Federal Fleets: Overall Increase in Number of Vehicles Masks That Some Agencies Decreased Their Fleets
Published: 2012-08-02T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: The federal fleets consist of about 449,000 civilian and non-tactical military (i.e., non-combat) cars, trucks, and other vehicles, excluding postal vehicles. Various legislation and policies have been aimed at reducing the size and changing the composition of federal fleets as a means of improving U.S. energy efficiency. Most recently, in May 2011, the President issued a memorandum calling for federal agencies to reduce oil imports by determining the optimal size of their fleets and eliminating non-essential vehicles.
GAO was asked to provide information about any change in the size and composition of federal fleets and the reasons agencies fleets increased or decreased over time. GAO analyzed agency fleet data compiled by the General Services Administration (GSA) to identify changes in fleet size and vehicle type from fiscal years 2005 to 2011. GAO selected four agenciesUSDA, Interior, VA, and the U.S. Air Forceto discuss with officials the reasons for changes in fleet size. GAO based its selection on factors such as agency mission, fleet size, and changes in the number of vehicles. GAO did not include U.S. Postal Service in its analysis because of GAOs recent report on Postal Services delivery fleet.
GAO is not making recommendations in this report. Although Air Force, USDA, and Interior did not comment on a draft of this report, GSA and VA generally agreed with GAOs findings and provided technical comments that were incorporated as appropriate.
section_title: What GAO Found
paragraphs: Since fiscal year 2005, the number of federal non-postal civilian and non-tactical military vehicles has increased about 7 percent, from about 420,000 to 449,000 vehicles. However, from fiscal year 2005 to 2011, some agencies decreased their fleets, and the change in fleet size from agency to agency varied considerably. For example, one-third of the agencies (8 of 24) with the largest number of vehicles decreased their fleets by at least 2 percent during this period. Of the 4 agencies GAO selected for review, the Departments of Agriculture (USDA) and Veterans Affairs (VA) increased their fleets 5 and 49 percent, respectively since fiscal year 2005; the U.S. Air Force and Department of the Interior (Interior) decreased their fleets 7 and 9 percent, respectively. Overall, federal agencies increased the portion of their fleets made up of alternative fuel vehicles (e.g., vehicles that operate using ethanol or batteries) from about 14 percent to 33 percent from fiscal years 2005 to 2011. In addition, GAO found that 8 agencies accounted for almost 80 percent of total federal vehicles in fiscal year 2011, while 35 other agencies held the remaining vehicles.
Fleet managers at the four selected agencies stated that various factors can influence changes in fleet size. USDA and VA reportedly acquired more vehicles from fiscal years 2005 to 2011 to accommodate expanded programs and services, among other factors. For example, VA acquired 5,367 additional vehicles in part to provide transportation to and from VA health care facilities for veterans who require health care services but are not able to drive themselves. In contrast, the Air Force and Interior reportedly decreased the number of vehicles in part through efforts targeted at reducing their fleets and costs. For example, through efforts to identify under-utilized vehicles, Interior eliminated 451 vehicles.

section_title: Letter
paragraphs: The federal fleets consist of about 449,000 civilian and non-tactical  military (i.e., non-combat) cars, trucks, and other vehicles, excluding  postal service vehicles. Federal policy makers have initiated a variety of  efforts aimed at reducing the size of or changing the composition of  federal fleets as a means of increasing U.S. energy efficiency. For  example, the Energy Policy Act of 1992 requires that 75 percent of all  light duty vehicles (e.g., sedans and light trucks) acquired for federal  fleets be alternative fuel vehicles. In 2002, the Office of Management  and Budget sent a memorandum to the heads of executive branch  agencies encouraging them to examine the size of their vehicle fleets and  requiring agencies to report the size, composition, and cost of their fleets  as part of their budget submission process. Most recently, in May 2011,  the President issued a memorandum on federal fleets’ performance  calling on agencies to lead the way in meeting the goal of reducing oil  imports by, among other activities, determining the optimum size of their  fleets and eliminating non-essential vehicles. At the same time, recent  legislative proposals have called for reductions to agencies’ fleets.
