GF Blue 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


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

A youtube graphic for the government fleet dispatch.
OperationsJuly 1, 2026

Recognizing Progress, Leadership in Fleets | The June Dispatch

Catch up on the past month, whether you're interested in GFX news or Government Fleets' go-to articles for your operation.

Read More →
Promotional graphic for a Utilimarc guide titled Beyond Utilization Rates: How Data-Driven Fleets Are Rethinking Vehicle Replacement, featuring a report cover with fleet vehicles, key benefits, and a call-to-action to download the guide.
SponsoredJuly 1, 2026

Beyond Utilization Rates: Smarter Fleet Replacement Decisions

Vehicle replacement decisions affect every aspect of fleet performance, from operating costs to asset availability. This guide explores how fleet leaders use integrated data, benchmarking, and lifecycle analytics to determine the right fleet size and optimize replacement timing with greater confidence.

Read More →
an horse drawn ambulance and modern ambulance with an American flag overlay and the words Americas Fleet Evolution
Operationsby Jeanny AbrahamJune 30, 2026

How Government Fleets Helped Build America

As the United States celebrates its 250th anniversary, this look back explores how government fleets evolved from horse-drawn wagons to specialized vehicles that keep communities running today.

Read More →
Ad Loading...
GovCast podcast graphic.
OperationsJune 29, 2026

Talking Success, Leadership, and Fleet Needs

A perspective on the future of fleet management, the lessons learned about building strong teams in the public sector, and how to carry forward the department’s strategic direction.

Read More →
GovCast podcast graphic.
OperationsJune 29, 2026

Proactive Approaches to Fleet Management Challenges with Erinn DeJonge

In this episode, we put the spotlight on the professional journey of Erinn DeJonge, CAFM, who brings a wealth of experience to her role as the fleet business operations manager at Sarasota County Government.

Read More →
A graphic of fleetgap workshops and fleet images.
Operationsby Nichole OsinskiJune 26, 2026

The FleetGap Initiative: Transitioning from Military to Civilian Fleet Roles

FleetGap is working to build the missing bridge between service members preparing for civilian careers and fleet employers facing workforce shortages.

Read More →
Ad Loading...
a GRAPHIC OF A TABLET WITH a VEHICLE AND GF LOGO.
Operationsby Nichole OsinskiJune 23, 2026

How Government Fleets Are Turning Connected Vehicle Data Into Practical Decisions

Public sector fleets are using connected technology to improve visibility, but the bigger challenge is building the processes to act on the information it provides.

Read More →
A RoadFlex graphic for fleets.
Operationsby News/Media ReleaseJune 16, 2026

RoadFlex Brings Fuel Tax Compliance and Audit-Ready Reporting to Government, Public Works Fleets

New capabilities aim to help public-sector and public works fleets streamline fuel tax exemptions, reclamation, reconciliation, and audit-ready reporting.

Read More →
2026 public fleet hall of fame inductees
Eventsby Staff WriterJune 10, 2026

2026 Public Fleet Hall of Fame Inductees Honored

This year's class includes leaders whose work has helped shape the public fleet industry.

Read More →
Ad Loading...
2026 GFX Honors Ceremony
Eventsby Staff WriterJune 10, 2026

David Renschler Receives 2026 Legendary Lifetime Achievement Award

Andy Campbell of Sourcewell, which partnered with Government Fleet in presenting the award, recognized Renschler.

Read More →