlk116891361)

[**4.5 Acquisition**](#hlk116891401)

[**4.5.1 Use of Public Transportation**](#hlk116891448)

[**4.5.2 Privately Owned Vehicles (POV)**](#hlk116891492)

[**4.5.3 Motor Pool Use in Lieu of Permanent
Assignment**](#hlk116891883)

[**4.5.4 Excess Vehicles**](#hlk116891940)

[**4.5.5 Seized/Forfeited Vehicles**](#hlk116891993)

[**4.5.6 Federal Acquisition Standards**](#hlk116892026)

[**4.5.7 Vehicle Mix**](#hlk116892095)

[**4.5.8 Additional Standards**](#hlk116892234)

[**4.5.9 Vehicle Justification**](#hlk116892284)

[**4.5.10 Controlling the Costs of Acquisition**](#hlk116892365)

[**4.5.11 Federal Fleet Leasing and Purchasing**](#_Hlk116892493)

[**4.5.12 Commercial Leasing: Lease Contracts and Lease
Financing**](#hlk116892599)

[**4.6 GSA Fleet Services**](#hlk116892652)

[**4.6.1 Maintenance and Repair Services**](#hlk116892706)

[**4.6.2 Fuel, Oil and Charge Card Services**](#hlk116892787)

[**4.6.3 Shuttle and Driver Services**](#hlk116892826)

[**4.6.4 Agency Chargebacks for GSA IFMS Services**](#hlk116892867)

[**4.6.5 Contractor Chargebacks for GSA IFMS Services**](#hlk116892901)

[**4.7 Disposal**](#_Hlk116892972)

[**4.7.1 Exchange/Sale of Motor Vehicles**](#_Hlk116893023)

[**4.7.2 Temporary Vehicle Storage**](#hlk116893094)

[**4.7.3 Reporting Motor Vehicles for Exchange/Sale**](#hlk116893142)

[**4.7.4 Preparing Motor Vehicles for Sale**](#hlk116893222)

[**4.7.5 Marketing Motor Vehicle Sales**](#hlk116893264)

[**4.7.6 Excess Motor Vehicles**](#hlk116893311)

[**4.7.7 Transfer of Government-owned Vehicle Title**](#hlk116893361)

[]{#_Hlk116890809 .anchor}**[4.1 Useful Links]{.underline}**

  ----------------------------------------------------------------------------------------------------------------------------------
  Motor Vehicle Management programs and policies, which fall under GSA's Office of Governmentwide Policy, can be accessed via this
  direct link, or you can reach it through GSA's web portal by placing your cursor over Policy on the menu bar of the home page. At
  this site, you have links to key information, including regulations, bulletins, fleet services, reports, FAST, EPAct, alternative
  fuels, and more.

  <http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8203&channelPage=/ep/channel/gsaOverview.jsp&channelId=-13175>

  GSA Federal Supply Schedule 751 - Provides commercial lease options or open market leases for automobiles and light trucks.

  <http://www.gsaelibrary.gsa.gov/ElibMain/ScheduleSummary?scheduleNumber=751&id=139>

  In 1986, SDDC was tasked with managing the rental car program for the Federal Government. SDDC implemented the U.S. Government
  Rental Car Agreement. Because of this agreement, travelers with a travel order or Government-sponsored charge card receive
  superior rates when renting for official business. The agreement has many benefits other than rates, such as unlimited mileage,
  reduced age restriction and collision damage waiver insurance.

  <http://www.sddc.army.mil/public/Passenger/>

  The reporting procedures of Standard Form 82, Agency Report of Motor Vehicle Data are now accomplished through use of the [Federal
  Automotive Statistical Tool (FAST) System](http://fastweb.inel.gov/).  Per the requirements of [OMB Circular A-11 Exhibit 33
  Section 33.9](http://www.whitehouse.gov/omb/circulars/a11/2002/S33.pdf), Federal Agencies must report annually on their motor
  vehicles in the Motor Vehicle Exhibit (also referred to as Exhibit 33).  Agencies use [FAST](http://fastweb.inel.gov/) to report
  their planned vehicle acquisitions and disposals as well as their vehicle acquisition and fleet operating costs.

  <http://fastweb.inel.gov/>

  For the Executive Order and detailed information on EPAct and #13149, a link to FAST, and helpful guidance relating to alternative
  fuels and alternative fuel vehicles, click on the following EPA link.

  <http://www.eere.energy.gov/vehiclesandfuels/epact/federal/index.shtml>

  Title 41 Chapter 101 - Guidance for performing lease versus purchase calculations.

  <http://www.access.gpo.gov/nara/cfr/waisidx_98/41cfr101-25_98.html>

  OMB Circular A-94 - provides guidance for lease-purchase analysis.

  <http://www.whitehouse.gov/omb/circulars/a094/a094.html>

  To learn more about light and heavy-duty alternative fuel vehicles available, go to the Vehicle Buyer's Guide.

  <http://www.ccities.doe.gov/vbg>

  To identify stations in user's geographic areas, go to the AFV Fueling Station Locator.

  <http://www.eere.energy.gov/afdc/infrastructure/locator.html>

  To gather data on average costs for all fuel types, go to the Alternative Fuel Price Report.

  [www.afdc.doe.gov/documents/pricereport/pricereports.html](http://www.afdc.doe.gov/documents/pricereport/pricereports.html)

  This link takes you to an on-line source for car prices and other vehicle cost information.

  <http://www.car-prices-costs.com/>

  This link takes you to one of the most comprehensive independent sources of automotive information, including car reviews, a
  ranking of vehicles by fuel use, crash data, tire safety, even latest U.S. road conditions.

  <http://www.theautochannel.com/>

  The Kelly Blue Book site is a key source of new and used vehicle pricing information.

  <http://www.kbb.com/>

  The Edmunds.com site is a key source of new and used vehicle pricing information.

  <http://www.edmunds.com/>

  This link takes you to a source of comprehensive automobile make and model information.

  <http://www.intellichoice.com/>

  Using Agencies are billed for GSA Fleet services at rates fixed by GSA. These rates are designed to recover all GSA Fleet fixed
  and variable costs. You will find the motor vehicle service rates for each year at this link.

  <http://www.gsa.gov/Portal/gsa/ep/challenView.do?pageTypeID=8211&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelID=-13038>
  ----------------------------------------------------------------------------------------------------------------------------------

**[4.2 Best Practices: Vehicle Acquisition, Replacement and
Disposal]{.underline}**

[]{#hlk116890834 .anchor}The cost of owning/leasing vehicles and
equipment represents the single largest cost component of fleet
operations, easily eclipsing expenditures for maintenance, fueling and
other components. The methods used to acquire and dispose of vehicles
and equipment directly impact fleet performance and cost. Organizations
with best fleet practices design their acquisition processes to balance
fleet users' transportation and mobility needs with economies derived
from:

a)  volume purchasing,

b)  standardization of vehicle types, and

c)  appropriate replacement cycles and life-cycle costing.

Disposal best practices ensure vehicle replacement at a point that
minimizes life-cycle costs and in a manner that maximizes residual
value. We discuss life-cycle costing later in this *Guide*.

**[4.2.1 Acquisition]{.underline}**

[]{#hlk116890854 .anchor}After determining the need for fleet vehicles
and their number, the Fleet Manager begins the acquisition process with
development of vehicle specifications that define the technical
attributes and configuration, and/or the functional capabilities of a
vehicle or piece of equipment to be acquired. How an organization
develops and employs specifications affects:

a)  cost effectiveness,

b)  suitability of the purchased vehicles for fleet users' needs, and

c)  level of effort and amount of time required to acquire vehicles.

An effective and best-practice specification process systematically
incorporates information on user needs and maintenance experience with
particular types of vehicles and components and subsequently balances
custom-design requirements with standard features. As one would expect,
the more customized the design, the longer specification development
takes and the more expensive the respective vehicle is.

The methods used to acquire vehicles can affect price, delivery timing,
and vendor responsiveness to customer needs. Logically, then,
best-practice acquisition policies leverage buying power to obtain the
best possible prices and ensure the timely delivery of properly
manufactured and upfitted equipment. Additionally, a best-practices
fleet operation ensures that procedures are in place for vehicle review
upon delivery to ensure that the units comply with the order
specifications.

Where applicable for in-house maintenance programs, critical parts
lists, service manuals, and user and/or mechanic training services
should be included in purchase specifications for units new to the fleet
or for specialized equipment for which operating and maintenance
requirements are not self evident.

**[4.2.2 Replacement and Disposal]{.underline}**

[]{#hlk116890880 .anchor}Organizations replace their vehicles and
equipment at various age or accumulated-usage intervals, depending on
the type of vehicle and the nature and intensity of its use. Timely
replacement is an important best practice because it affects vehicle
availability, safety, reliability, and operating costs.

A consistent best practice is to use replacement guidelines to project
and plan fleet-replacement requirements. The guidelines should trigger
assessments of the need to replace individual vehicles for which age
and/or life-to-date usage is approaching established replacement
thresholds. The ideal fleet best practice is for an organization to
develop replacement guidelines based on empirical analysis of the
relationship between vehicle age and/or cumulative usage and total
vehicle ownership and operating (that is, life-cycle) costs.

Best-practice fleet organizations develop and annually update a fleet
replacement plan that projects replacement dates and costs for each
fleet vehicle. The purpose of such plans is to identify long-term
replacement spending needs and associated budgetary requirements, and to
communicate these funding needs to user organizations and upper
management. Otherwise, organizations tend to under-fund fleet
replacement costs, which can cause large replacement backlogs to
develop.

A best-practice fleet does not succumb to under-funding vehicle
replacement and causing large backlogs to develop. Shifting costs from
acquisition to maintenance and putting mission fulfillment at risk is an
unsound management decision, and only organizations under the greatest
financial duress will employ that practice. If management perceives the
mission (the reason for which vehicles are provided) as imperative, then
it flies in the face of logic for management to raise barriers to
fulfilling the mission.

After a vehicle has reached the end of its useful life, the
best-practice procedures to remove it from service and to dispose of it
are designed to:

a)  maximize residual value,

b)  avoid unauthorized retention and use of officially replaced assets,
    and

c)  ensure the removal of unneeded replacement parts from inventory.

[]{#_Hlk116890908 .anchor}**[4.3 Fleet Composition]{.underline}**

**[4.3.1 Needs Assessment Process]{.underline}**

[]{#_Hlk116890938 .anchor}In determining your fleet needs, you should
consider, at a minimum:

-   The number of each vehicle-type needed to meet mission demands and
    Agency performance objectives associated with the Government
    Performance and Results Act of 1993 (GPRA).

-   The number of each vehicle-type required to meet environmental and
    socioeconomic goals established in Federal law, regulation and
    policy and Agency guidance. A key factor is the number of
    Alternative Fuel Vehicles needed.

-   The fuel-economy rating for all planned vehicle-acquisitions and
    their affect on the ability of the organization to meet the fleet
    average fuel-economy rating established in law, regulation and
    policy.

-   Intended use and projected unit utilization (that is, the cargo or
    number of passengers to be transported, the frequency and types of
    trips, etc.).

-   The essential need and cost for all non-standard units and added
    equipment (that is, upfitted vehicles, such as law-enforcement
    accessories) and the potential benefits to be derived from their
    use.

-   Reassignment of existing vehicles to meet transportation
    requirements.

-   Feasibility and economy of using local public transportation,
    dispatch or shared vehicle usage, or privately owned vehicle (POV)
    in lieu of acquiring additional vehicles.

-   Feasibility of obtaining required motor-vehicle support from another
    Federal Agency, GSA Fleet, or through an in-house maintenance
    program.

-   Feasibility of lease or rental from commercial sources, especially
    in those instances where need is for three months or less

-   Successful completion of the budget process to meet the defined
    need.

A succinct checklist of fleet-size factors to consider includes:

-   Organization Size

-   Organization Mission

-   Duration of Need

-   Utilization Factors

-   Anticipated Mileage, Trips, or Hours

-   Current and Future Needs

-   Alternative Sources of Transportation

GSA recently released a bulletin (B-9) that recommends development of a
vehicle allocation model (VAM), which should describe the standard
process for determining need within each respective organization.

**[4.3.2 The Current State]{.underline}**

[]{#hlk116890972 .anchor}Your first step in determining the vehicle
needs of your organization is to assess the current fleet. If you
maintain an electronic inventory with sufficient descriptive facts about
the units, you may be in a position to develop a long-term replacement
plan. If your fleet database is not sufficiently descriptive, however,
you will need to seek answers to these key questions:

-   What do you have now (number, type, age, condition)?

-   Why do you have it (can each vehicle be justified)?

-   What\'s the monthly mileage (or hourly usage or number of trips or
    passengers carried) for each vehicle?

-   What\'s your fleet\'s average cost per mile for this fiscal year?

-   What\'s your fleet\'s average fuel-economy rating for this fiscal
    year?

-   Does your fleet meet the alternative fuel vehicle (AFV) and
    petroleum-reduction requirements of Federal law, regulation and
    policy?

-   Who are the primary customers for the services your fleet provides?

-   Is your fleet able to support your customers cost effectively and
    efficiently?

After you know the current state of the fleet, you are ready to focus on
identifying the right fleet configuration required to fulfill the
Agency\'s mission for the next fiscal year (or longer, if you are
building a long-range replacement plan).

**[4.3.3 Accomplishing the Agency Mission and the Duration of the
Need]{.underline}**

[]{#hlk116891011 .anchor}Initial factors to consider to ascertain your
fleet needs are:

a)  organization mission,

b)  size of the organization you are serving (your direct customers),
    and

c)  the duration of the need (are your customer's needs for short or
    long-term transportation).

In most cases, your Agency will have policies that supply some degree of
regulatory guidance regarding these factors, and you should integrate
those policies into your fleet planning.

A Federal Fleet Manager needs to work closely with the operational
personnel of his or her respective organization to appreciate the
nuances of the mission and the methods required to fulfill it. For
example, if the mission of the organization is investigation, each
investigator may require a vehicle, so the fleet need will be predicated
on the number of investigators. But if another investigator uses the
same vehicle on a separate shift (sometimes called keeping a "hot
seat"), fewer vehicles may be needed at one time; however, maintenance
on each vehicle will be greater, and you may need to replace those
vehicles sooner. In contrast, if the mission of the organization is
administrative, one vehicle may provide the necessary support for a
number of individuals.

Your assessment may also include the transportation needs of employees
of contractors or sub-contractors, because, under some contractual
arrangements, Government-provided vehicles may be more cost-effective
than contractors providing vehicles through commercial acquisition
arrangements. However, some organizations have a policy not to provide
vehicles to contractors due to replacement funding considerations.

Agencies should develop an appropriate vehicle allocation model (VAM)
for each of its offices or functions. Customize the model as necessary
to reflect geography or other relevant factors, and update the vehicle
allocation requirements to reflect changing personnel allocations,
mission requirements, etc. In many cases, the model should incorporate
vehicle utilization data (time, mileage; see discussion below) to assess
fleet-size and vehicle-type requirements rather than number of
personnel. See GSA's bulletin for more information.

Generally, operational personnel will also be the source for determining
whether specific transportation needs are temporary, short-term, or
on-going. Consequently, your fleet plan should include both current and
anticipated demands.

**[4.3.4 Vehicle Utilization]{.underline}**

[]{#hlk116891039 .anchor}Oversight of vehicle utilization is a
critically important best practice in managing a vehicle fleet. It
represents a significant opportunity for cost avoidance: Disposal of
late model vehicles due to accumulation of excessive mileage while, at
the same time, operating aged vehicles receiving little usage is both
inefficient and uneconomical in terms of fleet size required, high
maintenance costs, and low disposal proceeds when the vehicle is sold.

Establish processes to monitor and measure vehicle utilization
(including hours of usage for non-rolling stock). Compare your Agency's
fleet utilization with that of other Federal fleets by using the mileage
reports offered in the Federal Fleet Report published by GSA's Office of
Governmentwide Policy. Comparing your organization's vehicle utilization
to that of similar fleets can contribute to an assessment of whether
your fleet is right-sized and achieving optimal utilization.

In some situations, you will find that one vehicle can satisfy more than
one requirement; in others, the mission will require back-up vehicles
for use when others are out of service. Regarding back-up, in some
cases, you will have vehicles scheduled for disposal sitting idle,
because new vehicles have arrived, but the old ones have not yet been
taken away. In those cases, you can turn to the idle vehicles, so long
as they remain properly registered and considered safe for operation.
Other transportation alternatives for back-up are, of course, use of
privately owned vehicles (POVs), public transportation, and daily rental
units.

Agencies requesting GSA Fleet services may use the guidelines set out in
FPMR 101-39.301 to determine whether miles traveled necessitate a
full-time vehicle assignment.

Utilization guidelines for GSA Fleet passenger-carrying vehicles are a
minimum of 3,000 miles per quarter or 12,000 miles per year; for light
trucks and general purpose vehicles with a Gross Vehicle Weight Rating
(GVWR) of 12,500 lbs, the minimum is 10,000 miles per year. Where
utilization guidelines are not met but users still request vehicles, a
vehicle justification process should be in place and enforced. These
fleet management practices contribute to right-sizing the fleet.

**[4.3.5 Breakeven Analysis]{.underline}**

[]{#hlk116891074 .anchor}Other than utilization guidelines, you should
consider use of a break-even analysis (BEA) software program to assess
whether it is more cost-effective for the Government to provide a
vehicle than to have drivers use their personally provided vehicles
("owned" is misleading today because many drivers lease rather than
purchase their personal vehicles). The purpose of such a model is to
identify the threshold at which it is more costly to claim reimbursement
than to drive a Government-provided vehicle; that is, for
decision-making purposes, the BEA should determine the point at which
costs are the same for reimbursement versus the total fixed and variable
costs of a Government-provided vehicle.

Keep in mind, however, that the reliability of the calculated threshold
will vary according to the data input into the model (garbage in,
garbage out). A further point is that use of POVs may conflict with
union agreements, requiring negotiation with employee representatives.
If you turn to POVs to meet transportation needs, ensure that drivers
are aware of the insurance ramifications when conducting official
business in their personal vehicle.

**[4.4 Alternative Fuel Vehicles (AFV)]{.underline}**

[]{#hlk116891115 .anchor}The Federal Government has attempted to
establish effective energy policies aimed at reducing U.S. dependence on
petroleum imports since the first Organization of Petroleum Exporting
Countries (OPEC) embargo in 1974. Initial policies had little effect,
and petroleum imports continued to grow.

A significant law passed in 1992 -- the Energy Policy Act (EPAct) -- was
meant to add teeth to U.S. efforts to increase use of non-petroleum
fuels in our vehicles, but it was critically flawed because it only
required the *purchase* of Alternative Fuel Vehicles (AFVs) by
Government Agencies and energy providers. It did not require actual
*consumption* of alternative fuels. This flaw was rectified somewhat by
Executive Order #13149, which required Federal Fleets to reduce
petroleum consumption by 20% by FY 2005, compared with FY 1999 levels.

Although the Executive Order was executed, many Federal Agencies ignored
it or took only token steps to comply that fell short of the required
goals or found the AFV infrastructure inadequate to support widespread
alternative fuel use. This began to change in 2002 when a Federal
District Court ruled that the Federal Government was disobeying its own
law and must take immediate steps to comply.

To comply with Federal law, regulation and policy, Federal Fleet
Managers must use Alternative Fuel Vehicles (AFV) to meet vehicle needs.
AFV legislation mandates reduction of emissions and petroleum fuel. For
EPAct-covered fleets, 75% of light-duty acquisitions must be AFVs.
Annually, Agencies must submit AFV Compliance Reports via the Federal
Automotive Statistical Tool (FAST) System, including fuel data on
conventional fuels and AFV acquisitions/plans/projections, vehicle
cost/mileage data and petroleum and alternative-fuel consumption.

**[4.4.1 Summary of Key AFV Related Legislation]{.underline}**

[]{#hlk116891151 .anchor}

**[CAAA (Clean Air Act Amendments of 1990 \[CAAA\])]{.underline}**

-   Clean fuel fleet requirements for achieving emission reductions

-   Applies to all fleets with 10 or more vehicles capable of being
    centrally fueled

-   Initially in 22 metro areas

-   Vehicles under 26,000 lb GVW (Gross Vehicle Weight)

**[EPAct (Energy Policy Act of 1992)]{.underline}**

-   Goal of petroleum reduction through AFV requirements and use

-   Currently applies to Federal, State and fuel-provider fleets with 20
    or more vehicles capable of being centrally fueled and located in
    124 Metropolitan Statistical Areas (MSA) with a population of
    250,000 or more

-   AFVs required for 75% of light-duty vehicle acquisitions

-   Exemptions for fleet size, geographic non-MSA operation, and vehicle
    mission (security or emergency)

-   Amended by Energy Conservation and Reauthorization Act of 1998
    (ECRA)

-   Requires annual AFV Compliance Report submitted to Congress by each
    Agency

-   Provides for biodiesel fuel-use credits

**[Energy Conservation and Reauthorization Act of 1998
(ECRA)]{.underline}**

-   Amends the Energy Policy Act of 1992 (EPAct) to allocate one EPAct
    AFV acquisition credit to a fleet or covered person for every 450
    gallons of biodiesel contained in biodiesel blends of at least 20%
    biodiesel by volume

-   Fuel must be purchased for use by the fleet or covered person in
    vehicles owned or operated by the entity that weigh more than 8,500
    pounds GVW rating

**[EO #13149 (Executive Order 13149, \"Greening the Government through
Federal Fleet and Transportation Efficiency)]{.underline}**

-   20% reduction in annual petroleum consumption measured from a FY
    1999 baseline for each Agency's entire vehicle fleet by FY 2005

-   Use alternative fuel in AFVs the majority of the time by FY 2005

-   Increase average fuel economy of new, light-duty acquisitions by 3.0
    mpg (miles per gallon) by FY 2005

-   Exemptions for security and emergency vehicles

-   Requires annual compliance reports to DOE

-   Supersedes Executive Order #13031, \"Federal Alternative Fueled
    Vehicle Leadership"

**[4.4.2 Reduce Petroleum Consumption for Your Fleet]{.underline}**

[]{#hlk116891192 .anchor}Common petroleum reduction strategies include:

-   Increase fuel economy through selection of more fuel-efficient
    vehicles

-   Increase the number of AFVs

-   Increase alternative fuel usage in all vehicles, particularly medium
    and heavy-duty vehicles

-   Pursue transportation alternatives, such as mass transit and
    teleconferencing

Keep in mind that use of alternative fuels in medium and heavy-duty
vehicles can be a particularly successful method of displacing
significant amounts of petroleum because these vehicles use far more
fuel per mile than light-duty vehicles. In addition, they are usually
fueled at a central location, assigned to a particular location, or
garaged in a common area, all factors that make them good candidates for
alternative fuels. This includes the use of biodiesel in diesel-powered
vehicles that generates an AFV acquisition credit under EPAct (1 credit
for every 450 gallons of pure biodiesel used in blends of at least 20%
biodiesel, usually designated as B20).

Driver training is an essential aspect of optimizing use of alternative
fuels. Drivers must not only know how to safely fuel their vehicles, as
appropriate, but typically must also know where alternative fuels are
available and how to operate a hybrid vehicle efficiently and
effectively.

As a Federal Fleet Manager, you should always encourage use of mass
transit whenever feasible. Perhaps most importantly, improvements in
communication technology can often substitute for travel, such as
teleconferencing and video conferencing. Make it a point to know what
communication alternatives your organization offers so that you can not
only use them yourself but also educate others about them.

**[4.4.3 Choosing an AFV]{.underline}**

[]{#hlk116891237 .anchor}In choosing among AFV alternatives, consider:

-   Fuel Characteristics: the unique qualities of the type of fuel that
    powers the vehicle.

-   Cost: Operating costs in terms of fuel and maintenance expenses and
    long-term fuel availability at a reasonable price.

-   Performance: Miles per gallon (or equivalent); ability to start in
    cold temperatures; acceleration rates.

-   Fuel Availability: Location of refueling or recharging facilities;
    time required to completely refill the vehicle\'s tank; method of
    refueling.

To learn more about light and heavy-duty alternative fuel vehicles
available, go to the Vehicle Buyer's Guide
(<http://www.ccities.doe.gov/vbg>).

To identify stations in user's geographic areas, go to the AFV Fueling
Station Locator
(<http://www.eere.energy.gov/afdc/infrastructure/locator.html>).

To gather data on average costs for all fuel types, go to the
Alternative Fuel Price Report
([www.afdc.doe.gov/documents/pricereport/pricereports.html](http://www.afdc.doe.gov/documents/pricereport/pricereports.html)).

**[4.4.4 Types of Alternative Fuels, Vehicles, Configurations and
Infrastructure]{.underline}**

[]{#hlk116891268 .anchor}To comply with the relevant law, Fleet Managers
must acquire and operate vehicles powered by alternative fuels, identify
new alternative fueling sources, and capture accurate conventional and
alternative fuel usage data for their fleets.

Alternatives to petroleum-based gasoline and diesel are constantly
expanding as the alternative fuel/alternative-fuel vehicle field is
quite active.

Follow this link to the Alternative Fuels Data Center to become familiar
with the various alternative fuels (including biodiesel, electricity,
ethanol, hydrogen, natural gas, and propane) and the vehicles that use
them: <http://www.eere.energy.gov/afdc/>

**[4.4.5 Exemptions]{.underline}**

[]{#hlk116891315 .anchor}Military tactical vehicles, law enforcement
vehicles, and emergency vehicles are common examples of vehicles for
which exemptions to AFV requirements have been granted. Under EO #13149,
the fleet, less these exemptions, still must satisfy the requirement to
reduce petroleum consumption.

Also note that, under EPAct, vehicles located outside designated
Metropolitan Statistical Areas (MSA) with a population of 250,000 or
more are exempt, by virtue of geography, from the requirement that 75%
of all light-duty vehicle acquisitions must be AFVs. Although they are
exempt, use of AFVs outside these areas can help an organization meet
its AFV and petroleum reduction targets.

**[4.4.6 Calculating Average Fuel Economy for Your Fleet]{.underline}**

[]{#hlk116891361 .anchor}To manage your fleet in compliance with law and
regulations, you must know the Average Fuel Economy. Relying on the
automatic calculation capability of FAST when you submit your fleet data
at year-end can prove informative, but to determine your vehicle needs
for building an acquisition plan, you must have this fundamental fleet
metric at hand.

To calculate this key measure, you should ensure that your vehicle
database of annual acquisitions includes the basic vehicle
characteristics of make, model, and engine size. You can then obtain and
input the combined (that is, city and highway) fuel-economy rating for
each vehicle type via the online, EPA Fuel Economy Guide. Your next step
is to calculate the total, combined fuel-economy rating by weighting the
fuel-economy rating by the number of vehicles by type (per FMR
102-34.60).

**[4.5 Acquisition]{.underline}**

[]{#hlk116891401 .anchor}Having assessed your organization's fleet
needs, you are ready to undertake the process of acquisition. This task
starts with considering options for meeting vehicle needs. These were
briefly discussed earlier, but at this stage, you should thoughtfully
weigh whether you (and, by extension, your organization) can meet users'
transportation needs through choices other than adding to the number of
Government-provided fleet vehicles.

Overall, Agencies meet their vehicle needs through the use of public
transportation, reimbursement of Federal employees for use of their
Privately Owned Vehicle (POV, more appropriately phrased "personally
provided vehicle," because leasing is common), transfer of
excess/seized/forfeited vehicles, donations, purchase through GSA
Automotive or the open market, GSA Fleet lease, commercial lease or
rental through a Federal Supply Schedule or through an open market
purchase. At the very least, you want to minimize vehicle acquisition
costs.

The primary consideration when selecting among the available options is
to satisfy Agency needs for Federal Fleet Management services at the
least cost to the Government while still meeting the mission
requirements of the Agency. These options are:

-   Public transportation

-   Reimbursement of Federal employees for use of their privately owned
    vehicle (POV)

-   Motor pool use in lieu of permanent assignment

-   Excess vehicles

-   Seized/forfeited vehicles

We have not included use of communication technology, but do not
overlook it as a direct replacement for transportation. The trip not
taken is the one that consumes the least fuel. Moreover, employee
efficiency climbs, because relatively little time is spent to get from
one place to another; the technology accomplishes that more rapidly than
a vehicle. With that in mind, let\'s look at the options Federal Fleet
Managers and Agencies should consider first before purchasing, leasing
or renting vehicles to meet transportation needs.

**[4.5.1 Use of Public Transportation]{.underline}**

[]{#hlk116891448 .anchor}Federal Agencies must investigate the
availability, suitability and cost of public transportation before
acquiring vehicles from any other source. This option requires little
discussion except to stress that mass transportation can often meet the
requirement to get from one place to another. For example, bus or
passenger-van services often convey travelers from one work site to
another within defined geographic areas. In some cases, individuals are
often unaware of their transportation alternatives, so ensuring that
pick-up and drop-off locations and schedules are publicly posted (such
as electronic and physical bulletin boards) is important.

**[4.5.2 Privately Owned Vehicles (POV)]{.underline}**

[]{#hlk116891492 .anchor}Use of a Privately Owned Vehicle (POV; more
correctly termed privately or personally provided vehicle because
leasing is so common) for official business may be the best option for
meeting Agency vehicle needs, but it must have prior authorization. When
such use is advantageous to the Government, reimbursement may be
approved at the full mileage reimbursement rate. If use of a POV is
authorized for the convenience of the employee and/or a Government
vehicle is readily available, reimbursement may be approved at reduced
mileage rates.

Reimbursement for use of a POV, whether advantageous to the Government
or for the convenience of the employee, shall not in either case exceed
the cost of common carrier. Except for organizations exempt in this
regard from Title V of the CFR (but often as agreed to through
bargaining between union and employer), an employee cannot be required
to use his/her POV for official business.

Compensating the employee for using his or her own vehicle is commonly
done via an expense-account reimbursement for mileage, when the duties
involve occasional travel to nearby destinations. This alternative can
be a very potent tool to reduce the size of the fleet. For example, if
an employee needs a car to travel 3,000 miles per year, using a
Government-owned passenger car that costs \$16,000 to purchase is 3
times more costly than reimbursing the employee at around \$.36 per
mile. While Agencies cannot force employees to use their POVs, they
might consider offering incentives for them to do so and, at the very
least, ensuring administrative ease for drivers using their POVs.

Although less common than providing vehicles to drivers, some Federal
organizations only reimburse drivers for full-time business use of their
POVs, thereby eliminating the need for all fleet management tasks. Only
two POV approaches are fully non-taxable:

1.  Mileage reimbursements up to the IRS business-mileage rate (a
    cents-per-mile program), and

2.  A Fixed and Variable Rate (FAVR) program (a flat amount for fixed
    costs and a variable cents-per-mile rate for operating costs).

The IRS rate is most appropriate for occasional drivers, whereas the
FAVR approach is most appropriate for full-time business use. However,
the FAVR approach requires extensive record-keeping, which can be
burdensome if administered internally.

In a basic cents-per-mile program, an organization selects a rate for
employees who report business miles. Typically, this is the rate
published by the Internal Revenue Service (IRS), but for Federal
purposes, GSA must, by law, publish the regulation that sets the rate
for the Executive Branch of the Federal Government. No GSA guidance is
in place regarding a FAVR program.

Although a cents-per-mile, POV program is a sound option to providing
vehicles, a Federal Fleet Manager should appreciate some of its
strengths and weaknesses. Perhaps most importantly, this reimbursement
method is imprecise and unscientific. Though this rate is meant only to
be a safe-harbor deduction standard for taxpayers who do not keep
adequate records for business-vehicle expenses, organizations will often
use it as a reimbursement standard, incorrectly assuming that it is
meant to be a fair representation of reimbursable business costs for
drivers who provide and use their own vehicles for business purposes.

Typically, under a POV program, drivers track, log and report business
miles. This data is then sent (electronically, in most cases) to a
particular location for processing. The data is loaded into a software
system, and the employer pays the employees using the selected
rate-per-mile multiplied by the miles reported.

Typically, the cents-per-mile rate is the same for all drivers no matter
what their actual business costs are, no matter what vehicles they
actually drive, no matter what their individual circumstance might be,
and no matter how many business miles they actually drive. Under this
type of reimbursement program, one seldom finds any restrictions on the
type or age of the vehicles used for business or concern for the
insurance in force for the drivers and vehicles driven. The
cents-per-mile rate is typically in place for a calendar year because
the published IRS rate only comes out once per year. The ultimate goal
of this program is simplicity. One rate fits all.

Except at a precise break-even point, cents-per-mile programs
under-reimburse drivers at lower mileage levels and over-reimburse
drivers at higher mileage levels. A driver at 10,000 miles receives
considerably less than a driver at 30,000 miles. However, both drivers
incur fixed costs (insurance, depreciation, taxes, license and
registration) irrespective of the number of miles accumulated. Actual
expenses for both drivers would appear as a fairly flat line. Operating
expenses (fuel, oil, maintenance, tires), which accumulate for every
mile driven, would appear as a comparatively steep incline.

Typically overlooked management tasks for an effectively managed
cents-per-mile POV program include a) driver record checks and b)
insurance coverage checks. Although organizations often check driver
records when they provide a vehicle, they tend to bypass this step when
the driver provides the vehicle. Because the driver is operating his or
her POV for business purposes, the employer can be liable in the event
of an accident; therefore, an employer should ensure that drivers have
safe-driving records and appropriate insurance coverage.

Under a FAVR program, the employer selects the parameters and standards
for the business-vehicle program based on needs unique to the
organization. Management sets policies to control the type and age of
the vehicles used by employees for business, and they will guide the
drivers to proper insurance standards. They will also monitor driver
compliance, because drivers need to operate business vehicles that
reflect an appropriate organizational image, are as safe as possible,
and are insured to protect both the organization and the driver in case
of accidents. Enhanced management of exposure to risk is an essential
attribute of a sound FAVR program, and it should also be an essential
attribute of a sound cents-per-mile, POV program.

Drivers report mileage for reimbursement as they would under a
cents-per-mile plan. However, by law, under a FAVR program, one rate
cannot fit all. Drivers' cents-per-mile reimbursements must reflect
where they drive their vehicles and the typical fuel prices each
encounters. Where a flat cents-per-mile rate is typically fixed all
year, the cents-per-mile rates under a FAVR program must follow the
fluctuations in fuel prices that drivers will experience throughout the
country and throughout the year.

Under a FAVR program, drivers typically will also receive a fixed dollar
amount per month, based on the program standards and where they live and
drive. Again, one rate cannot fit all. By law, the program must
recognize that costs for items such as insurance will vary widely, for
the same coverage, depending upon the State in which each car is
registered, whether the vehicle is kept in an urban or rural area, or
what the average annual mileage is.

**[4.5.3 Motor Pool Use in Lieu of Permanent Assignment]{.underline}**

[]{#hlk116891883 .anchor}Before acquiring a vehicle for permanent
assignment, evaluate the possibility of temporary or shared use of a
motor vehicle from a motor pool. This is an effective transportation
solution; however, management of the motor pool should include tracking
utilization to ensure that this is the most cost-effective solution.
Where pool vehicles have low utilization, a POV program for occasional
drivers or even car rental may be more cost-effective than acquiring and
managing a vehicle.

Where several departments (and contractors, in some cases) have similar,
basic transportation needs and work in close proximity, an efficient
inter-departmental vehicle pool can provide a cost-effective solution.
Vehicles in such a pool tend to be used more consistently than those
assigned to individuals or departments because they are rotated among
users, balancing out usage. If a pool were well organized, fewer
vehicles per user would be needed without sacrificing availability or
quality of transportation.

Cleanliness, reliability and uniformity of the pooled vehicles directly
affect the success of such an arrangement. Ideally, any given vehicle in
the pool should be no less desirable than any other within its duty
class.