Given these policy priorities, you asked us to provide a range of  information about federal fleets, including the reasons vehicle inventory  may increase or decrease over time. In this report, we address (1) the  extent to which the size of federal agencies’ fleets changed since 2005, if  at all, and (2) the primary reasons that the size of selected agencies’  fleets changed over this period. You also asked about the General  Services Administration’s (GSA) role in helping agencies manage their  vehicle fleets. GSA’s responsibilities include acquiring and in some cases  disposing of vehicles for agencies and producing an annual report about  fleet inventory size and fuel consumption as reported by federal agencies.  We found that GSA has provided services to assist agencies in managing  their fleets, including developing guidance to help determine vehicle  needs and creating tools to help agencies track vehicles. According to  GSA officials, it has the authority to promulgate regulations and issue  guidance to agencies related to fleet management, but it lacks  enforcement authority. We provide more complete information about the  role GSA plays with respect to helping agencies mange their fleets in  appendix I. We plan to address other aspects of your request in  subsequent work, including federal agencies’ responses to the  presidential memorandum and GSA’s evaluation of these efforts.
To identify changes in fleet size and composition, by ownership and  vehicle categories, we obtained and analyzed GSA’s federal fleet reports  from 2005 to 2011 for 64 entities (58 civilian agencies and 6 military  agencies). GSA prepares the federal fleet reports based on data provided  annually by federal agencies through its Web-based Federal Automotive  Statistical Tool (FAST), which GSA and the Department of Energy  established in 2000. To determine whether the federal fleet report data  were of sufficient reliability for our analysis, we reviewed the program- reporting documentation and quality assurance tests, and discussed the  various data elements with knowledgeable agency officials. We learned  that the process for reporting data is mainly dependent on the reporting  agency. We further learned, based on discussions with GSA and other  selected agency officials, that the data reported in more recent years  were of better quality than the data provided earlier. To ensure  consistency and accuracy in our analysis, we limited our data analysis to  2005 to 2011 and eliminated 21 civilian agencies from our analysis  because of missing data, consolidation, or removal from the FAST system  in later years. As a result of our review and discussions, we determined  that the data included in our analysis were sufficiently reliable for the  purpose of describing fleet sizes and composition of the 43 agencies for  fiscal years 2005 to 2011. We did not include the U.S. Postal Service  (Postal Service) in our analysis because we recently reported on its  delivery fleet.
To identify reasons for changes in fleets, we selected 4 agencies—3  civilian (Departments of Agriculture, the Interior, and Veterans Affairs)  and 1 military (U.S. Air Force)—for case studies. These agencies’  vehicles made up about 32 percent of the federal vehicles included in our  analysis. We based our selection on various factors and criteria, including  agency mission, fleet size, and changes in fleet over time. Specifically, we  identified civilian and military agencies with different missions and greater  than 3,000 vehicles in 2011 and then determined whether their fleets  increased or decreased from fiscal years 2005 to 2011. We selected two  agencies that increased the number of vehicles and two that decreased  the number of vehicles over the time frame of our review. We reviewed  agencies’ documents and data, and spoke with agencies’ fleet managers  and other officials. We also reviewed GSA regulations and policies  regarding its authority and responsibilities related to tracking the fleet  inventory, issuing guidance, and acquiring and disposing of vehicles.
We conducted this performance audit from October 2011 to August 2012  in accordance with generally accepted government-auditing standards.  Those standards require that we plan and perform the audit to obtain  sufficient, appropriate evidence to provide a reasonable basis for our  findings and conclusions based on our audit objectives. We believe the  evidence obtained provides a reasonable basis for our findings and  conclusions based on our audit objectives.
subsections: section_title: Background
paragraphs: Although commonly used, the term “federal fleet” is a misnomer because  there is no single entity that is responsible for all of the almost 660,000  civilian, Postal Service, and non-tactical military vehicles (about 449,000  excluding Postal Service vehicles) owned and leased by federal  agencies. Instead, each federal executive agency is responsible for its  own fleet. Furthermore, although some federal agencies may have a  single, centralized fleet of vehicles, others’ fleets are decentralized and  dispersed among multiple sub-agencies, bureaus, or divisions. In fact, the  fleets at all of our four selected agencies consist of smaller fleets of  vehicles that belong to various bureaus and divisions. (See table 1 for  breakdown of fleets at selected agencies.)
