Government Fleet Top News

Colorado Springs and Area Utility to Outsource Fleet Maintenance

June 4, 2013

The City of Colorado Springs, Colo., and Colorado Springs Utilities have decided to outsource the City’s fleet management department in order to reduce costs. Late last year, the City issued a Request for Proposal for fleet maintenance services for all City and City-owned enterprises, save transit. The City said the proposals included five options to manage the more than 4,500 units, including vehicles and equipment, and would affect the 70 City staff currently employed by the City’s fleet management department.

According to an analysis by the City, outsourcing fleet management would save $2 million over a three-year period. The City’s costs would be reduced by 60% ($1.2 million) of that amount and the Colorado Springs Utilities would be reduced by 40% ($800,000).

The City has not yet disclosed which company it plans to outsource services to but said negotiating the contract will take a minimum of 90 days. If the negotiations are successful, the City will award the contract with a start date of Jan. 1, 2014. The City added that the outsourcing company is interested in hiring some of the City’s fleet management department staff.

The City noted that its reasons for outsourcing its fleet services are not related to the department’s performance.

“It is important that our employees know this endeavor was not due to any dissatisfaction with the current level of service provided by this dedicated group of professionals nor was it a decision made lightly. However, our Citizen stakeholders have charged us with securing the greatest value for their tax payer and rate payer dollar while heightening services to our community.“

Government Fleet magazine contacted the City for additional information about the outsourcing decision but has not received any more information yet. The City of Colorado Springs has ranked among the 100 Best Fleets in the U.S. every year since 2008, including in 2013.

**UPDATE 6/7/13** The Colorado Springs Independent reports the company awarded the maintenance contract is Serco, a U.K.-based company with a national office in Virginia.

Comments

  1. 1. Gary Lykins [ June 07, 2013 @ 03:54AM ]

    Anyone can relate to the fustration of paying someone to to a job when you know you could have done it better yourself. Outsourcing can be a valuable tool to maintaining a healthy fleet but the overwhelming majority of maintenance is best handled by a business oriented staff.

    Wholesale outsourcing has hidden, indirect costs that most folks don't think about. The fleet customers will have to have even more "back-up" units... Beware of fleet creep. Maintaing a fleet for proffit can lead to doing repairs for proffit...Beware of the up-sell. Conflicts with you vendors...Beware, sour grapes cannot be returned to the vine.

  2. 2. Christopher Wenom [ June 10, 2013 @ 05:24AM ]

    Another sad day in the fleet repair industry that began when a group of individuals was led to believe a company which will seek profit can financially outperform a non-for-profit internal department. This exact scenario was recently attempted by a municipality near St. Louis and it was found within 6 months that it was a detrimental decision. When they tried to call back all of the employees it was again unsuccessful due to their finding employment. No they have to rehire, retrain and restock to have what they already had before this began.

    How can an outside entity be financially more accountable when the City receives government parts/supply discounts and only has the task of staying within budget? Do they honestly believe that the contracted company will be readily available when emergencies arise? Can they be assured that this said company will not want a profit, ever? If their maintenance costs were so high, was it due to incorrect life cycles or were these cycles met with opposition?

    There are many questions to be asked when you have to sustain a maintenance program within your own city but they should never be answered with complete outsource.

  3. 3. Fonzy [ August 15, 2013 @ 01:27PM ]

    This is so Stupid what Colorado Springs is doing,The Privets will Raise the price when all of the city can't come back from this. Is the Privets going to check back rounds on people how work on police and under cover cars???Nooo!!! If I was a Mechanic for the city of Colorado spring,I will not get a job with the privet company.

 

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