Colorado Springs, Serco Work to Resolve Fleet Pricing Dispute

After filing a second lawsuit against the City of Colorado Springs, Colo., fleet maintenance provider Serco now says it’s working with the city on an amendment to its fleet services contract.

In a written statement to Government Fleet, the company stated: “Serco and the City of Colorado Springs reached an agreement and are in the process of finalizing it for the remaining years of the base contract.”

Serco filed the lawsuit after losing its case before a city review panel over contract payments for its last two years of its five-year contract, the Colorado Springs Independent reported. Serco had asked for a significant price increase for its fourth year, more than allowed by the contract terms. Serco’s lawsuit says the review panel “exceeded its jurisdiction and abused its discretion.”

Serco has been providing fleet maintenance services for the city and Colorado Springs Utilities’ 3,500 vehicles since 2014. The outsourcing agreement was expected to save the city more than $4 million over the life of the contract.

Serco's statement also emphasized the company's high service levels during the first three years of the contract:

“We increased fleet availability, averaging 80 more vehicles available daily despite increased age of the fleet.  We reduced scheduled maintenance turnaround time from 35 hours in 2013 before the Serco contract to 16 hours in 2016 under the Serco contract.  We reduced unscheduled maintenance turnaround time from 130 hours in 2013 before the Serco contract to 57 hours in 2016 under the Serco contract. We look forward to serving the City and Utility of Colorado Springs for many years to come.”

If the city and Serco come to an agreement, the company will withdraw legal action.

The city's communications office declined to comment.