Federal departments, agencies, and their contractors use vehicles— specifically non-tactical vehicles such as passenger cars, trucks (light,  medium, and heavy), and special purpose vehicles (e.g., ambulances and  buses)—to carry out their different missions. (See table 2.) For example,  the National Park Service uses trucks to transport personnel and  equipment to fight fires and the Veterans Health Administration uses  passenger cars to transport veterans to and from Department of Veterans  Affairs (VA) health care facilities to receive medical services. Agencies’  vehicles are often widely dispersed across the country and, in some  cases, throughout the world. For example, the Air Force operates  vehicles on bases in Europe and Asia, while VA’s fleet is spread across  medical centers, national cemeteries, and other locations throughout the  country.
Federal agencies and GSA have distinct responsibilities regarding federal  fleets. Federal agencies are responsible for operating a fleet that enables  them to fulfill their mission and meet federal energy and fuel efficiency  requirements. Specifically, federal agencies are responsible for acquiring,  maintaining, and managing their vehicles. GSA’s role is to develop  guidance to help agencies manage their fleets, help agencies procure  affordable vehicles, and provide reports on the federal fleet. In particular,  GSA establishes policies and issues guidance to help agencies manage  their fleets effectively and meet other federal requirements. GSA  manages both the vehicle-purchasing and vehicle-leasing programs,  thereby offering federal agencies an array of automotive products,  including alternative fuel vehicles, sedans, light trucks, buses, and heavy  trucks. In addition, GSA and the Department of Energy co-sponsor a  Web-based data- reporting portal, in which agencies annually report  information about the size and composition of vehicles, fuel consumption,  and vehicle mileage. (See app. I for additional information about  agencies’ and GSA’s roles and responsibilities.)
Federal laws, executive orders, and policy decisions have affected  agency fleet size and composition. (See table 3.) For example, various  statutes have been enacted requiring federal agencies to meet certain  energy goals by reducing petroleum consumption and acquiring  alternative fuel vehicles.
We have previously reported that in light of multiple and sometimes  conflicting statutes, fleet managers often lack the flexibility and tools to  meet the goal of reducing the federal fleets’ use of petroleum and its GHG  emissions.issued in a piecemeal fashion and represent a fragmented rather than an  integrated approach to meeting key national goals.
These statutes and executive orders were enacted and  In May 2011, the President issued a memorandum regarding federal  fleets’ performance directing all federal agencies to evaluate and report  on their fleets to meet 2015 alternative fuel vehicle goals. At the time of  our review, federal agencies were in the process of responding to the  presidential memorandum by completing their vehicle allocation  methodologies—a tool agencies are using to evaluate their fleets—and  GSA was preparing to evaluate their responses.
section_title: The Number of Federal Vehicles Has Increased since 2005 with Fleet Changes Varying by Agency
paragraphs: Since fiscal year 2005, the number of federal non-postal, non-tactical  vehicles has increased about 7 percent, from 420,382 to 449,444  vehicles.
The federal inventory of non-postal, non-tactical vehicles is dominated by  a few agencies. In fiscal year 2011, the fleets of 8 federal agencies made  up almost 80 percent of total federal vehicles, while 35 agencies made up  the remaining 21 percent (fig. 2).
In addition to the size of their fleets, federal agencies’ changed fleet  composition as well. Overall, federal agencies increased the proportion of  their fleets made up of alternative fuel vehicles (i.e., vehicles that operate  using an ethanol blended fuel, compressed natural gas, and batteries,  among others) as opposed to conventional fuel vehicles (i.e., vehicles  that operate on gasoline and diesel fuel) from about 14 percent to 33  percent from fiscal years 2005 to 2011. (See fig. 3.) The increase in the  proportion of alternative fuel vehicles should not be surprising given that  the Energy Policy Act of 1992 requires that federal agencies move toward  acquiring mostly alternative fuel sedans and trucks.