For users to obtain a vehicle for an assignment or outing easily, locate
the pool close to their base workplace, and documentation should be as
simple and streamlined as possible while still tracking essential
information on usage and accounting. An on-line vehicle reservation
system can significantly streamline the entire process.

Passenger cars, general-duty pickup trucks, cargo vans, passenger vans,
and sport utility vehicles are all ideal candidates for pooling, as are
specialty trucks and equipment that various work groups can use (for
example, a dump truck or tractor backhoe). These latter vehicles are
often overlooked as possible pool vehicles, but heavy-duty equipment and
special mobile equipment used infrequently by one work group can often
be shared with another, thereby saving the organization the expense of
two costly vehicles with low utilization. For the Federal Government,
this can extend to pool vehicles shared across the respective work
groups of various Agencies, with an appropriate chargeback system in
place.

**[4.5.4 Excess Vehicles]{.underline}**

[]{#hlk116891940 .anchor}Availability of excess passenger-carrying motor
vehicles is extremely limited. Heavy equipment or specialized vehicles
are more likely to be found on excess. Typically, you can obtain a
vehicle on excess that will satisfy an organizational need at no cost or
for the cost of transportation (complete Standard Form 122, Transfer
Order for Excess Personal Property, to obtain a vehicle identified on
excess).

**4.5.4.1 "Pass Down" Policy**

Situations arise where a certain operation or region may have a vehicle
or piece of equipment that is no longer suitable for its needs, but the
unit may have useful remaining life. In such cases, another group within
the organization may want to obtain the unit that is available for "pass
down."

A basic principle of fleet management is: control fleet size. To
accomplish this, fleet management personnel must not only prohibit
unauthorized additions to the fleet but also block these from occurring
informally. Retention of "pass-down" vehicles creates a potential
opportunity for "fleet creep"; that is, the unauthorized growth in the
size of the fleet. To control this situation when a "pass-down" vehicle
becomes available, those seeking to acquire the vehicle should answer
certain questions before authorization of the "pass down":

1.  Did the pass-down unit become available because a new unit replaced
    it? If the answer is "yes," then the pass-down unit is excess
    inventory until it, or another unit, is removed from the fleet. If
    the answer is "no," then you can assume that the original, "owning"
    group no longer needed the pass-down unit, so removal of a unit from
    the fleet is not required.

2.  Does the pass-down unit actually have useful life remaining? To
    answer this question, you will want to apply guidelines (already
    developed or requiring development) for retention and transfer of a
    pass-down unit. Here's a hypothetical example:

> The pass-down unit must have at least 25% of its estimated life
> remaining in terms of mileage or hours. For example, a passenger
> vehicle with a recommended life of 6 years and/or 72,000 miles should
> not be passed down if its mileage exceeds 54,000 miles (75% of
> 72,000).

3.  As a rule of thumb, pass down of units for which age is greater than
    or equal to the estimated life in terms of time should be
    disallowed. Thus, the passenger vehicle in the above example could
    not be passed down if it were six years old, or older, regardless of
    the mileage on the vehicle.

4.  Is repair or refurbishing required for the pass-down unit to be
    useful? If yes, then apply guidelines (already developed or needing
    to be developed) regarding repair and refurbish expenditures (and
    dispose of vehicles exceeding the guidelines).

The establishment of these or similar policies helps prevent the
development of an "old" fleet. An old fleet is one that has too many
units requiring high maintenance, and such units will quite likely have
low utilization.

**[4.5.5 Seized/Forfeited Vehicles]{.underline}**

[]{#hlk116891993 .anchor}Vehicles in this category have been seized by
or forfeited to the Government in connection with a criminal or civil
court proceeding. While this source may offer a variety of sizes and
models, these vehicles would normally be limited to those suitable for
undercover law- enforcement assignment. Keep in mind that, in some
instances, the vehicles may have outstanding liens on them.

**[4.5.6 Federal Acquisition Standards]{.underline}**

[]{#hlk116892026 .anchor}Federal Fleet Managers must apply Federal
Standards in the acquisition process for new or replacement vehicles.
The reasons for the Standards are:

-   To simplify competitive procurements,

-   To achieve better acquisition prices and delivery dates, and

-   To provide a practical degree of standardization within the Federal
    automotive fleet.

At the same time, GSA, which coordinates setting the Standards and
publishes them, strives to remain responsive to the wide range of
vehicles Agencies require to meet their needs.

**4.5.6.1 Vehicle Standards**

The Standards establish classifications for various types and sizes of
vehicles, general requirements, and the equipment authorized for
Government use. Standards for automobiles and light and medium trucks
include:

-   Federal Standards Number 122 (sedans and station wagons)

-   Federal Standards Number 307 (light truck 4x2)

-   Federal Standards Number 794 (medium truck)

-   Federal Standards Number 807 (heavy truck)

FMR 102-34.30-80 provides that, except for exempted vehicles, all motor
vehicles acquired for official purposes by Executive Agencies shall be
selected to achieve maximum fuel efficiency and be limited to the
minimum body size, engine size and optional equipment necessary to meet
the Agencies\' requirements. In addition, statutory price limits are in
place on sedans, station wagons, police-type vehicles, and special,
heavy-duty law enforcement vehicles.

The *Guide* does not provide a link to the statutory price limit because
no consistent location is available. Congress typically states the limit
changes in several specific Agency appropriations bills.

An Agency must certify that it has specific legislative authority for
the law-enforcement vehicles it seeks to acquire, because regulatory
limitations apply to such vehicles.

**4.5.6.2 Vehicle Replacement Standards**

The FMR also establishes vehicle replacement standards. Keep in mind
that when you acquire replacement vehicles that you must follow the
fuel-economy criteria.

Steps in determining fleet vehicle replacements on a fiscal-year basis
include:

-   Establishing and justifying requirements for all vehicle users

-   Establishing a system for assigning relative priorities between
    competing requirements for replacement funding

-   Assigning priorities

-   Determining which priorities receive funding and fine-tuning as
    necessary

Your replacement analysis should include consideration of rehabilitating
buses, medium and heavy trucks, and trailers rather than procuring new
units. Rehabilitation can extend the useful life of costly equipment and
reduce or delay large vehicle-procurement outlays. As a rule of thumb,
the cost of rehabilitation should not exceed 50 percent of the cost of
replacement.

Agencies may retain motor vehicles that are in usable condition even
though the standard permits replacement, provided that the vehicle can
be operated an additional period without excessive maintenance cost or
substantial reduction in resale value. An Agency may replace a
Government-owned motor vehicle if it needs body or mechanical repairs
that exceed its fair market value.

Motor-vehicle replacement standards prescribed in FMR 102-34.280 are
minimum requirements all Agencies evaluating unit replacement should
use. And always keep in mind that you must follow fuel-economy criteria
in acquiring replacement vehicles.

  ------------------------------------------ -------------- --------------
  **Table of Minimum Replacement Standards**                

  Motor Vehicle Type                         Years ^a^      or Miles ^a^

  Sedans/Station Wagons                      3              60,000

  Ambulances                                 7              60,000

  Buses:                                                    

  Intercity                                  n/a            280,000

  City                                       n/a            150,000

  School                                     n/a            80,000

  Trucks                                                    

  Less than 12,500 pounds GVWR               6              50,000

  12,500-23,999 pounds GVWR                  7              60,000

  24,000 pounds GVWR and over                9              80,000

  4- or 6-wheel drive motor vehicles         6              40,000
  ------------------------------------------ -------------- --------------

^a^ Minimum standards are stated in both years and miles; use whichever
occurs first.

If a motor vehicle has been wrecked or damaged (including wear caused by
abnormal operating conditions) beyond economical repair, an Agency can
replace the vehicle without regard to the replacement standards.

**4.5.6.3 Exceptions to Standards**

Requisitions from Agencies to sole-source vehicles or accessory
equipment that the Standards do not identify, as well as for identified
items and options, require supporting justification. An Agency that
proposes changes or additions to a Standard must provide a written
request with supporting justification.

**[4.5.7 Vehicle Mix]{.underline}**

[]{#hlk116892095 .anchor}In selecting the mix of vehicles you plan to
acquire under the Standards, consider the mission of the organization.
If the vehicles are to be used by an administrative function operating
primarily in urban areas, normal passenger-carrying vehicles (for
example, sedans or minivans) would be a logical choice. However, if the
vehicles are to be used by a geological mapping team in rocky, rugged
terrain with no roads, then you will probably need a four-wheel drive
vehicle with high under-carriage clearance.

The need for transporting heavy loads or other special requirements of
the organization may result in other vehicle selections. Available
vehicles include sedans, station wagons, carryalls, ambulances, buses,
and trucks, including trucks with specialized mounted equipment, truck
chasses with special purpose bodies, and all van-type trailers.

Additionally, the need to comply with Federal law, regulation and policy
on the use of Alternative Fuel Vehicles (AFV) will also influence the
final vehicle mix.

**4.5.7.1 Fuel Economy Requirements and the Vehicle Mix**

Passenger vehicles and light trucks must meet certain fuel economy
(miles per gallon) standards each year. FMR 102-34.55 specifies
requirements for the acquisition of fuel-efficient vehicles. Federal
Fleet Managers should always achieve maximum fuel efficiency when
selecting motor vehicles. Exceptions to this requirement are vehicles
used in foreign areas, for law enforcement and emergency work, or for
combat-related missions for the U.S. Armed Forces.

To achieve maximum vehicle fuel efficiency, Agencies must limit 1) motor
vehicle size, 2) engine size, and 3) any optional equipment to what is
essential to fulfill the mission.

Executive Order #12375 requires Agencies\' fleets to meet certain
average fuel-economy standards. A fleet average fuel-economy standard is
the minimum miles per gallon of fuel that a fleet must obtain, whether
purchased or leased. Separate, average fuel-economy standards have been
set for passenger automobiles and for light trucks.

In compliance with Executive Orders #11912 and #12375, GSA administers a
consolidated Federal Fleet program to monitor passenger automobiles and
light trucks acquired by Agencies. The program is based upon actual
vehicle leases and purchases that Agencies report by vehicle class to
GSA. GSA administers the program by maintaining a master record of the
miles-per-gallon ratings for passenger automobiles and light trucks
actually acquired by each Agency during the fiscal year. The reported
data is used to verify that each Agency\'s vehicles conform to Executive
Order #12375; that is, the Agency will achieve the fleet average fuel
economy for the applicable fiscal year. The Secretary of Transportation
establishes the fleet average fuel-economy objectives, which are
detailed in FMR-102-34.55.

**4.5.7.2 Vehicle Class Guidelines**

Except for vehicles used by the President or Vice-President and vehicles
used for security and highly essential needs, Agencies must purchase or
lease midsize (Class III) or smaller sedans. Purchasing or leasing large
sedans (Class IV) is warranted only when such motor vehicles are
essential to the Agency\'s mission.

  ----------------- -----------------------------------------------------
  **Vehicle Classes 
  for Sedans and    
  Station Wagons**  

  **Class I**       **Subcompact Sedans/Station Wagons**

  **Class II**      **Compact Sedans/Station Wagons**

  **Class III**     **Midsize Sedans/Station Wagons**

  **Class IV**      **Large Sedans/Station Wagons**

  **Class V**       **Limousine**
  ----------------- -----------------------------------------------------

**[4.5.8 Additional Standards]{.underline}**

[]{#hlk116892234 .anchor}Never install accessory equipment on vehicles
merely for the personal convenience or comfort of the vehicle operator.
The purpose of accessory equipment added to vehicles is to increase the
utility of the unit so it can better serve the mission-driven needs of
the organization. Of course, never install equipment that violates a law
or presents an appearance of violating the law, such as radar detectors.

As a rule of thumb, ensure that light-duty vehicles identified for
addition of special equipment or upfitting have at least two years of
remaining serviceable life and have been driven less than 40,000 miles.
If the organization considers the item essential but cannot meet the
guidelines (or the required item is not shown in the Federal Standard),
you will need to submit a justification.

Factors on which to base your selection of additional systems and
equipment include overall safety, efficiency, economy, and suitability
of the vehicle for the purpose intended.

Weigh the need for such systems or equipment against the economic
factors involved, the potential benefits to be derived, and the impact
on the fuel-consumption characteristics of the vehicle. Other
considerations pertinent to selection of additional systems and
equipment include:

-   prevailing climatic conditions,

-   effect on operational capability,

-   special terrain requirements, and

-   availability of maintenance and service facilities.

Availability of maintenance and service facilities and the capability of
these facilities to support the proposed vehicles, systems and equipment
will almost certainly impact your need assessment. If support for your
selections is not available, you may need to identify alternative
solutions.

**[4.5.9 Vehicle Justification]{.underline}**

[]{#hlk116892284 .anchor}The Agency's vehicle allocation model (VAM)
should justify each unit in its inventory. Justifications should be in
sufficient detail to allow an individual not familiar with the Agency
mission to determine the need for a vehicle. To that end, collect and
analyze the following information for each current and proposed vehicle:

  ---------------------- ------------------------------------------------
  **Public               Investigate the availability, suitability and
  Transportation**       cost of public transportation and provide
                         reasons why public transportation will not
                         satisfy the need.

  **Dispatch or Motor    State why a dispatch or pool vehicle cannot
  Pool**                 provide adequate support.

  **Mission Support**    Detail how the vehicle supports the Agency
                         mission.

  **User of Vehicle**    Specify whether Federal employee(s),
                         contractor(s) or subcontractor(s) are using the
                         vehicle.

  **Type of Vehicle      Specify the type of vehicle required and why.
  Required**             

  **Size of Vehicle      Specify the size of vehicle required and why.
  Required**             

  **Date Vehicle         Provide determination of which available vehicle
  Availability           option best meets this need based upon
  Required**             availability.

  **Special Equipment    Specify all special equipment or accessories
  Required on Vehicle**  required on the vehicle (an example is to meet
                         the requirements of the Americans with
                         Disabilities Act).

  **Hours Vehicle Will   Specify the hours the vehicle will be in use.
  be Used**              

  **Days Vehicle Will be Specify the days the vehicle will be in use.
  Used**                 

  **Weight and General   Specify the type of cargo the vehicle is to
  Type of Cargo**        handle and how the type of vehicle requested is
                         best suited to handle this cargo.

  **Passengers Carried   For passenger-carrying vehicles, specify the
  per Month**            number of passengers to be carried each month.

  **Daily Miles**        Specify the number of miles the vehicle is
                         expected to travel each day.

  **Duration of Need**   Specify the length of time the vehicle will be
                         needed.
  ---------------------- ------------------------------------------------

**[4.5.10 Controlling the Costs of Acquisition]{.underline}**

[]{#hlk116892365 .anchor}Four steps are essential to control the costs
of acquisition:

1.  Develop a list of fleet objectives

2.  Develop a fleet-usage profile

3.  Prepare a life-cycle cost analysis of alternative choices

4.  Consolidate the information into a decision-making matrix

You've already established the fleet mission and, working with operators
in the field, you've determined types of vehicle use. Incorporated into
your list of objectives are requirements established by law, regulation,
policies, and published standards. Now you must apply these criteria to
each vehicle class from which you will acquire vehicles.

For purposes of an example, we will walk through a model selection
process for a light-duty vehicle. By reviewing six basic selection
criteria -- the elements of a fleet usage profile -- you can narrow your
choices considerably and create a defensible basis for your selection.
As you review these criteria, you will find they integrate the vehicle
justification information (see above) into a process designed to control
the costs of acquisition. The list of the following questions to
consider is not exhaustive, and you should view this as a possible model
to modify as needed. Add your own questions or considerations to the
respective criteria and create an assessment standard you can use from
year to year.

**4.5.10.1 Job Requirements**

Of paramount importance during selection are the uses to which each
vehicle will be put. For example:

-   How many annual miles will be logged?

-   Will these miles be accumulated:

    -   During low-speed city deliveries?

    -   During high-speed short hauls?

    -   On long-hauls?

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-   What driving conditions will be encountered?

    -   City streets?

    -   Expressways?

    -   Dirt roads and off-road terrain?

-   Will the vehicle encounter:

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-   High altitude conditions?

-   Wet pavement?

-   Snow and ice?

-   Mud?

-   High winds?

-   Steep grades?

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-   What will be transported?

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-   Passengers?

    -   How many passengers will be transported?

-   Cargo?

    -   How much cargo?

    -   What kind?

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-   Will an open body suffice or is a closed body needed?

Answers to these questions, which tend to vary from organization to
organization, will largely determine whether a truck or van is required
and, if so, what type.

**4.5.10.2 Cargo and Payload Requirements**

If one job requirement of a vehicle is to haul cargo, a Fleet Manager
must establish the specific type and volume of cargo to define further
the type of vehicle needed, especially in terms of vehicle size, body
type, and gross vehicle weight (GVW) rating.

[In terms of cargo forms:]{.underline}

-   Will the cargo be one large item or several items?

-   Will the items be loose, boxed, crated, or on pallets?

-   What are the dimensions of the cargo or its container?

-   How many pieces will comprise a full load?

[In terms of cargo loading:]{.underline}

-   Will the vehicle be loaded:

    -   By hand?

    -   By a dolly?

    -   By a fork lift?

    -   By an overhead crane?

-   If fork lifts are to be used, what is the mast height (in the event
    the fork lift must enter the vehicle)?

-   Will the forks have access to the bed of the vehicle?

-   Will cargo be free-standing, tied down, stored on shelves, or
    stacked?

-   Is the cargo fragile, requiring special flooring and padding?

[In terms of cargo weight:]{.underline}

-   Is the cargo heavy? Light? Dense?

-   What is the total weight and volume of the average payload? The
    maximum payload?

Using weight and volume tables applicable to commonly transported cargo,
a Fleet Manager can make payload-size calculations and determine the
gross vehicle weight rating. This determination will substantially
narrow the range of potential choice.

**4.5.10.3 Driver and Passenger Requirements**

Fleet Managers must accurately determine the number of persons who will
be transported on any given trip, because it will help to establish
seating requirements, gross vehicle weight and, thus, the type of
vehicle selected. A typical seating configuration could be a
three-person cab, crew cab, or passenger van, for example.

**4.5.10.4 Performance and Expense Requirements**

Performance and economy are vital pre-purchase considerations, and for
the Federal Fleet, many are pre-determined by law, regulation, policy or
published standard. Your selection process should incorporate those
requirements, including AFV options.

Fuel economy may be a less important factor in the vehicle selection
decision if usage requirements dictate payloads heavier than the more
fuel-efficient pickups and vans can handle. In these instances, a Fleet
Manager must realize the trade-off: lower miles-per-gallon and high fuel
expenditures for increased payload capacity and durability.

If you purchase vehicles or lease under a "dry lease" (no maintenance or
other fleet management services) agreement, you need to weigh a variety
of expense factors in addition to fuel. These include purchase price,
maintenance/durability records of the same or comparable models,
historical resale value patterns, factory warranties, and more.

Fleet buyers must be aware of the cost implications of their acquisition
decision to ensure the best buy for the money, both in the current
budget and over the life of the vehicle. One strategy that best-practice
fleet operations undertake is life-cycle costing to determine which
vehicles to select from the array of options. We will expand on this
topic below.

**4.5.10.5 (Fact-Based) Manufacturer Preference and Service
Requirements**

A number of factors can influence a fleet buyer or user to prefer one
vehicle manufacturer over another. For example, fleet buyers may prefer
a certain manufacturer because of past satisfaction with that company's
vehicles or maintenance history, or they may prefer a particular
manufacturer because of quality service being readily available. Also,
only certain manufacturers may offer models or optional equipment needed
by the fleet.

Except in highly unusual circumstances, Federal Fleets may not specify a
particular manufacturer's product. Requirements documents should not be
written to target or exclude a particular manufacturer but to ensure
that a suitable vehicle is acquired no matter the manufacturer.

**4.5.10.6 Safety Requirements**

As Fleet Managers work through the specifications for their units, they
should keep in mind that different manufacturers and different vehicle
types offer different safety features. This criterion should be included
in your assessment process.

Federal standards include all of the required safety features and
equipment for Federal purchases. An organization should only specify
additional systems or equipment if a particular mission requires it.

**4.5.10.7 Accessories**

After developing a comprehensive usage profile, the next step is to
select options and accessories that suit fleet requirements. As with
passenger cars, accessories and optional equipment have implications for
cost, utility and personnel when applied to fleet trucks and vans. Also
consider that making certain accessories standard on your vehicles can
facilitate pooling and sharing and improve disposal values.

**4.5.10.8 Heavy-Duty Options**

Many fleets put their light trucks and vans to heavy-duty, off-road, and
long-haul use. To ensure that such vehicles can meet their job
requirements, fleet buyers must consider a variety of optional
equipment. Among these are heavy-duty suspension, springs and shock
absorbers; on demand or constant four-wheel drive; reinforced cargo
walls; extra or oversized fuel tanks; towing packages; and extended
side-view mirrors. Vehicles not adequately equipped for their jobs will
result in higher than average maintenance costs and greater frustration
down the road.

Essentially, the choice of a vehicle and the designation of optional
characteristics for the type of vehicle within a selected category
should rest upon predicted usage and optimum projected cost experience.

**4.5.10.9 Life-Cycle Costing**

Life-cycle costing is the method that Fleet Managers use to look into
the future to project actual fleet costs throughout the life of the
vehicles under consideration. The first step in performing such an
analysis is to determine its primary objectives; for example,

1.  To improve accuracy in analyzing total, projected costs of
    alternative vehicles, including new vehicle models, for the
    anticipated life of the vehicles;

2.  To obtain substantiated objectivity in vehicle selection decisions.

In addition, many Fleet Managers use life-cycle costing to reach a third
objective:

3.  To estimate the operating costs over the life of the vehicle in the
    fleet.

Life-cycle costing typically divides into three phases:

**[Phase One]{.underline}**

Gather information about the vehicles targeted for comparison. A
comparable analysis of vehicle costs should include:

-   Depreciation

-   Maintenance (including oil)

-   Tires

-   Fuel

-   License and registration fees (and any taxes, if applicable)

-   Finance costs (if applicable)

-   Insurance (as applicable)

-   Parking (if applicable)

-   Storage (if applicable)

-   Present value of money

Although most fleets share several common cost elements, Fleet Managers
should prioritize or adjust the cost elements based on their fleet's
individual circumstances.

**[Phase Two]{.underline}**

Develop, acquire, or contract for a software model to use for the
costing. The model should incorporate elements of the usage profile. The
parameters are set within each category of vehicle to be tested and
include:

-   Location

-   Territory descriptions

-   Mileage

-   Fuel grade and price

-   Retention cycle

**[Phase Three]{.underline}**

After gathering cost data on each selected vehicle and developing an
analytical model based on individual fleet circumstances, compare the
results. During this phase, you should:

1.  Analyze all relevant costs for each vehicle

2.  Rank vehicles according to projected life-cycle costs

3.  Establish potential savings for the life-cycle of each vehicle

This comparison should identify which vehicles ultimately will cost the
organization the least amount -- not just in terms of capital
investment, but also in operating costs.

Life-cycle costing helps Federal Fleet Managers identify when operating
costs exceed replacement costs and is, therefore, a valuable tool for
budget formulation and budget monitoring, as well as operating
efficiently throughout the year.

For new vehicles, life-cycle costing helps to identify the true cost of
ownership for lease/purchase decisions.

[]{#_Hlk116892493 .anchor}**[4.5.11 Federal Fleet Leasing and
Purchasing]{.underline}**

**4.5.11.1 Lease/Purchases Analysis**

Lease/purchase analysis is only appropriate after the Agency has decided
to acquire a vehicle. Completion of a lease/purchase analysis is a good
business practice to identify whether leasing or purchasing is in the
best interest of the Government. Motor vehicles are capital assets. All
leases of capital assets must be justified as preferable to direct
Government purchase and ownership per 41 CFR 101-25.501.

**4.5.11.2 Federal Law, Regulation and Policy**

You will find guidance for performing lease versus purchase calculations
in 41 CFR 101-25.5. The required analysis compares the present value of
the life-cycle cost of leasing with the full cost of buying an identical
asset.

According to 41 CFR 101.25.5, the lease/buy cost comparison approach
described in Office of Management and Budget (OMB) Circular A-104 is the
preferred method. Note, however, that OMB released Circular A-94,
\"Guidelines and Discount Rates for Benefit-Cost Analysis of Federal
Programs,\" dated October 29, 1992, replacing Circular A-104. Among
other things, it advises that an appropriate discount rate should be
used to discount costs and benefits (these rates are published in
Appendix C). You may only use other lease/buy methods (life-cycle
costing, break-even analysis, etc.) in accordance with normal Agency
procedures.

**4.5.11.3 Agency Motor Vehicle Lease**

All requirements for leased motor vehicles needed by Federal Agencies
for 60 consecutive days or more shall be submitted to GSA for a
determination of whether GSA Fleet can satisfy the requirements.
Although regulations have not yet been updated, GSA Fleet is no longer a
mandatory source of supply; Agencies do not have to submit requests to
GSA Fleet if they want to acquire vehicles from another source. However,
when buying vehicles, they must do so through GSA's Automotive Center or
obtain a waiver from the Automotive Center.

When GSA cannot fill a request for vehicle support, it may refer the
Agency to GSA\'s indefinite quantity lease under Federal Supply Schedule
751, Part II, Automobiles and Light Truck Vehicles: Closed-end lease,
without maintenance. This Schedule is for use by all Agencies within the
contiguous 48 States and Washington, D.C., except for DOD and the U.S.
Postal Service; GSA's Automotive Center is the contracting office.
Leases normally cover a period of one year with an option for two
12-month renewals. When an Agency\'s lease period extends from one
fiscal year to the next, delivery orders should, if appropriate, cite
the statement \"Subject to the availability of funds.\"

**4.5.11.4 Interagency Fleet Management Systems (IFMS) - Background**

Section 211 of the Federal Property and Administrative Services Act of
1949, as amended, requires that the Administrator of General Services
will, \"to the extent that the Administrator determines that so doing is
advantageous to the Government in terms of economy, efficiency, or
service, after consultation with and with due regard to the program
activities of the agencies concerned, (a) consolidate, take over,
acquire, or arrange for the operation by any executive agency of motor
vehicles and other related equipment and supplies for the purpose of
establishing Fleet Management Centers to serve the needs of executive
agencies; and (b) provide for the establishment, maintenance, and
operation (including servicing and storage) of fleet management systems
to serve the needs of executive agencies.\" The exercise of this
authority is subject to regulations issued by the President, which are
set forth in Executive Order #10579, November 30, 1954, and codified in
Federal Property Management Regulations (FPMR) 101-39.

The regulations in FPMR Part 101-39 apply to all Executive Agencies to
the extent provided in the Act. This Part provides for GSA to conduct
studies of the operation and costs of motor vehicles and motor-vehicle
services in selected geographical areas to determine the advisability of
establishing an IFMS. Where the determination is made to establish an
IFMS, all Government-owned motor vehicles acquired by Executive Agencies
for official purposes (which are operated, stored, or garaged within a
defined mandatory-use service area of an established fleet management
system) and other related equipment and supplies shall, when requested
in accordance with a determination, be transferred to the control and
the responsibility of the fleet management system. Exemptions from
inclusion in the fleet management systems can be found in § 101-39.106
and § 101-39.107. To date, only one IFMS has been established: GSA
Fleet.

**4.5.11.5 GSA Interagency Fleet Management Systems (IFMS) - Services**

The GSA IFMS, GSA Fleet, provides motor vehicles and related services as
outlined in the applicable determination establishing the Fleet
Management Center (FMC). The following services may be available:

-   Motor vehicles for indefinite assignment;

-   Reservations and billing arrangements for short-term, non-TDY
    (temporary duty) commercial vehicle rentals;

-   GSA motor vehicles for short-term, non-TDY dispatch use;

-   Provisions for authorizing and controlling the performance of
    commercial maintenance, repairs, car washes, and service-station
    services;

-   GSA performance of maintenance, repairs, car washes, and
    service-station services;

-   Provisions for fuel, oil and related charge card services;

-   Cross-servicing arrangements for the use of other Government
    Agencies\' sources of maintenance, repairs, servicing, car washes,
    and fuel pumps;

-   Seasonal storage of motor vehicles;

-   Shuttle and driver services, where authorized; and

-   Driver instruction, including both safety and fuel-economy training
    (where resources permit).

GSA Fleet provides motor vehicles and related services to requesting
Agencies according to each Agency\'s priority of service as defined by
its level of participation in the GSA Fleet program. Requirements for
the levels of participation are contained in FPMR §101-39.204. Levels of
participation are:

-   Full: Most Federal Agencies

-   Other than full: Some Federal Agencies, Contractors, and Authorized
    Users

"Other than fully participating Agencies" must contact the supporting
GSA Fleet Management Center to ascertain vehicle availability,
regardless of the number required. If the vehicles are available,
assignment shall be made. "Other than fully participating Agencies" that
choose not to lease commercially may use the procedures for full
participants on the understanding that "fully participating Agencies"
will receive priority consideration.

GSA Fleet Management Centers may assign vehicles or furnish related
services to authorized cost-reimbursable Federal Government contractors.
Such assignments are considered in relation to the support priorities
cited above.

**4.5.11.6 Obtaining GSA Fleet Indefinite Assignment Vehicles**

Fully participating Agencies may request indefinite assignment of
vehicles, regardless of number, from the supporting Fleet Management
Center. Assignment may be made at that level, subject to availability.
If the required vehicles are not available, you must submit a written
request that includes the information shown in FPMR §
101-39.204(b)(1)-(10) and a statement that the Agency does or does not
request authority to lease commercially, and the anticipated duration of
the lease, should GSA be unable to provide the vehicles.

Regardless of the number of vehicles required, Agencies that do not
participate fully must contact the supporting Fleet Management Center to
ascertain vehicle availability. If the vehicles are available,
assignment shall be made. When the supporting GSA Fleet Management
Center determines that the requested vehicles are not available, the
Agency or other requesting entity is to document compliance with the
mandatory first-source-of- supply requirement. A Federal Fleet Manager
needs no further authorization from GSA for the Agency to execute a
commercial lease from sources established by the GSA Automotive
Commodity Center or the Agency, provided that:

-   All applicable provisions of the Federal Acquisition Regulation
    (FAR) and internal Agency acquisition regulations, permissions, and
    clearances are observed;

-   The requirements of FMR 102-34 regarding fuel economy, Government
    identification and marking, etc., are adhered to;

-   The Agency Fleet Manager or designee retains responsibility for
    fleet oversight and reporting requirements under Public Law 99-272;
    and

-   Agencies that do not fully participate that choose not to lease
    commercially may use the procedures for full participants, as shown
    above, on the understanding that fully participating Agencies will
    receive priority consideration.

**4.5.11.7 New Motor Vehicle Purchase**

The acquisition process for motor vehicles begins with needs
determination, as we have already seen. Having completed this
determination, a Federal Fleet Manager's request for vehicles must go
through his or her Agency's internal justification and approval process.
Your Agency's budget request, which it submits to Congress for approval,
must include the vehicle requirements. The passenger-carrying vehicles
you want to acquire require specific Congressional authorization.

Fleet budget requests fall into two categories: capital requests and
operating requests.

**[Capital Requests]{.underline}**

The decision must be made as to whether to purchase or lease the
required vehicle(s). If a vehicle is to be purchased and the purchase
price exceeds the Agency\'s capitalization threshold (currently capped
at \$250,000 by PL 108-7, § 106), a capitalized budget request is
prepared. However, not all Agencies have raised their threshold to that
level for vehicle purchase, so check your Agency's threshold, if
applicable. Depending upon the Agency and its authorities, vehicles may
be purchased with 1) general and special fund appropriations or 2)
revolving funds.

**[Operating Requests]{.underline}**

Agency fleet management information systems provide annual direct and
indirect cost data for an Agency\'s fleet. Federal Fleet Managers use
this data to formulate, as well as to justify, their operating budget
requests.

Some Federal entities cannot purchase vehicles with operating funds.
Understanding the difference between capitalization and operational
procedures at the operational level is important to ensure proper
protocol is followed.

Where applicable, if the vehicle purchase price is under the Agency\'s
capitalization threshold or the vehicle is to be leased, an operating
budget request is prepared because the purchase price or the lease
payment would be expensed as part of operations, rather than
capitalized, in an Agency\'s financial systems and reports. Be aware
that capitalization levels for budget purposes may not be the same for
internal financial management purposes.

All fleet vehicles should be capitalized and depreciated for financial
control, cost comparison, and full cost disclosure. The FAST system also
requires Agencies to report annual depreciation expense.

**[Steps in Formulating Fleet Budget Requests]{.underline}**

-   Analyze current year actual versus budget to determine line items
    where budget exceeds or is less than actual cost

-   Analyze current year vehicle utilization to identify under-utilized
    assets

-   Analyze in-house parts inventory size, composition and turnover
    rates

-   Review POV reimbursements and commercial rental costs against fleet
    utilization

-   Analyze your customers\' historical fleet service consumption and
    cost data and review your chargeback system

-   Analyze the requirements of your Agency\'s GPRA and link fleet
    budget requests to Agency performance objectives

-   Identify the percentage of vehicle acquisitions required to meet
    non-mission goals (alternative fuel, environmental and socioeconomic
    goals)

-   Analyze alternative business models to acquisition of new fleet
    vehicles (POVs, own vs. lease, GSA Fleet lease vs. commercial sector
    lease, rental)

-   Develop the budget request showing the impact of requested and
    alternate funding levels on Agency performance objectives

-   Track results, monitoring performance and spending

Ultimately, vehicle requirements must be accompanied by certification
that neither Congress or the Office of Management and Budget or Agency
headquarters has denied the request, and that public or private means of
transportation are unsuitable or unavailable. When these requirements
have been satisfied, the following procedures apply.

Each Executive Agency shall submit to GSA its orders for purchase in the
United States of:

-   All new passenger motor vehicles (FSC 2310),

-   Trucks or truck tractors (FSC 2320),

-   Trailers (FSC 2330),

-   Van-type trailers (with payload of not less than 5,000 or more than
    50,000 pounds), and

-   Fire trucks and fire-fighting trailers (FSC 4210).

Specifically included are sedans, station wagons, carryalls, ambulances,
buses, and trucks, including trucks with specialized mounted equipment,
truck chassis with special purpose bodies, and all van-type trailers
(with payload of not less than 5,000 or more than 50,000 pounds).
Excepted are Executive Agencies that comply with the provisions of FPMR
101-26.5, and DOD requirements for buses, which are convertible to
ambulances; trucks, which are convertible to ambulances; and trucks
(4x4, dump, 9,000 pounds GVWR with cut-down cab).

You can only acquire replacements for those vehicles that have met the
minimum replacement criteria prescribed in FMR 102-34.280. Additional
vehicles will be acquired only when existing resources cannot fill the
requirement. Agencies requiring fewer than five vehicles may contact the
GSA Regional Fleet Manager or appropriate FMC manager, and assignments
will be arranged if vehicles are available. If none are, or if five or
more are required, the Agency shall submit its request to GSA, Director,
Fleet Management Division. The Agency\'s Assistant Secretary or
designated Agency Fleet Manager must sign such a request.

Vehicle-Request Required Data

+-----------------------------------------------------------------------+
| -   Location where needed                                             |
+-----------------------------------------------------------------------+
| -   Date required (earlier and latest)                                |
+-----------------------------------------------------------------------+
| -   Anticipated length of assignment                                  |
+-----------------------------------------------------------------------+
| -   Projected utilization                                             |
+-----------------------------------------------------------------------+
| -   Certification of funding                                          |
+-----------------------------------------------------------------------+
| -   Billing address and BOAC                                          |
+-----------------------------------------------------------------------+
| -   Agency contact                                                    |
+-----------------------------------------------------------------------+
| -   Program area requiring vehicle(s)                                 |
+-----------------------------------------------------------------------+

The request for vehicles will include the number and types required and
certification that any vehicles larger than Class III (FMR 102-34) are
essential to the Agency\'s mission. There must be a statement that lease
authority is/is not requested if the IFMS vehicles are not available.
The request must also include the additional information shown above.

