Arizona DOT Fleet Management Leads to $6 Million in Savings

The Arizona Department of Transportation (ADOT) has saved taxpayers more than $6 million since taking over the management of fleet vehicles for more than 60 state agencies beginning in 2021. The takeover was conducted after State Senator T.J. Shope introduced legislation to transfer the operations, according to a press release.

It gave ADOT the authority to consolidate the fleet, and the agency began implementing standardized best management practices that reduce duplication, cut costs, and improve processes. These practices align with the Arizona Management System introduced by the Governor in 2015. With this consolidation, the state fleet operations follow the same uniform guidelines, including purchasing and preventive maintenance.

“The fleet consolidation effort is a win-win for taxpayers and the state,” ADOT Director John Halikowski said. “We are already witnessing savings by reducing the size of the state’s fleet, ordering in bulk, and selling vehicles online. We are creating uniform guidelines and processes that will maximize resources and provide improved service to customers.”

According to the press release, the effort has led to several achievements:

• Reduced underutilized assets including sedans, minivans, half-ton pickups, and SUVs, saving more than $6 million.
• Implemented a standardized vehicle replacement system.
• Moved preventive maintenance schedules from 6,000 miles to 8,000 miles while following manufacturers’ guidelines.
• Implemented a cost-savings statewide fleet tire policy.
• Sold more than 1,000 vehicles for other state agencies since March 2020 and received on average 15% above Blue Book value.
• Maximized vehicle replacement savings by leveraging the state’s vehicle order size.