One characteristic that did not change substantially over the period is the  extent to which federal agencies owned or leased vehicles. In fiscal year  2011, federal agencies owned about 54 percent of their vehicles, leased  about 44 percent from GSA, and leased about 2 percent from commercial  vendors. These percentages remained fairly stable across the 7-year  period.
Although the number of federal vehicles increased from fiscal years 2005  to 2011, not all agencies’ fleets increased—some agencies experienced a  decrease in the number of vehicles, while others changed very little.  Specifically, 8 of the 24 agencies with the largest numbers of vehicles  decreased their fleets by at least 2 percent over the period. (See fig. 4.)  Of the four agencies we selected for review, two increased and two  decreased the number of vehicles in their fleet over the seven-year  period. USDA and VA both increased the size of their fleets. USDA’s fleet  grew about 5 percent and VA’s fleet grew about 49 percent from fiscal  years 2005 to 2011. Over that period, VA experienced a net gain of 5,367  vehicles, which represents about 1 percent of all federal vehicles in fiscal  year 2011. In contrast, the Air Force and Interior both decreased the size  of their fleets from fiscal years 2005 to 2011. The Air Force reduced its  fleet about 7 percent, experiencing a net loss of 4,111 vehicles, and  Interior reduced its fleet about 9 percent, or 3,510 vehicles. Each  agency’s fleet varied from year to year.
In addition, each selected agency increased the proportion of its fleet  made up of alternative fuel vehicles. (See table 4.) Interior’s alternative  fuel fleet grew 509 percent over the period with alternative fuel vehicles  making up about 25 percent of its fleet in fiscal year 2011. VA’s  alternative fuel vehicles made up about 52 percent of its overall fleet in  fiscal year 2011, a larger proportion than any of the other three agencies.
section_title: Officials Identified Multiple Factors That Influenced Fleet Size at Selected Agencies
paragraphs: The fleet managers at the four agencies we selected told us that various  factors have influenced changes in fleet size. (See fig. 5.) According to  officials, USDA and VA increased the size of their fleets from fiscal years  2005 to 2011 to accommodate expanded programs and services, among  other factors, while the Air Force and Interior reportedly decreased their  fleet size in part by implementing measures to improve fleet  management. Officials also identified fleet changes in subordinate  bureaus and divisions, but in the two cases we learned of, they were not  substantive enough to influence the direction of the agency’s overall fleet  changes over the 7-year period. Further, agency officials stated that fleets  did not increase as a result of vehicles procured using Recovery Act  funds, because higher fuel-efficient vehicles replaced older, less fuel- efficient ones on a one-for-one basis.
USDA officials we interviewed told us that additional workload and  program responsibilities contributed to the increase in USDA’s fleet size.  From fiscal years 2008 to 2010, USDA’s Forest Service gained nine job  corps centers from Interior Department bureaus: three from the National  Park Service in 2008 and six from the Bureau of Reclamation from fiscal  years 2009 to 2010.acquisition of additional vehicles ranging from sedans, vans, buses, and a  variety of trucks to provide the approximately 200 new employees with  the transportation and resources to accomplish additional program  responsibilities. Since the job corps centers were located in or near  national forests, they required vehicles, including buses that could  evacuate staff and students in a short period of time in the event of a  forest fire. Pick-up trucks were also acquired to take equipment to  construction job sites as part of the vocational training. USDA officials  also told us that specific subordinate agencies within USDA like the  Animal and Plant Health Inspection Service (APHIS) also acquired  additional vehicles to accommodate an increase in the number of APHIS  personnel and drivers to complete mission requirements.