If the requisitioning Agency determines that requirements indicate the
need for procurement by activities other than GSA, a request for waiver
justifying the procurement may be submitted for review and
determination. When GSA determines that procurement of an individual
Agency requirement by GSA would offer no advantage over local purchase
of the item, GSA may grant the ordering activity authority for local
purchase.

Federal customers can use Auto Choice to compare prices, miles per
gallon, vehicle options, purchase vehicles and track orders.

GSA consolidates the procurement of all motor-vehicle types to achieve
maximum benefits and economies. A Federal Fleet Manager should submit
orders for all motor vehicles electronically, as required by GSA
Automotive. This replaces GSA Form 1781, Motor Vehicle
Requisition-Delivery Order, or DD Form 448, Military Interdepartmental
Purchase Request (MIPR).

Requisitions for vehicles not included in Federal Standards No. 122,
292, or 307 must include complete descriptions of the vehicles required,
intended use of the vehicles, geographical location and type of terrain
in which the vehicles will be used, and the reason why the vehicles
under the standard cannot be used. The consolidated procurement
schedules and lead times are shown in FMR 101-26.501.

With a waiver per FPMR 101-26.501-1 (b) & (c), Federal Agencies can
purchase in the open market using applicable Federal Acquisition
Regulation (FAR) procedures to assure the appropriate level of
competition and best value for the Government. Federal Fleet Managers
having been granted a waiver by GSA should consult with Agency
procurement officials to accomplish an open-market vehicle purchase.

**[4.5.12 Commercial Leasing: Lease Contracts and Lease
Financing]{.underline}**

[]{#hlk116892599 .anchor}The goal of the following discussion is to
introduce basic leasing terminology, distinctions, and characteristics
used in the corporate sector.

**4.5.12.1 Leasing**

Fleet leasing is a way to provide vehicles without making a direct
capital investment. Instead, an organization uses the services of a
third party, a lessor. Within the Federal Government, GSA Fleet meets
that requirement; it functions as a third party from which Agencies can
lease many of their vehicles. However, in some cases, Agencies need to
lease in the commercial market. The goal remains the same: to free
capital for other productive uses.

Commercial leasing by business firms comes in different guises and
carries various costs that are treated differently on a corporate
balance sheet.

**4.5.12.2 Capital Lease vs. Operating Lease**

Simplistically, a capital lease equates to buying whereas an operating
lease equates to renting. Most corporate-fleet lease contracts are
operating leases.

A key distinction between a capital lease and an operating lease is
whether it shows up on the balance sheet. Most corporations do not want
assets (e.g., cars) to show up as liabilities on their balance sheet.
Under a capital lease, the assets and corresponding liabilities must
show up there. If the assets and liabilities show up on the balance
sheet, the company may display seemingly less-healthy financial ratios.
Poor ratios can cause higher financing rates from lenders and negative
perceptions of the value of a company and its business.

Keep in mind, however, that for the Federal Government, under OMB budget
scoring rules, the full lifetime cost of a capital lease must be scored
in the year of acquisition. This effectively eliminates capital leasing
for most Agencies, because funds must be available in year one to cover
the scored cost. To address this, GSA Fleet has successfully designed a
unique hybrid lease contract that combines the benefits of a capital
lease with the technical characteristics of an operating lease, so that
it need not be scored in year one. Also, most Agencies operate on
one-year appropriations and cannot lease for multiple years, or even for
one year with options. This can significantly increase the cost of
leasing. Using GSA Fleet avoids these issues.

**[4.6 GSA Fleet Services]{.underline}**

[]{#hlk116892652 .anchor}In addition to acquiring and providing
vehicles, GSA Fleet supplies additional services in maintenance and
repair, fuel/oil charge cards, seasonal (paid) storage, and shuttle
services. We will discuss these and other fleet operations topics more
fully in Section 5, Fleet Operations Management.

**[4.6.1 Maintenance and Repair Services]{.underline}**

[]{#hlk116892706 .anchor}GSA Fleet will establish service arrangements
to provide for the control and performance of maintenance and repair
services. GSA Fleet policy is to rely on the commercial sector, wherever
possible.

**[4.6.2 Fuel, Oil and Charge Card Services]{.underline}**

[]{#hlk116892787 .anchor}GSA Fleet provides fuel, oil, and charge card
services for the operation of GSA Fleet vehicles. Here also, GSA Fleet
policy is to rely on the commercial sector for these services, wherever
possible.

**[4.6.3 Shuttle and Driver Services]{.underline}**

[]{#hlk116892826 .anchor}Shuttle service may be provided for scheduled
runs and special pickup and delivery service between Government
installations or nearby areas when commercial transportation is not
available. Driver services may be provided where commercial taxi or
radio-car transportation is not available.

**[4.6.4 Agency Chargebacks for GSA IFMS Services]{.underline}**

[]{#hlk116892867 .anchor}User Agencies are billed for GSA Fleet services
at rates fixed by GSA. These rates are designed to recover all GSA Fleet
fixed and variable costs. You will find the motor vehicle service rates
for each year at
<http://www.gsa.gov/Portal/gsa/ep/challenView.do?pageTypeID=8211&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelID=-13038>.
These rates apply to vehicles operated in the conterminous United
States, Alaska, Hawaii, and the Commonwealth of Puerto Rico.

GSA Fleet computes the charges for vehicle assignment by adding the base
monthly rate plus the per-mile charge. The base monthly rate recovers
most fixed costs, and the mileage rate recovers operating expenses plus
a portion of depreciation expense. Rates are reviewed and revised
annually. GSA Automotive includes an administrative surcharge for
commercial car rentals, which is bundled with the rental agreement and
passed on to the client.

User Agencies are billed for accidents and incidents as described in
FPMR § 101-39.406. Agencies may also be charged for:

-   Vehicle damage caused by a pattern of misuse or abuse inconsistent
    with normal operation and local operating conditions (unless under a
    special rate);

-   Repair costs incurred from a user\'s failure to obtain required
    preventive maintenance services; and

-   Unauthorized purchases or repairs, including charge card misuse.

**[4.6.5 Contractor Chargebacks for GSA IFMS Services]{.underline}**

[]{#hlk116892901 .anchor}FAR 51.2 covers lease and use of GSA Fleet
vehicles by cost reimbursable contractors (CRCs). In addition, FMR 102-5
and FMR 102-34 requirements govern CRC use of GSA Fleet vehicles. A
fixed price contractor may also lease from GSA Fleet, but it must follow
GSA procedures to do so.

GSA Fleet services provided to authorized Government contractors and
subcontractors are billed to the responsible Agency unless it requests
direct billing to the contractor. In case of nonpayment by a contractor,
GSA will bill the responsible Agency which authorized the contractor\'s
use of GSA Fleet services.

[]{#_Hlk116892972 .anchor}**[4.7 Disposal]{.underline}**

**[4.7.1 Exchange/Sale of Motor Vehicles]{.underline}**

[]{#_Hlk116893023 .anchor}Acquisition and delivery of a replacement
motor vehicle normally requires the disposal of a vehicle of the same
type as the one acquired. You can dispose of motor vehicles any time
after receiving notice that a procurement award has been made to a
manufacturer. Place all replaced motor vehicles in temporary storage for
disposal and, according to the provisions of FMR 102-39 and your
Agency's property management regulations, report them ready for
exchange/sale.

**[4.7.2 Temporary Vehicle Storage]{.underline}**

[]{#hlk116893094 .anchor}FMR 102-34.245 provides that Government-owned,
-rented, and -leased motor vehicles of an Agency should be stored so as
to provide reasonable protection from pilferage or damage. In the
interest of economy, use open storage whenever practicable and feasible.
However, the Agency's Fleet Manager should determine what is
\"practicable or feasible,\" based upon special requirements at
respective locations. Of course, all unattended Government-owned or
-leased motor vehicles should be locked, unless they are stored or
parked in a closed building or enclosure.

**[4.7.3 Reporting Motor Vehicles for Exchange/Sale]{.underline}**

[]{#hlk116893142 .anchor}Generally, you or your Agency's Property
Management Division will report motor vehicles scheduled for
exchange/sale to the GSA Property Management Division, Federal Supply
Service (FSS), using Standard Form (SF) 126, which requires
documentation of vehicle nomenclature (year, make, model), odometer
reading and transmission type. When appropriate, list vehicle dimensions
and all accessory equipment. DOD activities will follow procedures in
the DOD Utilization and Disposal Manual.

You and GSA Fleet must honestly represent all motor vehicles designated
for sale to potential purchasers. Consequently, you should report all
major repairs (for example, engine, transmission, differential) made to
a vehicle in the last 12 to 18 months of its use. Indicate the date and
odometer reading when the repair was made. Specify the mechanical
defects of inoperable vehicles reported for disposal. Identify any
vehicle being disposed of because of accident damage. Enter the
appropriate disposal condition code, identified in FMR 102-36.240, for
all exchange/sale property.

**[4.7.4 Preparing Motor Vehicles for Sale]{.underline}**

[]{#hlk116893222 .anchor}To improve the overall appearance of motor
vehicles for sale, the Fleet Manager should ensure vehicle preparation
by cleaning the exterior, interior and trunk; inflating tires and
ensuring batteries are charged; and ensuring that lubricants are at the
proper levels. Without defacing the paint finish, ensure removal of
Government identification and decals.

Limit expenses for preparation for sale and performance of needed
repairs to the minimum consistent with normal commercial preparation
resale practices, anticipated recovery, and good judgment for each
vehicle to be sold. Your goal is to ensure that the disposal proceeds
are sufficient to offset the expenditure of time and funds for
preparation and repair.

Undertake further reconditioning of selected vehicles only after
assessing the probability of a positive return on investment (ROI);
consequently, in selecting vehicles to recondition, the responsible
Agency official should consider the body and mechanical condition of the
vehicle and its fair market value. Generally, do not recondition
vehicles with salvage or scrap value only. Vehicles that have been
declared uneconomical to repair or with a fair market value of less than
5% of the acquisition value should most likely not be reconditioned.

Reconditioning may include, but not be limited to, polishing the
exterior, thoroughly cleaning and degreasing the area under the hood,
painting engine parts and radiator, tuning the engine, smoothing body
dents, and touchup painting. FPMR 101-45.309-12 provides specific
guidance on vehicle reconditioning.

**[4.7.5 Marketing Motor Vehicle Sales]{.underline}**

[]{#hlk116893264 .anchor}GSA does not solicit trade-in bids when
purchasing new motor vehicles for replacement under the consolidated
program. Used vehicles being replaced must be disposed of by sale as
stipulated in FMR 102-38. In cooperation with appropriate activity
offices, Fleet Managers should develop and implement plans to maximize
used-vehicle disposal proceeds, including advertising directed to other
Agencies and the public. All means of mass and targeted marketing should
be considered and used when practical and economical.

**[4.7.6 Excess Motor Vehicles]{.underline}**

[]{#hlk116893311 .anchor}Federal Fleet Managers should report motor
vehicles no longer required for fleet purposes, yet not eligible for
replacement, as excess units. FMR 102-36 sets out the procedures
Agencies should follow in reporting excess vehicles. Use Standard Form
120, Report of Excess Personal Property, for this purpose and include:

-   Complete description: including body type, year, make and model. If
    applicable, also report vehicle dimensions, tire size, and accessory
    equipment.

-   Condition of vehicle: including tires, total miles operated and, if
    necessary, estimated cost of repairs to return vehicle to operating
    condition.

DOD procedures are contained in the DOD Utilization and Disposal Manual.

**[4.7.7 Transfer of Government-owned Vehicle Title]{.underline}**

[]{#hlk116893361 .anchor}When disposing of a motor vehicle by any means
other than transfer to another Federal Agency, transfer the title of
ownership by executing Standard Form 97, The United States Government
Certificate to Obtain Title to a Vehicle. Use SF 97 when selling
Government-owned motor vehicles to parties who intend to title the
vehicle for highway operation. In most cases, a representative of the
Property Management Division effecting the disposal of the vehicle will
prepare and sign the SF 97, including odometer certification. For sales
representatives to complete the SF 97, the vehicle must be reported for
sale in accordance with instructions in FMR 102-34.315-20.

**4.7.7.1 Security of the SF 97**

The original certificate is produced on secure paper to readily identify
any attempt to alter the form. All SF 97 certificates and copies shall
be stocked as an accountable form and serially numbered with pre-printed
numbers assigned by the printing activity. Each Agency shall have an
accountable officer who will be responsible for requisition, storage,
and issuance of SF 97.

State Motor Vehicle Agencies may consider certificates showing erasures
or strikeovers invalid, in which case they will not be honored. Agencies
should take proper precautions to prevent unauthorized persons from
obtaining blank copies of SF 97. See FMR 102-2.135 for details on
obtaining the SF 97.

**4.7.7.2 Non-Highway Equipment**

Vehicles that are either not designed to operate on highways or are
deemed as not legal for operation on highways will be conveyed using an
appropriate bill of sale or award document, such as Optional Form 16,
Sales Slip-Sale of Government Personal Property, or SF 114, Sale of
Government Personal Property-Bid and Award. Vehicles commonly included
in this category include construction equipment, farm machinery, and
certain military design vehicles.

**4.7.7.3 Odometer Mileage Disclosure**

The National Highway Safety Traffic Administration (NHSTA) amended 49
CFR Part 580, Odometer Disclosure Requirements, in 1988 to implement the
Truth in Mileage Act (Public Law 99-579). The Act requires that the
seller or transferor furnish a specific, written disclosure as to the
mileage of a motor vehicle upon transfer of ownership.

In 1989, NHTSA amended 49 CFR 580 again to clarify responsibilities of
all parties in conjunction with the disclosure of odometer mileage
information and to define certain aspects of the regulation. The Truth
in Mileage Act also requires that the title document be manufactured by
a secure process to deter counterfeiting or alteration.

[]{#OLE_LINK1 .anchor}**[Section 5]{.underline}**

**Fleet Operations Management**

[]{#_Hlk115691679 .anchor}

This section addresses competencies concerned with Fleet Operations
Management. Click on any of the topic links below to go to the related
content.

[]{#_Hlk115838842 .anchor}**[Section 5 Table of Contents]{.underline}**

[**5.1 Useful Links**](#_Hlk116893475)

[**5.2 Consistent Classification Codes, Data Elements, and Terminology
-- A Federal Fleet Best Practice**](#_Hlk116893493)

[**5.3 Classification System and Equivalent-Unit Comparisons -- A Best
Practice**](#hlk116893518)

[**5.4 Contractor Use of Government Vehicles and
Equipment**](#hlk116893553)

[**5.5 Policies and Procedures -- A Best Practice**](#hlk116893586)

[**5.6 Cost Chargeback System -- A Best Practice**](#hlk116893610)

[**5.7 The Basics of Vehicle Costs**](#hlk116893648)

[**5.7.1 Fuel**](#hlk116893673)

[**5.7.2 Oil**](#hlk116893715)

[**5.7.3 Maintenance**](#hlk116893768)

[**5.7.4 Tires**](#hlk116893797)

[**5.8 Performance Measures for Effective Fleet
Management**](#hlk116893848)

[**5.9 Record Keeping and Cost Control**](#hlk116893887)

[**5.9.1 Accountable Inventory Items**](#hlk116893938)

[**5.9.2 Motor Vehicle Inventory and Control**](#hlk116893975)

[**5.9.3 Federal Reporting**](#hlk116894027)

[**5.9.4 Federal Automotive Statistical Tool (FAST)**](#hlk116894115)

[**5.9.5 GSA Fleet Drive-Thru**](#hlk116894159)

[**5.9.6 Direct Fleet Costs**](#hlk116894198)

[**5.9.7 Indirect or General Fleet Costs**](#hlk116894241)

[**5.9.8 Operations Reporting**](#hlk116894315)

[**5.9.9 Federal Vehicle Inventory Standards**](#hlk116894363)

[**5.9.10 Recording of License Plate Numbers**](#hlk116894419)

[**5.9.11 Maintenance and Service Records**](#hlk116894452)

[**5.9.12 Charge Cards**](#hlk116894495)

[**5.10 Receipt of Motor Vehicles**](#hlk116894523)

[**5.10.1 Deficiency Reporting**](#hlk116894566)

[**5.10.2 Vehicle Identification Form**](#hlk116894605)

[**5.10.3 Vehicle Warranties**](#hlk116894663)

[**5.10.4 Notification of Vehicle Defects**](#hlk116894695)

[**5.10.5 Vehicle Registration, Identification and
Exemptions**](#_Hlk116894739)

[**5.11 Vehicle Assignment and Use**](#hlk116894787)

[**5.11.1 Vehicle Assignment**](#_Hlk116894836)

[**5.11.2 Official Use versus Incidental Use**](#hlk116894896)

[**5.11.3 Traffic Law Violation**](#hlk116894934)

[**5.11.4 POVs (privately owned vehicles)**](#hlk116894963)

[**5.11.5 Unauthorized POV Use**](#hlk116895101)

[**5.12 Fleet Charge Cards**](#hlk116895253)

[**5.12.1 GSA Fleet and the Fleet Charge Card**](#hlk116895296)

[**5.12.2 Charge Card Authorizations**](#hlk116895326)

[**5.13 Vehicle Utilization**](#hlk116895364)

[**5.13.1 Heavy Duty Equipment**](#hlk116895418)

[**5.13.2 Using Utilization for Fleet Right-Sizing**](#hlk116895459)

[**5.14 Maintenance and Repair**](#_Hlk116895497)

[**5.14.1 Best Practices**](#_Hlk116895553)

[**5.14.2 Vehicle Needs Determination**](#hlk116895607)

[**5.14.3 Objectives of a Fleet Maintenance Program**](#hlk116895658)

[**5.14.4 Scheduled and Unscheduled Maintenance**](#hlk116895720)

[**5.14.5 Four Approaches to Federal Fleet Maintenance**](#hlk116895832)

[**5.15 Fuel Management**](#_Hlk116895934)

[**5.15.1 Fuel Management Best Practices**](#_Hlk116895968)

[**5.15.2 Fuel Consumption**](#hlk116896027)

[**5.15.3 Performance Measures**](#hlk116896102)

[**5.16 Motor Pool Management**](#_Hlk116896149)

[**5.16.1 Best Practices**](#_Hlk116896248)

[**5.16.2 Assignment through Use of Dispatch or Shared Vehicle Usage
(Pools)**](#hlk116896296)

[**5.16.3 Motor Pool Performance Measures**](#hlk116896346)

[**5.16.4 Rental: A Motor Pool Alternative?**](#hlk116896396)

[]{#_Hlk116893475 .anchor}**[5.1 Useful Links]{.underline}**

  --------------------------------------------------------------------------------------------------------------------------------------------------
  The reporting procedures of Standard Form 82, Agency Report of Motor Vehicle Data are now accomplished through use of the [Federal Automotive
  Statistical Tool (FAST) System](http://fastweb.inel.gov/).  Per the requirements of [OMB Circular A-11 Exhibit 33 Section
  33.9](http://www.whitehouse.gov/omb/circulars/a11/2002/S33.pdf), Federal Agencies must report annually on their motor vehicles in the Motor
  Vehicle Exhibit (also referred to as Exhibit 33).  Agencies use [FAST](http://fastweb.inel.gov/) to report their planned vehicle acquisitions and
  disposals as well as their vehicle acquisition and fleet operating costs.

  <http://fastweb.inel.gov/>

  GSA Fleet Drive-thru is a web portal that allows GSA customers to report vehicle mileages, generate vehicle inventory reports, and input
  information and accounting classifications for vehicles to expedite billing. Access to this system is available via this link.

  <http://gsaa0.fss.gsa.gov/milexpw/>

  Obtain official U.S. Government tags from the U.S. Department of Justice, UNICOR, Federal Prison Industries, Inc. The UNICOR portal describes the
  services available through the organization.

  <http://www.unicor.gov/index.cfm>

  []{#_Hlk116893493 .anchor}The Association of Equipment Management Professionals provides a Certified Equipment Manager (CEM) designation, which is
  a recognized standard for judging the qualifications of a manager of heavy off-road equipment or manager of municipal/government fleets.

  [www.aemp.org](http://www.aemp.org/)

  NISH is a national nonprofit agency whose mission is to create employment opportunities for people with severe disabilities by securing Federal
  contracts through the Javits-Wagner-O\'Day (JWOD) Program for its network of community-based, nonprofit agencies.  The JWOD Program is a
  coordinated effort by the [Committee for Purchase From People Who Are Blind or Severely Disabled](http://www.jwod.gov/), [National Industries for
  the Blind (NIB)](http://www.nib.org/) and NISH-Creating Employment Opportunities for People with Severe Disabilities

  [www.nish.org](http://www.nish.org/)

  Working through a national network of more than 600 local service providers, many of which already have security clearances and onsite operations
  at Federal facilities and military installations, NISH and its JWOD partners assist U.S. military and Federal fleet and logistics management
  organizations. 

  <https://www.nish.org/NISH/Rooms/DisplayPages/LayoutInitial?Container=com.webridge.entity.Entity%5BOID%5B9A02124F29C97944AB7B1087148E434F%5D%5D>
  --------------------------------------------------------------------------------------------------------------------------------------------------

**[5.2 Consistent Classification Codes, Data Elements, and Terminology
-- A Federal Fleet Best Practice]{.underline}**

Agencies and their Fleet Managers should use vehicle classification
codes, data elements, and terminology that are consistent with GSA
Federal Fleet guidelines and regulations. You can find the regulations
pertaining to fleet management in Federal Management Regulation 41 CFR
102-34 "Motor Vehicle Management."

GSA defines a fleet as these classes of units:

-   Passenger Vehicles

-   Light Trucks

-   Medium Trucks

-   Heavy Trucks

-   Ambulances

-   Buses

This definition, while suitable for most reporting required by GSA and
OMB, is not sufficient for many Federal Fleets that operate a greater
diversity of assets. A standard industry definition of a fleet typically
includes every ground-based asset that has wheels, or has a license
plate, or has an engine (20 horsepower or more) and/or a purchase cost
of \$5,000 or more, or requires tracking of periodic maintenance. For
example, a forklift, flat-bed trailer, or tractor-loader may be
considered Special Purpose Mobile Equipment (SPME) within some Federal
Fleets, but these types of equipment are considered part of the fleet in
nearly all non-federal fleets.

For reporting purposes within the Federal Government, a fleet vehicle is
a self-propelled, 4-wheeled (or greater) vehicle licensed for use on
public roads. Construction equipment (e.g., road graders), material
handling equipment (e.g., forklifts), and such are not considered
reportable vehicles.

Some Federal Fleets are wildly diverse. They can include standard
passenger vehicles and light trucks; medium and heavy trucks; "regular"
construction equipment such as backhoes, loaders, and dozers; fire
equipment; and others. But they can also include a substantial number of
nonstandard pieces of agricultural equipment such as plows, discs, and
planters; boats of varying sizes and types; and many highly specialized
items such as wetlands-tending equipment. This is just a sample of the
diversity, and, in many cases, Federal Fleet Managers must assume
management responsibility over the operation of such a diverse array of
assets.

**[5.3 Classification System and Equivalent-Unit Comparisons -- A Best
Practice]{.underline}**

[]{#hlk116893518 .anchor}The National Association of Fleet
Administrators (NAFA) has developed an extensive classification system
for fleet equipment that encompasses all vehicles and equipment that
fleet management typically covers. Likewise, Federal Fleets that include
ground-based assets beyond the typical Federal Fleet definition require
a detailed vehicle and equipment classification system so that Fleet
Managers can compare cost, utilization, and other factors on an
equivalent-unit basis. This is a fundamental fleet management best
practice. To achieve optimum cost control, operational efficiency, and
levels of customer service, Federal Fleets need to approach fleet
management in terms of a fleet definition that matches the scope and
diversity of its units.

**[5.4 Contractor Use of Government Vehicles and
Equipment]{.underline}**

[]{#hlk116893553 .anchor}Some Agencies provide vehicles and equipment to
contractors, as well as allow contractors to lease GSA Fleet vehicles.
Generally, the intent of such a program is to save money because the
Federal Government can often leverage its buying power to acquire
vehicles and equipment at lower costs than the contractors, which would
ultimately result in lower Agency expenditures. While this may be true
to some extent, Agencies must institute sound management practices to
ensure they have an accurate inventory of contractor-operated vehicles
and equipment. Agencies must ensure they have effective control over
vehicle costs, utilization effectiveness, and the contractor's
maintenance practices. These are fundamental fleet management best
practices, and a Federal Fleet Manager must extend them to Agency
contractors.

The entire area of contractor use of Government vehicles needs Federal
Fleet Manager attention to ensure effective management and control of
these assets or to terminate contractor use of these assets (for
example, transfer ownership to the contractors). Agencies should
undertake periodic due diligence studies to assess the most
cost-effective approach to:

a)  providing fleet assets to contractors,

b)  optimizing fleet management and maintenance capabilities of
    contractors, and

c)  bundling (or unbundling) Agency support services for fleet
    management and maintenance.

**[5.5 Policies and Procedures -- A Best Practice]{.underline}**

[]{#hlk116893586 .anchor}Industry best practice demands that a
comprehensive "Fleet Management Policy and Procedure Manual" be provided
as one of the foundations for effective and uniform control of fleet
assets and their operation and maintenance. In scattered and diverse
organizations, which most Federal Fleets are, such manuals are usually
most effective when issued by a central authority but have been
developed with representation and contribution from all major operating
units. Agencies that have not developed a central set of fleet policies
and procedures should do so. Also, the policies should cover the range
of assets for which its Fleet Managers are responsible. The manuals
should incorporate process steps and examples of forms for monitoring,
analysis, management, and reporting.

**[5.6 Cost Chargeback System -- A Best Practice]{.underline}**

[]{#hlk116893610 .anchor}A broad-ranging financial management best
practice for fleet operations is implementation of cost control
procedures that enable an organization to a) identify, b) monitor, c)
evaluate the appropriateness of, and d) adjust fleet ownership,
operating, and management costs regularly. Although an internal audit
process can achieve these objectives, a cost charge-back system -- under
which fleet users must budget and pay for the vehicles and related
services (e.g., vehicle maintenance) and resources (e.g., fuel) they
consume -- is recognized as the best, on-going means of controlling
fleet costs. This is because organizations always pay more attention to
the costs of things they must purchase than to the cost of things they
receive. By the same token, organizations that must pay for the fleet
resources and services they use are much more motivated to hold fleet
management organizations accountable for the costs -- and cost
competitiveness -- of the goods and services the latter provide.
Consequently, properly designed cost charge-back systems promote
efficiencies in both the provision and use of vehicles and fleet
management services.

Development of a cost charge-back system requires a refined vehicle
codification scheme to track and analyze unit utilization and costs. If
asset categories are too broad, data gathered will not yield much
analytical value because the types of assets a category encompasses can
vary widely in terms of capital and operating cost and annual
utilization level.

For some Federal Agencies or bureaus, a working capital fund and
charge-back system can be used to spread the replacement costs of
vehicles and equipment over a period of several years (never for longer
periods, however, than the life expectancies of the assets whose
replacement the fund finances). This approach involves charging fleet
users -- most often monthly -- a portion of the cost of replacing each
asset. The monthly charge multiplied by the number of months a vehicle
is in service should be set so as to yield sufficient revenue (when
coupled with the salvage proceeds from the sale of the vehicle and a pro
rata portion of any interest earned on the fund balance, if applicable)
to pay for a replacement vehicle. The proceeds of all monthly user
payments are deposited in the working capital fund, and each year's
replacement expenditures are defrayed using money taken out of the fund.
GSA's leasing program for Federal Agencies is essentially a large
working capital fund and charge-back system and is a workable model for
Agencies.

**[5.7 The Basics of Vehicle Costs]{.underline}**

[]{#hlk116893648 .anchor}To manage vehicle costs effectively, a Fleet
Manager must first understand them and the factors that they can
influence to control them. Like production costs, the costs of providing
a motor vehicle may be classified as variable or fixed, depending upon
how the costs vary as a result of the miles accumulated. The operating
costs of a vehicle relate directly to each mile driven. Thus, fuel, oil,
maintenance, and tires represent variable or operating-cost categories.

Fixed costs relate more to the passage of time than to miles driven;
that is, they remain substantially set over a given period of time, even
when the miles driven change. Thus, registration, taxes, depreciation,
insurance (or self-insured reserve), and lease payment (which includes
depreciation) or finance expense represent fixed-cost categories.

This segmentation of costs is standard within the fleet profession.
Capturing these costs enables a Fleet Manager to benchmark with other
organizations. For purposes of this Section of the *Guide*, we will
focus on an overview of operating costs:

**[5.7.1 Fuel]{.underline}**

[]{#hlk116893673 .anchor}As you might expect, the cost of fuel remains
the largest operating expense. For Federal Fleets, petroleum reduction
requirements and regulations regarding acquisition of Alternative Fuel
Vehicles add complexity to tracking fuel usage and controlling costs.
Central to controlling fuel costs is selecting the most fuel-efficient
vehicles possible, given the fleet mission and unit usage. We discuss
vehicle selection in detail in Section 4.

In Section 4, we note that Agencies are generally limited to the
purchase of compact and subcompact fuel-efficient vehicles. We also
discuss the Federal Fleet program, administered by GSA, which gathers
data to verify that each Agency\'s vehicles achieve the fleet average
fuel economy for the applicable fiscal year.

Fuel conservation efforts, however, must go beyond acquisition of
fuel-efficient vehicles. For example, Fleet Managers should maintain
individual-vehicle fuel-consumption records and generate exception
reports to assist in identifying excessive usage. One means of improving
fleet fuel economy is through ongoing driver training to heighten
energy-conservation awareness. Major elements to consider in such a
program include:

-   fuel efficient driving techniques training;

-   trip planning;

-   vehicle maintenance;

-   promotional campaigns; and

-   participation in State and local energy conservation efforts.

Often, training funds are scarce and competitively divided within each
organization; therefore, the Fleet Manager must be creative in his or
her approach to succeed. For example, the Fleet Manager can look to the
person responsible for "Energy Management" within the organization and
combine the training requirement into this fund source. The Fleet
Manager can also use the Safety Office/Department as yet another source.
Another creative approach may be to combine Safe Driving and Fuel
Conservation into Earth Day events to fund this type of training.

**[5.7.2 Oil]{.underline}**

[]{#hlk116893715 .anchor}Engine friction is a fact of life.
Consequently, the effort to improve engine efficiency through the
reduction of friction is an ongoing concern. Frequency of changing oil,
oil quality, and type of oil affect the efficient operation of an engine
and represent the primary means of controlling this cost area.

Changing engine oil regularly improves fuel efficiency and helps to keep
engine parts in optimum operating condition. On the other hand, changing
oil too frequently is a waste of this precious natural resource, adds
unnecessary cost, and imposes an unreasonable burden of inconvenience
upon the driver. An auto manufacturer's oil-change schedule should be
viewed as the ideal guideline. Territory and driving habits ultimately
influence the oil-change timing. Fleet Managers and drivers should know
whether their fleet vehicles operate under severe driving conditions,
which are typically defined as:

-   Trips that are less than 20 miles long.

-   Driving in dusty or sandy conditions.

-   Short trips in cold weather where the engine never warms up.

-   Idling for extended period of time.

-   Towing or pulling trailers.

Fleet Managers using GSA Fleet vehicles should notify FMCs of any
vehicles in this category to avoid disagreements should breakdowns occur
or special maintenance requirements be necessary.

Short trips do not allow the engine to heat sufficiently to remove
condensation, which aids the formation of sludge and acid. Under these
severe driving conditions, changing the oil about every three months or
3,000 miles assures far greater engine efficiency.

Failure to change oil at or before a manufacturer's specified timetable
can also void a warranty. This cannot be overemphasized, and adherence
is essential to avoid expending unbudgeted funds to pay the unplanned
repair costs of a component. In this era of self-service fueling, Fleet
Managers must insist that drivers assigned a vehicle maintain a full
level of crankcase oil and adhere to the oil-change policy.

**[5.7.3 Maintenance]{.underline}**

[]{#hlk116893768 .anchor}A sound preventive maintenance program is
essential to minimizing total fleet expenditures. Obviously, vehicles
should be properly maintained, and through the development and
enforcement of policies and procedures, Fleet Managers can come to grip
with controlling maintenance expenses.

A number of results of a poor maintenance program can negatively affect
both the fleet and fleet-cost performance:

-   Increased downtime

-   Increased probability of unsafe vehicles

-   Reduced resale value for vehicles at disposal time

Conversely, a number of the results of a sound maintenance program
positively affect both the fleet and fleet-cost performance:

-   Reduced operational costs

-   Reduced frequency of accidents

-   Reduced self-insured reserve (or insurance, if applicable)

-   Reduced downtime

-   Increased probability of fulfilling mission and work assignments

-   Optimum resale value for vehicles at disposal time

We discuss maintenance in greater detail below.

**[5.7.4 Tires]{.underline}**

[]{#hlk116893797 .anchor}In general, low frequency of maintenance,
increased tread-wear life, improved fuel economy, and enhanced ride
characterize today's tires, which are designed to last well over 30,000
miles over just about every conceivable road condition. Such long lives,
in terms of miles, make it possible to keep tire replacement costs down.

Today's radial tires even help control fuel costs. Their stiff tread
results in low rolling resistance, which reduces engine work. As a rule
of thumb, rolling resistance has a 5 to 1 ratio with fuel economy; thus,
a 25% improvement in rolling resistance results in a 5% fuel savings.

The same tread stiffness enables a larger "footprint" on the road, which
increases contact area and thereby improves handling and braking
capabilities. The increased contact area is responsible to a significant
degree for the excellent performance of radials on wet and snow-covered
pavement.

The chief causes of early tire failures and increased tire expenses are:

-   Incorrect tire pressure

-   Improper alignment

-   Wheels out of balance

-   Bad driving habits

-   Overloading

**5.7.4.1 Incorrect Tire Pressure**

Under-inflated tires tend to wear along the sides, while over-inflated
tires wear out down the middle. Drivers should maintain tire pressure at
the vehicle manufacturer's specifications. A sticker indicating the
proper pressure for a particular vehicle is usually mounted on the
driver's door post or on the glove compartment door. The pressure limits
embossed on the tire sidewall indicate the strength of the tire.
Under-inflation leads to:

-   Shortened tire life

-   Reduced fuel economy

-   Uneven tread wear

-   Reduced handling performance

-   Reduced braking performance

Over-inflation causes:

-   Uneven tread wear

-   Premature failure of the tire elements

**5.7.4.2 Improper Alignment**

Adjustments to the steering and suspension components can generally
correct improper alignment. The adjustments improve handling as well as
reduce tire wear. After a collision or severe road impact, alignment of
the chassis and of the front-to-rear axle should be checked and repairs
made as needed.

**5.7.4.3 Wheels Out of Balance**

Tires that do not wear evenly are often victims of wheels that are out
of balance. This condition typically results from running into curbs and
going over bumps at excessive speed.

**5.7.4.4 Bad Driving Habits**

Bad driving habits are a major cause of a multitude of problems
concerning a vehicle's condition. For example, collisions with curbs,
high-speed take-offs and fast cornering and last-minute braking
contribute to rapid tire wear (and lower fuel efficiency).

**5.7.4.5 Overloading**

Towing a boat or travel trailer can partly take its toll by shortening
tire life. Carrying heavy equipment, tools, etc., all tend to limit tire
life.

**[5.8 Performance Measures for Effective Fleet
Management]{.underline}**

[]{#hlk116893848 .anchor}These performance measures and key ratios
represent a summary and overview of the responsibilities of Federal
Fleet Managers. If developed, they capture general budgetary efficiency,
vehicle costs, vehicle utilization, clean air and alternative fuel
performance, replacement, resale/salvage costs, accident costs/rates and
driver training participation. Not all measures may be appropriate for
all fleets, but every fleet should measure several of them.

