Government Fleet Top News

City Fleet Not Seeing Savings on Outsourced Maintenance

February 28, 2006

PITTSBURGH – A privately run garage for Pittsburgh city vehicles has yet to save the city a promised $3 million a year, the Pittsburgh Tribune-Review reported. The city awarded a garage operations contract worth $4.3 million in its first year to First Vehicle Services in an effort to reduce vehicle maintenance costs that exceeded $6 million in 2004. While fleet maintenance has improved, a preliminary city financial analysis shows the change might have saved about $1.35 million, according to the report. First Vehicle was permitted to spend $3.79 million the first year of its contract, which ends Mar. 1, but its spending will exceed $5 million. First Vehicle said the lower savings occurred partly because the city neglected maintenance on its 995-vehicle fleet for years, creating extra expenses. Repairs that carried over from 2004 and other unforeseen costs, such as accident repairs, amounted to $1.16 million, the report said.

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