Audit: Okla. Should Trim Underused Vehicles to Save $1.3M

January 10, 2014, by Thi Dao

Photo of the Office of Management and Enterprise Services fleet facility courtesy of State of Oklahoma.
Photo of the Office of Management and Enterprise Services fleet facility courtesy of State of Oklahoma.

The State of Oklahoma can save $1.3 million a year by reducing the number of underutilized non-pursuit light-duty vehicles by 30%, a fleet consultant has recommended.

The review by CST Fleet Services found that 48% of vehicles not in the state Department of Transportation's fleet had low utilization, using 9,000 annual miles as the threshold.

The state can save an additional $160,000 per year by shortening vehicle lifecycles. The Department of Public Safety could achieve this cost savings by replacing police pursuit vehicles after three years rather than six to save at least $2,000 per vehicle over its six-year lifecycle.

Using a threshold of 3,000 miles per year, more than 59% of units in the DOT's heavy-duty fleet were underutilized, while 11% of the department's light-duty fleet was underutilized.

A patrol car lifecycle comparison found that patrol vehicles should be replaced every three years. If applied to 1,000 vehicles, this would result in savings of $333,000 per year without including savings for fewer parts and less maintenance.

The report also noted various areas of improvement, such as switching to a common fleet management system to improve ease and accuracy of vehicle reporting, creating service level agreements, and developing maintenance charge-backs for multiple agency fleets.

On a positive note, the review commended fleet managers for following best practices, such as preventive maintenance schedules, alternative-fuel incentives, and using automatic vehicle location technology to gain operational efficiency.

Fleet managers and management at the Performance and Efficiency Division agree with the report's findings and have already begun implementing some of the recommended changes, said Carol McFarland, division director.

"This study is in line with the governor's initiative to modernize and develop a more cohesive management of state assets," McFarland said. "The report that resulted from the study gives us a high-level road map of how to move fleet management from decentralization toward a consistent statewide methodology resulting in efficiency and cost savings."

The majority of the State of Oklahoma's fleet is spread over seven separate agencies, which manage 8,386 vehicles. Thirty-nine other agencies manage 3,447 fleet vehicles.

By Thi Dao

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