Each of these job corps centers required the  Similarly, VA officials told us that growth in veteran services has  contributed to a significant increase in VA’s fleet size. According to VA  officials, although the number of veterans declined overall, VA increased  its program services to accommodate the increasing number of veteran  health care recipients, including veterans with service-connected  disabilities from fiscal years 2000 to 2011. (See fig. 6.) Further, VA  officials indicated the agency has expanded a number of veteran services  including: mental health care and counseling services, health care  services to veterans returning from recent wars, home-based services to  disabled and elderly veterans, and rural health care services in remote  areas of the nation. According to VA officials, the increase in programs  and services to veterans and service members and resulting workload  placed pressure on the agency to increase its fleet size. For example, VA  recently acquired more vehicles to provide transportation to and from VA  health care facilities—including medical centers and community-based  outpatient clinics—for veterans who require health care services but are  not able to drive themselves.
Vehicles donated by veteran service organizations have also played a  role—albeit a marginal one—in increasing VA’s fleet, according to VA  officials. From fiscal years 2007 to 2011, the number of donated  vehicles increased from 899 to 1,451. (See fig. 7.) Although the number  of donated vehicles is small compared to the overall fleet, as of April 2012  there were 1,683 active donated vehicles, most of which belong to the  Veterans Health Administration.
According to Air Force officials, the agency has had various fleet  downsizing policies in place and has implemented some recent efforts to  eliminate vehicles that are not mission critical. Officials also noted that the  agency has often targeted unnecessary vehicles for cost cutting.
The Air Force has a zero growth policy prohibiting new vehicle  purchases except when a change in mission occurs (i.e., additional  aircraft assigned, new weapon systems deployed, new units assigned  to a base, etc.). Air Force officials also told us that senior fleet  management staff closely monitors any request to increase fleet size  and determines if existing vehicles can be re-assigned to cover new  mission needs.
The Air Force takes steps to ensure that the agency is authorizing the  minimum number of vehicles necessary to support current mission  requirements by conducting in-person visits to major commands and  installations. The agency uses these in-person visits to monitor  requests to not only acquire new but also retain existing vehicles; then  it uses the information to identify and eliminate unnecessary  vehicles.
In March 2007, the Air Force issued guidance limiting midsize to large  sedans and sport utility vehicles to only four star officers in an effort to  reduce overall vehicle ownership costs.
In January 2011, the Air Force audited various installations and found  that 379 vehicles were utilized less than 30 percent of agency vehicle  utilization goals. The agency subsequently removed these under- utilized vehicles, a move that, according to Air Force officials, resulted  in a one-time savings to the Air Force of about $1.8 million. Officials  reported that they will continue these efforts.
In August 2011, the agency identified over 6,000 underutilized  vehicles that, if eliminated, could save the Air Force an estimated half  a billion dollars or more in procurement and leasing costs. Since  August 2011, the Air Force has eliminated approximately 739  vehicles, comprised of a mix of GSA-leased and agency-owned  vehicles, according to Air Force officials.
Similarly, according to Interior officials, specific bureaus within the agency  have implemented fleet downsizing efforts by identifying under-utilized  vehicles and either disposing or re-locating vehicles across the bureau.
The Bureau of Land Management (BLM)—a bureau within Interior that  administers federal lands—has implemented downsizing efforts by  identifying non-essential GSA-leased vehicles for removal and  transferring under-utilized agency-owned vehicles to other bureau  offices. According to Interior officials, BLM requires its fleet managers  to monitor the utilization of its vehicles within the past 12 months to  ensure each vehicle is justified and properly utilized. As a result of  these fleet downsizing efforts, from fiscal years 2003 to 2008, BLM  reduced miles traveled by more than 5-million miles and saved almost  $3.4 million, according to Interior officials.
Interior’s U.S. Fish and Wildlife Service fleet personnel also regularly  examines vehicle utilization rates—such as vehicle miles driven per  hour—to ensure vehicles are meeting agency goals. The bureau also  identifies old and least-utilized vehicles annually. According to U.S.  Fish and Wildlife Service officials, the bureau removed 451 vehicles  from its vehicle fleet from fiscal years 2007 to 2010.
In addition to fleet downsizing efforts, two agencies expect current cost- savings measures will play a role in reducing the number of vehicles in  the future. Both Air Force and Interior anticipate decreasing their fleet size  and realizing immediate cost savings by returning GSA-leased vehicles.
