RALEIGH, NC - The State of North Carolina’s Program Evaluation Division (PED) released a second report on State agencies’ fleet vehicles, stating that the Division of Motor Fleet Management (MFM) “operates in accordance with most fleet management best practices” but needs telematics to strengthen its accountability.

The report broke down four categories of best practices in fleet management: written policies and procedures, management of vehicle utilization data, financial management, and vehicle replacement and acquisition. The MFM met all criteria except for collecting vehicle mileage and frequency of use.

The report stated the MFM’s reliance on state agencies for management and oversight make it difficult to hold agencies accountable, and the MFM does not have sufficient information to determine the correct number of passenger vehicles to meet state government needs. The report issued the following recommendations:

1. Phase in implementation of telematics, which may be cost effective because reductions in vehicle utilization may offset the cost of telematics services.

2. Improve management practices by tracking vehicle frequency use with the fleet management information system; performing a daily demand analysis of motor pool vehicle use to see which vehicles can be eliminate; reinstating routine vehicle maintenance by replacing vehicles with mileage exceeding the 125,000-mile replacement threshold or excessive maintenance costs; enhancing training for vehicle coordinators; and conducting routine customer service surveys of vehicle users.

3. Monitor the new rate structure and report on its effects on assigned vehicle utilization and vehicle replacement.

4. Modify the statutory mileage threshold for state-owned passenger vehicles.

The report is the second in a series of three reports that evaluates the management of state-owned motor vehicles in North Carolina. A PDF of the full report can be found here. The first report, released December 2011, recommended the implementation of a state-wide fleet management system.