Installing telematics in the Ohio Department of Rehabilitation and Corrections’ (ODRC) 1,232 fleet vehicles could result in net annual cost savings of $202,807, according to the State of Ohio Auditor’s Office.
The auditor’s report recommended implementing telematics with a phased approach. The projected cost of the system across 1,200 vehicles is $260,800 with annual operating cost of $146,000. The department could achieve total savings of $348,807 annually. These savings can be achieved by reducing labor costs related with current data entry and management methods, reducing mileage reimbursement costs, and reducing fuel use by 8% to save $200,727 — the largest savings potential.
Using these savings and pricing assumptions, the department could fully recoup capital costs of the telematics implementation during the second year of operation.
Auditors took into account four sample service provider cost proposals and four case studies documenting government fleets that have implemented telematics.
Telematics would also help the department with its data collection, a second area of concern the auditor report noted. According to the audit, the department needs to better keep track of its data by implementing a cost-effective solution to collect data. The audit revealed numerous instances where manual data entry resulted in no data being collected for mileage records, maintenance costs, and fuel costs. Improved data collection could enable savings by allowing the ODRC to identify under-utilized vehicles and more efficient life cycle intervals.
Of the ODRC’s fleet, more than 84% consist of cars, vans, pick-up trucks, and minivans. The ODRC has its own fleet administrator, and fleet management authority is partially delegated from the Ohio Dept. of Administrative Services.
A letter from ODRC Director Gary Mohr stated that he supports the recommendation to use technology to better track the fleet, and that management would review the recommendations with the Department of Administrative Services’ Office of Fleet Management.
According to the report, auditors met regularly with department officials to ensure the accuracy of the information presented and addressed all issues department officials brought up.