For example, although the Air Force has returned some vehicles back to  GSA, thus decreasing the Air Force’s fleet size, the agency continues to  implement further reductions to its GSA-leased fleet in order to meet a  $10-million cut in vehicle-leasing funds in the agency’s planned 2013  defense budget. Similarly, in a department-wide campaign to cut waste,  Interior’s National Park Service plans to return approximately 300 GSA- leased vehicles and save approximately $3.4 million in fleet-related costs.  According to a GSA official, agencies that need to cut fleet-related costs  often realize immediate cash savings by turning in their GSA leased  vehicles.
Improved fleet data management also may have helped the Air Force  decrease fleet size by identifying and cutting unnecessary vehicles,  according to Air Force fleet managers. As part of its effort to establish a  property management information system, the Air Force needed to  aggregate and validate vehicle operations data to produce an accurate,  agencywide view of its worldwide fleet, which required conducting a full  inventory of its 90,000 tactical and non-tactical vehicles around the world.  According to Air Force officials, this process helped the Air Force identify  and remove unnecessary vehicles from its fleet, as described previously  in this report.
subsections: section_title: Subordinate Bureaus’ Fleet Changes May Not Determine the Overall Direction of Agency Fleet Size Changes
paragraphs: Similar to our findings related to the overall federal fleets, we found  instances where fleet changes in agencies’ subordinate bureaus’ fleets  did not coincide with the direction of fleet changes at the overall  department level. For example, in response to the May 2011 presidential  memorandum on fleet performance, USDA’s Natural Resources  Conservation Service (NRCS) prohibited new vehicle acquisitions and  made concerted efforts to reduce the size of its fleet through the disposal  of older, under-utilized, high emission vehicles. (See fig. 8.) NRCS also  decreased its fleet when the agency closed several offices and  terminated programs in response to a $30-million budget cut. According  to USDA officials, these fleet downsizing efforts helped NRCS reduce its  fleet by over 1,200 vehicles. Despite this, reductions in NRCS’s fleet were  not substantial enough to influence the overall change in USDA’s fleet,  which grew by 5 percent from fiscal years 2005 to 2011.
Conversely, Interior’s National Park Service increased its fleet size to  handle additional park management responsibilities even though Interior’s  overall fleet size decreased. (See fig. 9.) According to Interior officials,  National Park Service’s fleet increased in some regions to accommodate  new parks, road projects, and land acquisitions. For example, National  Park Service incorporated nine additional parks and historic monuments  into its national park system from 2006 to 2011, and these additions to  the system required additional vehicles to carry out mission needs. While  the National Park Service’s fleet increased, these additional vehicles did  not change the direction of Interior’s overall fleet size changes.
section_title: Agency Comments
paragraphs: We provided copies of a draft of this report to GSA, Air Force, USDA,  Interior, and VA for their review and comment. The audit liaisons from Air  Force, USDA, and Interior provided emails indicating their agencies had  no comments on the draft report. GSA’s Associate Administrator and VA’s  Chief of Staff agreed with our findings and provided written technical  comments that were incorporated as appropriate.
We are sending copies of this report to interested congressional  committees, the Administrator of the General Services Administration,  and the Secretaries of Agriculture, Air Force, Defense, the Interior, and  Veterans Affairs. In addition, the report is available at no charge on the  GAO website at http://www.gao.gov.
If you or your staff have any questions about this report, please contact  me at (202) 512-2834 or flemings@gao.gov. Contact points for our   Offices of Congressional Relations and Public Affairs may be found on  the last page of this report. GAO staff who made major contributions to  this report are listed in appendix II.
section_title: Appendix I: Federal Agencies’ and the General Services Administration’s Roles and Responsibilities for Federal Vehicles
paragraphs: Federal agencies and the General Services Administration (GSA) have  distinct responsibilities regarding federal fleets. Federal agencies are  responsible for operating a fleet that enables them to fulfill their mission  and meet federal energy and fuel efficiency requirements. GSA’s role is to  promulgate regulations, develop guidance to help agencies manage their  fleets, help agencies procure affordable vehicles, and provide reports on  the federal fleet.
subsections: section_title: Primary Responsibilities of Federal Agencies
paragraphs: Federal agencies are responsible for acquiring, maintaining, and  managing their vehicle fleets.
