July 09, 2008
City of Richmond Moves to Outsource Vehicle Services
RICHMOND, VA – The City of Richmond is considering turning over its public vehicles to private maintenance and management, according to the Richmond Times-Dispatch.
The city recently called for information from private companies about their interest in taking over operation of the fleet of more than 2,400 vehicles, ranging from cars and light trucks to heavy equipment, fire engines, and police cars. Richmond already outsources its supply of parts for city vehicles.
The outsourcing of fleet operations was a central recommendation of a report by City Auditor Umesh Dalal in May 2007. He estimated the potential savings at $2.6 million a year in fleet management operations, which has an annual budget of more $21 million that is paid through city agencies that require vehicle services. But City Councilman Douglas G. Conner Jr. said the cost savings could be much higher — from $4 million to $6 million a year.
Dalal said that his office is preparing a follow-up report for release shortly about the city’s progress in responding to the audit. The request for information, released last Tuesday, sets a deadline of Aug. 15 for interested companies to respond. The request gives potential bidders the option of continuing to use Richmond’s maintenance facilities and staff, based primarily next to The Diamond on city-owned property that is considered vital to the redevelopment of North Boulevard as a sports, entertainment and mixed-use community, according to the Richmond Times-Dispatch.
Under a possible outsourcing arrangement, Richmond said it would continue to employ a fleet operations manager and minimal staff to oversee and support the private operation.
The city would require the contractor to schedule work, manage supplies, recommend fleet changes, improve operating efficiency, monitor and contain costs, minimize the time vehicles are out of service and reducing the time vehicles are held in the fleet, and maintain a high level of customer service. Services would include preventive maintenance, minor and major repairs, body repairs, and tire inspection and replacement.
The call to contractors also includes proposed performance standards that would tie full payment to meeting benchmarks. For example, the city would want 93 percent of all vehicles and equipment to be available for use at any time, and for 90 percent of all preventive maintenance to be completed within 48 hours of vehicle delivery.