SAN DIEGO - San Diego, Calif.'s Mayor Jerry Sanders announced that City employees won the bid to provide fleet maintenance services under the managed competition program. Under the rules governing the competitive process, the recommendation by the Managed Competition Independent Review Board can be accepted by the mayor and does not need to be separately approved by the city council.

According to a press release from the City, the proposal will yield an annual savings of $4.4 million per year, or $22 million over the five-year life of the proposal.

Local newspaper Sign On San Diego reported that fleet services will lose a total of 92 positions out of its 249 current positions. The City did decide to outsource parts operations, towing, and heavy tire repair, which is where a number of the eliminated positions will come from.

Not all of the 92 eliminated positions were filled, and some fleet maintenance employees will have the chance to move to other positions in the City.

The City was also able to beat two private bidders without using a provision that required private bidders to submit proposals that saved at least 10 percent, according to the article.

San Diego's fleet services division currently performs maintenance for more than 4,000 vehicles used in City operations, including police, fire, trash collection utility service and repair, park maintenance, and general services.

Fleet services' proposal cut costs by more than 13 percent over the current budget for vehicle maintenance. Proposed measures include rethinking the entire network to eliminate some facilities; strategic use of automated systems for logistics, such as reservations, dispatch, and returns; and use of private contractors for certain supplies and services.

Fleet maintenance is the second City function to complete the bidding process under managed competition.

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