Government Fleet Logo
MenuMENU
SearchSEARCH

Public Forum:Develop Service Level Agreements

The majority of public sector fleets do not employ service level agreements between the fleet department and internal customer departments. Although these types of agreements are relatively commonplace between commercial fleets and fleet service providers, only in the past 10 years have they begun to emerge in the public sector.

Mike Antich
Mike AntichFormer Editor and Associate Publisher
Read Mike's Posts
November 1, 2006
3 min to read


Ad Loading...

The majority of public sector fleets do not employ service level agreements between the fleet department and internal customer departments. Although these types of agreements are relatively commonplace between commercial fleets and fleet service providers, only in the past 10 years have they begun to emerge in the public sector. One reason for their emergence among government fleets was a response to the fleet privatization initiatives, in which outsourcing companies made firm performance and cost guarantees to public officials. Those fleets that do employ service level agreements usually have multiple agreements with different user departments. Service level agreements are most commonly made with fire, solid waste, police, public works, and street maintenance departments.


Servicing the Squeaky Wheel
The first inclination is to initiate a service agreement with your largest customer. However, Jim Wright, president of Fleet Counselor Services, recommends starting with the “squeaky-wheel” department. “It is usually not your largest customer, rather a small department complaining about high downtime or cost.”

Ad Loading...


The first step in implementing a service agreement is identifying end-user issues. “You need to document downtime, cost issues, and customer-perceived lack of performance,” said Wright.


Collecting this information over one completed financial period, typically a month, is recommended.“When collecting this information, always ask the customer department to provide documentation regarding such issues as high cost, poor performance, or higher-than-normal downtime.Ask them to substantiate whatever they can in writing,”said Wright. Conduct a work order analysis to determine the validity of these issues.“ More often than not, these allegations are valid,” added Wright.


Rather than reinventing the wheel, seek to acquire similar service agreements from other fleet managers, upon which you can model your agreement. Another alternative is to contact companies such as Fleet Counselor Services, which has a 13-page document that covers all service-related contingencies.


A service agreement is not a one-sided document. “For instance, a customer department may cite high downtime with snow equipment during snowstorms. However, a work order analysis may determine that 30 percent of the repairs performed during snow emergencies are caused by operator abuse,” said Wright. “Based on this information, a service agreement may require the customer department to provide operator training and internal certification on snow equipment.”


Service level agreements should be reevaluated every budget preparation season. Service level agreements are living documents that evolve over time. “These agreements will change and vary by customer department, because they are driven each year by budget considerations,” said Wright. “In situations where disputes may arise, there also needs to be a binding arbitration clause incorporated in a service level agreement,” added Wright.

Ad Loading...


Three Mistakes Made by Fleet Managers
Three common mistakes are made in developing a service agreement. The first mistake is when the fleet manager overpromises to the customer department.


The second mistake is not involving your staff in developing service level agreements. A fleet manager should involve his or her staff in service level agreement negotiations throughout the entire process up to the creation of the final document. The fleet department team should be comprised of representatives from the shop floor, parts department supervisor, financial, and obviously the fleet operation management.


“Many service level agreements fail because the fleet manager didn’t involve the day-to-day supervisory management staff that has to meet these performance standards. Sometimes, downtime standards are guaranteed to the customer department that the shop simply can’t deliver,” said Wright.


The third pitfall is creating an issue out of a non-issue. If downtime is not an issue, don’t make it an issue. Don’t make it part of the service level agreement. “When developing a service level agreement, only address those areas where a deficit exists and there is need for improvement,” said Wright.


Benefits of Service Agreements
Are service level agreements worth the time and effort? According to Wright, the main benefits of a service agreement are:

Ad Loading...


These are three sound reasons. Let me know if you agree. mike.antich@bobit.com


Click here to see the article

Topics:Operations
Subscribe to Our Newsletter

More Operations

the dispatch text with images of vehicles, women in fleet, and ev charging.
OperationsMarch 30, 2026

Women in Fleet, Salary Trends, AI, and More| The March Dispatch

In this monthly lookback, we’re talking about Women’s History Month coverage, the latest Government Fleet salary data, how fleet leaders are dealing with nonstop change, and more.

Read More →
freightliner whitepaper
SponsoredMarch 26, 2026

Safety by Design: Power and Protection in the Freightliner 114SD Plus

Safety and productivity go hand-in-hand on today’s vocational jobsites. The Freightliner 114SD Plus combines advanced driver-assist technologies with proven reliability to keep crews moving constantly from start to finish. Learn how safety by design can protect your team, reduce risk, and maximize uptime.

Read More →
Isuzu commercial box truck driving in an urban area, representing a new body program with Aebi Schmidt that provides preconfigured, work-ready trucks for fleet customers.
Operationsby News/Media ReleaseMarch 24, 2026

Isuzu Launches New Premium Body Program with Aebi Schmidt called Advantic

Isuzu and Aebi Schmidt launched a new body program that offers dealers preconfigured, work-ready trucks to streamline upfitting and reduce delivery times.

Read More →
Ad Loading...
A Samsara report cover titled 'The Exoneration Factor: How Dash Cams Reduce Risk and Deliver Clear ROI for the U.S. Public Sector,' featuring a close-up photo of a dash cam mounted on a vehicle windshield with a driver reflected in the rearview mirror and a desert road visible in the background.
SponsoredMarch 24, 2026

How Dash Cams Reduce Risk and Deliver Clear ROI for the U.S. Public Sector

For government agencies, dash cams have moved from a nice-to-have to a necessity—not just for public safety, but also for operational efficiency and cost savings. Download the full report today for insights from fellow public sector leaders on how dash cams are reducing risk, lowering premiums, and delivering clear ROI.

Read More →
paper people in pink and blue holding up signs
Operationsby Jeanny RoaMarch 23, 2026

2026 Government Fleet Salary Study: Pay Holds Strong as Workforce Pressures Mount

Government fleet managers report steady salary growth and expanding responsibilities, but an aging workforce, technician shortages, and rising technology demands are creating new long-term challenges.

Read More →
hall of fame logo with award
Operationsby Staff WriterMarch 17, 2026

Last Chance: 2026 Public Fleet Hall of Fame Nominations Close Today

Do you know a fleet leader who has made a lasting impact on the industry? Nominate this fleet professional for the 2026 Public Fleet Hall of Fame.

Read More →
Ad Loading...
The text 'the future of fleet' with an image of an autonomous car on the road and the GF logo.
OperationsMarch 14, 2026

How to Prepare Government Fleets for Autonomous Vehicle Deployment

As more fleet operators have their heads turned by AV technology, the conversation shifts from possibility to operational reality. Government and public-sector fleets need to begin preparing today to ensure they’re ready for an autonomous future. 

Read More →
Checklist with text 'cheat sheet' and female technician.
OperationsMarch 13, 2026

Autonomous Vehicles, Women in Fleet & Last Call for Entries | GovCast Shorts

On the go and want a snapshot of our top industry news? Check out Government Fleet's new video short of what's been happening.

Read More →
image showing several awards with the Government Fleet logo.
Operationsby Nichole OsinskiMarch 13, 2026

Last Day to Apply: Government Fleet Awards

Submissions for most awards close Friday, March 13; review award categories, confirm eligibility and requirements, and wrap up your entry before the deadline.

Read More →
Ad Loading...
Women working in technician roles and another woman leading a team.
OperationsMarch 3, 2026

Women in Fleet: Leadership, Innovation, and Industry Evolution

Fleet leadership has moved beyond the shop floor into a role shaped by higher expectations and constant change, and women have helped drive that evolution. But how has that shift happened, and what does effective leadership look like in operations today?

Read More →