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


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

City of Madison, Wisconsin seal overlaid on an image of electric vehicles parked and charging in a row.
Operationsby News/Media ReleaseApril 23, 2026

Rachel Darken Named Fleet Service Superintendent

Madison names Rachel Darken as fleet service superintendent, citing her leadership in fleet optimization, electrification efforts, and workforce development initiatives.

Read More →
Ken Lett in front of the city fleet building.
Operationsby Nichole OsinskiApril 23, 2026

Lynchburg Names Ken Lett Director of Fleet Services

Veteran public sector fleet leader Ken Lett brings more than 20 years of experience in strategic planning, financial oversight, and technology-driven operations to his new role leading the City of Lynchburg’s fleet program.

Read More →
a government fleet graphic showing the 2026 fleet manager of the year finalists.
OperationsApril 21, 2026

Meet the 2026 Public Sector Fleet Manager of the Year Finalists

Recognizing excellence in public fleet leadership is no small task. Learn more about this year’s three outstanding finalists, and join us at GFX in Long Beach to see who takes home the honor.

Read More →
Ad Loading...
Graphic showing Sewell Family of Companies logo and Oklahoma state seal over a background of parked vehicles, representing a statewide fleet contract agreement.
Operationsby News/Media ReleaseApril 14, 2026

Oklahoma Statewide Fleet Vehicle Contract Multi-Year Agreement to Supply Fleet Vehicles to State Agencies and Municipalities

The Sewell Family of Companies has been awarded a statewide contract to supply fleet vehicles and services to government agencies across Oklahoma through 2032.

Read More →
A collage with voting, the government fleet logo and the words cheat sheet.
OperationsApril 10, 2026

Costs, AI, EVs, and Sales in Government Fleet | 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 →
A man holding a phone in a truck.
Operationsby Rachael PlantApril 10, 2026

A Practical Approach to Fleet Cost Analysis in Government Operations 

Government fleets face a distinct set of challenges that make cost analysis both more difficult and more critical.

Read More →
Ad Loading...
 a wall with the words fleet hall of fame
OperationsApril 3, 2026

Vote Now for the Public Fleet Hall of Fame

Fleet professionals can now vote for the 2026 inductees of the Public Fleet Hall of Fame. Anyone affiliated with the public fleet industry, including fleet professionals, fleet technicians, or other staff members, and suppliers, can vote.

Read More →
executive editor with images of community and networking.
OperationsApril 1, 2026

Finding Your People | The Fleet Breakroom

Why the fleet community matters, how it helps with education and support, and why asking questions can save you more trouble than you think.

Read More →
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 →
Ad Loading...
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 →