  -----------------------------------------------------------------------
  **Measure**                         **Indicates**
  ----------------------------------- -----------------------------------
  **Total operating costs versus      **Degree to which the fleet
  budgeted costs**                    management organization meets its
                                      budget targets**

  **Net annual revenues versus        **Profit or loss for the entire
  operating expenditures**            fleet, a class of fleet vehicles or
                                      a specific vehicle**

  **Total vehicle cost per vehicle    **Unit cost of a fleet mile or hour
  mile/hour**                         driven by the fleet, department,
                                      class of fleet vehicle or vehicle
                                      function**

  **Annual unit cost**                **Total operating, maintenance,
                                      administrative overhead and
                                      replacement cost per vehicle**

  **Ratio of permanently assigned     **Potential measure of the use of
  fleet vehicles to total number of   permanent assignment vehicles and
  employees in the organization       changes in personnel totals (note:
  served**                            different missions can require
                                      different ratios)**

  **Average annual utilization by     **Vehicle utilization, excess
  miles, hours and trips by vehicle   capacity**
  class, type of assignment and       
  vehicle**                           

  **Proportion of vehicles driven     **Underutilized vehicles, which may
  below minimum utilization           be candidates for reallocation or
  requirements**                      reduction**

  **Total miles by class and by       **Age of fleet**
  vehicle**                           

  **Number and percentage of vehicle  **Internal compliance with clean
  assignments meeting TLEV, LEV, ULEV air programs**
  and ZEV requirements**              

  **Number and percentage of vehicle  **Compliance with EPAct
  acquisitions meeting alternative    requirements**
  fuel vehicles (AFV) requirements**  

  **Number and percentage of vehicles **Compliance with useful life
  qualifying for replacement per      replacement criteria**
  age/mileage criteria**              

  **Average vehicle retention period  **Actual vehicle retention period
  by class**                          by class**

  **Number and percentage of vehicles **Efficiency of fleet**
  exceeding standards on number/cost  
  of repairs/road calls, downtime,    
  utilization, fuel/oil consumption,  
  and overall cost per mile**         

  **Average cost per vehicle per      **Acquisition costs and
  class**                             effectiveness of acquisition
                                      methods**

  **Ratio of resale or salvage value  **Conservation of vehicle value**
  to original purchase price**        

  **Accidents per 100,000 miles       **Fleet safe-driving performance;
  accident cost per mile (annual      need for driver training in the
  accident costs divided by the total fleet**
  number of miles of all vehicles in  
  a fleet)**                          

  **Number and percentage of          **Fuel-efficient driving and
  permanently assigned or full-time   safe-driving program activity**
  drivers participating in driver     
  training**                          

  **Direct out-of-pocket accident     **Need for driver training**
  costs such as property damage,      
  medical treatment and future lost   
  earnings (excluding loss of life or 
  limb)**                             
  -----------------------------------------------------------------------

At the same time that Federal Fleet Managers should understand and
implement industry standards, best practices, and sound performance
measures, each Agency's property management regulations essentially
govern management and implementation decisions.

**[5.9 Record Keeping and Cost Control]{.underline}**

[]{#hlk116893887 .anchor}The Federal Fleet Manager\'s responsibilities
include maintenance of inventory records and controls for the operation.
This includes following internal Agency regulations on purchasing,
inventory levels, records, and control of personal property. Each Agency
that owns vehicles is responsible for developing adequate accounting and
reporting procedures to ensure accurate reporting of inventory, cost and
operating data needed for the management and control of fleet assets.

Increasingly, Agencies use a Fleet Management Information System (FMIS)
to reduce paperwork and costs. Other Agencies have or are adopting
enterprise financial systems or maintenance management systems or asset
management systems to achieve the same goal. Irrespective of the type of
system, a properly programmed software solution is the most efficient
way to maintain fleet records so that you can routinely analyze and
report information as needed. In today's complex fleet management
environment, given the laws and regulations you need to follow and
enforce, and given the large, diverse, and geographically dispersed
units for many Federal Fleets, an enterprise FMIS is essential.

**[5.9.1 Accountable Inventory Items]{.underline}**

[]{#hlk116893938 .anchor}Federal Fleet Managers must control and account
for the shop equipment, administrative equipment and inventory assigned
to their organization.

**5.9.1.1 Control of Parts and Supplies**

All stocked operating parts and supplies having a value of more than
\$10 each should be treated as accountable inventory items. Parts and
supplies valued at less than \$10 each may be treated as expendable
items or cupboard stock. Take steps to secure items costing more than
\$10 each and sensitive items maintained as inventory items for future
use in a stockroom or locked cabinet and issue them under an
inventory-maintenance control process. "Sensitive" items costing less
than \$10 each include anti-freeze, motor oil, air filters, fuel
filters, oil filters, spark plugs, etc. Management of parts and supplies
typically includes documentation of the replenishment of inventory items
upon receipt of stock, undertaking inventory account reconciliation
monthly, and physically inventorying accountable parts and supplies
annually.

**5.9.1.2 Shop Equipment**

Shop-equipment inventories will normally be categorized according to
internal Agency property management and finance regulations. For
example, these categories may require formal inventory entries for
equipment valued in excess of \$5,000 to include cost data; entries for
equipment valued at less than \$5,000 but more than \$50, but without
inclusion of the cost data; and, informal inventory record-keeping
system entries to account for sensitive (pilferable) items valued at
less than \$50.

**5.9.1.3 Administrative Equipment**

Administrative equipment is property under the jurisdiction of the
Federal Fleet Manager, consisting of such items as office furniture,
computers, calculators, cameras, etc. Inventory control over
administrative equipment is usually the responsibility of the Agency's
Property Accountable Officer (PAO) or equivalent.

**[5.9.2 Motor Vehicle Inventory and Control]{.underline}**

[]{#hlk116893975 .anchor}The Federal Fleet Manager is accountable for
all vehicles assigned to him/her and should know the whereabouts and
status of each vehicle at all times.

**5.9.2.1 Inventory Reporting Systems and Fleet Management**

Historically, Agency reporting systems maintain inventory control over
the motor vehicle fleet. The specific systems used for this have been
changing as enterprise financial, maintenance, and asset management
software programs become increasingly common. What is important is that
if the Agency Fleet Managers use a FMIS that it access the electronic
inventory records so that one inventory of units is in place.

Agencies that have not implemented enterprise solutions often have
disparate inventory databases with different (or no) field standards
(for example, separation of make and model into two data fields or
combined make and model into a single data field). This means the Agency
does not have a correct inventory of fleet, equipment, and related
assets, because a) those who maintain the different databases often do
not interact, b) those who maintain the databases are often unaware of
each other (usually due to stovepiping within organizations), and c) no
one knows which database is correct.

To measure performance, utilization, and economy of any fleet requires
several classes of data:

-   [Descriptive Data]{.underline} -- static information used for
    classification, analysis, and comparison purposes (e.g., year, make,
    model, VIN, class code, date of purchase, etc.).

-   [Fixed Costs]{.underline} -- costs incurred simply by having the
    equipment (e.g., acquisition cost, resale proceeds, lease payments,
    etc.).

-   [Maintenance Costs]{.underline} -- costs incurred for repairs and
    maintenance.

-   [Operating Costs]{.underline} -- costs incurred in the operation of
    the equipment (e.g., fuel, tires, lubricants, etc.).

-   [Usage]{.underline} -- measurements of utilization (and downtime) in
    miles, time, cycles, etc.

Management's information needs should drive the choice of data elements
and degree of detail in the database. For example, if management wants
to compare performance among "equipment classes," then it must either
(1) design equipment classifications and meticulously assign them to
each piece of equipment in the fleet or (2) decide which lower-level
elements, already present in the database, can be used to infer the
"classes" and ensure that these data elements are completely populated
with validated values.

Numerous automated fleet and maintenance systems allow users to store
incorrect or incomplete data in exactly the fields required by
management for decision-making. When this is the case, management must
devise external processes to audit the database and report missing or
incorrect data. The goal is to achieve standardization of data entered
into the system to ensure integrity of the outputs. The garbage-in
garbage-out cliché proves true when one tries to analyze data that
should be aggregated but can't be because of inconsistent or
non-standard data entry.

Here are five examples that illustrate the degree of inconsistency that
arises when systems fail to enforce data-integrity rules:

  ---------- ------------------ -------------------- ------------------------
  **Year**   **Make**           **Model**            **Description**

  1990       CHEVROLET          CORSICA              1990 Chevrolet Corsica

  1991       CHEVROLET          CORSICA              1991 Chevy Corsica

  1990       GENERAL MOTORS     ILT69                1990 Chevy Corsica

  1990       GENERAL MOTORS     CORSICA LT 4DOOR     1990 Corsica sedan

  1993       GM                 CORSICA              1993 GM Corsica
  ---------- ------------------ -------------------- ------------------------

With data of this quality, any measure of performance, utilization, and
economy of the fleet would be highly suspect. An effective solution is
to use drop-down menus, system defined fields, and automated data entry
(using bar codes or other machine-readable input mechanisms) to minimize
data entry by users.

Any Agency in the process of implementing a new computer-based finance,
asset or maintenance management system must ensure that users are able
to probe data pertinent to the fleet and arrive at rational and valid
results. Fleet management operations should be brought into the
discussion of enterprise systems early in the selection process, so
usage of these systems for fleet management purposes will be optimized.
This will eliminate the design of other fleet software solutions to fill
an information gap, which would cause the creation of pockets of data
not being integrated into the single, enterprise system that is supposed
to house all fleet data. Agencies must take steps to ensure that
meaningful data classes are incorporated from the outset and that
processes and mechanisms for standardized data entry (strict rules of
normalization) are in place.

**5.9.2.2 Validation**

Where an enterprise system has many free-form, user-defined fields,
implement simple external validation routines to maintain data
integrity. For example, VINs (Vehicle Identification Numbers) may be
stored in a "serial number" field, which can hold virtually any
structure the user chooses to enter. An external routine can be written
to identify serial numbers for "vehicle" equipment types that fail
common validation rules, such as length (17 characters), structure
(decoders are on the market that parse VINs to identify make, model,
etc.), and uniqueness (only one "vehicle" should be in the file with a
given VIN).

**5.9.2.3 Timeliness**

In addition to the selection of data elements, Agencies should consider
how often to collect fleet data. While any enterprise system can perform
as a "real-time" data delivery service, management needs should drive
the timing of data collection rather than system capability.

Take fuel as an example. If an Agency were interested in simply tracking
cost and consumption, monthly summary data might suffice. On the other
hand, if the Agency were interested in managing fuel consumption,
transactional data should be collected in real-time and filtered through
reasonable exception limits. An Agency should apply this approach to all
cost areas that it wants to manage and control actively. (Also note that
a fuel-management system operated by an Agency often operates with its
own software, and that the enterprise system must be able to "talk" with
the fuel-management system.)

**5.9.2.4 Consistency**

Consistency of data collection throughout the fleet is essential. For
example, both "in- house" and outsourced work orders (or bureau to
bureau work orders) should use similar codes to classify the work. If
costs are allocated to major vehicular systems (such as engine,
transmission, transfer case, etc.) on in-house work orders, they should
be allocated similarly on commercial invoices.

**5.9.2.5 Best-Practice Interfaces**

Although interfaces to Federal systems are optional, best-practice
Agency interface requirements should include existing Federal
information systems (e.g., FAST and GSA) and any vendor managed
system(s) it may use (for example, for in-house fueling stations and
related systems). Interface(s) to vendor managed systems should be
mandatory because the implementation of a new enterprise fleet system
will render some existing interfaces useless. For example, fuel
transactions that occur at sites with in-house fueling stations operated
with fuel-management software may be interfaced to an existing FMIS.
Replacement of the local FMIS with an enterprise FMIS will require the
development of new interfaces.

**[5.9.3 Federal Reporting]{.underline}**

[]{#hlk116894027 .anchor}Federal Fleet Managers must establish and
maintain record-keeping systems that will enable them to furnish data
needed to meet these reporting requirements:

-   [FMR 102-34.70]{.underline}: Agencies must furnish copies of actual
    vehicle leases and purchases acquired for domestic fleets, which
    were not procured through GSA Automotive.

-   [FMR 102-34.215]{.underline}: Agencies must report on motor vehicles
    exempted from the display of official U.S. Government identification
    and tags.

-   [FMR 102-34.355]{.underline}: According to this regulation, each
    owning Agency must submit a Standard Form 82, Agency Report of Motor
    Vehicle Data, within 75 days after the end of the fiscal year. This
    purpose of this form is to report inventory, cost and operating data
    to GSA. GSA uses the data from this report to prepare the Federal
    Fleet Report. However, SF 82 is now fulfilled electronically through
    FAST.

The purpose of SF 82 (and FAST) is to ensure uniformity of reporting. It
includes the \"direct costs\" of operations and maintenance and the
\"indirect costs\" which are not readily identifiable to specific
vehicles. GSA uses this data to prepare the \"Federal Motor Vehicle
Fleet Report.\" Agency enterprise systems or an FMIS should be
programmed to feed FAST electronically, if possible.

Examples of internal reports not discussed above, but generally required
of the Federal Fleet Manager, include Federal Procurement Data System
Reporting, Imprest Fund Cash Accounts and Annual Accident Report.

[**5.9.4 Federal Automotive Statistical Tool (FAST)**]{.underline}

[]{#hlk116894115 .anchor}FAST is a web-based reporting system developed
in 1999 by Idaho National Engineering and Environment Laboratory (INEEL)
for GSA and the Department of Energy (DOE). It was developed to automate
annual Federal Fleet data reporting and measure the compliance of
Executive Agencies with the requirements of the Department of Energy's
Energy Policy Act (EPACT) of 1992, the Energy Conservation
Reauthorization Act of 1998, and Executive Order #13149 - Greening the
Government through Federal Fleet and Transportation Efficiency. The
purpose of these laws and regulations is to reduce the use of petroleum
fuels and to motivate migration toward alternative fuels (e.g., CNG,
ethanol, propane, and biodiesel).

Participating Agencies update the FAST system annually with information
on their current fleet inventory and planned acquisitions for the next
year. Data elements that the FAST system requires include asset number,
asset location, fuel type, mileage or usage, and exempt status. These
data elements are available in virtually every fleet or asset management
system on the market.

For most Agencies, the current process for populating the FAST system is
to type the data in manually through a web interface
([http://fastweb.inel.gov](http://fastweb.inel.gov/)). Fleet personnel
or contractor assistants input this data, which is derived from
information captured in manual records, typically Microsoft Excel
spreadsheets. Read-only access for reporting purposes is available for
most of the year, whereas read-write access to the application is only
available during the "Data Call," which is in October. The graphic below
illustrates the FAST system portal.

![](media/image1.jpeg){width="5.999305555555556in"
height="4.838888888888889in"}

As an information technology best practice, Agencies should eliminate
redundant or unnecessary manual data-processing tasks. In many cases, an
interface between information systems can eliminate this redundancy. Two
Microsoft Excel spreadsheet forms are available and can serve as
templates for software developers to write export routines to populate
from other information systems. Once populated, these spreadsheets can
be imported into FAST through an existing, generic import gateway.

In addition to fulfilling GSA and DOE fleet data requests, FAST also
assists fleets in meeting the data requirements of OMB's Circular A-11,
"Preparation, Submission and Execution of the Budget."

The following reports are available through links on the FAST Reports
tab.

1.  [Agency Aggregate AFV Report]{.underline} -- This is the official
    summarized set of data used to gauge your Agency's compliance with
    EO 13149.

2.  [Petroleum Consumption Report]{.underline} -- Shows data through the
    current FY for "Covered Petroleum Consumption in GGE," "Alternative
    Fuel Consumption (in GGE)," and "Average Fuel Economy of non-AFV
    Light Duty Vehicle Acquisitions (in mpg)." Data percentages are
    calculated against available 1999 baseline data.

3.  [Data Quality/Consistency Report]{.underline} -- Provides an
    overview of the submitted cost, mileage, inventory, and fuel
    consumption data for a segment or all of your Agency, from the
    perspective of the consistency and completeness of that data. This
    report, new for the FY2005 FAST data call provides several different
    trends showing key data elements such as inventory, fuel
    consumption, and cost data across recent years, as well as
    cross-reference tables showing inventory (by fuel type) vs. fuel
    consumption and cost. All Agencies are expected to review this
    report to help identify and resolve any significant issues with
    their reported data prior to the close of the FAST data call.

4.  [OMB A-11 AMVFR]{.underline} -- Provides an overview of fleet
    inventory for all years surveyed (fiscal year just ended, along with
    projections for each of the next three fiscal years), accompanied by
    fleet costs for the fiscal year just ended. All Agency
    administrators should review this report prior to the close of the
    FAST data call, even though the majority of this report is not due
    to OMB until the following August, to ensure that their Agency's
    projections for vehicle acquisitions and disposals make sense (e.g.,
    that the combination of acquisitions and disposals do not result in
    negative inventory figures for a particular type of vehicle).

5.  [Agency Trend Reports]{.underline} -- Show different trends of FAST
    data for your Agency, and provide comparisons of your Agency against
    the Federal Government fleet as a whole or against individual
    Agencies. These trends include inventory or acquisition data (by
    vehicle type, source, or fuel type), mileage data (by vehicle type),
    and cost data (by vehicle type).

6.  [Query Tool]{.underline} -- Provides ad hoc query construction and
    manipulation capabilities for Agency administrators to retrieve
    Section I, II, or III data from FAST, including filtering, sorting,
    and subtotaling capabilities.

7.  [Data Completion Report - Agency]{.underline} - Shows fleet total
    completion percentages by Agency.

8.  [Data Completion Report]{.underline} -- Shows your Agency's fleet
    completion percentages. Fleet approvals are processed through this
    report.

9.  [Flagged Items Report]{.underline} -- Shows any potential errors
    flagged during the Fleet data entry data validation step.

10. [Data Log]{.underline} -- Shows a log of the changes made by Agency,
    who made the changes, the time and date of the changes, and the
    reports the changes were made to.

**[5.9.5 GSA Fleet Drive-Thru]{.underline}**

[]{#hlk116894159 .anchor}GSA Fleet Drive-thru is a web portal that
allows GSA customers to report vehicle mileages, generate vehicle
inventory reports, and input information and accounting classifications
for vehicles to expedite billing. Access to this system is available
through the Internet at <http://gsaa0.fss.gsa.gov/milexpw/>. The picture
below illustrates the application's login interface.

![](media/image2.jpeg){width="6.052083333333333in" height="4.03125in"}

GSA Fleet Drive-thru maintains the following modules:

**5.9.5.1 Mileage Express**

This is a web-based mileage reporting system for GSA Fleet customers.
These vehicle mileages input directly into GSA's FMIS database, which
allows them to bill its customers accurately and provide timely
preventive maintenance. This data input occurs once at the end of every
month. Typically, Agencies input this information manually based on
information captured in spreadsheets and hand-written documents.

Mileage Express also provides a generic upload interface whereby users
can FTP (File Transfer Protocol) a text file with the mandatory
reporting information. This file must be in the following format:

**MILEAGE EXPRESS FILE FORMATS**

  ---------------- --------------- ---------- ------------- --------------
  **DATA ELEMENT** **FIELD         **DATA     **LENGTH**    **FORMAT**
                   LOCATION**      TYPE**                   

  RECORD TYPE      1-3             A          3             ALWAYS =
                                                            \"32M\"

  FILLER           4               A          1              

  FUND CODE        37747           A          2              

  FILLER           7               A          1              

  ACCT 1           37848           A          8              

  FILLER           16              A          1              

  ACCT 2           17-24           A          8              

  FILLER           25              A          1              

  VEHICLE CLASS    26-28           A          3              

  FILLER           29              A          1              

  VEHICLE TAG      30-34           A          5              

  FILLER           35-36           A          2              

  ENDING MILEAGE   37-42           N          6              

  GSA REGION       43-44           N          2 (02 THRU     
                                              10)           

  REPORTING DATE   45-48           N          4 MMYY         

  FILLER           49-80           A          32             
  ---------------- --------------- ---------- ------------- --------------

**5.9.5.2 Reports Carryout**

This is a report engine that allows authorized users to generate fleet
inventory reports, which can be opened in Microsoft Word and Excel (see
"GSA Fleet Drive-thru User's guide for Reports Carryout"). The report
engine provides information on:

a)  Class and tag number

b)  Region, Fleet Management Center, Sub-fleet Management Center, and
    Bureau Code

c)  Model and year of vehicle

d)  Average monthly mileage, as well as current monthly mileage

e)  Equipment code

f)  Fuel type (here you can see which vehicle is an alternate fuel
    vehicle)

g)  Vehicle point of contact, location (city, State), and contact number

h)  Monthly and mileage rates

i)  Date assigned

j)  Acct No 1, Acct No 2, and FC

k)  Standard item number

l)  Garaged zip

m)  Vehicle Identification Number (VIN)

The following criteria can be filtered for reporting:

-   **Customer number:** Reports Carryout can generate a vehicle
    inventory report for any particular customer number within the
    user's authorized Agency.

-   **BOAC Number:** Reports Carryout can generate a vehicle inventory
    report for any particular BOAC number within the user's authorized
    Agency.

-   **Agency Number:** Reports Carryout can generate a vehicle inventory
    report for the user's authorized Agency.

**5.9.5.3 Speed Pay**

This is a component of GSA Fleet Drive-thru that allows authorized users
to enter information for bill reconciliation and paying. It functions as
an online authorization mechanism that streamlines previous methods.

**[5.9.6 Direct Fleet Costs]{.underline}**

[]{#hlk116894198 .anchor}For the Federal Fleet, direct costs are fuel
and maintenance. For leased vehicles, you must know and track lease
costs, and, for purchased vehicles, you must track depreciation (keeping
in mind that book depreciation is a statistical calculation that differs
from actual depreciation, which is only learned upon unit disposal). For
fleets with in-house maintenance programs, parts inventory can represent
another large direct cost.

**[5.9.7 Indirect or General Fleet Costs]{.underline}**

[]{#hlk116894241 .anchor}Examples of the indirect or general costs that
must be considered when evaluating the efficiency of your fleet
operation include:

-   Services and benefits, official travel and transportation, of all
    fleet management personnel. This includes the Fleet Manager, and
    mechanical and administrative personnel (including clerical
    employees).

-   The amortized cost of motor vehicles and other operating equipment
    purchased by and for the fleet management activity.

-   Rented and leased motor vehicles.

-   Storage of motor vehicles at non-Government-owned locations (such as
    for new-vehicle storage and disposal storage).

-   Improvements and repairs to Government-owned or leased real
    property, and the erection of temporary structures for fleet
    management activities.

-   Space procured or retained for fleet management administration and
    operation, including such ancillary costs as utilities and custodial
    services.

-   Servicing and repairing operating equipment.

-   Tort claims resulting from accidents involving fleet vehicles.

-   Administrative supplies and equipment, including computer support
    services and equipment.

**[5.9.8 Operations Reporting]{.underline}**

[]{#hlk116894315 .anchor}Detailed and summary management reports on
operations are usually produced from a FMIS or comparable alternative
and often are drawn from data elements in these categories:

-   Budget Process

-   Cost

-   Inventory

-   Usage

-   Vehicle Servicing.

Professional Fleet Managers use data from detailed and summary
management reports on operations to measure the performance of the
fleet.

**[5.9.9 Federal Vehicle Inventory Standards]{.underline}**

[]{#hlk116894363 .anchor}The Fleet Manager will use forms similar to the
FMS-201, Vehicle Inventory by Tag, and the FMS-202, Vehicle Inventory by
Status, to account for, reconcile, and control the motor vehicle fleet.

Vehicle inventory is created through separate vehicle transaction
records which are prepared as vehicles are acquired. Historically, a
copy of each transaction has been filed in a physical vehicle-jacket
file. Today, software programs increasingly capture much, if not all, of
this data. Category headings for the inventory should include active
inventory (assigned and dispatch), and an inactive inventory (temporary
storage, idle - less than 30 days and over 30 days, and temporary
storage for disposal).

**[5.9.10 Recording of License Plate Numbers]{.underline}**

[]{#hlk116894419 .anchor}The Federal Fleet Manager must ensure that a
centralized record of all official U. S. Government tags in use on
Government-owned/leased motor vehicles is maintained. These records
shall specify the motor vehicle for which the tags are assigned and
shall include complete information regarding the reassignment of tags
and a list of destroyed and/or voided tag numbers.

The Federal Fleet Manager should verify tag numbers upon receiving them
and enter those numbers in a tag register. Upon receipt of a motor
vehicle from any source, the Federal Fleet Manager should assign a tag
to the vehicle and document its receipt. Normally, a motor vehicle will
retain the same tag number as long as it is in service. Exceptions are
when tags are lost or stolen, or when the tags must be destroyed due to
damage, etc. The procedure for documenting lost, stolen or destroyed
tags is the same as for charge cards (discussed below).

FMR 102.34.150 requires Federal Fleet Managers, upon learning of lost or
stolen tags, to report the loss or theft to their local security office
(or equivalent) or the issuing Fleet Management Center, as applicable.
District of Columbia tags or other State tags, which are lost or stolen,
should be reported to the District of Columbia, Department of
Transportation, or the appropriate State Agency.

**[5.9.11 Maintenance and Service Records]{.underline}**

[]{#hlk116894452 .anchor}The Federal Fleet Manager should maintain motor
vehicle records in accordance with Agency policy and procedures. The
goal is to have one, central location for historical data relating to
each vehicle. In the past, Fleet Managers typically used a physical
motor-vehicle record jacket file, and some operations continue to
maintain physical files. Increasingly, however, an FMIS achieves this
goal. The key motor vehicle records tracked physically or electronically
include:

**Key Motor Vehicle Records**

  -----------------------------------------------------------------------
  **Acquisition Documents: Purchase and Lease**

  **Statement of Origin**

  **Repair Orders**

  **Warranty Information**

  **Accident Reports: Summary of Costs**

  **Shop Work Orders**

  **Assignment Record**

  **Sales Information**
  -----------------------------------------------------------------------

The physical or electronic file (or both) is to be retained for a period
after the vehicle is sold. Of course, electronic files generally have
long lapse dates for electronic storage. What is important for
electronic files is to ensure proper backup in case the system crashes
and data cannot be otherwise recovered.

**[5.9.12 Charge Cards]{.underline}**

[]{#hlk116894495 .anchor}Fully document the destruction of tags or
charge cards. Maintain a destruction log or register and include the
following information for each charge card: tag number and expiration;
lost or stolen indicator; date, reason for destruction; and method of
destruction. The charge card contractor generates a periodic report of
the existing charge-card inventory. Review these reports to ensure that
only one card per vehicle exists, that all cards have the correct tag
number format, and that no excess charge cards exist. We discuss charge
cards in greater detail below.

**[5.10 Receipt of Motor Vehicles]{.underline}**

[]{#hlk116894523 .anchor}According to each Federal Agency\'s mission,
legal authority and budget, the Federal Fleet Manager will assign some
vehicles to motor pool use and others to individuals. Vehicle assignment
for use begins with vehicle acceptance, which includes inspection,
warranty activation and reporting of defects.

Acceptance of new vehicles shall be in accordance with: 1) Instructions
to Consignee Receiving New Motor Vehicle Purchased by GSA, printed on
the reverse side of the consignee copy of the delivery order; and 2) the
GSA Publication, \"New Vehicle Guide: Warranty, Delivery, Acceptance,
and Recall of Motor Vehicles.\" Receipt of the final delivery shall be
reported on the receiving-report copy of the purchase order.

**[5.10.1 Deficiency Reporting]{.underline}**

[]{#hlk116894566 .anchor}Report vehicles delivered with defects or
damage using Standard Form 368, Quality Deficiency Report. A good
practice is to report all deficiencies even though the manufacturer's
authorized dealer has taken corrective action and complied with any
specifications or requirements on the purchase order. SF 368 should
specify what actions were taken. You can find the procedures for
documenting and reporting quality deficiencies in the GSA Handbook,
Discrepancies or Deficiencies in GSA or DOD Shipments, Material, or
Billings.

**[5.10.2 Vehicle Identification Form]{.underline}**

[]{#hlk116894605 .anchor}The contractor must complete GSA Form 1398, GSA
Purchased Vehicle (see FPMR 101.4902-1398), to indicate that it has
performed pre-shipment inspection and servicing of each vehicle. The
Form must be attached to the vehicle, preferably to the lock face or
doorframe of the right front door after the final inspection. The form
should be left in place during the warranty period to permit prompt
identification of vehicles requiring dealer repairs pursuant to the
warranty.

**[5.10.3 Vehicle Warranties]{.underline}**

[]{#hlk116894663 .anchor}All new vehicles are acquired with warranty
provisions effective from date of delivery or acceptance of the vehicle,
as defined in the contract. Make every effort not to invalidate the
warranty in performing any repairs or maintenance during the warranty
period. With prior approval of the warrantor and when conditions
warrant, you may receive authority for an unauthorized service facility
to perform repairs covered by the warranty. In such cases, you should
seek warranty restitution (reimbursement for repairs covered under the
warranty).

**[5.10.4 Notification of Vehicle Defects]{.underline}**

[]{#hlk116894695 .anchor}Section 151 of the National Traffic and Motor
Vehicle Safety Act requires every motor vehicle manufacturer to notify
the organization using the motor vehicle (or motor vehicle equipment) of
any defect in any motor vehicle. This includes notification of:

a)  any replacement equipment related to motor vehicle safety that the
    manufacturer produced and determines to be related to motor vehicle
    safety, and

b)  any motor vehicle item or replacement equipment found not to comply
    with an applicable Federal motor vehicle safety standard.

The notification is sent within a reasonable time after the manufacturer
has discovered the defect.

Agencies must promptly act on motor vehicle defect notices to avoid
accidents, loss of life, and costly repairs and non-availability of
vehicles due to these repairs. On newly procured vehicles, a
manufacturer will send \"Motor Vehicle Defect Notices\" to the original
consignee at the consignee\'s mailing address shown on the vehicle
delivery order. However, Agency heads shall notify manufacturers of the
exact address to which \"Motor Vehicle Defect Notices\" are to be sent
when vehicles are transferred within the Federal Government (applies
only to 1971 or later model vehicles).

[]{#_Hlk116894739 .anchor}**[5.10.5 Vehicle Registration, Identification
and Exemptions]{.underline}**

**5.10.5.1 Registration**

Official U.S. Government tags must be used on all Government-owned or

-leased motor vehicles unless specifically exempted by FMR 102-34.180,
195, or 200. The tags are numbered serially for each Executive Agency,
beginning with 101, and preceded by a letter code designating the Agency
having accountability for the motor vehicles as shown in FMR 102-34.160.
Obtain official U.S. Government tags from the U.S. Department of
Justice, UNICOR, Federal Prison Industries, Inc., 400 First Street, NE,
Room 6010, Washington, DC, 20534 (<http://www.unicor.gov/index.cfm>).

Government motor vehicles need not be registered in the States,
territories, or possessions in which they are used; however, motor
vehicles exempt from the display of official U.S. Government tags and
other identification shall be registered and inspected in accordance
with the laws of the State, territory or possession involved

**5.10.5.2 Identification and Display of Tags**

Each vehicle will display official U.S. Government identification tags
mounted on the front and rear of the vehicle except when use of other
tags is approved. In addition, each motor vehicle acquired for official
purposes (except vehicles exempted by FMR-102-34.180, 195, or 200) shall
display the legends \"For Official Use Only,\" \"U.S. Government\" and
Agency identification. Different Agencies have varying tagging policies;
tagging should be in accordance with your Agency's policy. FMR
102-34.115 governs DOD motor vehicles.

Whenever a vehicle is permanently removed from Government service, all
Agency identification and any other Government identification shall be
removed from the vehicle before transferring the title or delivering the
vehicle.

**5.10.5.3 Exemptions**

Unlimited exemptions from the requirement to display official U.S.
Government tags and other identification are granted to the
organizational activities of the Agencies listed in FMR 102-34.195. In
addition, exemptions may be authorized by the Agency head or designee
upon written certification to GSA that conspicuous identification will
interfere with the purpose for which the vehicle is used. These do not
require GSA approval.

**[5.11 Vehicle Assignment and Use]{.underline}**

[]{#hlk116894787 .anchor}Procedures and guidelines must be established
to ensure that vehicles awaiting dispatch to users are safeguarded and
accounted for at all times. As noted above, vehicles should be issued
only after determination that they are in safe operating condition and
have been properly cleaned and inspected.

[]{#_Hlk116894836 .anchor}**[5.11.1 Vehicle Assignment]{.underline}**

**5.11.1.1 Agency-controlled Vehicles**

The criteria for Agency-controlled GOV assignment are usually included
in an Agency\'s internal, personal-property regulations as a formal,
written procedure. Normally, the requesting user-group must provide
written justification to establish the need for full-time vehicle
assignment. In the case of vehicles available for dispatch to Agency
employees, the number of requests for vehicles will often exceed the
number of vehicles available. Coordination with program officials is
necessary to ensure that dispatch priorities are established to reflect
program priorities. The Fleet Manager must maintain assignment and
dispatch records to ensure necessary control and to provide for
utilization review.

If you are using GSA IFMS assigned vehicles, substitute vehicles will be
provided at your request if:

-   Your assigned vehicle is undergoing routine repair or service and is
    not returned within five working days; or

-   Your assigned vehicle is out of service due to an accident and is
    not available within five days.

Substitutes for special purpose vehicles are subject to availability.

**5.11.1.2 Security and Storage**

When a vehicle is stored, the vehicle is to be locked and the keys and
charge card are to be secured. Establish procedures for secure pick-up
and return of dispatch vehicles during other than normal operating
hours.

FMR 102-34.245 provides that an Agency's Government-owned, -rented, and
-leased motor vehicles be stored so as to provide reasonable protection
from pilferage or damage. In the interest of economy, open storage
should be used whenever practical and feasible. An Agency must determine
whether it is \"practicable or feasible\" to use open storage space or a
particular type of storage space at a particular location after
considering the nature of program demands and special requirements at
that location.

All unattended Government-owned/leased motor vehicles should be locked.

**5.11.1.3 Assignment to a Vehicle Operator**

As Fleet Manager, your responsibilities include ensuring that vehicle
operators receive instruction in procedures for care and use of the
vehicle, safe driving, use of and safeguarding the Government charge
card, and reporting accidents.

A vehicle operator\'s driving record should be checked:

-   when new drivers are hired,

-   annually, and

-   after an accident.

After receiving proper release from the individual, Fleet Managers may
use either a) the National Highway Traffic Safety Administration (MHTSA)
National Drivers Registry (NDR), b) private companies or c) perform
driver record checks personally.

**5.11.1.4 Motor Vehicle Operator Identification**

When releasing motor vehicles on assignment or dispatch, verify that the
vehicle operator has the required identification:

-   A valid State, District of Columbia, or territorial motor vehicle
    operator\'s license or permit for the type of vehicle to be
    operated;

-   Employee identification, identifying the operator as a Federal
    employee or authorized contractor employee;

-   Where required by the Agency\'s internal regulations, an optional
    form 346, U.S. Government Motor Vehicle Operator\'s Identification
    Card.

The Office of Personnel Management (OPM) has established requirements
governing the qualification and identification of Government-furnished
vehicle operators. These requirements may be found in 5 CFR Part 930,
which states in part: \"Agencies must have procedures to identify
employees who are authorized to operate Government-owned or leased motor
vehicles.\"

In addition, if the vehicle is a "commercial motor vehicle" as defined
by the Motor Vehicle Safety Act of 1986, the operator must possess a
Commercial Driver's License (CDL) for the class of vehicle to be
operated. Some Department of Defense employees (i.e., active military)
may be exempt from the CDL requirement, particularly if the motor
vehicle in question will not be operated on public roads.

