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.