Vehicle acquisition. Federal agencies are responsible for making  decisions about the number and type of vehicles they need and how  to acquire them. Agencies obtain most of their vehicles through either  GSA’s purchasing program, which is managed by GSA Automotive, or  its leasing program, which is operated by GSA Fleet. GSA is a  mandatory source for purchase of new vehicles for federal executive  agencies and other eligible users. In some instances, federal  agencies may purchase specialized vehicles directly from the  manufacturer with GSA approval or lease vehicles from commercial   According to federal guidelines, when making acquisition  venders.decisions, agencies should purchase vehicles that meet their mission  and represent the best value by taking into consideration price,  greenhouse gas score, delivery time, fuel economy, life cycle cost,  past performance, dealer and maintenance location, and optional  equipment.
Vehicle maintenance. Federal agencies should develop a  maintenance program for their vehicles to ensure that they meet  federal and state safety and emissions standards and manufacturer  warranty requirements and are operated and inspected as  recommended by the manufacturer and required by local conditions.
For agencies that lease vehicles from GSA, GSA Fleet develops their  vehicle maintenance program.
Fleet management. Federal agencies determine when to replace or  dispose of vehicles based on federal vehicle replacement standards  and their mission and program needs. GSA has established minimum  standards that call for agencies to retain agency-owned vehicles for at  least a requisite number of years or miles. For example, an agency  should keep a sedan or station wagon for at least 3 years or 60,000  miles, whichever occurs first. It may keep the vehicle beyond the  minimum years and miles if the vehicle can be operated without  excessive maintenance or substantial reduction in resale value.  Conversely, it may replace a vehicle that has not yet met the  threshold if the vehicle needs body or mechanical repairs that exceed  the fair market value of the vehicle. Federal regulations allow  agencies to dispose of vehicles they no longer need and find to be in  excess of the agencies’ needs even if the vehicles have not met the  minimum replacement standards for years and mileage. Agencies  may dispose of vehicles by using the exchange/sale authority  provided by title 40 of the United States Code, transferring them to  other agencies, selling them, or donating them. For agencies that  lease vehicles, GSA Fleet manages the disposal process.
section_title: GSA’s Primary Responsibilities
paragraphs: GSA Automotive manages the vehicle purchasing program and offers an  array of non-tactical vehicle products at a savings from the  manufacturer’s invoice price, including alternative fuel vehicles, sedans,  light trucks, ambulances, buses, and heavy trucks.
GSA Automotive purchases vehicles through the original equipment  manufacturer and has contracts with the manufacturers’  representative dealers with a variety of vehicle makes and models at  competitive prices.
GSA Automotive develops annual vehicle standards that establish the  types and sizes of vehicles and general equipment requirements it will  offer. The purpose of the federal vehicle standards is to achieve a  practical degree of standardization within the federal government  automotive fleet and to simplify the competitive procurement of  vehicles.
GSA Automotive maintains an on-line procurement tool that allows the  agency officials to view the standard vehicle models, choose  equipment and color options, view side-by- side comparisons of  vehicle models from different manufacturers, place their orders, and  track delivery.
In fiscal year 2011, federal agencies ordered 54,964 vehicles costing  $1.36 billion through the on-line system.
GSA also manages the federal government’s vehicle-leasing program.  Federal agencies may approach GSA Fleet to lease some or all of the  vehicles they determine necessary to meet their mission and program  needs. In certain instances, federal agencies may lease vehicles from  commercial sources without prior approval or permission from GSA.  After receiving an agency’s request to lease vehicles:
A GSA Fleet representative considers the type and number of  vehicles requested, as well as the type of assignment, anticipated  duration of the assignment, projected monthly mileage, and vehicle  quantities, types, locations, and date required. Agencies are required  to provide statements certifying that they have the funds to pay for the  vehicles and that the top-level fleet manager concurs with the request.