**[5.11.2 Official Use versus Incidental Use]{.underline}**

[]{#hlk116894896 .anchor}Funds made available to a Federal Agency, by
appropriation or otherwise, may be expended by the Agency to maintain,
operate and repair any motor vehicle to the extent it is used for
official purposes.

**5.11.2.1 Definition of Official Use**

\"Official Use\" of a motor vehicle is using a motor vehicle to perform
the Agency\'s mission(s), as authorized by the Agency.

According to [31]{.underline} USC 1349 (b) Adverse Personnel Actions:

> \"An officer or employee who willfully uses or authorizes the use of a
> passenger motor vehicle or aircraft owned or leased by the United
> States Government (except for an official purpose authorized by
> section 1344 of this title) or otherwise violates section 1344 shall
> be suspended without pay by the head of the Agency. The officer or
> employee shall be suspended for at least one month, and when
> circumstances warrant, for a longer period or summarily removed from
> office.\"

**5.11.2.2 Definition of Incidental Use**

\"Incidental Use\" is the use of Government owned or leased motor
vehicles for other than official purposes. Section 503 of the Ethics
Reform Act of 1989, as amended, states that:

> \"Not withstanding any other provision of law, the head of each
> department, agency, or other entity of each branch of the Government
> may prescribe by rule appropriate conditions for the incidental use,
> for other than official business, of vehicles owned or leased by the
> Government. Such use with respect to vehicles owned or leased by, or
> the cost of which is reimbursed by, the House of Representatives or
> the Senate shall be only as prescribed by rule of the House of
> Representatives or the Senate, as applicable.\"

**5.11.2.3 Home to Work (HTW)**

Alternate Terms: Domicile to Duty and Residence to Duty Station

**Allowed Only When Authorized by Agency Head**

Home-to-Work transportation using a Federal passenger carrier (motor
vehicle, aircraft, boat, ship or other similar means of transportation
owned or leased by the United States Government) is only allowed when
the Agency Head authorizes it after making the necessary determination
under 31 U.S.C. 1344(b)(1) through (b)(7) and Federal Management
Regulation (FMR) 102.34-225 and 102-5. This determination must be in
writing and shall include the name and title of the officer or employee,
the reason for such determination, and the duration of the
authorization.

The Agency must monitor home to work usage. Each Federal Agency shall
maintain logs or other records necessary to establish the official
purpose for Government transportation provided between an individual\'s
residence and his/her place of employment.

**[5.11.3 Traffic Law Violation]{.underline}**

[]{#hlk116894934 .anchor}Operators of Government-owned or leased motor
vehicles must obey all the motor vehicle traffic laws of the State and
local jurisdiction in which they are operating, except when the duties
of their position require otherwise. Operators are personally
responsible for any violation of State or local traffic laws. If an
operator is fined or otherwise penalized for an offense he or she
committed while performing official duties, but the cause of the penalty
was not required as part of their official duties, payment is the
operator\'s personal responsibility!

The Comptroller General of the United States indicates in 31 Comp. Gen.
246 (1952) that:

> \"There is not known to this Office any authority to use appropriated
> monies for the payment of a fine imposed by a court on a Government
> employee for an offense committed by him while in the performance of,
> but not as part of, his official duties. Such fine or forfeiture of
> collateral is imposed on the employee personally and payment thereof
> is his personal responsibility.\"

In addition, operators of Government-owned or leased motor vehicles must
pay any parking fees incurred. However, operators can expect
reimbursement for parking fees incurred while performing official
duties.

The Comptroller General of the United States indicates in 46 Comp. Gen.
624 (1967) that:

> \"When the payment of a meter fee for the parking on a public street
> of a Government-owned vehicle used on official business imposes no
> impermissible burden on the performance of a Federal function,
> appropriated funds may be used to pay or reimburse employees for
> parking meter fees, unless the parking fee has been held by a court to
> be a tax or revenue raising measure.\"

Reimbursement is not allowed for parking violations. Operators of
Government-owned or leased motor vehicles are personally responsible for
payment if they are fined for a parking violation.

The Comptroller General of the United States indicates in 31 Comp. Gen.
246 (1952) that:

> \"A fine imposed by a court upon an employee for a parking violation
> while driving a Government vehicle in the performance of his official
> duties is a personal responsibility of the employee and there is not
> authority for the payment thereof from appropriated monies.\"

**5.11.3.1 Contractor Use of GOVs**

Government contractors may use Government-owned vehicles (GOVs) when
authorized under applicable procedures and the following conditions
exist:

-   The motor vehicles are used for official purposes only and solely in
    the performance of the contract.

-   The motor vehicles cannot be used for transportation between
    residence and place of employment, unless authorized by the Agency
    in accordance with 31 U.S.C. 1344 and FMR 102-5.

The Contractors must:

-   Establish and enforce suitable penalties against employees who use,
    or authorize the use of, such motor vehicles for unofficial purposes
    or for other than in the performance of the contract.

-   Pay any expenses or cost, without Government reimbursement, for
    using such motor vehicles for other than in the performance of the
    contract.

See [FAR Subpart 51.2]{.underline} - Contractor Use of Interagency
Federal Fleet Management System (IFMS) Vehicles for more information on
GSA Fleet vehicle use by contractors.

**[5.11.4 POVs (privately owned vehicles)]{.underline}**

[]{#hlk116894963 .anchor}Federal Agencies may decide to authorize
employees to use their privately owned (or leased) vehicles (POVs) for
official business rather than allowing the use of a Government-owned or
leased motor vehicle. Employees authorized to use POVs to conduct
official business are entitled to receive per-mile reimbursement based
on rates set by GSA each year (for POV Mileage Rate, following this
link:
<http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentId=9646&contentType=GSA_BASIC>).

Employees authorized to use POVs must inform their insurance company
that they are using their vehicle for business. Otherwise, their
insurance company may not cover them in the event of an accident, and
the Government certainly will not provide coverage because the POV
mileage rate includes the cost of insurance.

**5.11.4.1 Reimbursable Expenses**

Reimbursable expenses include:

-   Mileage

-   Parking fees

-   Ferry fees

-   Bridge, road or tunnel fees

-   Insurance Deductible (a Government employee may be reimbursed for
    his/her deductible if the accident/incident causing the damage was
    not the fault of the vehicle operator).

**5.11.4.2 Non-Reimbursable Expenses**

Non-reimbursable Expenses include:

-   Damage claims

-   Charges for repairs, depreciation, replacements, grease, oil,
    antifreeze, towage and similar speculative expenses

**[5.11.5 Unauthorized POV Use]{.underline}**

[]{#hlk116895101 .anchor}In some circumstances, an employee may be
authorized to use a Government-owned or leased motor vehicle to conduct
official business but elect to use a POV instead. Mileage reimbursement
rates will vary depending on the circumstances involved. Generally, the
reimbursement rate for unauthorized POV use will be limited to the cost
that would be incurred for use of a Government automobile. If the
employee's Agency determines that the cost of providing a Government
vehicle would be higher because of unusual circumstances, then it may
reimburse the employee at a rate not to exceed normal POV reimbursement
rate established in the Federal Travel Regulations.

If an employee agrees to use a Government vehicle or would not
ordinarily be authorized to use a POV due to the availability of a
Government vehicle, but nevertheless uses a POV, the employee will be
reimbursed a fixed cents-per-mile rate, which GSA publishes in the
Federal Travel Regulations. This is the approximate cost of operating a
Government vehicle with fixed costs excluded.

**[5.12 Fleet Charge Cards]{.underline}**

[]{#hlk116895253 .anchor}In 1998, GSA awarded five contracts that
provide Federal Agencies a new way to pay for commercial goods and
services as well as travel and fleet-related expenses. Under its
SmartPay program, GSA made awards to five service providers: Citibank,
Bank One, Mellon Bank, Bank of America, and U.S. Bank. Under SmartPay,
each Agency is responsible for choosing the fleet card company that best
meets its needs. Through SmartPay, GSA Fleet issued a tailored task
request, conducted a competitive evaluation, and issued a tailored task
order to Citibank (with the Voyager Fleet Card providing the fleet card
services under contract with Citibank).

**[5.12.1 GSA Fleet and the Fleet Charge Card]{.underline}**

[]{#hlk116895296 .anchor}GSA Fleet uses a Fleet Charge Card for fuel and
minor maintenance and repair services for the vehicles it leases to
Agencies. A local GSA Fleet Management Center (FMC) assigns a card to a
vehicle, and it should be used only for the vehicle identified on the
card.

Use of the GSA Fleet Services Card for GSA Fleet vehicles (or an
Agency-issued fleet card) for Agency-owned vehicles allows Agencies to
reduce administrative costs and State taxes as well as to collect
detailed fleet management data regarding fuel and related maintenance
and services procurements.

**[5.12.2 Charge Card Authorizations]{.underline}**

[]{#hlk116895326 .anchor}Agencies may establish card-by-card
authorization limits for:

-   Cost Per Fuel Transaction

-   Cost Per Maintenance Transaction

-   Daily Transaction

-   Price Per Gallon

-   Gallons Per Transaction

**5.12.2.1 Use of the Charge Card**

The charge-card user must make all reasonable efforts to find the
nearest authorized location accepting the card when making fuel and
maintenance purchases. The Fleet Card is accepted at over 150,000
fueling sites in all 50 States. An Agency will not be exempt from State
taxes if an unauthorized vendor is used. Also, the Agency will not
receive any detailed information on the purchase.

**[For Official Government Business Use]{.underline}**

Under no circumstances is the card to be used for personal purchases or
as identification for personal purchases. Fleet Managers and vehicle
operators are responsible for ensuring that the Fleet Charge Card is
used only for authorized purchases.

The person using the card is responsible for safeguarding it at all
times. It should never be left in an unattended vehicle. The importance
of safeguarding the card must be impressed on all motor vehicle
operators.

**[Fuel Purchases]{.underline}**

Agencies shall require motor vehicle operators who purchase fuel at
commercial service stations to use self-service pumps. Policy exemptions
may apply, such as:

-   Non-availability of self-service pumps at a service station under
    the Fleet Charge Card contract for fuel

-   Physical limitations of the vehicle operator

-   Refusal by a service station to honor the card for fuel pumped at
    self-service islands

-   Severe weather conditions

Permitted fuel purchases include regular grade, no-lead gasoline;
gasohol (up to 10% ethanol blended with regular, no-lead gasoline);
alternative fuels; diesel fuel; and regular and premium grade
lubricating oils. The Federal Fleet Manager must specifically authorize
use of higher-grade gasoline.

**[Service Purchases]{.underline}**

Operators can use the Fleet Charge Card to obtain these \"services\":

-   Tire/Tube Repair

-   Tire Mounting

-   Battery Charging

-   Washing and Cleaning

-   Permanent Type Antifreeze

-   Emergency Replacement of

    -   Spark Plugs

    -   Fan Belts

    -   Windshield Wipers

    -   Lamps

    -   Road Repairs

Vehicle operators can use the Fleet Charge Card to purchase authorized
emergency repairs from commercial sources only to the extent that it is
economically advantageous.

**[Destruction of Charge Cards]{.underline}**

Federal Fleet Managers should fully document the destruction of charge
cards (and tags) by maintaining a destruction log or register that
includes:

-   Tag number and expiration

-   Indicator as to being lost or stolen

-   Date, reason for destruction

-   Method of destruction

The card contractor generates a periodic report of the existing charge
card inventory. Review these reports to ensure that only one card per
vehicle exists, that all cards have the correct tag number format, and
that no excess charge cards exist.

**[Charge Card Controls]{.underline}**

Agencies are responsible for ensuring that purchases made with the
charge card are for official use and controls must be maintained to
prevent unauthorized use. One effective control is\...

**[Screening of Fleet Charge Card Invoices]{.underline}**

-   **Check for agreement of written and imprinted amounts**

-   **Check that fuel purchases do not exceed tank capacity of vehicle**

-   **Check that purchases do not include unauthorized items or
    accessories**

-   **Check that the signature is by an authorized driver**

-   **Check that the date of purchase does not fall on a holiday,
    weekend, a day when the driver was on leave, or the vehicle was out
    of service**

-   **Check that the tag number indicates Government tag**

-   **Check that the location of purchase is within a reasonable
    authorized-use area**

-   **Check that the amount of gasoline purchased in a given period
    correlates with reported miles driven**

When not in use, all Fleet Charge Cards are to be secured in a locked
safe or cabinet. A charge card sent to a vehicle operator should be
shipped by certified mail, return receipt requested.

**[5.13 Vehicle Utilization]{.underline}**

[]{#hlk116895364 .anchor}An inventory control system should aid a Fleet
Manager in accounting for and optimizing the utilization of the vehicle
fleet. Typically, Fleet Managers measure improvements resulting from
such effort in miles per vehicle year (MPVY). Searching for and
identifying opportunities for utilization improvement is critically
important because it represents a significant opportunity for cost
avoidance and fleet right-sizing. Tracking and monitoring utilization
can help identify possible misuse or abuse of vehicle. Improvements
resulting from such efforts can be measured in increased miles per
vehicle year. Key to use of this performance measure is assigning
utilization targets to all vehicles to identify normal and abnormal
variations in utilization.

Fleet Managers should analyze utilization data quarterly and take
appropriate action when usage is falling short or excessively surpassing
the guidelines. Among the actions Federal Fleet Managers may consider
are "pooling" or "rotating" vehicles:

-   Pooling means having employees or organizational activities share
    the same vehicle when usage falls below the requirements for
    full-time vehicle assignment.

-   Rotating vehicles can be done when one activity has met or exceeded
    utilization guidelines and another has fallen short during a given
    time period.

The practice of rotating vehicles is not an end in itself. It is,
however, an essential function of fleet management for realizing the
objective of establishing and maintaining an efficient, fully utilized
fleet. The disposal of late-model vehicles due to accumulation of
excessive mileage while at the same time operating aged vehicles
receiving very little usage is inefficient and uneconomical in terms of
fleet-size required, high maintenance costs, and low disposal proceeds.

**[5.13.1 Heavy Duty Equipment]{.underline}**

[]{#hlk116895418 .anchor}For heavy duty equipment in particular Fleet
Managers need utilization information to conduct detailed analyses of
the frequency, intensity, and duration (i.e., how often, how much, how
long) of use of specialty equipment such as excavators and earthmovers.
One important outcome of tracking this utilization data is that careful
analysis can yield general guidelines as to what specific types of
assets should be rented rather than purchased.

Proper analysis of fleet utilization requires data on every motorized
unit to show hour-meter or mileage readings at two points in time. Fleet
Managers should generate utilization reports to ensure that data being
input are accurate and reliable. For example, if units have no meter
reading or a reading of "1," then you should follow up to ensure
operators are capturing and entering data correctly. If you find that
units have meter readings ranging from 20,000 hours to more than 600,000
hours, you should follow up to ensure operators are capturing and
entering data correctly. In some cases, entry of meter readings may only
be off due to a decimal point being omitted.

Equipment is normally at a point of wear that merits retirement at
around 6,000 to 7,000 hours, although 10,000 hours may be possible with
proper maintenance. It is difficult to determine a general rule for
replacement of motorized equipment, such as off-road and construction
equipment, due to the extreme variations in the types of equipment in
this class, and the variations in how the equipment may be used.
However, the following *general* guidelines are useful benchmarks:

  ------------ ---------------------------------- ----------- -----------
  **Group**    **Examples**                       **Life -    **Life -
                                                  Years**     Hours**

  **Light      **ATV\'s, Snowmobiles, Grounds     **5**       **1500**
  Duty**       equipment such as mowers under 20              
               h.p., etc.**                                   

  **Medium     **Tractors up to 100 h.p.,         **10**      **3000**
  Duty**       forklifts, small loaders and                   
               backhoes, etc.**                               

  **Heavy      **Tracked and wheeled dozers and   **20**      **6000**
  Duty**       loaders, graders, scrapers,                    
               cranes, etc.**                                 
  ------------ ---------------------------------- ----------- -----------

**[5.13.2 Using Utilization for Fleet Right-Sizing]{.underline}**

[]{#hlk116895459 .anchor}The National Association of Fleet
Administrators (NAFA) conducted a survey of its member fleet
organizations in 2001, which included an inquiry regarding life
expectancy of several different classes of vehicles and equipment. The
survey results provide a baseline reference (but note that the data
lumps all off-road and construction equipment into one large group):

![](media/image3.wmf)

Fleet Managers with diverse fleet assets should take steps to ensure
that all mileage and meter readings are collected regularly and
accurately. After reliable data is available, undertaking an annual
review of utilization will identify potentially under-utilized units.
Suggested minimum utilization levels are:

Passenger vehicles and light trucks: 400 miles per month

Medium and heavy duty trucks: 200 miles per month

Motorized equipment\*: 20 hours per month

\*Off-road, construction, industrial, and agricultural equipment that is
self-powered, driveable, and non-licensed.

Adjust minimum utilization levels to a point where approximately 10% of
the units in each major class fall below the minimum level, after
reliable data becomes available. This provides a fundamental tool for
fleet right-sizing. Scrutinize fleet units in that 10% most carefully
and consider them for either disposal, rotation, placement in a pool, or
pass-along. Also consider whether renting may be more cost-effective
than owning or leasing.

[]{#_Hlk116895497 .anchor}**[5.14 Maintenance and Repair]{.underline}**

**[5.14.1 Best Practices]{.underline}**

[]{#_Hlk116895553 .anchor}Because a fleet management organization's
primary mission is to maximize the availability of vehicles so that its
customers can productively perform their jobs, the focus of maintenance
management needs to be to develop practices that minimize unscheduled
repairs and that return vehicles requiring repair to service in as
little time as possible. This should, of course, be accomplished at a
competitive cost, given the requirement for a high level of service.

Fleet maintenance and repair processes significantly impact vehicle
availability, reliability, safety, economy, and environmental integrity.
The principal requirements for achieving fleet maintenance are a)
facilities and equipment, b) mechanic labor, c) parts, d) cross-sharing,
and d) commercial (i.e., contracted or outsourced) services. The
challenge of any fleet maintenance process is to mix these ingredients
so as to maximize vehicle reliability, safety, availability, and
operating performance while minimizing labor, parts, and contracted
service expenditures.

Taken alone, direct maintenance costs represent a relatively small
proportion of the total fixed and operating costs of a vehicle. Although
difficult to quantify, indirect economic impacts of fleet maintenance
also are important and can far exceed the direct costs. For example,
mechanical failures that idle employees or disrupt service can result in
productivity losses or more severe problems, the costs of which dwarf
those associated with repairing the mechanical defects. Such impacts
highlight the importance of using maintenance management and performance
measurement techniques to control maintenance and repair quality.

Vendors may be tapped to perform fleet maintenance and repair services
for various reasons, including managing in-house work backlogs; avoiding
costly investments in facility construction, tooling, training, and
staffing to meet low volumes of service demand in remote areas or for
specialty repairs; and to achieve a degree of flexibility (e.g., in
terms of locations, hours of service, etc.) in the provision of
services. However, cost-effective use of vendors requires that
procedures be followed for:

1)  determining the comparative cost effectiveness of performing a
    service in house or using a vendor;

2)  managing and controlling vendor performance relative to individual
    service orders and ongoing service levels (in the case of contract
    providers of services); and

3)  capturing all relevant information on vendor-performed services so
    as to maintain a complete record of vehicle maintenance history and
    costs and provide for timely user billing via a charge-back system.

The heart of any fleet maintenance program is an effective preventive
maintenance (PM) process. The objective of a PM program is to minimize
equipment failure by maintaining constant awareness of equipment
condition and correcting defects before they become serious. A PM
program also minimizes unscheduled repairs by ensuring that most
maintenance and repair activities occur through scheduled inspections.
An effective PM program pays dividends not only in improved vehicle
safety and reliability, but also financially by extending the life of
vehicles, minimizing the high cost of breakdowns, and reducing lost
employee productivity resulting from fleet downtime.

The principal factors impacting fleet maintenance costs are fleet age
and condition. Advanced age for a fleet drives up both direct
maintenance and repair costs for such things as parts, labor, and vendor
services; and indirect costs resulting from a reduction in vehicle and
equipment availability, reliability, safety, and technological
currency/capacity. The best way to manage these direct and indirect
costs is to replace vehicles and equipment in a timely manner.

Other factors that influence fleet maintenance costs are asset
specifications (i.e., vehicle and equipment design and construction);
operating environment and practices; asset utilization levels; and fleet
maintenance and repair management practices.

The principal elements of an optimum fleet maintenance program are:

-   Preventive maintenance;

-   Pre-trip inspection and defect reporting;

-   Work scheduling, prioritization, and backlog management;

-   Warranty claims management;

-   Parts procurement and inventory management and control;

-   Quality assurance;

-   Use and control of performance of vendors;

-   Mechanic training and supervision; and

-   Maintenance management performance analysis and reporting.

**[5.14.2 Vehicle Needs Determination]{.underline}**

[]{#hlk116895607 .anchor}Maintenance begins with choosing the
appropriate vehicle to do the required job. Fleet Managers must analyze
their transportation needs in terms of Agency mission(s) and the work
that must be done. Improper vehicle specifications will result in higher
maintenance and repair costs. A vehicle that offers more than needed to
do a job (over-spec'd) costs more initially and will most likely result
in higher operating costs. If a vehicle is inadequately equipped or
powered (under-spec'd), expect shorter life, more breakdowns, and a
higher overall maintenance cost. For fleets that handle maintenance
in-house, standardization in vehicle selection (and added features and
capabilities) means reduced parts inventory, enhanced ability of
mechanics to repair vehicles efficiently and dependably, and a better
measure of the suitability of equipment for assigned tasks over time.

**[5.14.3 Objectives of a Fleet Maintenance Program]{.underline}**

[]{#hlk116895658 .anchor}The objectives of a fleet preventive
maintenance (PM) program are:

-   To maximize the useful life and reliability of vehicles while
    minimizing total life cycle costs.

-   To assure that PM work is scheduled at appropriate intervals.

-   To assure that PM work is performed in compliance with schedules.

-   To perform appropriate PM tasks according to vehicle requirements.

-   To complete PM work in a timely manner to minimize downtime and
    customer inconvenience.

-   To acquire the services of competent, reliable vendors at the best
    price available if in-house maintenance is not an option.

-   To ensure all warranties and guarantees are honored.

-   To minimize the cost of PM to the organization.

Federal Management Regulation 41 CFR 102-34 "Motor Vehicle Management,"
Subpart E -- Scheduled Maintenance of Motor Vehicles, section
102-34.285, states:

**What kind of maintenance programs must we have?**

You must have a scheduled maintenance program for each motor vehicle you
own or lease. This requirement applies to motor vehicles operated in any
State, Commonwealth, territory or possession of the United States, and
the District of Columbia. The GSA Fleet will develop maintenance
programs for GSA Fleet vehicles. The scheduled maintenance program
must: 

\(a\) Meet Federal, State, and local emission standards; 

\(b\) Meet manufacturer warranty requirements; 

\(c\) Ensure the safe and economical operating condition of the motor
vehicle throughout its life; and 

\(d\) Ensure that inspections and servicing occur as recommended by the
manufacturer or more often if local operating conditions require. 

**[5.14.4 Scheduled and Unscheduled Maintenance]{.underline}**

[]{#hlk116895720 .anchor}Maintenance must be done. Scheduled maintenance
(PM) is preferred; unscheduled maintenance should be minimized.

**5.14.4.1 Scheduled Maintenance Programs**

**[Establishing a Scheduled Maintenance Program]{.underline}**

Detecting and correcting deficiencies in any of a vehicle's systems in
their early stages, before they develop into major defects, results in
lower maintenance costs. Executing a planned repair in a shop is more
cost-effective than fixing a breakdown. Equipment breakdowns and
downtime can be significant costs. Downtime results in decreased
efficiency, increased rental costs, loss of productivity and poor
customer relations. Safety related defects identified before use can
avoid accident, injury and death.

As noted above, under the provisions of FMR 102-34.285, Agencies must
establish a Schedule Maintenance Program for all Government-owned motor
vehicles (GOVs). Scheduling maintenance helps ensure that all motor
vehicles are maintained and serviced according to the vehicle
manufacturer\'s recommendations (or more frequently where warranted by
local conditions).

**[Benefits of a Scheduled Maintenance Program]{.underline}**

A Scheduled Maintenance Program or PM helps to ensure that motor
vehicles:

-   Operate safely

-   Operate economically

-   Meet emissions standards

-   Meet warranty requirements

-   Meet manufacturer\'s maintenance requirements

-   Are energy efficient

**[Components of a Scheduled Maintenance Program]{.underline}**

A PM program has three major components:

-   Maintenance tasks that need to be performed periodically.

-   Time/mileage intervals for the performance of these tasks.

-   Key personnel involved to include the driver, the mechanic(s)
    performing the work and the Federal Fleet Manager.

**[Development of the Maintenance Task and Time/Mileage Interval
Checklist]{.underline}**

To develop effective vehicle-specific, scheduled maintenance or PM
requirements, Fleet Managers will consult the manufacturer\'s
recommended maintenance standards, understand the operating conditions
of the vehicle, and study reports of past experiences with the specific
vehicle/vehicle class and the history of unscheduled maintenance on the
vehicle or class. Detailed record keeping will allow a Federal Fleet
Manager to identify emergency repairs and separate these repairs from
other unscheduled maintenance items.

Typically, a Fleet Manager will set up PM codes. Each PM code is the key
to a set of rules that spell out [what]{.underline} needs to be done and
[when]{.underline} for each type of equipment in the fleet. Because of
similarities among various classes of fleet equipment, creation of a
code for each unit in the fleet is unnecessary.

Maintenance managers typically refer to manufacturer guidelines and
their own experience and working conditions to design a PM program and
define the codes. For example, passenger car manufacturers typically
publish maintenance requirements for "normal" and "severe" service
conditions. The oil change interval for normal service could be 7,500
miles while the interval for severe service is 3,000. The maintenance
manager might even use a mid-range interval, such as 5,000 miles, in
some applications.

The PM task list itself is designed to address vehicle needs at each
interval. Many fleets use "PM echelons" to identify different sets of
tasks to be performed at different intervals for each class of vehicle.
These echelons are fairly standard in the industry:

-   PM-A: inspection and light maintenance procedure that is essentially
    an oil change, lubrication, filters as necessary, and safety
    inspection of lights, brakes, etc. PM-A is usually synonymous with
    the most frequent interval.

-   PM-B: a more thorough list of tasks but would include all tasks in
    the "A" level PM, typically performed every 2nd or 3rd scheduled PM.

-   PM-C: if needed, addresses long-interval procedures such as a
    transmission flush, cooling system flush, etc.

-   For heavy equipment, even more PM echelons might be necessary. Refer
    to manufacturer's recommendations for details.

Help on setting up a maintenance program is addressed in the Federal
Management Regulation 41 CFR 102-34 "Motor Vehicle Management," section
102-34.295. However,

its guidance does not extend to off-road and heavy equipment.

A resource for establishing PM programs for heavy equipment is the
Association of Equipment Management Professionals
(<http://www.equipment.org/>). Membership of this organization consists
of fleet managers who have considerable expertise in the management of
off-road and heavy construction equipment.

To simplify program management, make your PM intervals mathematically
consistent (for example, if the PM-A interval is 5,000 miles, then all
other intervals should be multiples of 5,000 \[that is, PM-B = 15,000
miles; PM-C interval = 30,000 miles\]). Specific tasks should reflect
the specific needs of the equipment (for example, diesels don't need
spark plugs, so the task list for their "tune up" wouldn't show spark
plugs).

**Sample PM Coding Table**

![](media/image4.wmf){width="2.5430555555555556in"
height="3.2847222222222223in"}

**[Task Lists]{.underline}**

Based on the sample PM coding table shown above, a typical vehicle such
as a 4x4 pickup truck might be assigned PM code 002 and would have the
following interval/task schedule (also known as PM levels):

> PM -- A: 5,000 miles or 6 months
>
> PM -- B: 15,000 miles or 12 months
>
> PM -- C: 30,000 miles or 24 months
>
> PM -- D: 60,000 miles or 48 months
>
> PM -- E: 90,000 miles or 60 months

An example of a typical list of tasks to be performed by interval at
each level is shown on the following table; however, the manufacturer's
recommendations should always be followed.

**[PM Compliance Reports]{.underline}**

PM compliance reports should be distributed periodically, perhaps
quarterly or annually, to show how various user groups are complying
with the PM program. The report should show what percentages of a
group's monthly PMs were not completed on time or are, in effect,
overdue. For example, if Region 3 has 100 PMs scheduled for July but it
completes only 87 during the month, then 13% of its PMs are overdue for
that month and must be scheduled in August, the following month. Overdue
PMs should be the highest priority PMs for the following month, placed
ahead of PMs regularly scheduled for that month.

The Federal Fleet Manager must develop maintenance schedules for his/her
fleet and maintain proper records for each vehicle. Schedules should
include provisions for appropriate safety and emissions inspections as
well as other PM tasks. Scheduled maintenance (as well as unscheduled
maintenance) should be documented in the repair history of the vehicle.

**[Emissions Inspections]{.underline}**

The Federal Fleet Manager must coordinate with State and local officials
to ensure that the Agency fleet meets the emissions program standards.
In compliance with the Clean Air Act of 1977, some States have
implemented mandatory emissions testing programs. Owned and leased
vehicles are subject to the requirements of the jurisdiction where they
are regularly housed. Not all States require the Federal Government to
participate in the emissions testing program to the same degree; all
require substantive compliance with the State emissions programs, but
some do not require procedural compliance.

**[Safety Inspections]{.underline}**

The scheduled maintenance program should ensure that all vehicles meet
or exceed the standards for vehicles set by the States with respect to
operation of all safety related equipment: lights, horn, brakes, tires,
etc. States will normally require inspection of vehicles exempted from
the use of official U.S. Government tags (and other identification) for
mechanical and/or emission defects. The using Agency is responsible for
ensuring that these inspections are kept current and bearing all
associated costs.

**[Tires]{.underline}**

Changing a tire in the shop is cheaper than on the road. Achieving the
lowest tire-cost per mile begins with getting the correct tire and
maintaining it properly. Tire preventative maintenance includes
inspection for tread depth, wear patterns, sidewall cuts, proper
inflation, balance and alignment.

Except as otherwise noted, replace tires when the remaining tread depth
is 2/32 of an inch (or according to state or local laws), when the
tread-use bars indicate that the tire shall be replaced, or when the
tires are otherwise deemed unsafe. A tread depth of 4/32 of an inch is
to be maintained on the front steering wheels of any vehicle exceeding
10,000 GVWR that is operated on the highway, any vehicle that carries
hazardous or explosive material, all buses, and all ambulances.

Snow tires are installed only where geographic locations and local
weather conditions warrant. To extend the useful life of the tires and
to reduce fuel usage, remove them when such conditions no longer exist.

Larger fleets can justify using manufacturer\'s recommendations to start
a tire maintenance program and, as their fleet tire-history develops,
look for ways to reduce costs and downtime and improve fuel economy.

**[Motor Vehicle Systems]{.underline}**

Federal Fleet Managers and other Federal employees involved in
maintaining the Federal Fleet need to understand the characteristics of
the assets they manage. Reading and research regarding automotive
technology should be an on-going effort. For a review of the basic
systems present in any type of motor vehicle, go to the Primer on
Primary Motor Vehicle System in the Appendix.

**[Predictive Maintenance]{.underline}**

Another key to an effective PM program is to know which vehicles are
trouble-prone and which are reliable. That knowledge can save a fleet
time, money, and grief. If a Fleet Manager can identify before-hand
those vehicles that are prone to certain mechanical problems, he or she
can:

1.  Cut the model from the selector list

2.  Dispose of the vehicle(s) before the end of their life cycle; or

3.  Be prepared for the mechanical problems likely to appear on these
    models or vehicle types.

A fleet predictive maintenance program offers a means for a Fleet
Manager to schedule vehicle repairs before components fail, and this is
especially important for vehicles with long replacement cycles. For
example, if a Fleet Manager knows a component is likely to fail or a
system to malfunction at 60,000 miles or 5,000 hours, the component or
system can be replaced or serviced before that mileage or time limit has
been reached. To put it in simpler terms, the operating philosophy of
predictive maintenance, as with the overall PM program, is: "Fix
equipment before it fails." A predictive maintenance program consists of
three basic steps:

1.  Collect vehicle repair data

2.  Analyze (collected data); and

3.  Correct, repair, or replace selected component(s).

**[Importance of the Driver]{.underline}**

Routine inspection of a vehicle before, during and after operation by
the driver is where an effective PM program begins after unit assignment
and delivery. Repair of defects found during these inspections can then
be scheduled to prevent more costly repairs or excessive downtime later.

Drivers can perform three types of inspections:

-   Before-operation inspection is a visual check to make sure the
    vehicle is safe and in sound operating condition before being
    driven. Many defects, especially leaks, are more apparent after the
    vehicle has been parked overnight.

-   During-operation inspection merely requires that the operator be
    alert to indications of vehicle malfunction while driving (such as
    unusual vibrations, noise, odors, abnormal instrument readings and
    erratic break and steering operations).

-   After-operation inspection consists of a walk around and may, for
    some missions, also include detailed checks covering damage,
    leakage, tire/spare, fuel, oil, coolant, battery, horn,
    lights/reflectors, instrument, wipers, windshield, cargo/mounted
    equipment, steering, safety devices, drive belts/pulleys, brakes and
    lubrication/oil.

As needed, drivers should file discrepancy reports, and Federal Fleet
Managers should assure the proper personnel review them and appropriate
actions taken. Some Agencies require drivers to review the last-use
report before operating a vehicle, particularly in motor pools.

**[Importance of the Mechanic]{.underline}**

Properly trained mechanics in well-managed shops are an integral
component in a successful PM program, whether work is performed in-house
or off-site, under a leasing arrangement or through a commercial vendor.

**[Importance of the Federal Fleet Manager]{.underline}**

Whether the Federal Fleet Manager is in charge of vehicle maintenance or
has his/her maintenance performed under lease arrangement, the Federal
Fleet Manager remains responsible for ensuring that the required
maintenance is performed on time and correctly.

**[Scheduled Maintenance and GSA Fleet Vehicles]{.underline}**

For GSA Fleet assigned vehicles, when service is due, GSA Form 3478,
Motor Vehicle Service Authorization, is sent to the Agency customer
contact electronically, unless an email address is unavailable. The form
serves as authorization to perform the listed services. Operators may
contact the servicing Maintenance Control Center (MCC) for authorized
service facilities. Any scheduled service under \$100 is automatically
approved, and services beyond \$100 require the vendor to have an
approval. All vendors must call MCC for authorizations.

When unscheduled or emergency repairs are required, review the PM
schedule of the vehicle. If scheduled maintenance is due within 30 days
or 500 miles, arrange to have the service performed concurrently with
the other repairs if it will be advantageous to the Government in
reducing vehicle downtime, cost and inconvenience. When the vendor calls
MCC for authorization, the MCC technician should identify the scheduled
service and ask the vendor to undertake the work.

GSA Fleet will make available Fleet Management technicians, on a
reimbursable basis, to assist Agencies in establishing or revising their
scheduled maintenance programs.

**5.14.4.3 Unscheduled Maintenance and Repairs**

Repair authorizations for unscheduled maintenance and repairs should be
in accordance with Agency procedures and dollar thresholds to ensure
that:

-   The repair or service is necessary.

-   The price is fair and reasonable and is in accordance with
    applicable contracts and/or informal price quotations.

-   The vendor is competent and reliable and is not prohibited, by
    debarment, from doing business with the Federal Government.

-   Applicable procurement regulations and objectives are met.

