State of Georgia Tries Out Vehicle Maintenance Outsourcing

After a review of Georgia’s vehicle maintenance and operating procedures and programs, the Governor’s “Task Force on Privatization” directed that a pilot project be implemented in Georgia, through outsourcing, to make the state’s vehicle maintenance and operations more cost-effective and time-efficient, said Marty Taylor, the state’s administrator of Motor Vehicle Services, within the Department of Administration Services. Taylor noted that there were several primary goals sought by entering into the pilot outsourced maintenance program. Among them were:  More accurate fleet operating data.  Better control of vehicle distribution and usage.  Full-time service and maintenance availability.  Curtail high administrative, purchasing, and maintenance costs. With this in mind, 1,400 of Georgia’s 18,000-vehicle fleet were entered into a pilot “Maintenance Outsourcing Program” with Automotive Resources International (ARI). The custom-designed program was to provide the state with many services beyond the maintenance area, but maintenance was the primary objective. State’s Fleet Diversity Should Provide Good Data Taylor related that the state’s fleet composition and location should provide good data through the “Pilot Program. Georgia’s pilot fleet makeup is as follows: 52 percent cars, 31 percent vans, 5.26 percent SUVs, 10.08 percent trucks, and 1.66 percent miscellaneous equipment. Included in the state fleet’s composition are 25 compressed natural gas (CNG) and 25 flex-fuel ethanol (E85) vehicles. “Since the entire state is not currently covered by the ARI program, many state agencies still maintain their own maintenance facilities, a few have on-site shops in which the facility has been outsourced, while other sites still use local vendors.” says Taylor. For those on the program, all the angles have been covered to make their lot a little easier. Here’s how it works: The driver calls the ARI 1-800 number, gives the technician the account number and vehicle number, then ARI recommends a repair facility. If the cost of the repair exceeds $500 (a pre-determined amount), then ARI will call the state fleet offices for approval and/or a recommendation. The work is then performed and the driver picks up the vehicle. If the driver is just seeking help with preventive maintenance such as oil changes and lube jobs, the driver gives the facility a coupon from the coupon book provided by ARI, the work is performed, and the billing is forwarded to ARI for payment. Should the need arise for emergency help, that is available around the clock by contacting ARI for assistance. In the case of emergencies, amounts to be authorized will normally have to be approved by the state offices. Billing and Documentation Greatly Simplified Along with the simplification of the day-to-day operation, Taylor says,“The ability to pay once a month and receive a hard copy of the bill, along with itemized repair statements for audit, allow me to get a total picture of the fleet’s operation and expense over the last month. I can also request special reports on specific areas of concern at any time. Paying once a month also lets us operate on ARI’s capital while benefiting from their purchasing contacts and power.” For day-to-day expenses, the drivers do carry the ARI coupon book for incidentals (authorized items by pre-arrangement), and the Wright Express fuel card for fuel and some minor maintenance. The use of a single source of payment for fuel allows better tracking and accountability, according to Taylor. More Services Provided Than Just Maintenance and Fuel Although the state of Georgia does not purchase it’s vehicles through ARI, there are other associated programs that go hand-in-hand with the maintenance outsourcing and all the sought-after savings. The state has integrated other services into the outsourcing agreement: accident investigation and subrogation, warranty recovery, preventive maintenance notification, maintenance repair and maintenance exception reporting, and any necessary presentations regarding fleet operations that may need to be presented to customer groups. The 1,400-vehicle pilot fleet is managed by a staff of seven people, after being reduced with the introduction of the outsourcing program. Taylor feels the program is working well, so far, and has performed as represented, with proven cost savings, reduced lifecycle costs, increased customer service levels, and a reduced workload and staff. “The outsourcing program has been in effect for approximately 21 months and has shown to have lowered total costs to below the national average in most categories. In all ways, the outsourcing agreement is performing better than expected and has been a tremendous help to the state of Georgia,” Taylor said.

Originally posted on Automotive Fleet