GSA Fleet provides either used or new vehicles to the requesting  agency. GSA does not guarantee that it will offer the agency a new  vehicle; sometimes, vehicles returned from other agencies are the  ones used to fill another agency’s request. However, GSA guarantees  that even used vehicles will be in good mechanical and cosmetic  condition. GSA Fleet procures new vehicles using GSA Automotive’s  on-line procurement system. There are some vehicle types, such as  fire trucks, that GSA Fleet does not lease, in part because they are so  costly and specialized.
As part of the leasing arrangement, GSA Fleet provides maintenance,  repairs, fuel, and accident claims management and gets reimbursed  for these costs by the participating agencies. Agencies pay a monthly  fee to cover vehicle depreciation and fleet management costs, and  pay a per-mile fee to cover fuel, maintenance, repair, and auction  costs.
GSA Fleet replaces vehicles according to a pre-established schedule.  A GSA Fleet representative monitors an agency’s fleet and measures  the vehicles against a set of minimum standards (i.e., age and  mileage) as well as condition and repair history. If the representative  determines the vehicle is eligible for replacement, it will be replaced  with the same type of vehicle unless the agency indicates its needs  have changed and wants to acquire a different type of vehicle. In  cases where the requested replacement vehicle is an upgrade to a  more expensive vehicle, the agency must submit to GSA a written  justification certifying the vehicle is mission essential.
Federal agencies may return leased vehicles that have not yet met  the replacement requirement to GSA. In cases where GSA can  transfer the vehicles to meet another agency’s requests immediately,  the original leasing agency is no longer responsible for the leasing  fees. In cases where GSA cannot immediately transfer the vehicles,  the lessor agency may have to continue to make its payments. A GSA  official noted that this occurs infrequently because typically it places  vehicles within a month of receiving them.
Once the GSA Fleet representative determines vehicles should be  replaced, he or she uses a nationwide network of commercial auction  firms to sell and dispose of them. GSA uses the sales’ proceeds to  help purchase new vehicles.
In addition to its procurement activities, GSA establishes policies and  issues guidance to help agencies manage their fleets effectively and meet  other federal requirements. GSA promulgates federal management  regulations governing federal fleet operations. It also issues fleet  guidance in the form of bulletins and promotes interagency collaboration  through various committees and councils. While GSA believes it has the  authority to require agencies to follow its regulations and to issue  guidance, GSA officials indicated it lacked enforcement authority. One  official stated that it relies on the federal agencies’ Inspectors General to  take enforcement action when agencies do not comply with regulations.  GSA and the Department of Energy cosponsor the Federal Automotive  Statistical Tool (FAST), a Web-based reporting tool for agencies to report  fleet data. FAST is used to satisfy the reporting requirements of the  Energy Policy Act of 1992 and other statutory and regulatory mandates,  and GSA uses it to produce the annual federal fleet report.
section_title: Appendix II: GAO Contact and Staff Acknowledgments
subsections: section_title: GAO Contact
subsections: section_title: Staff Acknowledgments
paragraphs: In addition to the contact above, Maria Edelstein (Assistant Director), Gail  Marnik, Tina Paek, Russell Burnett, Jim Ungvarsky, Josh Ormond, and  Amy Rosewarne made key contributions to this report.
section_title: Related GAO Products
paragraphs: Federal Acquisition: Increased Attention to Vehicle Fleets Could Result in  Savings. GAO-04-664. Washington, D.C.: May 25, 2004.
GSA Fleet: Information on the Effect of Donating Cars to YouthBuild USA  and Potential Benefits to Rural Youthbuild Participants. GAO-07-153.  Washington, D.C.: December 8, 2006.
Federal Energy and Fleet Management: Plug-in Vehicles Offer Potential  Benefits, but High Costs and Limited Information Could Hinder Integration  into the Federal Fleet. GAO-09-493. Washington, D.C.: June 9, 2009.
Opportunities to Reduce Potential Duplication in Government Programs,  Save Tax Dollars, and Enhance Revenue. GAO-11-318SP. Washington,  D.C.: March 1, 2011.
United States Postal Service: Strategy Needed to Address Aging Delivery  Fleet. GAO-11-386. Washington, D.C.: May 5, 2011.