Review the repair history and your long-term vehicle replacement plan
for the vehicle to ensure repair is cost effective. Cost-analysis for a
repair versus replace decision for special equipment and heavy-duty
vehicles includes:

-   Present value of money

-   Present cost of vehicle

-   Estimate of the next year's cost of the old vehicle based on
    historical cost escalation

-   Physical inspection and diagnosis of the old vehicle

**[5.14.5 Four Approaches to Federal Fleet Maintenance]{.underline}**

[]{#hlk116895832 .anchor}Federal Fleet Managers have four options to
meet their fleet maintenance requirements:

-   Maintenance for GSA Fleet vehicles

-   Commercial maintenance

-   Cross-servicing agreements

-   In-house maintenance

**5.14.5.1 GSA IFMS Vehicles - Maintaining Appearance and Condition**

GSA Fleet vehicles are assets owned by GSA and provided to Federal
Agencies under lease. The GSA IFMS is not only to provide motor vehicles
to Federal Agencies but also to help them manage those assets while
recovering all related costs.

**[Wet and Dry Leases]{.underline}**

Agencies can get what are termed "wet" or "dry" leases. A wet lease with
GSA provides the lessee (the using Agency) with an array of fleet
maintenance and maintenance management services. A dry lease with GSA
means the Agency must provide for its own fleet maintenance and
maintenance management needs.

**[Maintenance and Repair Services]{.underline}**

GSA Fleet will establish service arrangements to provide for the control
and performance of maintenance and repair services. GSA Fleet policy is
to rely on the commercial sector, wherever possible.

**[Fuel, Oil and Charge Card Services]{.underline}**

GSA Fleet provides fuel, oil, and charge card services for the operation
of GSA Fleet vehicles. Again, GSA Fleet policy is to rely on the
commercial sector for these services, wherever possible.

**[Cost Recovery]{.underline}**

While the lease rates cover most of GSA's expenses, GSA recovers some
costs (such as those for accident damage, abnormal wear and tear,
unauthorized repairs, and abuse or neglect) by billing the using Agency.
This practice is in accordance with FPMR § 101-39.406.

Agencies will be billed for the total cost of all damages resulting from
neglect or abuse of assigned or issued GSA IFMS vehicles:

-   Neglect: Failure to maintain a vehicle in a safe and operable
    condition and to comply with GSA IFMS maintenance standards.

-   Abuse: Failure to exercise reasonable care of a vehicle or to
    operate a vehicle in a manner not consistent with the purpose for
    which it was built.

In addition, GSA IFMS will charge an Agency a handling fee if operating
units turn vehicles in to the GSA FMC that need maintenance or repairs
that should have been done while the vehicle was assigned. GSA has
established guidelines to apply in determining appropriate appearance
standards for vehicles and what it will charge back to the using Agency.
The guidelines cover such factors as vehicle age, mileage, overall
condition, cost of repairs, estimated residual value from making the
repairs, and future vehicle use.

**[GSA IFMS Maintenance Control Centers (MCC)]{.underline}**

GSA has established technologically current MCCs at their Fleet
Management Program offices. The MCCs are responsible for scheduling,
procuring and controlling vehicle maintenance and repairs for GSA IFMS
vehicles. To reduce the number of repetitive or duplicate repairs as
well as the workload at individual Fleet Management Centers (FMC), the
MCC electronic system maintains a complete vehicle history that
personnel review when authorizing repairs. The MCC information system
also provides complete information relative to a vehicle\'s assignment,
utilization and maintenance history.

MCC personnel must authorize all transactions that would exceed a
predetermined amount that changes from time to time. In addition,
regardless of the dollar amount, MCC personnel must authorize
expenditures for tires, tune-ups, brake relining, new batteries, wheel
balancing, wheel alignment, carburetor work and shocks. MCC personnel
enter repair authorizations into the system, specifying the appropriate
vendor number, repair codes, labor rate, and estimated hours.

Authorized purchases under a predetermined amount that may change from
time to time require the signature of an FMC representative or Agency
driver to signify inspection and acceptance of services performed.
Purchases over the predetermined amount require issuance of GSA Form
1458, Motor Vehicle Shop Work Order, Repair and Purchase Order. An MCC
or FMC Warranted Contracting Officer must sign the receiving-report copy
of this form, and it must be attached to the invoice as certification
for payment.

**5.14.5.2 Commercial Maintenance**

Commercial vendors can provide a cost-effective maintenance and repair
solution for Federal Agencies both with and without in-house maintenance
and repair operations.

Federal Agencies with in-house maintenance and repair operations
routinely review commercial vendor rates to assure competitiveness. In
addition, commercial vendors may be used by in-house maintenance and
repair operations for work that is uneconomical for the in-house
operation to handle or requires special skills, tools or equipment not
available in-house.

**5.14.5.3 Cross-Servicing Agreements**

In the absence of commercial alternatives, cross-servicing arrangements
may be established with other Government Agencies or firms on contract
with other Federal Agencies to provide additional service facilities for
both Agency-owned and GSA Fleet vehicles. The Agency providing the
service must maintain comparable standards of timeliness, quality and
reliability. Invoicing requirements and procedures will be included in
the cross-service agreement.

Before a repair facility can enter a cross-service agreement with GSA
Fleet, GSA Fleet must certify the facility. If an Agency has excess
in-house capacity, such facilities can be used in lieu of, or as any
other open-market vendor, but there is no guarantee that GSA will direct
a specific amount of repair work to them.

**5.14.5.4 In-House Maintenance Operations**

Of the four maintenance options (in-house maintenance services, GSA
Fleet maintenance, commercial vendors or cross-servicing agreements),
in-house maintenance is most common among fleets that are in close
geographical proximity and whose vehicles are used more that eight hours
per day.

The cost effectiveness of maintaining an in-house maintenance capability
depends upon an analysis of the best use of funds. In-house maintenance
programs represent a significant investment of capital, human resources
and management time; consequently, these programs must be demonstrably
more effective and at least as cost efficient as the other options.

Where in-house maintenance services have been authorized, primary
responsibility for the maintenance program is vested in the Fleet
Manager. He or she is responsible for diagnosing, procuring, and
controlling motor-vehicle service, maintenance and repairs. Agencies
must consider the provisions of OMB Circular A-76 in determining the
preferred approach to providing required maintenance and repair
services.

Federal Fleet Managers who provide in-house maintenance and repair
services are concerned with:

-   Maintaining competitive fully burdened labor rates,

-   Direct and indirect labor management,

-   Mechanic and technician performance management,

-   Parts markup, and

-   Inventory management.

**[In-House Maintenance Shop Responsibilities]{.underline}**

The Federal Fleet Manager responsible for an in-house maintenance
facility must establish administrative and procedural guidelines and
controls to ensure a safe, efficient in-house maintenance shop
operation. Guidelines include implementing:

-   Compliance with Occupational Safety and Health (OSHA) regulations
    including \"Right to Know\" laws mandating employee training
    regarding their rights under the law, the nature/general use of
    hazardous chemicals/materials in their workplace, accident/spill
    procedures, information contained on the labels of these
    chemicals/materials and the access/use of Material Safety Data
    Sheets (MSDS) detailing the trade and chemical name of the product,
    the manufacturer, all ingredients, health hazards and the product\'s
    physical description to include color, odor, permissible exposure
    limit (PEL), threshold limit value (TLV), gravity, boiling point,
    freezing point, evaporation data and volatility rating and shop
    documentation requirements on hazardous materials in the workplace,
    proof of training programs, records of accidents/spills, proof of
    satisfaction of employee requests for MSDSs and a \"Right to Know\"
    compliance procedure.

-   Compliance with Environmental Protection Agency (EPA) regulations
    for disposal of hazardous materials/hazardous waste (such as
    cleaning chemicals, fuels, paints, thinners, battery acid, used
    engine oil, refrigerants, asbestos and engine coolant or
    antifreeze), identifiable Hazardous Waste Policy, use of a licensed
    waste hauler for disposal and manifest records for all waste
    disposal.

-   Investigation, acquisition and use of thermal cleaning units,
    close-loop steam cleaners, waste oil furnaces, oil filter crushers,
    refrigerant recycling machines and engine coolant recycling machines
    as appropriate to reduce hazardous waste generation.

-   Compliance with mandated regulations for emissions and other
    required vehicle inspections.

-   A work order system that distinguishes between Preventative
    Maintenance (PM) tasks and repairs, uses comprehensive work task
    definitions and tracks parts usage.

-   Controls on tools, parts, supplies, tires, and other sensitive or
    pilferable items.

-   Up-to-date mechanics\' training with follow-up repair application.

-   Inspection of mechanics\' work against standards.

-   Obtaining reimbursement for warranty work performed.

-   Workload, standards and performance measurement for mechanics and
    technicians.

-   A vehicle operator maintenance program that requires operators to
    perform daily/weekly maintenance procedures and to report problems.

-   Disposal program which complies with applicable local, State and
    Federal regulations for handling, disposal and/or recycling of
    asbestos brake/clutch pads, antifreeze, used oil, refrigerant,
    solvents, batteries, oil filters and tires.

-   Specific procedure for managing repairs resulting from vehicle
    accidents.

-   An effective inventory and parts control system that balances
    in-house stock for high-volume and critical stock, rapid delivery
    from vendors for low-volume, readily available items and standard
    purchase orders to receive volume discounts or specialty items.

-   Routine analysis of contract versus in-house repairs to identify
    tasks that can be contracted out at lower cost and high quality.

-   Constant testing of the competitiveness of the overall maintenance
    and repair function.

**[Repairs]{.underline}**

Documentation of all in-house repairs must include labor hours, as well
as parts and tires issued from stock. Parts and tires in inventory are
Government assets and subject to accountability requirements. These
issues and inventories must be controlled and reviewed at least monthly.

The Fleet Manager should establish a Repair Limitation Policy to ensure
that high dollar value repairs are subject to supervisory review and
approval. The repair limitation may be a specific dollar threshold (for
example, all repairs over \$500), a percentage of the fair market value
of the vehicle (for example, all repairs exceeding 25% of the fair
market value) and may include provisions that all repairs of a specific
type (for example, engine replacement) be referred to the supervisor.
For GSA Fleet vehicles, approval for repairs exceeding the limitations
should be recorded on GSA Form 2553, Vehicle Capitalization, Repair, and
Disposal Request (or Agency equivalent for Agency-owned vehicles) and
filed in the vehicle jacket file or in the on-line fleet information
system. The Fleet Manager should establish formal guidelines regarding
the inspection of vehicle repairs.

**[Tire Replacement]{.underline}**

Except as otherwise noted, replace tires when the remaining tread depth
is 2/32 of an inch, when the tread use bars indicate that the tire
should be replaced, or when the tires are otherwise deemed unsafe.
Maintain a tread depth of 4/32 of an inch on the front steering wheels
of any vehicle exceeding 10,000 GVWR operated on the highway, any
vehicle carrying hazardous or explosive material, all buses, and all
ambulances.

Snow tires are installed only where geographic locations and local
weather conditions warrant. Have them removed when such conditions no
longer exist to extend their useful life and to reduce fuel usage.

Analysis of tire-replacement data is a best practice of many fleets to
identify tire costs, premature failure, theft or driver abuse.

A fleet best practice is to track accident repairs and costs separately
from regular mechanical repairs.

**[Performance Indicators]{.underline}**

A number of performance measures are common to operating an efficient
in-house maintenance program and include:

  -----------------------------------------------------------------------
  **[Measure]{.mark}**                **[Indicates]{.mark}**
  ----------------------------------- -----------------------------------
  **Fully burdened labor rate for     **Efficiency of maintenance and
  light duty, heavy duty and          repair services compared with other
  miscellaneous equipment**           providers**

  **Ratio of direct labor hours to    **Utilization rates for mechanics
  indirect labor hours**              and technicians for each
                                      maintenance and repair shop**

  **Ratio of total labor for          **Percentage of direct labor
  scheduled- maintenance labor to     performing scheduled maintenance
  direct-maintenance labor**          versus repair**

  **Ratio of maintenance employees to **Possible opportunity for better
  administrative employees**          control of indirect labor and
                                      reduction in overhead for each
                                      maintenance and repair shop**

  **Mechanic and technician           **Efficiency of mechanics and
  performance by repair and           technicians**
  preventative maintenance task       
  versus standards**                  

  **Average commercial labor cost per **Commercial work productivity**
  repair order by repair task and by  
  preventative maintenance service    
  (PM)**                              

  **Ratio of preventative maintenance **Adequacy of preventative
  to unscheduled repair**             maintenance program in preventing
                                      repairs**

  **Percentage markup on price of     **Efficiency of parts services
  parts by light duty and heavy       compared with other providers**
  duty**                              

  **Average commercial parts price    **Commercial work productivity**
  per repair order by repair task and 
  by preventative maintenance service 
  (PM)**                              

  **Parts turnover ratio**            **Stock utilization**

  **Total annual value of stock       **Security and efficiency of parts
  lost**                              services**

  **Inventory adjustments by line     **Accountability and accuracy of
  Item and dollar value**             parts inventory control services**

  **Ratio between request fill-rate   **Ideal level of investment in
  and level of investment in          inventory which results in total
  inventory**                         lowest cost**
  -----------------------------------------------------------------------

**5.14.5.5 Procurement for Operations**

Federal Fleet Managers are responsible for procurement of services,
equipment and supplies necessary to the fleet management operation, and
may include administrative equipment, furniture, and parts or
maintenance shop supplies. Federal procurement officials are mandated to
represent the Government\'s best interests and to serve socio-economic
goals legislated by Congress. Fleet Managers must ensure that all
procurements for the fleet management activity comply with the Federal
Acquisition Regulation (FAR), the FPMR, and internal Agency procurement
procedures.

Sources to consider for obtaining goods and services include:

  -----------------------------------------------------------------------
  **Supplies and Services**

  Excess property

  Federal Prison Industries or UNICOR http://www.unicor.gov/index.cfm

  DC Department of Corrections

  Blind/Severely Handicapped (JWOD: [www.jwod.com](http://www.jwod.com/);
  NISH: [www.nish.com](http://www.nish.com/))

  GSA Customer Supply Centers

  Federal Supply Schedules

  GSA Consolidated Vehicle Purchase

  Term Contracts

  Cross-Service Agreements

  Open Market (commercial sources using competitive procurement)
  -----------------------------------------------------------------------

**[Environmentally Preferable Purchasing (EPP)]{.underline}**

EO #13101 encourages Federal Agencies to use environmentally friendly
products wherever possible. Supporting the Government\'s recycling
program by buying recycled products is one important way to comply. EPA
has published Comprehensive Procurement Guidelines (CPG) and Recovered
Materials Advisory Notices (RMANs), which recommend recycled-content
levels for CPG items, to assure environmentally preferable purchasing by
Federal Agencies.

At a minimum, Federal Fleet Managers can purchase re-refined lubricating
oils, retread tires, tires containing post-consumer recovered rubber and
bio-based products, wherever they are reasonably available and meet
vehicle manufacturer specifications. Federal Fleet Managers have a
responsibility to seek out additional environmentally preferable
products for their operations.

[]{#_Hlk116895934 .anchor}**[5.15 Fuel Management]{.underline}**

**[5.15.1 Fuel Management Best Practices]{.underline}**

[]{#_Hlk116895968 .anchor}Fuel management is the process of assuring
that vehicle and equipment fuel and services meet these criteria:

-   Conveniently accessible, both on- and off-site, and at any time
    needed

-   Provided at the best available price

-   Dispensing tracked by user and vehicle and properly accounted for

-   On-site stations meet environmental regulations and are secure from
    theft

-   Emergency supply plans in place and tested

-   Mobile fueling via fuel delivery trucks is available (if
    appropriate)

For many Agencies, a strategic approach is necessary to assure that fuel
is always available, is conveniently accessible for drivers, and that
the right *types* of fuel are available to fulfill the mission and meet
organizational goals. World petroleum supply fluctuations and their cost
implications should be anticipated to the best of the Fleet Manager's
ability. Those responsible for the long-term satisfaction of these
objectives should strive to overcome the next fuel "crisis" or
fuel-availability "surprise" through effective planning.

Fuel-management tactics include such activities as weighing in-house
versus commercial fueling facilities, establishing processes for theft
avoidance, determining the level of fuel transaction detail recorded and
reviewed, complying with environmental regulations, and identifying how
to minimize fueling administration activities.

Ultimately, fleet managers can do little on a *daily* basis to manage
fuel effectively. Fuel management must always be planned and executed
strategically and far in advance of potential threats to organizational
needs. This is especially true when regulations require use of
alternative fuels, so that vehicle acquisition becomes a factor in fuel
management and vice versa.

**[5.15.2 Fuel Consumption]{.underline}**

[]{#hlk116896027 .anchor}Fuel consumption and conservation are critical
concerns of Federal Fleet Managers. Laws and regulations require
acquisition of fuel-efficient passenger motor vehicles and trucks.
Executive Order #13149 requires Federal Fleets to reduce their petroleum
usage. Agencies can reduce petroleum usage by acquiring alternative fuel
vehicles and fuel-efficient vehicles. In some instances, Fleet Managers
can reduce petroleum consumption by increasing vehicle load factors
(accomplish the maximum amount of work with each vehicle) and thereby
decreasing vehicle miles traveled (VMT). Alternatives to using vehicles
represent the greatest petroleum reduction opportunities, so
teleconferencing, video-conferencing, telecommuting programs, and mass
transit should be encouraged.

Reporting of fuel use is input annually into FAST, and Agencies report
fuel use and reduction progress to the Department of Energy (DOE).

**5.15.2.1 Fuel Conservation**

Fuel conservation techniques include:

-   Using public transportation

-   Car pooling

-   Avoiding prolonged engine warm-up

-   Planning and scheduling trips to reduce distance traveled and to
    avoid rush hour traffic

-   Accelerating slowly

-   Driving at a steady speed

-   Limiting use of electrical accessories when not needed

-   Eliminating engine idling while waiting

-   Keeping tires properly inflated

-   Ensuring proper maintenance is performed on vehicles.

**5.15.2.2 Motor Vehicle Fueling**

Drivers may obtain fuel for any motor vehicle owned or leased by the
Government by using:

1.  A Government-issued charge card;

2.  A Government Agency fueling facility; or

3.  Personal funds and obtaining reimbursement from your Agency.

Operators may use a fleet charge card specifically issued for fueling.
The card program has been designed to enable collection of motor-vehicle
data at the time of fuel purchase. Where appropriate, the fleet
charge-card contractor deducts State sales and motor-fuel taxes from
fuel purchases before billing the Agency. GSA's contractor-issued fleet
charge card is the only Government-issued charge card that may be used
for GSA Fleet motor vehicles.

For information on acquiring these fleet charge cards and their use,
contact the:

General Services Administration,\
ATTN: FCX,\
Washington, DC 20406.

Operators may use a Government purchase card if they do not have a fleet
charge card or if the Agency's mission requires use of a Government
purchase card. However, Fleet Managers should be aware that the
Government purchase card does not enable collection of motor vehicle
data or deduction of State sales and motor-fuel taxes.

When fueling Government owned or leased vehicles, operators should:

a)  Use the grade (octane rating) of fuel recommended by the motor
    vehicle manufacturer.

b)  Not use premium grade gasoline unless the motor vehicle specifically
    requires premium grade gasoline.

c)  Use unleaded gasoline in motor vehicles designed to operate on
    gasoline and used overseas unless:

    1.  Such use would be in conflict with country-to-country or
        multi-national logistics agreements; or

    2.  Such gasoline is not available locally.

Operators must use self-service fuel pumps to the fullest extent
possible.

**5.15.2.3 Fueling Software Systems**

Federal Agencies that maintain in-house fueling sites should use
fuel-management software programs to manage fuel transactions.
Generally, fuel records from the pumps at each fuel site can be
downloaded on a set schedule into a database. This information can then
be printed and input into spreadsheets and other applications. However,
best practice is to interface the fuel management software program with
the Agency FMIS, thereby improving data accuracy and efficiency.
Additionally, Agencies using more than one fuel-management software
program should standardize on one fuel-management solutions for greater
control over data quality, reporting capability, and efficiency.

**5.15.2.4 Teaching Operators about Alternative Fuel Usage**

In addition to making alternative fueling locations known to vehicle
operators, Federal Fleet Managers can increase alternative fuel usage in
their fleets by training users on the range, specific performance
attributes, fueling techniques and maintenance/service considerations
applicable to each type of alternative fuel vehicle.

+----------------+------------+------------+-------------+------------+
| **Alternative  | **Range**  | **Per      | **Fueling   | **Main     |
| Fu             |            | formance** | T           | tenance/** |
| el/Alternative |            |            | echniques** |            |
| Fuel Vehicle** |            |            |             | *          |
|                |            |            |             | *Service** |
+================+============+============+=============+============+
| **CNG          | Bi-Fuel    | Power,     | Technology  | Hig        |
| (Compressed    | Vehicles:  | ac         | can now     | h-pressure |
| Natural Gas)   | driving    | celeration | provide a   | tanks      |
| or Liquefied   | range      | and        | similar     | holding    |
| Natural Gas    | similar to | cruising   | fueling     | CNG        |
| (LNG) in a     | gasoline   | speed      | experience  | require    |
| Natural Gas    | vehicles.  | comparable | to that of  | periodic   |
| Vehicle        |            | to         | gasoline.   | inspection |
| (NGV)**        | Dedicated  | gasoline   |             | and        |
|                | Natural    | vehicles.  |             | cer        |
|                | Gas        |            |             | tification |
|                | Vehicle:   |            |             | by a       |
|                | Less than  |            |             | licensed   |
|                | gasoline   |            |             | inspector. |
|                | vehicles   |            |             |            |
|                | because of |            |             | Oil change |
|                | the lower  |            |             | intervals  |
|                | quantity   |            |             | may be     |
|                | of fuel    |            |             | half as    |
|                | storage.   |            |             | often as   |
|                | Extra      |            |             | similar    |
|                | storage    |            |             | gasoline   |
|                | tanks      |            |             | or diesel  |
|                | increase   |            |             | models     |
|                | range, but |            |             | (10,000 -  |
|                | the        |            |             | 12,000     |
|                | additional |            |             | miles).    |
|                | weight may |            |             | Refer to   |
|                | displace   |            |             | the        |
|                | some       |            |             | vehicle    |
|                | payload    |            |             | owner's    |
|                | capacity.  |            |             | manual or  |
|                |            |            |             | consult    |
|                |            |            |             | the        |
|                |            |            |             | man        |
|                |            |            |             | ufacturer. |
+----------------+------------+------------+-------------+------------+
| **Biodiese**l  | Energy     | Power,     | Biodiesel   | In older   |
|                | content of | acc        | does not    | vehicles,  |
| \--2% to 5%    | B100 is    | eleration, | require     | high-      |
| Blend          | 10% to 12% | cruising   | special a   | percentage |
|                | lower than | speed and  | fueling     | blends of  |
| \--20% Blend   | co         | torque     | method and  | biodiesel  |
| (B20)          | nventional | comparable | can be      | can affect |
|                | diesel,    | to         | stored in   | fuel hoses |
| \--Pure        | leading to | co         | the same    | and pump   |
| Biodiesel      | roughly 2% | nventional | way as      | seals.     |
| (B100) in a    | lower      | diesel     | gasoline,   |            |
| conventional   | energy     | vehicles.  | except in   | Biodiesel- |
| diesel engine  | content in |            | con         | compatible |
| vehicle or a   | B20        | Engine     | crete-lined | elastomers |
| converted      | blends.    | Heaters,   | tanks.      | (such as   |
| diesel engine  |            | blending   |             | hoses and  |
| vehicle        |            | biodiesel  |             | gaskets)   |
|                |            | with No. 1 |             | are        |
|                |            | diesel or  |             | required   |
|                |            | using      |             | for use    |
|                |            | anti-gel   |             | with B100  |
|                |            | additives  |             | and        |
|                |            | can help   |             | high-      |
|                |            | eliminate  |             | percentage |
|                |            | cold flow  |             | biodiesel  |
|                |            | p          |             | blends.    |
|                |            | erformance |             |            |
|                |            | problems.  |             |            |
+----------------+------------+------------+-------------+------------+
| **Electricity  | Limited    | Power,     | Drivers use | EVs        |
| in an Electric | storage    | ac         | on- board   | require    |
| Vehicle (EV)   | capacity   | celeration | charger or  | less       |
| or a Hybrid    | of an      | and        | plug        | service as |
| Electric       | EV\'s      | cruising   | vehicle     | they have  |
| Vehicle        | battery    | speed      | into        | no timing  |
| (HEV)**        | system     | comparable | external    | belts,     |
|                | greatly    | to         | charger.    | water      |
|                | reduces    | gasoline   |             | pumps,     |
|                | the        | vehicles.  |             | radiators, |
|                | distance   |            |             | fuel       |
|                | it can     |            |             | injectors  |
|                | travel     |            |             | or         |
|                | between    |            |             | tailpipes  |
|                | charges.   |            |             | and no oil |
|                | HEV range  |            |             | usage.     |
|                | equals or  |            |             | HEV's      |
|                | exceeds    |            |             | require    |
|                | gasoline   |            |             | special    |
|                | co         |            |             | training   |
|                | unterpart. |            |             | for        |
|                |            |            |             | te         |
|                |            |            |             | chnicians. |
+----------------+------------+------------+-------------+------------+
| **Hydrogen     | Practical  | Practical  | Practical   | Practical  |
| (Fuel Cell) in | ap         | ap         | a           | ap         |
| a Fuel Cell    | plications | plications | pplications | plications |
| Vehicle**      | in         | in         | in          | in         |
|                | de         | de         | d           | de         |
|                | velopment. | velopment. | evelopment. | velopment. |
+----------------+------------+------------+-------------+------------+
| **Ethanol/E-85 | Energy     | Power,     | Fueling     | Special    |
| in a Flexible  | content of | ac         | similar to  | engine     |
| Fuel Vehicle   | E85 is 30% | celeration | gasoline.   | lubricants |
| (FFV)**        | less than  | and        |             | may be     |
|                | gasoline,  | cruising   |             | required   |
|                | so         | speed      |             | (refer to  |
|                | vehicles   | comparable |             | vehicle    |
|                | running on | to         |             | owner's    |
|                | E85 will   | gasoline   |             | manual or  |
|                | obtain     | vehicles.  |             | consult    |
|                | fewer      |            |             | the        |
|                | miles per  |            |             | manu       |
|                | gallon.    |            |             | facturer). |
|                | Some       |            |             |            |
|                | man        |            |             | When       |
|                | ufacturers |            |             | ordering   |
|                | are        |            |             | r          |
|                | installing |            |             | eplacement |
|                | larger     |            |             | parts for  |
|                | fuel tanks |            |             | an FFV,    |
|                | in FFVs,   |            |             | let the    |
|                | providing  |            |             | dealer or  |
|                | driving    |            |             | parts      |
|                | ranges     |            |             | supplier   |
|                | similar to |            |             | know you   |
|                | gasoli     |            |             | are        |
|                | ne-powered |            |             | fueling    |
|                | vehicles.  |            |             | with       |
|                |            |            |             | ethanol.   |
+----------------+------------+------------+-------------+------------+
| **Methanol     | No longer  |            |             |            |
| M85**          | any        |            |             |            |
|                | methanol   |            |             |            |
|                | vehicles   |            |             |            |
|                | available  |            |             |            |
|                | to         |            |             |            |
|                | purchase   |            |             |            |
|                | and no     |            |             |            |
|                | fueling    |            |             |            |
|                | stations   |            |             |            |
|                | available  |            |             |            |
|                | to the     |            |             |            |
|                | public.    |            |             |            |
+----------------+------------+------------+-------------+------------+
| **LPG          | Dedicated  | Ac         | Because     | Under      |
| (Liquefied     | propane    | celeration | propane is  | de         |
| Petroleum Gas  | vehicles:  | and        | stored in   | velopment. |
| or Propane) in | power      | cruising   | pressurized |            |
| a Propane      | lower than | speed      | tanks, it   |            |
| Vehicle**      | gasoline   | comparable | cannot be   |            |
|                | vehicle.   | to         | simply      |            |
|                |            | gasoline   | pumped into |            |
|                | Extra      | vehicles.  | the         |            |
|                | storage    |            | gasoline    |            |
|                | tanks      |            | tank.       |            |
|                | increase   |            |             |            |
|                | range, but |            |             |            |
|                | added      |            |             |            |
|                | weight may |            |             |            |
|                | displace   |            |             |            |
|                | some       |            |             |            |
|                | payload    |            |             |            |
|                | capacity.  |            |             |            |
|                |            |            |             |            |
|                | Bi-Fuel    |            |             |            |
|                | Vehicles:  |            |             |            |
|                | power      |            |             |            |
|                | similar to |            |             |            |
|                | gasoline   |            |             |            |
|                | vehicle.   |            |             |            |
+----------------+------------+------------+-------------+------------+
| **P-Series     | Practical  | Practical  | Practical   | Practical  |
| Fuels in a     | ap         | ap         | a           | ap         |
| Flexible Fuel  | plications | plications | pplications | plications |
| Vehicle        | in         | in         | in          | in         |
| (FFV**)        | de         | de         | d           | de         |
|                | velopment. | velopment. | evelopment. | velopment. |
+----------------+------------+------------+-------------+------------+

**[5.15.3 Performance Measures]{.underline}**

[]{#hlk116896102 .anchor}All Federal Fleet Managers are interested in
fuel-cost performance measurement and management and alternative fuel
usage. Federal Fleet Managers who provide on-site fueling services,
automatic fuel-dispensing systems and other fueling services are
especially interested in maintaining a competitive, fully burdened rate
for a gallon of fuel and in fuel-inventory management and should be
familiar with these performance measures.

  ----------------------------------- -----------------------------------
  **Measure**                         **Indicates**

  **Average fuel consumption (miles   **Energy efficiency of the fleet**
  per gallon) by vehicle and by       
  class**                             

  **Fuel cost per mile**              **Fuel efficiency**

  **Fully burdened rate per gallon of **Efficiency of fueling services
  fuel**                              for comparison with other
                                      providers**

  **Month-end inventory in dollars    **Inventory efficiency**
  and gallons and turnover ratio**    

  **Percentage of alternative fuel    **Compliance with EPAct**
  used versus petroleum-based fuels** 
  ----------------------------------- -----------------------------------

[]{#_Hlk116896149 .anchor}**[5.16 Motor Pool Management]{.underline}**

**[5.16.1 Best Practices]{.underline}**

[]{#_Hlk116896248 .anchor}Where several departments and contractors have
similar, basic transportation needs and are located in close proximity,
an efficient inter-departmental vehicle pool can provide a
cost-effective solution. Vehicles in such a pool tend to be more
consistently used than those that are individually or departmentally
assigned because they are effectively rotated among users, balancing out
usage. If a pool were well organized, fewer vehicles per user would be
needed without sacrificing availability or quality of transportation.

Cleanliness, reliability and uniformity of the pooled vehicles directly
affect the success of such an arrangement. Ideally, any given vehicle in
the pool should be no less desirable than any other within its duty
class. For users to obtain a vehicle for an assignment or outing easily,
the pool must be located close to their base workplace, and
documentation should be as simple and streamlined as possible while
still tracking essential information on usage and accounting. Passenger
cars, general-duty pickup trucks, cargo vans, passenger vans, and sport
utility vehicles are all ideal candidates for pooling, as are specialty
trucks and equipment that can be used by a variety of departments (for
example, a dump truck or tractor backhoe).

**[5.16.2 Assignment through Use of Dispatch or Shared Vehicle Usage
(Pools)]{.underline}**

[]{#hlk116896296 .anchor}In the case of vehicles available for dispatch
to Agency employees, the number of requests will often exceed the number
available. Coordination with program officials is necessary to ensure
that dispatch priorities are established to reflect program priorities.
Assignment and dispatch/pool records must be maintained to ensure
necessary control and to provide for utilization review.

**[5.16.3 Motor Pool Performance Measures]{.underline}**

[]{#hlk116896346 .anchor}Among other metrics, Federal Fleet Managers who
operate motor pool services should ensure that they maintain a
competitive, fully burdened rate for use of the motor pool and assess
the use and adequacy of the motor pool in meeting customer requirements.

Federal Fleet Managers who operate motor pools should be familiar with
these performance measures.

  ----------------------------------- -----------------------------------
  **Measure**                         **Indicates**

  **Average number of available pool  **Use of the motor pool**
  vehicles per number rented per      
  day**                               

  **Fully burdened daily rate for     **Measures the cost of motor pool
  motor pool vehicle by class**       services compared with other
                                      providers**

  **Ratio of motor pool vehicles to   **Compares the size of the motor
  total number of organization        pool to the total number of
  employees**                         employees to be served**

  **Net motor pool revenues by class  **Total profit or loss of motor
  and by vehicle**                    pool, by class of vehicle and by
                                      vehicle**

  **Number of customers who could not **Adequacy of the size of the motor
  be supplied with a motor pool       pool**
  vehicle**                           
  ----------------------------------- -----------------------------------

**[5.16.4 Rental: A Motor Pool Alternative?]{.underline}**

[]{#hlk116896396 .anchor}Although many transportation needs arise only
sporadically, such as off-site travel to meetings (frequently known in
the Federal Government as TDY), in most organizations those needs are
met using vehicles that are individually assigned and/or
department-owned and which may potentially spend a lot of idle time in
the parking lot. In many of these cases, transportation needs can be met
more cost-effectively by renting vehicles. Renting is a particularly
effective solution when the organization contracts exclusively with a
rental company in return for reduced rates. If an organization
pro-actively adopts a transportation strategy that includes renting, it
saves money by not having to shoulder the financial burden of
maintenance and replacement of vehicles that would otherwise not be
consistently utilized.

Two primary types of vehicle duty can most readily be provided through
rental strategies: basic personal transportation (i.e., people movers
such as cars, sport utility vehicles and passenger vans) and light-duty
utility (i.e., cargo vans, pickups, etc.). In some cases, larger trucks
such as dump trucks, flat beds and cargo vans, and some construction
equipment, such as tractor backhoes, are also available for rent.
Notably, rental passenger vehicles are often more desirable than
Government vehicles because they are usually newer. Although work
vehicles need not be appealing cosmetically, their high-maintenance
nature makes passing the cost of maintenance to the rental company very
desirable. Using rental vehicles is a good way to augment a vehicle pool
in cases where the workplace of a department or individual is located
prohibitively far from the pool or in the rare instance when more
vehicles than the pool can provide are needed (that is, "peak shaving").

[]{#_Hlk115691723 .anchor}**[Section 6]{.underline}**

**Risk Management**

This section addresses competencies concerned with Risk Management,
including Safety Management, Accident Management, and Hazardous
Materials. Click on any of the topic links below to go to the related
content.

[]{#_Hlk115839196 .anchor}**[Section 6 Table of Contents]{.underline}**

[**6.1 Useful Links**](#_Hlk116896451)

[**6.2 Safety Management: Drivers & Vehicles**](#hlk116896465)

[**6.2.1 Risk Management and Accident Management
Programs**](#hlk116896488)

[**6.2.2 Insurance Coverage**](#_Hlk116896535)

[**6.2.3 Motor Vehicle Safety**](#hlk116896586)

[**6.2.4 Driver Training**](#hlk116896624)

[**6.3 Safety Management: Garage Operations**](#_Hlk116896674)

[**6.3.1 In-House Maintenance Shop Safety**](#_Hlk116896734)

[**6.4 Crash Management**](#_Hlk116896776)

[**6.4.1 Accidents and Claims**](#_Hlk116896811)

[**6.5 Hazardous Materials**](#_Hlk116896856)

[**6.5.1 Employees\' Right to Know about Hazardous
Materials**](#_Hlk116896891)

[**6.5.2 The Fleet Manager\'s Responsibility**](#hlk116896929)

[]{#_Hlk116896451 .anchor}**[6.1 Useful Links]{.underline}**

  -----------------------------------------------------------------------------------------------
  This link takes you to the Department of Transportation portal where you can access content on
  automobiles, trucking, truck driving, and much more.

  <http://www.dot.gov/>

  This link takes you to the portal for the National Highway Traffic Safety Administration
  (NHTSA, part of the Department of Transportation) and its research and information vehicles and
  highway safety.

  <http://www.nhtsa.dot.gov/>

  The U.S. DOT\'s Transportation Safety Institute offer self-paced training for motor carriers
  over the Internet. Administrators, drivers, safety managers, mechanics, owner/operators,
  auditors, and inspectors can access training on the Federal Motor Carrier Safety Regulations
  (FMCSRs Title 49) anytime, anyplace, 365 days a year.

  <http://www.motorcarriertraining.com/>

  GSA\'s National Safety Program - Driver Safety & Vehicle Operation Video Library. It\'s free.

  <http://www.gsa.gov/Portal/gsa/ep/contentView.do?noc=T&contentType=GSA_BASIC&contentId=16052>

  The Federal Motor Carrier Safety Administration (FMCSA) was established as a separate
  administration within the U.S. Department of Transportation on January 1 to provide safety
  resources for DOT and OSHA compliance. You can access regulations and training materials
  through this link.

  <http://www.nsc-dot.com/>

  This link takes you to OSHA's portal and information affecting hazardous materials and employee
  safety.

  <http://www.osha.gov/>
  -----------------------------------------------------------------------------------------------

**[6.2 Safety Management: Drivers & Vehicles]{.underline}**

[]{#hlk116896465 .anchor}Aside from personal hardship, the costs
associated with injuries, fires, and other accidents are significant
when one considers not only replacement or repair of damaged materials
or equipment but also, and perhaps more importantly, medical and
compensatory expenditures. Accidents may also result in costly delays in
fulfilling an important mission or providing service. Adequate planning
to prevent such occurrences is essential to the efficient, economical
and safe operation of the vehicles and support services.

The Fleet Manager is responsible for the implementation and enforcement
of a safety and health program. The program should be coordinated with
Agency safety and health staff, where available. Supervisors are
responsible for ensuring that employees are trained in their safety and
health responsibilities. Processes should be in place and an attitude of
responsiveness should be evident so that employees can and will advise
the Fleet Manager of any suspected hazards which they cannot correct. In
addition, each employee should be held responsible for working in such a
manner as to prevent injury to self and others, and for safeguarding
property from damage.

In addition, Fleet Managers should work closely with resources such as
the National Highway Traffic Safety Administration (NHTSA) and the
National Safety Council to promote safe vehicle operation through the
use of ongoing safety programs, instruction, and displays featuring
safety posters and accident awareness charts. A vehicle safety-
inspection program should be in place and vehicle operators should have
access to safe-driving training.

Certain activities will yield safety improvements both on the road and
in the shop. These activities include enforcement of laws and
regulations; traffic engineering; safety-related education, information
and promotion; safe-driver publicity and related incentive/award
programs; accident investigation/analysis/reporting and appropriate
disciplinary action.

Organizations can contribute to maintaining interest in motor vehicle
safety through:

-   Management interest and example

-   Safety meetings

-   Awards for safety

-   Safety contests

-   Posters

-   First aid training

Top management has the ultimate responsibility for the safety
performance of the fleet. This responsibility extends directly to the
Federal Fleet Manager and the supervisors, drivers and other employees.
To achieve the highest possible safety performance of the fleet,
everyone must believe that accountability for safety is as important as
any other job responsibility.

During the 1980s and 90s, the cost of fleet insurance for organizations
that did not self-insure, doubled, tripled, and, in some instances, just
became unavailable, due, in particular, to liability coverage.
Consequently, for private sector fleets, controlling insurance costs has
become a critical issue. Generally, private sector Fleet Managers work
to control those aspects of the fleet operation that contribute to
rising insurance premiums. In contrast, public sector fleets typically
function under a full or partial self-insurance umbrella, so Fleet
Managers have historically believed they had little to do with
controlling insurance costs.

This belief is absolutely not true, however, and professional Fleet
Managers working in the public sector have increasingly recognized that
fact and taken steps to reduce exposure to risk through risk management,
safety and training programs. Indeed, the fundamental practices of
maintenance and repair of fleet vehicles, whether done in-house or by
contractors or service providers, should be recognized as part of a
comprehensive safety program. In the event of a mishap involving a
poorly maintained or inadequately repaired vehicle, which leads to a
lawsuit in which negligence is shown, the public sector organization can
be made to pay a high sum for bodily injury or property damage.

Another key fact to bear in mind is that it makes no difference whether
the cost of insurance is in the form of direct payments by the
self-insurance program (the Federal Government, for example) or
insurance premiums; in either case, the money is spent. Federal Fleet
Managers have a fiduciary responsibility to taxpayers to control
insurance-related costs despite working under a self-insurance umbrella.

**[6.2.1 Risk Management and Accident Management Programs]{.underline}**

[]{#hlk116896488 .anchor}Fleet Managers can take various steps to reduce
the number of accidents, ensure driver safety, and contribute to their
organization's effort to control insurance-related expenditures. The
management strategy must be to implement effective programs to contain
those exposures and losses that result in hefty expenditures. Every
successful loss-prevention program has these six best-practice
characteristics:

1.  An effective policy that will help to weed out potential problem
    drivers

2.  Formation of a safe-driving committee or an accident review board or
    both with representation by fleet representatives, safety-program
    personnel, and management

3.  The keeping of detailed and accurate statistics and the analysis of
    all accidents

4.  Development and implementation of a continuing educational program

5.  Institution of a program for employee motivation and recognition

6.  Implementation of an effective maintenance program

Concerns over productivity losses and human suffering, together with the
cost pressures of workman's compensation, repairs, and other
accident-related expenditures, have been driving forces in establishing
these best practices.

Safety is, of course, a shared responsibility in any organization.
Nevertheless, the responsibility for an effective and efficient
fleet-safety program should rest with one department or person, and
quite often that person is the Federal Fleet Manager. The depth and
breadth of the Fleet Manager's authority (or the authority of a
fleet-safety team) largely determines the success of the program. Aside
from the actions a fleet manager can take, commitment from all levels of
management is fundamental to success. To that end, the cost of accidents
can prove quite persuasive. You will need these facts:

1.  Present accident frequency rate (see details on this below). This is
    calculated from the number of accidents multiplied by 1 million, the
    result being divided by total fleet mileage.

2.  The number of preventable accidents.

3.  The average cost per accident. Include the following:

  -------------------------------------------------- --------------------
  **Property Costs**                                 

  **Parts and labor**                                **\$**

  **Vehicle downtime**                               **\$**

  **Replacement vehicle**                            **\$**

  **Cargo/contents damage**                          **\$**

  **Cost of delay (or avg daily "production" lost    **\$**
  per operator)**                                    

  **People Costs**                                   

  **Employee(s)' medical pay**                       **\$**

  **Disability payments**                            **\$**

  **Hiring/training replacements**                   **\$**

  **Morale factors**                                 **\$ "?"**

  **Self-Insured Retention**                         

  **Workers' comp. increases**                       **\$**

  **In-house personnel costs of handling claims      **\$**
  (including subrogation), clerical,                 
  administrative**                                   

  **Total**                                          **\$**
  -------------------------------------------------- --------------------

**6.2.1.1 Basics of a Risk Management Program**

The person responsible for developing or improving a fleet safety
program should review or refine these components: policy on fleet
safety, accident recordkeeping, accident analysis, accident review
board, and driver safety.

**[Policy]{.underline}**

A written safety policy should carefully phrase organizational attitude
towards safety. The policy statements will serve as a checkpoint
whenever a conflict arises between safety and expedience, and they prove
useful when supervisors enforce safety rules. The policy statements
should make it clear that:

1.  The organization considers accident control essential both for
    humanitarian and economic reasons

2.  The accident control program will apply to all departments and
    operations

3.  The cooperation of all employees is required

Several key policy areas are:

[Checking Motor Vehicle Records (MVRs)]{.underline}

Organizations should check the MVR of each new employee to discover
whether he or she has a history of accidents, speeding tickets, or any
other violations. Every-other-year follow-ups will also assist in
identifying problem-prone drivers.

[Personal Use]{.underline}

The Federal Government has restricted personal use of
Government-provided vehicles. Enforcement of this policy reduces
exposure to risk and is one aspect of a fleet-safety program.

[Vehicle Eligibility]{.underline}

Tightening vehicle eligibility and reducing the number of vehicles in
the fleet reduces exposure. In general, to the extent that the number of
Government-provided fleet vehicles drops, the exposure of the fleet to
the risk of accidents diminishes. Consequently, policies and processes
that contribute to fleet right-sizing contribute to risk management.

**[Accident Analysis]{.underline}**

In developing a safety program, keep in mind that past experience is
important, inasmuch as it presents problems in their full scope to win
support for accident-prevention policies and practices.

First, the Fleet Manager must determine accident frequency by developing
appropriate facts and figures. A formula used by the National Safety
Council achieves this goal:

[Number of Accidents X 1,000,000]{.underline}

Total Fleet Mileage

For example, a fleet had 20 accidents during the past year and the total
mileage driven by the fleet's cars was 2,881,000. The fleet's accident
frequency rate is:

20 X 1,000,000 = [20,000,000]{.underline}

2,881,000

or an accident frequency rate of 6.94

Second, the Fleet Manager should determine the number of preventable
accidents.

Third, the Fleet Manager must calculate the average cost per accident,
the elements of which we detail below.

Motor vehicle accidents have similar causes and many accidents are
preventable. Defensive driving instruction and awareness that cover
these causes can reduce accident frequency. The most common causes of
accidents are:

-   Excessive speed

-   Improper maneuvers, such as U-turns, parking in no-parking zones

-   Driving while under the influence of drugs and alcohol

-   Inattention, such as eating, drinking, sorting paperwork, talking on
    a cellphone

-   Right-of-way violations, such as not yielding at stop signs, yield
    signs, or unmarked intersections

To prevent accidents, Federal Fleet Managers should implement an
effective accident analysis program. Typically, accident-analysis
programs provide:

-   A system that assures accurate and timely reporting of all accidents
    and injuries

-   Personnel to analyze accident reports to ascertain trends and areas
    in need of corrective action

-   Requirements for responsible staff to institute appropriate
    corrective action to prevent future accidents

-   Data to calculate the fleet\'s accident frequency rate (number of
    accidents in year multiplied by 1,000,000 divided by total fleet
    mileage)

-   Data to identify preventable accidents

-   Data to calculate accident costs

The National Safety Council identified these accident factors, which are
usually selected for accident analysis (and should be incorporated into
your software program for accident-analysis purposes):

-   Date of accident

-   Date reported

-   Name of driver

-   Age of driver

-   Length of service of driver

-   Hours on duty

-   Driver\'s home terminal or usual work location

-   Weather conditions

-   Light conditions

-   Road conditions

-   Accident location

-   Direction traveling

-   Type of accident

-   Vehicle type

-   Vehicle number

-   Time of day of accident

-   Traffic violation

-   Other vehicle type

-   Vehicle speed versus posted speed limit

-   Pedestrian(s) involved

-   Property damage

-   Vehicle or object struck

-   Driver striking vehicle or object

-   Responsibility for accident

-   Failure by driver

-   Cost of accident.

After analysis, the Federal Fleet Manager knows who, what, why, when,
and where of the accident - key information which, if applied property,
can reduce the probability of future accidents.

Having accident data available, the Fleet Manager can more effectively
work to prevent accidents by removing or controlling their causes.
Indeed, a large part of a Fleet Manager's job is to identify accident
causes and to recommend ways to remove or to guard against accidents and
thereby protect the employee.

A carefully planned system to gather all pertinent information about
fleet accidents is essentially not only to determine and reduce accident
causes, but also for these additional reasons:

-   [Court action]{.underline}: The possibility always exists that the
    employee operator of the vehicle will be cited to traffic court or
    indicted in a criminal action because of an accident. The
    thoroughness with which accident data has been gathered is often the
    factor upon which court action hinges. Many cases have been won
    because of the thoroughness with which an organization obtained the
    facts about the particular accident.

-   [Places responsibility where it rightfully belongs]{.underline}:
    When gathering information, the Fleet Manager (and the accident
    review board) must never "whitewash" the actions of the
    employee-driver. Any attempt to do this nullifies the entire value
    of the process. Only by knowing the full facts, whether favorable or
    unfavorable to the organization, can necessary corrective action be
    taken.

The primary purpose of this monitoring system is to provide a needs
analysis. The needs analysis identifies those key factors that
contribute to accidents and, therefore, need to be eliminated.

**[Accident Review Board]{.underline}**

The primary responsibility of this board should be to review all
fleet-related accidents involving employees and to determine whether
such accidents were preventable. The board should, at a minimum, consist
of representatives from fleet administration, safety, employee-drivers,
and management.

If drivers are to take their safety records seriously, accidents must be
classified in such a manner that drivers will feel their rights have
been scrupulously protected. Consequently, the decision on border-line
cases should reflect the weight of informed opinion of the entire
organization. To provide drivers with this protection, organizations
should establish an Accident Review Board for these reasons:

1.  The importance of the individual safety record is emphasized

2.  The help of all departments is enlisted

3.  The Fleet Manager is protected from the possibility of creating ill
    will among drivers who have had accidents

4.  The driver is assured that his or her rights are being protected

5.  For the driver involved, it takes some of the "sting" out of an
    adverse decision

6.  The responsibility for the decision is removed from front-line
    supervision

**[Driver Safety]{.underline}**

Beyond gathering data to uncover the causes of accidents, a Fleet
Manager can turn to a number of inexpensive methods to enhance driver
safety. For example:

-   Publicly recognizing safe drivers (those who hit mileage or time
    thresholds)

-   Posting safety-promoting stickers in work areas. Posting "wear seat
    belt" notices in all fleet vehicles.

-   Enrolling drivers in driving improvement courses. Almost every
    driver can benefit from periodic "refresher courses" in defensive
    driving. In addition, specialized driving techniques can benefit
    drivers if the geographical area in which they operate is subject to
    unusual or extreme weather conditions. Many successful safe-driving
    training programs exist that can improve driver skills, develop
    strategies for defensive driving, and provide reinforcement.

-   Providing drivers with CDs on safe driving. Many fleet vehicles now
    contain CD players. Organizations can make or purchase CDs that
    cover safe-driving techniques and habits. In general, all
    communication efforts represent a low-cost way to promote and
    achieve driver safety.

-   Periodically inspecting seat-belt assemblies to ensure they are
    working properly.

Air bags and seat belts are safety features that contribute to driver
safety in case of a crash. But the best safety feature is the driver of
the car, and that fact is too often overlooked. A well-trained, alert,
and sober driver can avoid an accident and never need an air bag and
seat belt to save his or her life.

**6.2.1.2 Risk Management**

A significant way in which Fleet Managers can control insurance costs is
through managing the exposure to risk experienced by the drivers and
their vehicles. Even without knowing the specifics of a self-insurance
program, because it falls outside their jurisdiction, Fleet Managers can
perform a significant insurance function by helping their organizations
to manage risk. Loss control translates into cost control, and that
alone should motivate Fleet Managers to develop a risk management
program. Basic characteristics of such a program include:

-   Sustained management support and direction

-   Active participation by supervision

-   Organized for accident prevention

-   Effective employee safety education

-   Control of accident hazards

-   Regular inspection to detect unsafe conditions and practices

-   Investigations of accidents to determine corrective measures

-   Recordkeeping

-   Performance measures

-   Improvement

[]{#_Hlk116896535 .anchor}**[6.2.2 Insurance Coverage]{.underline}**

**6.2.2.1 Understanding Self-Insurance**

To insure is to transfer risk to an insurer through an insurance
contract. The insurance company has evaluated the risk and set a
premium, or a price, to assume that risk. The premium pays the insurer
for expected losses, claims handling expenses, policy production and
administration costs, other overhead items, and profit. The ability of
the insurance buyer to control insurance premium expenses is fairly
limited over the long run. An alternative to paying premiums, however,
is to self-insure.

Self-insurance has become increasingly popular because of climbing
insurance costs. Simply stated, this approach to insurance means that a
business or public entity takes upon itself the burden or risk
retention; that is, of making itself liable for a particularly type of
risk, rather than insuring the risk through an insurance carrier.

**6.2.2.2 Government-Furnished Vehicles**

In the absence of express statutory authority to the contrary,
appropriated funds are not available to purchase insurance to cover loss
or damage to Government property or the liability of Government
employees. The Government is essentially a self-insurer in the areas of
a) loss or damage to Government property and b) liability of Government
employees for actions within the scope of their duties (for official
travel performed within the contiguous 48 States, Alaska, Hawaii, Puerto
Rico or United States territories and possessions).

The Federal Tort Claims Act (28 USC 2671, et seq.), as implemented by
individual Federal agencies, covers claims for the injury or death of
third parties or damage to their property (third-party loss and damage
claims) arising from operation of a Government-furnished vehicle by a
Federal employee. It states that:

> \"The head of each Federal Agency or his designee, in accordance with
> regulations prescribed by the Attorney General, may consider,
> ascertain, adjust, determine, compromise, and settle any claim for
> money damages against the United States for injury or loss of property
> or personal injury or death caused by the negligent or wrongful act or
> omission of any employee of the Agency while acting within the scope
> of his office or employment, under circumstances where the United
> States, if a private person, would be liable to the claimant in
> accordance with the law of the place where the act or omission
> occurred: Provided, That any award, compromise, or settlement in
> excess of \$25,000 shall be effected only with the prior written
> approval of the Attorney General or his designee.\"

When a Federal employee operates a vehicle on official business in a
foreign area, whether it be Government-furnished, rented, or privately
owned (or leased), the employee is responsible for obtaining trip
insurance to cover third party loss and damage claims. In addition,
employees operating Federal motor vehicles in Canada or Mexico must have
insurance coverage as required by the host country.

Federal Travel Regulation (FTR) 301-10.451(b) states that Federal
employees will receive "reimbursement for collision damage waiver
\[CDW\] or theft insurance when traveling outside CONUS (the 48
contiguous States and the District of Columbia) and such insurance is
necessary because the rental or leasing Agency requirements, foreign
statute, or legal procedures could cause extreme difficulty for an
employee involved in an accident.\"

**6.2.2.3 Commercially Rented Vehicles**

The rental firms listed in the Federal Travel Directory provide discount
rates to the Federal Government. These rates include the cost of
collision damage insurance (CDW) with no deductible. Additional
insurance is not necessary because the Government is a self-insurer.

**6.2.2.4 Privately Owned (or Leased) Vehicles**

An employee authorized to use a POV to conduct official business
receives reimbursement based upon mile traveled. Because the cost of
collision and liability insurance is a study component of the mileage
reimbursement rate-setting process, third party loss or damage claims
are the responsibility of the employee and his or her personal insurance
carrier. Employees may receive reimbursement for the amount of their
deductible if the accident/ incident causing the damage was not the
fault of the vehicle operator.

**[6.2.3 Motor Vehicle Safety]{.underline}**

[]{#hlk116896586 .anchor}This starts with ensuring that a vehicle is in
safe operating condition (for example, has been properly cleaned and
inspected) before being issued. But drivers also have a role. Processes
should be in place to motivate drivers to see to necessary vehicle
repairs as quickly as possible. Encourage vehicle operators to check
safety-related vehicle equipment and systems daily by making available a
checklist that includes these steps:

**[Weekly Passenger Vehicle Walk around Inspection]{.underline}**

-   Check tire pressure and tire condition

-   Check brake fluid, power steering fluid, coolant, oil, transmission
    fluid, windshield washer fluid

-   Check headlights, high beam lights, parking lights, reverse lights,
    tail lights, brake lights

-   Check turn signals

-   Check instrument panel lights (oil, temperature, engine, brake
    lights)

-   Check horn, windshield wipers, windows, mirrors, seat belts, door
    locks, brakes and emergency brake

-   Check for leaks, drips and inspect hoses for condition

-   Check that emergency kit and tools are in trunk and operator\'s
    packet is in glove box

Commercial vehicle inspections are governed by the requirements of Title
49 Transportation Chapter III - Federal Highway Administration,
Department of Transportation Part 306.17 Periodic Inspection.

At a minimum, inspect each vehicle at 12 months or 12,000 miles,
whichever comes first. For many vehicles, safety inspections can be
efficiently done at the same time as the scheduled reliability
inspection in accordance with manufacturer\'s recommendations.

Of course, all deficiencies should be corrected before the vehicle is
released for operation.

Federal Fleet Managers have a responsibility to develop and implement
programs to maintain vehicles in safe operating condition. Timely
vehicle repair and routine vehicle checks are fundamental steps toward
that goal.

**6.2.3.1 Occupant Protection - Safety Belts/Air Bags**

Federal Standard 122 AE requires that all new passenger vehicles
acquired under the Standard be equipped with an automatic occupant
protection system. Three-point safety belts are required at rear-seat
outboard positions. Executive Order #13043, dated April 16, 1997,
mandates use of seat belts by all Federal employees occupying the front
seat of a motor vehicle being used on official business. Each Federal
Agency, in contracts, subcontracts, and grants, shall seek to encourage
contractors, subcontractors, and grantees to adopt and enforce
on-the-job seat-belt policies and programs for their employees when
operating company-owned, rented, or personally owned (or leased)
vehicles.

A fundamental rule that all should recognize and adopt is that vehicle
operators should not start the engine of a vehicle until all occupants
have properly fastened their safety belts.

**[6.2.4 Driver Training]{.underline}**

[]{#hlk116896624 .anchor}Vehicle life can be extended through a program
that teaches drivers to improve their driving skills and fosters
awareness of the differences in driving various types of vehicles (for
example, automobile, SUV, van, pickup, tractor/trailer, utility).
Improvements in driver training, awareness and performance can lower
maintenance costs as well as the costs associated with accidents. To
increase fleet safety, develop a process for tracking employees\'
driving performance and report the results throughout all levels of the
organization.

An optimum driver-training program includes in-class instruction along
with written examinations and, most importantly, hands-on exercises to
improve and ensure driver proficiency. For many Federal Fleet
operations, driver training should emphasize improvement in hazard
recognition, vehicle handling, space management and speed management.
But programs that focus solely on communication of safe-driving habits
(delivered by audio or video tapes, DVDs, or the Internet) can also be
beneficial because they heighten awareness and can supply safe-driving
tips. According to the National Safety Council, the most effective time
for extensive, systematic driver training is right after the driver is
hired but before the driver is assigned to a vehicle. This is
particularly true for drivers of special equipment, heavy-duty vehicles,
emergency-response vehicles, and law-enforcement vehicles.

Safe-driving and vehicle-safety training and education can include:

-   Operating procedures and requirements of the Federal Agency\'s
    current motor vehicle safety program

-   Direct and indirect costs of accidents

-   Safety performance measures currently used in your organization

-   Specific State and municipal driving regulations that affect your
    drivers

-   The Federal Motor Carrier Safety Regulations if interstate commerce
    is conducted

-   Appropriate hazardous materials training (a frequent OSHA citation
    is failure to train)

-   Causes of accidents (such as driver\'s physical, mental and
    emotional condition; the vehicle\'s mechanical condition; acts of
    pedestrians and drivers of other vehicles; road surface; lighting,
    and weather conditions)

-   Personal traits that affect driving (such as the physical, mental
    and emotional well-being of the driver)

-   Defensive driving for cars, vans, emergency vehicles, buses and
    medium to large trucks

-   Two-vehicle collision prevention (vehicles can collide from six
    positions and defensive measures apply in each case)

-   Backing accident-prevention (the cumulative costs of accidents
    occurring while the driver is backing up can mount; backing around
    corners or out of driveways is especially dangerous and should be
    avoided)

-   Stopping distance (maintaining a safe distance)

-   Mechanical defects (drivers able to recognize mechanical problems)

-   Basic driving maneuvers

-   Driving in traffic

-   Boarding and de-boarding procedures for vans and buses

-   Handling freight

-   Procedures in case of accident

Besides initial training, Agencies should investigate provision of
refresher, remedial and ongoing training in an effort to expose drivers
continuously to safety ideas and information and to stress that safety
matters. The goal is to impress each driver with the importance of good
driving habits and the hazards of bad ones. Good driver education
programs expose each driver to useful driving information, establish a
sense of traffic responsibility, and develop favorable attitudes and,
most importantly, techniques for avoiding accidents.

**6.2.4.1 Commercial Drivers License Training**

Federal Fleet Managers should assure that all drivers of Federal
vehicles have correct and current licensing for the type of Federal
commercial vehicle they drive. This is particularly important for
Commercial Drivers Licenses (CLS), which are available in the following
categories: Air Brakes, Cargo Vehicles, Combination Vehicles, General,
Hazardous Materials and Passengers. State and Federal regulations govern
the qualifications and standards for truck drivers. All drivers must
comply with Federal regulations and any State regulations that are
stricter than Federal requirements. Drivers of trucks designed to carry
at least 26,000 pounds, including most tractor-trailers, as well as
bigger straight trucks, must obtain a commercial driver\'s license (CDL)
from the State in which they live.

All truck drivers who operate trucks transporting hazardous materials
must obtain a CDL, regardless of truck size. Training for drivers who
transport hazardous materials is required within 90 days of employment
with recurrent training to be done semiannually. Drivers may also be
trained as first responders in the event of a spill with separate
training requirements.

To qualify for a commercial driver\'s license, applicants must pass a
written test on rules and regulations and then demonstrate that they can
operate a commercial truck safely. A national databank permanently
records all driving violations incurred by persons who hold commercial
licenses. A State will check these records and deny a commercial
driver\'s license to a driver who already has a license suspended or
revoked in another State. Licensed drivers must accompany trainees until
the trainees get their own CDL. Information on how to apply for a
commercial driver\'s license may be obtained from State motor vehicle
administrations.

Federal regulations governing the CDL exempt certain groups, including
farmers, emergency medical technicians, firefighters, some military
drivers, and snow and ice removers. In many States, a regular driver\'s
license is sufficient for driving light trucks and vans.

**6.2.4.2 Special Emergency Vehicles Training**

Additional training shall be provided to all operators of police
vehicles, ambulances, fire trucks, crash rescue vehicles, motorcycles
and all Federal vehicles used principally to convey groups of
passengers.

Drivers of police vehicles, ambulances, fire trucks and crash rescue
vehicles must also complete the National Highway Safety
Administration\'s Emergency Vehicle Operator Course (EVOC). An EVOC
refresher course training must be accomplished very three years to
retain a license for operating these emergency vehicles.

Federal Fleet Managers should assure that all drivers of Federal
emergency vehicles meet these licensing requirements.

**6.2.4.3 Fueling Safety**

Fleet Managers should make sure that their drivers are aware that static
electricity at gas pumps is a real hazard:

-   Drivers should never use cell phones when pumping gas.

-   Drivers should never get back into their vehicle while filling it
    with gas.

-   If drivers absolutely have to get in the vehicle while the gas is
    pumping, when they get out, they should close the door touching the
    metal before pulling the nozzle out so the static from the driver\'s
    body will be discharged before the nozzle is removed.

[]{#_Hlk116896674 .anchor}**[6.3 Safety Management: Garage
Operations]{.underline}**

**[6.3.1 In-House Maintenance Shop Safety]{.underline}**

[]{#_Hlk116896734 .anchor}Shop safety programs can minimize job-related
injuries and lost time; improve job efficiency, productivity, and
morale; and save money. A job-safety analysis, commonly referred to as a
JSA, identifies the sequence of basic job steps, the potential hazards
and the recommended action or procedures to eliminate the hazard and
provides a systematic and logical analysis of all work steps and hazards
which could lead to injury or death.

Inadequate mechanic training, poor housekeeping, negligence and
inadequate shop design are the primary causes of a poor safety record in
the shop.

**6.3.1.1 Shop Safety Committees**

One of the most effective techniques to improve shop safety is to set up
a Shop Safety Committee to emphasize the importance of shop safety,
exchange effective safety improvement ideas and to solve problems.
Shop-safety meetings are generally held monthly and safety inspections
of the shop should be regularly scheduled to catch problems before they
become bad habits and accidents.

Shop-safety inspections should inspect the worker, the workplace and the
interaction between the worker and the workplace to identify unsafe work
practices as well as unsafe work areas:

-   Check the quality of the housekeeping in the shop (for example, oil
    spills or debris cluttering the shop floor)

-   If the housekeeping quality is poor, review employees' workload to
    ensure they have the time to perform this job properly

-   Provide employees with the right tools to perform the job properly
    (improvising with tools often leads to injury)

-   Keep employee workloads at reasonable levels and rotate jobs between
    mechanics at the same grade level

-   Check quality and care of tools

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-   Are they properly maintained and repaired

-   Should they be disposed of

-   Are they clean (are clean shop rags handy for wiping tools grease
    free)

-   Are edged tools sharp

-   Are tool housings on electrical tools cracked (exposing wiring)

-   Have tool housings been wrapped with electrical tape

-   Have the grounding blades been removed from grounding plugs

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-   Inspect extension cords and work lights regularly

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-   Are hazardous-service work-light bulbs being used

-   Are all extension cords property grounded

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-   Never allow operation of electrical tools near standing water

-   Inspect air tools, hoses and couplings daily and air compressor
    drive belts regularly

-   Ensure employees have necessary safety gear (and ensure they use it
    when required)

If the inspection surfaces any safety infractions, indicate those on
your inspection checklist. Note the employee, situation, and action
taken. Also, provide an area on the form to record at a later date
whether the corrective measure(s) has been effective.

**6.3.1.2 Employee Safety**

Federal employee OSH program requirements are set out by the Department
of Labor (DOL) in 29 CFR 1960, and by Executive Order #12196. Reference
should be made to 29 CFR 1910, General Industry Standards, for
requirements covering specific operations.

**[Housekeeping]{.underline}**

As noted above, the employee safety program should begin with good
housekeeping. Good housekeeping fosters safe and healthful working
conditions and high morale. It substantially reduces the risk of
personal injury, damage to property, and loss of tools.

**[Fire Protection]{.underline}**

The Fleet Manager is responsible for implementing a sound
fire-prevention program, conducting periodic drills, and maintaining
emergency fire fighting apparatus to provide immediate measures for
safeguarding life and property.

**[Occupational Safety and Health (OSH)]{.underline}**

Major responsibilities of the Fleet Manager regarding OSH are locating
and correcting unsafe and unhealthful conditions and training personnel
to eliminate unsafe and unhealthful work practices. Appropriate personal
protective equipment must be provided for the tasks performed. Two or
more employees should attend first-aid training; that is, C.P.R. and
basic emergency procedures. Any accident, even if minor, must be
reported to the employee\'s supervisor. If an injury or illness results,
it is to be reported according to DOL Office of Workers\' Compensation
Programs (OWCP) requirements and internal Agency guidelines.

**[Facility Safety]{.underline}**

Service and/or repair facilities must be provided properly designed and
maintained tools, equipment and machines. Machine safety guards must be
used where mechanical hazards may occur or exist. Safety guards include
the shielding of moving parts of machinery, the guarding of electrical
fuse boxes and switchgear, the grounding of electrical machines, and the
installation of limit switches on lifts and hoists.

User safety considerations include identifying pedestrian crosswalks in
vehicle passageways and the posting of caution and speed limit notices
on ramps, turn areas, and approaches. For buildings with two or more
vehicle access doors, consider designating one door \"Entrance\" and the
other(s) \"Exit\" to establish the movement of vehicles to a one-way
traffic pattern.

**6.3.1.3 Motor Vehicle Protection**

When a vehicle is stored at the Fleet Management Center (FMC), the
vehicle is to be locked and the keys and credit card secured. Procedures
should be established for pick-up and return of dispatch vehicles during
other than normal operating hours, when the FMC is closed.

**6.3.1.4 Safeguarding Supplies and Materials**

The Fleet Manager has the overall responsibility to safeguard all
supplies, materials, tools, tags, credit cards, and equipment against
loss and theft. Stocked parts, tires, tags, credit cards, etc., are to
be secured in a locked parts room or locked cabinet, when unattended.
Further, procedures should be established to ensure that only authorized
personnel are permitted access to these areas.

[]{#_Hlk116896776 .anchor}**[6.4 Crash Management]{.underline}**

**[6.4.1 Accidents and Claims]{.underline}**

[]{#_Hlk116896811 .anchor}FMR 102-34.300 covers reporting of motor
vehicle accidents involving Agency-owned or -leased vehicles. Use of
standard forms (available to all Agencies for reporting motor vehicle
accidents) is recommended. These include the SF 91 Motor Vehicle
Accident Report, which should be completed at the time and on the scene
of the accident, if possible, regardless of the extent of injury or
damage. This Form should be carried at all times in Government-owned and
leased motor vehicles. The SF 94, Statement of Witness, should be
carried at all times in Government-owned and -leased vehicles to be
completed by persons who witness an accident.

**6.4.1.1 Reporting Accidents and Fires**

Follow your internal, Agency accident reporting procedures for
Agency-owned or -leased vehicles. The following reporting requirements
for accidents involving vehicles assigned by GSA IFMS Fleet Management
Centers (FMC) may serve as guidelines for your fleet.

When a GSA IFMS vehicle is involved in a fire not caused by a motor
vehicle accident, the fire is to be reported on GSA Form 53, GSA Fire
Incident Report, by the FMC manager.

In accordance with FPMR 101-39.4, the operator of a GSA IFMS vehicle
must to notify the following persons immediately -- either in person, by
telephone or by fax -- of any accident or fire in which the vehicle is
involved:

-   The Maintenance Control Center or the Fleet Manager of the FMC
    assigning the vehicle;

-   The employee\'s official supervisor; and

-   State or local authorities, as required by law.

These regulations also specify that the FMC assigning the vehicle must
receive a copy of the investigation report completed (within five
working days) by the Agency having custody of the vehicle or employing
the operator of the vehicle. When local, State or Federal police are at
the scene of the incident or accident, copies of their report(s) will be
provided to the FMC. Copies of Police Reports are of particular
importance where third parties are involved; they greatly assist in
recoveries and assignment of fault. When fire results from a motor
vehicle accident, the total extent of damage from fire and collision
shall be reported on the investigation report.

The vehicle operator must obtain the name, address, and telephone number
of each witness and have each one complete a SF 94. If the vehicle
operator is injured and unable to complete the reports, his or her
supervisor shall complete the required forms and make the necessary
notifications of the accident.

In the event of personal injury, the injured employee must complete and
submit the Office of Workers\' Compensation Programs (OWCP) Form CA-1,
Federal Employee\'s Notice of Traumatic Injury and Claim for
Continuation of Pay/Compensation, to his or her supervisor. The
supervisor must complete the form and forward it, along with appropriate
documentation, to OWCP.

Motor vehicle operators will collect information from third parties of
vehicle accidents to assist in the collection or payment of accident
claims. As a minimum, the vehicle operator will record the third party
insurance company name and address and the individual insurance policy
number.

Upon notification of a motor vehicle accident, the FMC will complete GSA
Form 1593, Motor Vehicle Accident Resume, assign a control number to the
accident, maintain a suspense file until all documentation has been
received, and replenish the Accident Reporting Kit in the glove box of
the vehicle.

In the event a vehicle defect caused the accident, the FMC will complete
a SF 368, Notification of Vehicle Defect, and forward it through
channels.

**[Operator Responsibilities Checklist]{.underline}**

-   Check for injured persons.

-   Check for witnesses and get the name and address of anyone observing
    any portion of the accident. If possible, use the SF-94 Statement of
    Witness form (individual Federal Agencies may require the use of
    additional forms).

-   Notify your immediate supervisor.

-   Call the police and obtain and on-site local police report if such
    report is required by local law for the type of accident involved
    (note: on-site police reports are not always required for minor
    accidents without personal injury).

-   When no on-site report is written, inform the local police of the
    accident immediately after the fact.

-   Get information from the other driver(s), if appropriate, to include
    name, address, phone, insurance carrier, policy number for all
    non-Federal vehicles involved.

-   Secure the vehicle and its contents if the vehicle is towed.

-   Ensure that the vehicle will be stored in a secure area.

-   Report the accident on the SF-91 Operator\'s Report of Motor Vehicle
    Accident (individual Federal Agencies may require the use of
    additional forms).

[In addition, operators or their supervisors may be required
to:]{.underline}

-   Obtain estimates of the costs of repairs to all non-Federal vehicles
    and property.

-   Obtain estimates for damages to all GOV(s) involved in the accident.

-   Obtain photos of the damage to all GOV(s) involved in the accident.

-   Complete CA-1 Federal Employees Notice of Traumatic Injury and Claim
    for Continuation of Pay and CA-16 Report for Examination or
    Treatment for injury to Federal employee(s) (individual Federal
    Agencies may require the use of additional forms).

**6.4.1.2 Accident Investigation and Analysis**

An independent accident investigator should investigate all accidents,
using the forms, reports, and other available information to document
the event and lay a foundation for further fact-finding, as necessary.
The accident documentation often plays an important role in claims for
compensation or in cases where litigation results. A properly documented
accident investigation may serve to support or refute such claims.
Reconstructing an accident situation long after the occurrence should be
possible due to accurate recording of details.

As discussed above, your analysis of accident investigation reports
should establish the cause of the accident so that you can identify
potentially corrective actions to prevent recurrence of similar
incident. For example, if the cause is identified as operator error, do
you need to strengthen your driver training program or offer the
training more frequently and require participation?

GSA prepares a nationwide Annual Accident Report for GSA Fleet assigned
vehicles. This report reflects accident frequency per million miles
driven for each using Agency. Developing a similar report for your fleet
operation may be of assistance in monitoring the accident experience of
using activities.

**6.4.1.3 Claims in Favor of the Government**

When facts indicate that a party other than the operator of the GSA
Fleet vehicle is at fault and that party can be reasonably identified,
the Agency responsible for investigating the accident shall submit all
original documents and data pertaining to the accident and its
investigation to the servicing FMC. The FMC Fleet Manager will initiate
the necessary action to effect recovery of the Government\'s claim.

**6.4.1.4 Claims against the Government**

When a GSA Fleet vehicle is involved in an accident resulting in damage
to the property of, or injury to, a third party, and the third party
asserts a claim against the Government based on the alleged negligence
of the vehicle operator (acting within the scope of his or her duties),
the Agency employing the vehicle operator is responsible for taking
steps to settle the claim administratively to the extent that Agency is
empowered to do so. If an administrative settlement proves unsuccessful,
the Agency is also responsible to take administrative steps to prepare
the Government's defense of the claim. The Agency General Counsel will
typically undertake these actions.

**6.4.1.5 Responsibility for Damages**

Except for the exclusions listed in § 101-39.406, the Agency employing
the vehicle operator shall be financially responsible for damage to a
GSA Fleet vehicle. If an Agency is held responsible for damages, GSA
will charge to that Agency all costs for removing and repairing the
vehicle. If the vehicle is damaged beyond economical repair, GSA will
charge all costs to that Agency, including fair market value of the
vehicle less any salvage value.

When contractors or subcontractors of using Agencies are in accidents
involving GSA Fleet vehicles, the Agency employing the contractor will
usually be billed directly for all costs associated with the accident.
The Agency is responsible for collecting accident costs from the
contractor should the contractor be at fault.

[]{#_Hlk116896856 .anchor}**[6.5 Hazardous Materials]{.underline}**

**[6.5.1 Employees\' Right to Know about Hazardous
Materials]{.underline}**

[]{#_Hlk116896891 .anchor}Fleet Managers must know the \"right-to-know\"
regulations of the Occupational Safety and Health Administration (OSHA).
Two classes of hazardous materials about which shop personnel have a
right to know are 1) health hazards (chemicals that may cause acute or
chronic ill-health in exposed employees) and 2) physical hazards
(chemicals that are combustible liquids, compressed gases, oxidizers,
pyrophorics, flammables, unstable materials or water-reactive
materials). Inform all employees who handle hazardous materials about
the potential risks involved with the substances.

Employees should know about a) the operations in their work area where
hazardous materials are used or stored, b) the location of the lists of
hazardous chemicals and Material Safety Data Sheets (MSDS), and c) safe
use and storage of hazardous materials. Particularly helpful is a hazard
communication package, which should include an explanation of the
organization\'s labeling system and the MSDSs supplied by the
manufacturers. The package should be available to all employees.

Safety information should be available in dressing rooms, near the time
clock, in the rest area and in the work area. Fleet Managers should
provide training to shop personnel in the methods and observations that
can be used to detect the presence or release of a hazardous chemical in
the work area and how to take measures to protect themselves from
hazardous substances through the use of protective gear, safe work
practices and emergency procedures.

**[6.5.2 The Fleet Manager\'s Responsibility]{.underline}**

[]{#hlk116896929 .anchor}Fleet Managers should enforce the use of
protective gear, assure adequate ventilation and provide washing
facilities. Fleet Managers should also forbid the storage of hazardous
substances in the work area, keep flammables separate from other
substances in a storage area conforming to fire code, never re-use
containers for the storage of other substances, make sure labels are not
removed from containers, provide airtight containers to store oily rags
and store small quantities of gasoline only in approved containers.

[]{#_Hlk116896985 .anchor}**Attachments**

[**Attachment 1: Communication**](#_Hlk116896998)

[**Attachment 2:**](#_Hlk116991677)

[**Primer on Primary Motor Vehicle Systems**](#_Hlk116991677)

[]{#_Hlk116896998 .anchor}**[Attachment 1: Communication]{.underline}**

**[The 8 Cs of Communication]{.underline}**

Eight key characteristics are the basis for successful communication by
management within an organization.

**1. Credibility**

Those with whom you are communicating must be willing to believe you.
Make too many mistakes or factual errors when trying to persuade or
inform management or drivers or peers, and they will eventually question
almost all you say. Policy and program recommendations will not receive
the support they deserve. Long-term competence and demonstrated
knowledge are essential to gaining confidence and credibility.

**2. Context**

Employees often criticize upper-level management for being in an "ivory
tower," for not understanding "how things are in the trenches." This
response to memos, policies, strategy statements, laws and regulations
generally develops when the communicators do not recognize the context
for their message. The environment and events relating to your
communication must confirm what you convey. The reality in which others
sit will shape their acceptance of your message, whether conveyed by
e-mail, memo, personal letter, cassette tape, video tape, DVD, video
conference, telephone, or in person.

**3. Content**

Managers are often convinced that what they have to say is important,
but the person to whom they are communicating may not see the point. The
response is often: "So what?"

No manager should assume that an "audience" is aware of the significance
or the importance of the message. A good rule is to explain why the
message is significant. Provide the background information that puts the
message into a context. This makes communication credible and
meaningful.

**4. Continuity, and 5. Consistency**

Too often, employers and managers prepare and rely on a single means of
communication, such as a policy document. They depend solely on this
medium to carry the communication load, and, as a consequence, they
spend considerable time dealing with crisis calls or poor data or other
signals of inadequate management.

A fundamental rule of communication is that you should pass messages
along through at least three channels to be effective. Rely on a single
communication effort and you will have a fairly low success rate.
Effective managers will recognize that communication must be continuous,
that messages require repetition to penetrate the minds of people who
are busy with their own work and priorities. Repetition (with variations
of course) contributes to understanding, retention, learning, and
acceptance. At the same time, the variations should keep the facts, the
story, consistent with each communication. If the facts change, your
credibility will deteriorate.

**6. Channels**

Communication in today's technological environment has the potential to
be more successful than at any previous time. This is because managers
have more avenues and media through which to communicate, ranging from
the written word to the spoken and visual modes of presentation. Written
communication can take place through e-mails or electronic libraries as
well as published employee handbooks. In addition to a fleet policy and
handbook, you can communicate driver safety through cassette tapes or
CDs being played while drivers are on the road. In a world in which VCRs
and DVD players are common, video tapes or DVDs can become part of a
communication program. The main caution is to understand that some
communication channels are more effective than others and that different
channels affect audiences in different ways. A video of a talking head
may be ignored or jeered rather than respected or listened to.

**7. Capability (of the audience)**

The complexity of the language used to communicate is important to the
success or failure of the communication effort, particularly when the
message is written. Managers should measure word choice (which sets tone
and largely determines a receiver's ability to comprehend), sentence
structure, and organization of the information against the capability of
the intended audience. Simply put, managers should not use the same
diction when communicating with senior management that they use when
addressing the work force. Beyond this, managers should understand
several basic truths about message-receivers on all levels:

a.  They do not like to be bored.

b.  They perceive themselves as busy people; they will not tolerate
    having their time wasted.

c.  They like order and hate chaos; they need to be able to sense where
    the communicator is going.

And, regarding written communication efforts:

d.  Many readers are reluctant to read; they would rather be watching
    television or playing tennis or even sleeping then reading.

The point is that good managers will shape their message according to
the character of the audience.

**8. Clarity**

If a message is not clear, it will not be understood, and the effort to
communicate will fail, so put the message in simple terms. Remember that
the words must mean nearly the same thing to all involved. (Words never
mean "precisely" the same thing to everyone in an audience, and that
includes a room of high-level decision-makers.) Present complex issues
with simplicity and clarity. A biblical question makes the point in
strong King James language: "Except ye utter by the tongue words easy to
be understood, how shall it be known what is spoken? For ye shall speak
into the air" (1 Corinthians 14:19). Perhaps this is where the phrase
"hot air" comes from?

**[The 8 Rules of Writing]{.underline}**

When writing, keep the following rules for achieving clarity in mind:

**1. Use active, direct verbs.**

Don't rely on nouns for verbal force. An editorial technique to improve
this aspect of writing is to circle all uses of the verb "to be" (is,
am, are, was, were, etc.), then look for more active and descriptive
words nearby that can take the place of those you have identified.

**2. Prefer the active to the passive voice.**

An editorial technique to improve this aspect of writing is to ask: "Who
is kicking whom?" That is, determine the "actor" in a sentence and then
state the action in a simple, active verb. For example, "All expenses
incurred by drivers will be reimbursed by the Agency within 15 days
after expense reports have been submitted" can be more effectively
stated as: "Within 15 days after drivers submit their expense reports,
the Agency will reimburse them for their expenses."

**3. Prefer the concrete to the abstract.**

The more decentralized the organization, the more abstract policy tends
to be. Choosing the language to set policy within certain boundaries can
be difficult under such a circumstance. Nevertheless, Fleet Managers
must select words and shape phrases that are not vague. In many
instances, mentally picturing process actions and writing to describe
those actions results in more precise, more concrete statements.

**4. Prefer the personal to the impersonal.**

Refer to your audience when speaking or writing to them. For example,
"Expense reports must be completed and submitted to the Finance
Department" can be more effectively stated as: "Drivers must complete
and submit their expense reports to the Finance Department." (Note:
Policies sometimes state that "Drivers must turn their expense report
into the Finance Department." This typical, ungrammatical use of
language suggests that drivers have magical powers.)

**5. Prefer the shorter version to the longer.**

Make your point and move on.

**6. Use variety.**

Mix sentence lengths and sentence structures. To vary your sentence
patterns, consider starting with an infinitive phrase, as this sentence
does, or open with a prepositional phrase -- in the future, after
completing the form, before signing the release.

**7. Avoid --ility and --ize and --tion and --ment if possible.**

Words with these endings usually replace an active verb. For example,
"Utilization of the credit card will facilitate the transaction" can be
translated into "Use the credit card to avoid problems." In general,
steer clear of the word "utilize," which is vastly overused in place of
the word "use." Keep in mind that "utilize" means "used to the fullest
extent possible," so "fleet utilization" is an appropriate use of the
word.

**8. Avoid starting many sentences with "It was" and "There were."**

Consider repackaging a sentence such as "There are five forms that must
be utilized by drivers if reimbursement is to be received," to look
like: "Drivers must fill out five forms to receive reimbursement." As a
test, go through something you recently wrote and circle every time you
started a sentence with either phrase, then go through this complete
*Guide* and circle every time we started a sentence with either phrase.

In short,

-   Use effective language

-   Stop mumbling when you write

-   Do not be ambiguous

-   Be accurate

-   Be clear

-   Be vivid

-   Be concise

Avoid the "dirty dozen" faults of writing:

1.  Too many words

2.  Vagueness

3.  Jargon and technical words

4.  Overuse of big words

5.  Trite expressions

6.  Omitting an explanation of an abbreviation

7.  Talking down to readers

8.  Thoughts and ideas expressed negatively

9.  Addressing readers inappropriately

10. Too self-centered

11. Inadequate attention to detail

12. Overdoing messages

[]{#_Hlk116991677 .anchor}**[Attachment 2:]{.underline}**

**[Primer on Primary Motor Vehicle Systems]{.underline}**

**[1.0 Vehicle Systems]{.underline}**

Segment a vehicle into its parts and everyone can improve his or her
knowledge and understanding of automotive technology. Federal Fleet
Managers and other Federal employees involved in maintaining the Federal
Fleet should understand the characteristics of the assets they manage.

The primary systems to be maintained in a motor vehicle are:

-   Engine

-   Fuel

-   Electrical, including ignition, charging, starting

-   Cooling

-   Lubrication

-   Drive Train

-   Running Gear

-   Emission Control

Federal Fleet Managers should understand the purpose and basic operation
of each of these systems.

**[2.0 Engine System]{.underline}**

The engine is the heart of the vehicle. It converts fuel into the energy
that powers the vehicle. More precisely, the internal combustion engine
burns fuel within the cylinders and converts the expanding force of the
combustion or \"explosion\" into rotary force used to propel the
vehicle.

To operate a conventional gasoline or diesel engine requires clean air
for the fuel, water for cooling, electricity (which it generates) for
igniting the fuel, oil for lubrication and the fuel itself. A battery
and electric starter get it going!

+-----------------------------------------------------------------------+
| **[Routine Preventative Maintenance for the Engine                    |
| System]{.underline}**                                                 |
|                                                                       |
| **Shop**                                                              |
|                                                                       |
| -   Change the oil and the oil filter per the manufacturer\'s         |
|     recommendations and at mileage and time intervals appropriate to  |
|     driving conditions.                                               |
|                                                                       |
| -   Inspect drive belts; replace belts with damage or wear.           |
|                                                                       |
| **Operator**                                                          |
|                                                                       |
| -   Use only the fuel recommended by the manufacturer.                |
|                                                                       |
| -   Conduct pre-trip inspection for leaks.                            |
+-----------------------------------------------------------------------+

**[2.1 Engine Basics]{.underline}**

In a conventional gasoline or diesel engine, the pistons are housed in
cylinders that, in turn, are housed in the engine (or cylinder) block,
which forms the main body of the engine. The cylinder head sits on top
of the cylinder block and contains all or most of the combustion chamber
where the air/fuel mixture is burned between the cylinder head and the
piston. The pressure of the expanding gases from burning the air/fuel
mixture forces the piston down and rotates the crankshaft in the
crankcase. The crankshaft converts linear motion (i.e. the downward
thrust of the piston) into a rotating motion, which, in turn, is used to
drive the vehicle.

A series of valves, called a valve train, opens and closes intake and
exhaust ports that move air and fuel into and out of the cylinders. A
camshaft controls the movement of the valves and rotates once for every
two rotations of the crankshaft. An intake manifold delivers a mixture
of air and fuel to the intake ports and an exhaust manifold carries away
the exhaust from the exhaust ports.

+----------------------+-----------------------+-----------------------+
| **Engine             |                       |                       |
| Classifications**    |                       |                       |
+======================+=======================+=======================+
| **Classification**   | **Description**       | **Types**             |
+----------------------+-----------------------+-----------------------+
| **Combustion         | How the engine uses   | Internal combustion,  |
| Method**             | fuel to power the     | 4-stroke cycle,       |
|                      | engine                | piston, rotary,       |
|                      |                       | alternative fuel      |
|                      |                       | vehicle               |
+----------------------+-----------------------+-----------------------+
| **Cylinder           | Position of cylinders | In-Line: Cylinders    |
| Arrangement**        | in relation to        | lined up in single    |
|                      | crankshaft            | row with each         |
|                      |                       | cylinder lined up in  |
|                      |                       | a straight line       |
|                      |                       | parallel to the       |
|                      |                       | crankshaft            |
|                      |                       |                       |
|                      |                       | V-Type: Viewed from   |
|                      |                       | either end, a V-Type  |
|                      |                       | engine looks like the |
|                      |                       | letter \"V\" with two |
|                      |                       | banks of cylinders    |
|                      |                       | positioned at an      |
|                      |                       | angle to each other   |
|                      |                       |                       |
|                      |                       | Slant: One bank of    |
|                      |                       | cylinders angled or   |
|                      |                       | leaning to one side   |
|                      |                       |                       |
|                      |                       | Opposed: Cylinders    |
|                      |                       | lie flat on either    |
|                      |                       | side of the           |
|                      |                       | crankshaft            |
+----------------------+-----------------------+-----------------------+
| **Number of          | Number of cylinders   | 4, 6 or 8 is common   |
| Cylinders**          | in the engine block:  |                       |
|                      | all cylinders are     | 3, 5,10, 12 or 16 are |
|                      | numbered in Service   | found                 |
|                      | Manuals and the       |                       |
|                      | cylinders have a      | Firing order          |
|                      | firing order          | important when        |
|                      |                       | servicing ignition,   |
|                      |                       | spark plug wires,     |
|                      |                       | distributor or        |
|                      |                       | tune-ups              |
+----------------------+-----------------------+-----------------------+
| **Cooling System     | The method of cooling | Liquid: surrounds     |
| Type**               | the cylinders and the | cylinders with        |
|                      | engine during         | coolant (common in    |
|                      | operation to prevent  | automobiles)          |
|                      | engine damage         |                       |
|                      |                       | Air: Circulates air   |
|                      |                       | over fins (common in  |
|                      |                       | motorcycles)          |
+----------------------+-----------------------+-----------------------+
| **Valve Location**   | Relationship of       | L-Head or Flat Head:  |
|                      | valves to other       | no longer used in     |
|                      | engine components     | motor vehicles        |
|                      |                       |                       |
|                      |                       | I-Head or Over Head   |
|                      |                       | Valve (OHV): both     |
|                      |                       | valves are in the     |
|                      |                       | cylinder head         |
+----------------------+-----------------------+-----------------------+
| **Camshaft           | Relationship of       | Cam-in-Block:         |
| Location**           | camshaft to other     | camshaft is located   |
|                      | engine components     | in the engine block   |
|                      |                       |                       |
|                      |                       | Overhead Cam (OHC):   |
|                      |                       | camshaft is located   |
|                      |                       | in the top of the     |
|                      |                       | cylinder head;        |
|                      |                       | commonly found in     |
|                      |                       | small, economy-car    |
|                      |                       | engines               |
|                      |                       |                       |
|                      |                       | Single Overhead Cam   |
|                      |                       | (SOHC): has only one  |
|                      |                       | camshaft per cylinder |
|                      |                       | head                  |
|                      |                       |                       |
|                      |                       | Dual Overhead Cam     |
|                      |                       | (DOHC): two camshafts |
|                      |                       | per cylinder head     |
|                      |                       | with one operating    |
|                      |                       | the intake valves and |
|                      |                       | one the exhaust       |
|                      |                       | valves                |
|                      |                       |                       |
|                      |                       | Pancake               |
|                      |                       |                       |
|                      |                       | Wedge                 |
|                      |                       |                       |
|                      |                       | Hemispherical         |
+----------------------+-----------------------+-----------------------+
| **Combustion Chamber | Shape of the          | Swirl                 |
| Design**             | combustion chamber    |                       |
|                      |                       | Four-Valve            |
|                      |                       |                       |
|                      |                       | Three- Valve          |
|                      |                       |                       |
|                      |                       | Stratified Charge     |
|                      |                       |                       |
|                      |                       | Air Jet               |
|                      |                       |                       |
|                      |                       | Precombustion         |
+----------------------+-----------------------+-----------------------+
| **Type of Fuel       | Fuel to powers the    | Gasoline, diesel or   |
| Burned**             | engine                | alternative fuel      |
+----------------------+-----------------------+-----------------------+
| **Type of Ignition** | How the fuel is       | Spark ignition        |
|                      | ignited in the engine |                       |
|                      |                       | Compression ignition  |
+----------------------+-----------------------+-----------------------+

**[2.2 Engine Power and Efficiency]{.underline}**

Engines are rated by their horsepower. Horsepower, or hp, is a unit of
power for measuring the rate at which a device can perform mechanical
work. One horsepower is defined as the amount of power needed to lift
33,000 pounds one foot in one minute. Engines may also be rated by their
torque (turning force at the engine\'s crankshaft) and is expressed in
ft. lbs. of torque at a specific revolution per minute.

Two important factors affect the power and efficiency of an engine --
compression ratio and detonation (abnormal combustion). The higher the
compression ratio of an engine, the greater the power output and
efficiency of that engine. The better the efficiency, the less fuel
consumed to produce a given power output. A high compression ratio also
indicates an engine of greater structural integrity.

When detonation occurs, a premature self-ignition of a pocket of
air/fuel mixture occurs in the combustion chamber and a hammering,
pinging or knocking sound results. The absence of detonation sounds in
an engine is therefore desirable because the sounds would signal the
possibility of physical damage to the engine.

**[2.3 Engine Size]{.underline}**

> Engine size is determined by cylinder diameter, amount of piston
> travel per stroke and the number of cylinders. Engine size information
> is often used in vehicle specifications and in parts ordering.

**[3.0 Fuel System]{.underline}**

A motor vehicle burns fuel as a source of energy. Petroleum, also called
crude oil, comes directly from the earth. Most commonly it must be
found, drilled for, pumped and distilled into LP-gas, gasoline,
kerosene, fuel oil and lubricating oils.

Motor vehicles today use unleaded gasoline, also called no-lead or
lead-free, to meet emission control laws, regulations and standards.
Using leaded gasoline in a motor vehicle requiring unleaded gasoline
will lead to damage to the catalytic converter. Octane ratings provide
the antiknock ability of gasoline. Vehicle manufacturers recommend the
octane number ratings for their engines.

Diesel fuel or diesel oil contains more heat energy than gasoline.
Diesel fuel can produce more cylinder pressure and vehicle movement than
an equal amount of gasoline. The American Society for Testing Materials
(ASTM) has set diesel fuel grades to assure that diesel fuel sold across
the country has uniform standards of service. There are three grades:
Number 1 Diesel, Number 2 Diesel and Number 4 Diesel. Numbers 1 and 2
diesels are sometimes blended to improve starting in cold weather.
Cetane ratings denote the ignition quality of the diesel fuel.

Federal Fleet Managers deal with a growing number of fuel systems
besides petroleum-based gasoline and diesel because of the requirements
in law and regulation to acquire alternative fuel vehicles (AFVs) and to
reduce the petroleum consumption of the Federal Fleet.

The components of a gasoline fuel system are fuel tanks, fuel lines,
fuel filters and fuel pumps. Alternative fuel vehicles may have similar
as well as different components specifically suited to the type of fuel
used.

Fuel systems store the fuel for later use, collect and clean the outside
air, deliver fuel to a device that controls the amount of fuel going to
the engine, break down the fuel into droplets and mixes the fuel with
outside air to form a vapor, and changes the fuel and air mixtures to
meet the needs of the engine during varying operating conditions.

**[4.0 Electrical Systems]{.underline}**

The four electrical systems in the typical motor vehicle are:

1.  Ignition system

2.  Starting system

3.  Charging system

4.  Electrical/Electronic control system

Routine preventative maintenance for the electrical system includes:
inspect battery, battery cables, battery tray and battery hold-down
fixtures for corrosion, damage and dirt; clean or replace as required.

**[4.1 Ignition System]{.underline}**

A gasoline engine uses an electrical spark to ignite the fuel/air
mixture in the cylinder. The ignition system generates this spark. The
ignition coil transforms the low voltage of the battery into a voltage
burst which ignites the fuel/air mixture at the proper time when the
piston is in the proper position in the cylinder so that combustion
occurs. The voltage burst must be distributed to the correct cylinder
because only one cylinder is fired at a time. In the past, the
distributor performed this job. Today, it is handled by several coils
for each pair of spark plugs.

In most engines, the motion of the piston and the rotation of the
crankshaft are monitored by a crankshaft position sensor which relays
information on the position of the crankshaft to an ignition control
module. Based on input from the crankshaft position sensor, as well as
the engine control computer, the ignition control module turns the
battery current on and off at just the right time so that the voltage
surge arrives at the cylinder at the correct moment.

**[4.2 Starting and Charging Systems]{.underline}**

The starting system is responsible for getting the engine started. When
you turn the ignition key to the start position, a small amount of
current flows from the battery to a solenoid or relay which allows full
battery power to reach the starter motor. The starter motor rotates the
flywheel located on the rear of the crankshaft. As the crankshaft turns,
the pistons in the cylinders move. At the correct time for each
cylinder, the ignition system provides the spark to ignite the fuel/air
mixture. If good combustion occurs, the engine will now rotate on its
own without the starter motor and the ignition key returns to the on
position.

The electrical power for the engine and the rest of the motor vehicle
comes from the battery. Starting takes a lot of electricity from the
battery. The charging system recharges the battery and provides
electrical power for the ignition system, air conditioner, heater,
lights, radio and all electrical accessories while the engine is
running.

The charging system includes the alternator, voltage regulator,
indicator light and wiring. Rotated by the crankshaft of the engine
through a drive belt, the alternator turns mechanical energy into
electrical energy. When the electrical current from the charging system
flows back to the battery, the battery is recharged.

**[4.3 Electrical/Electronic Control System]{.underline}**

Nearly all vehicles now have an electronic engine control system which
continuously monitors the operation of the engine and makes adjustments
to improve engine efficiency. The electronic engine control system
improves fuel mileage, engine performance and drivability, and reduces
emissions. Electronic engine control systems consist of input sensors, a
microprocessor or computer and output devices. Having so few moving
parts, these systems maintain calibration indefinitely.

+-----------------------------------------------------------------------+
| **[Routine Preventative Maintenance for the Electrical                |
| System]{.underline}**                                                 |
|                                                                       |
| **Shop**                                                              |
|                                                                       |
| -   Inspect battery, battery cables, battery tray and battery         |
|     hold-down fixtures for corrosion, damage and dirt; clean or       |
|     replace as required.                                              |
+-----------------------------------------------------------------------+

**[5.0 Cooling System]{.underline}**

The burning of the air/fuel mixture in the combustion chambers of the
engine produces tremendous heat, which must be reduced to avoid damage
to the engine. The cooling system circulates a liquid coolant through
passages in the block and cylinder head. A typical cooling system relies
on a water pump to circulate the coolant. The heat picked up by the
coolant is sent to the radiator, which transfers the heat to the outside
air. To help remove heat from the coolant, a cooling fan is used to pull
cool air in through the radiator fins. Hoses connect the system and keep
it sealed.

+-----------------------------------------------------------------------+
| **[Routine Preventative Maintenance for the Cooling                   |
| System]{.underline}**                                                 |
|                                                                       |
| **Shop**                                                              |
|                                                                       |
| -   Check the level of the coolant in the recovery tank               |
|                                                                       |
| -   Visually inspect all hoses in the cooling system for swelling or  |
|     signs of leakage                                                  |
|                                                                       |
| **Operator**                                                          |
|                                                                       |
| -   Check the level of the coolant in the recovery tank               |
|                                                                       |
| -   Squeeze or feel for hose fabric deterioration                     |
|                                                                       |
| -   Conduct pre-trip inspection for leaks                             |
+-----------------------------------------------------------------------+

**[6.0 Lubrication System]{.underline}**

The moving parts of an engine need constant lubrication. Oil is the
fluid used to lubricate the engine. Regular replacement of the oil and
oil filter is crucial. The oil pan (or crankcase or oil sump), bolted to
the bottom of the engine block, stores several quarts of oil. When the
engine is running, an oil pump draws oil from the pan and forces it
through the oil filter before moving it through the engine. The filter
removes dirt and metal particles from the oil, which, if not removed,
can result in premature, wear and damage to the engine.

+-----------------------------------------------------------------------+
| **[Routine Preventative Maintenance for the Lubrication               |
| System]{.underline}**                                                 |
|                                                                       |
| **Shop**                                                              |
|                                                                       |
| -   Change the oil and the oil filter per the manufacturer\'s         |
|     recommendations and at mileage and time intervals appropriate to  |
|     driving conditions                                                |
|                                                                       |
| **Operator**                                                          |
|                                                                       |
| -   Check oil level at each refueling                                 |
|                                                                       |
| -   Pre-trip inspection for leaks                                     |
+-----------------------------------------------------------------------+

**[7.0 Drive Train System]{.underline}**

The drive train is made up of all components that transfer power from
the engine to the driving wheels of the vehicle. The exact components
used in a vehicle\'s drive train depend upon whether it is equipped with
front-wheel drive (FWD), rear-wheel drive (RWD) or four wheel drive
(4WD)/all-wheel-drive (AWD).

Today, most passenger automobiles are front-wheel drive. Power-flow in a
front-wheel drive vehicle passes through the clutch or torque converter,
through the front differential, the driving axles and onto the front
wheels.

Most pickup trucks, mini-vans and utility vehicles are rear-wheel drive.
Power flow in rear-wheel drive vehicles is through the clutch or torque
converter, manual or automatic transmission, the driveline (drive shaft
assembly), through the rear differential, the rear driving axle and onto
the rear wheels.

Four wheel drive/all-wheel-drive vehicles combine systems features of
both front-wheel drive and rear-wheel drive so that power can be
delivered to both front and rear wheels on a permanent or on-demand
basis.

**[7.1 Rear-Wheel Drive Transmissions]{.underline}**

> There are two types of transmission used in rear-wheel drive vehicles:
> manual or automatic.
>
> The driver manually selects the gear in a manual transmission. A
> typical manual transmission has four or five forward gears and neutral
> and reverse. When starting, stopping or shifting from one gear to the
> next, the driver depresses the clutch pedal to disengage it so as not
> to damage the transmission. Allowing the clutch pedal to come up
> re-engages the clutch and allows power to flow from the engine to the
> transmission.
>
> An automatic transmission does not need a clutch pedal and shifts
> through the forward gears without driver intervention. It uses a
> torque converter to transfer power from the engine\'s flywheel to the
> transmission input shaft. Shifting is controlled by an hydraulic
> and/or electronic control system.
>
> Drivelines connect the output shaft of the transmission to the gearing
> in the rear axle housing on RWD vehicles and to the front and rear
> axles on a 4WD vehicle. On RWD vehicles, power flows into the
> differential where it changes direction, the torque is multiplied,
> divided between left and right driving axles and then power flows to
> the rear axles and wheels.
>
> **[7.2 Forward-Wheel Drive Transaxles]{.underline}**
>
> A transaxle is used on forward-wheel drive vehicles. The transaxle
> houses the transmission and differential in a single unit. The drive
> axles extend from the sides of the transaxle. The gear sets in the
> transaxle provide the required gears and direct the power flow to the
> differential. The differential provides the final gear reduction and
> splits the power flow between the left and right drive axles.
>
> **[7.3 Four-Wheel Drive and All-Wheel Drive Systems]{.underline}**
>
> Four-wheel drive and all-wheel drive systems combine the features of
> rear-wheel drive transmissions and front-wheel drive transaxles. A
> transfer case splits the power flow between a differential driving the
> front wheels and a rear differential driving the rear wheels.

+-----------------------------------------------------------------------+
| **[Routine Preventative Maintenance for the Drive Train               |
| System]{.underline}**                                                 |
|                                                                       |
| **Shop**                                                              |
|                                                                       |
| -   For vehicles with automatic transmissions, check the level of the |
|     transmission fluid                                                |
+-----------------------------------------------------------------------+

**[8.0 Running Gear]{.underline}**

The running gear of a vehicle includes the suspension, steering, brakes,
wheels and tires.

**[8.1 Suspension System]{.underline}**

The suspension system includes springs, shock absorbers, struts, torsion
bars, axles and connecting linkages. These components are designed to
support the body and frame, the engine and the drivelines.

**[8.2 Steering System]{.underline}**

The driver controls the direction of the vehicle with the steering
system. Passenger automobiles commonly use rack-and-pinion steering.
Pickup trucks, utility vehicles and luxury automobiles use recirculating
ball systems.

Steering gears provide a gear reduction to make changing the direction
of the wheel easier and on most vehicles the steering gear is
power-assisted to ease the effort of turning the wheels.

**[8.3 Braking System]{.underline}**

Brakes are located at each wheel and use friction to slow and stop the
vehicle. A master cylinder, brake hoses and lines move hydraulic fluid
to the brake assembly on each wheel. Two types of brakes are used --
disc brakes and drum brakes. Many vehicles use a combination of the two;
i.e., disc brakes for the front wheels and drum brakes for the rear
wheels or disc brakes for all four wheels. Today, most vehicles also
have antilock braking systems to reduce skidding.

**[8.4 Wheels and Tires]{.underline}**

Wheels are bolted to the axles or spindles and hold the tires in place.
Tires are made or rubber and other materials to give them strength and
are mounted on the wheels. Wheels and tires come in many sizes and must
be matched to each other and to the vehicle.

+-----------------------------------------------------------------------+
| **[Routine Preventative Maintenance for the Running                   |
| Gear]{.underline}**                                                   |
|                                                                       |
| **Shop**                                                              |
|                                                                       |
| -   Check the level of the power steering fluid; replace as required  |
|                                                                       |
| -   Check the level of the brake fluid; replace as required           |
|                                                                       |
| -   Check tires for damage or wear; repair or replace as required     |
|                                                                       |
| -   Check tire pressure in all four wheels and spare                  |
|                                                                       |
| -   Check for loose wheel lug nuts                                    |
|                                                                       |
| **Operator**                                                          |
|                                                                       |
| -   Check tires for damage or wear                                    |
|                                                                       |
| -   Look for underinflated tires                                      |
|                                                                       |
| -   Check tire pressure in all four wheels and spare                  |
|                                                                       |
| -   Check for loose wheel lug nuts                                    |
|                                                                       |
| -   Check operation of brake lights, turn signals and hazard warning  |
|     flashers                                                          |
|                                                                       |
| -   Check windshield wiper spray and wiper operation                  |
+-----------------------------------------------------------------------+

**[9.0 Emission Control/Exhaust System]{.underline}**

**[9.1 Emission Control]{.underline}**

Emission control systems on motor vehicles are necessary to meet the
requirements of law, regulation and policy intended to reduce air
pollution. The Environmental Protection Agency (EPA) establishes the
standards that limit the amount of hydrocarbons, carbon monoxide and
oxides of nitrogen a vehicle can emit.

**[Pollution and emission control devices include]{.underline}**

-   Positive crankcase ventilation systems (PCV)

-   Evaporative emission control systems

-   Exhaust gas recirculation systems (EGR)

-   Catalytic converters

-   Air injection systems.

**[9.2 Exhaust System]{.underline}**

A typical exhaust system consists of these components:

-   Exhaust manifold and gasket

-   Exhaust pipe, seal and connector pipe

-   Intermediate pipes

-   Catalytic converter(s)

-   Muffler

-   Resonator

-   Tailpipe

-   Heat shields

-   Clamps, gaskets and hangers.

+-----------------------------------------------------------------------+
| **[Routine Preventative Maintenance for the Emission Control/Exhaust  |
| System]{.underline}**                                                 |
|                                                                       |
| **Shop**                                                              |
|                                                                       |
| -   Check the muffler, exhaust pipes and clamps                       |
|                                                                       |
| **Operator**                                                          |
|                                                                       |
| -   Do not authorize any emission control system to be disabled       |
+-----------------------------------------------------------------------+