GF Blue logo
MenuMENU
SearchSEARCH

State of Utah Saves More Than $1M by Centralizing Fleet Services

In 2001, the State of Utah outsourced maintenance management to ARI, leading to substantial annual operational savings. Over the past four years, the state saved more than $1 million in maintenance costs.

by Staff
July 1, 2004
State of Utah Saves More Than $1M by Centralizing Fleet Services

 

5 min to read


When the state of Utah centralized its fleet management in 2001 in an effort to reduce costs, the decision was made to utilize an outside vendor — the ARI fleet management company — rather than hire additional internal staff. According to Steven Saltzgiver, director of fleet and surplus services for the state of Utah in Salt Lake City, once the fleet was centralized, outsourcing made the most sense. “We chose to partner with ARI, which allowed us to centralize without adding additional internal resources,” says Saltzgiver. “This cost avoidance was part of the initial savings.” Enhanced Data Accuracy Allows More Effective Cost Tracking
The Division of Fleet and Surplus Services aids state and local agencies with transportation needs and provides assistance in disposing and procuring surplus properties. Functions currently outsourced to ARI include emergency roadside service, repair call center operations, maintenance approval less than $1,000, and vendor payment for maintenance. Full outsourcing implementation occurred in July 2001. More than 3,000 of the state’s 7,250 vehicles are handled by ARI. The state owns the majority of the fleet vehicles, which include Fords, Chevrolets, Dodges, Toyotas, and Hondas. Vehicles are replaced at 90,000 miles and/or 12 years; however, the average vehicle is replaced at six years. The state looks at time in service, mileage, repair costs, and lifecycle costing to determine replacement cycles. However, the enhanced accuracy of the ARI cost data will allow Saltzgiver to now look at separate lifecycles for each class of equipment, make, and model. The improved data integrity is made possible by using standardized industry codes to annotate repairs and a monthly download into the fleet system of all work orders performed. The State Saved More Than $1M Dollars Over the Past Four Years
“This partnership is showing some significant cost savings through effective maintenance scheduling, monitoring, and warranty recovery,” says Saltzgiver. The most significant savings seen by the state since centralizing and outsourcing its fleet management is reduced maintenance costs. The state saved $1,062,880 in maintenance costs over the past four years. Cost per mile has also decreased dramatically since 2001. In 2003 alone, the state saved $583,000, a 9-percent overall decrease in cost per mile over 2002. “These savings can be attributed directly to the improved centralized maintenance management system initiated by ARI,” says Saltzgiver. In addition, the division is able to utilize 24/7 assistance to customers without hiring additional personnel to run the call center. Added convenience is also a benefit to the state’s fleet customers since they are able to choose from a wide range of service locations on ARI’s broad vendor network. “This enhances the comfort level and convenience factor for our customers,” says Saltzgiver. In addition, the state saved administrative costs by consolidating repair billing processes into one monthly ARI invoice versus hundreds of vendor invoices. {+PAGEBREAK+} Program Driver Packet is Kept in All Vehicles
ARI provides all program details to the state’s fleet customers through a detailed driver operating packet, kept in each vehicle at all times. Included in the packet are:

  • A program information pullout. The pullout details the driver’s responsibility to maintain the vehicle. The procedures are indexed by subject heading for quick reference. National account vendors are also listed on the back inside cover of a preventive maintenance coupon book.

  • A preventive maintenance coupon book. Covering routine preventive maintenance, the book features mileage intervals and service requirements preprinted on each coupon. The coupons serve as purchase orders, so there is no need for drivers to get approval from the call center for repairs less than $1,000 dollars.

  • Non-routine maintenance and repair instructions. These requests are handled by certified ASE call center service technicians. The drivers call the 800 number provided in their packet for any non-routine maintenance and repair approval. All ARI vendors and call center technicians are monitored for customer service skills, quality control, accuracy, and integrity.

  • Fleet management ID sticker. Once drivers write vehicle number and client codes in the spaces provided, they attach the sticker to the glove compartment. Post-Warranty Recovery Improves with Partnership
    Saltzgiver is also impressed with how the state’s partnership with ARI has produced savings in the area of post-warranty recovery. “This area of fleet maintenance costs was never recouped in the past,” he says. ARI’s clout in negotiating with manufacturers to collect on the state’s behalf has led to increased recovery. To date, the total equals $77,571. Another area that has improved for the state is accident management. “ARI’s more reliable and consistent mileage data equates to a cost avoidance of more than $101,000 annually,” says Saltzgiver. Since outsourcing its maintenance management, the State has also reduced its pool fleet, saving about $450,000 per year. Six-Month Pilots Allowed the State to Gauge Program’s Impact
    The Division of Fleet Operations participated in two, six-month pilot programs to ensure that the ARI system would benefit the state. The daily motor pool and the departments of public safety and commerce were a few of the agencies involved in the pilot. Fleet operations received positive feedback from these agencies, including knowledgeable and professional ARI technicians, quicker response times, and greater vendor availability. During the pilot programs, costs were analyzed to determine if maintenance costs would change significantly. The state found that outsourcing the program would save money by:

  • Freeing up full-time employees to handle other duties.

  • Letting management focus on other issues, allowing better, quicker resolutions to problems.

  • Minimizing quality-control issues. After the successful pilot programs, the program rolled out to the entire fleet. Regular Communication Helps Enhance Partnership
    To effectively maintain the partnership, ARI and Saltzgiver meet three times per year, both by phone and in person. “We also regularly monitor data and vendor performance,” says Saltzgiver, ”as well as meeting in person to go over the annual report.” Frequent e-mailing also keeps the partners in constant communication. “ARI is very responsive to problem solving,” says Saltzgiver. The state will continue to look for ways to minimize costs and streamline operations, either through in-house initiatives or partnering with outside vendors.

Topics:Operations
Subscribe to Our Newsletter

More Operations

A graphic of passes for Fleet Forward.
Operations•by Staff Writer•October 6, 2026

Fleet Forward Conference Introduces One-Day Passes for 2026 

New one-day registration lets fleet professionals attend Tuesday, Wednesday, or Thursday, with passes available for $249.

Read More →
Two buses with a logo above them.
Operations•by News/Media Release•October 5, 2026

ENC Unveils its ZAVIR Medium-Duty Shuttle

Two variants of the concept shuttles were revealed: a low-floor configuration and a high-floor configuration.

Read More →
A graphic of an auto shop and cheat sheet text.
Operations•October 2, 2026

Could Your Next Fleet Technician Start as an Intern?

What if your next technician hasn’t worked in a fleet shop yet? What fleets are doing to free up time.

Read More →
Ad Loading...
a technician working with a text overlay that says Building Talent From Within
Operations•by Jeanny Abraham•October 2, 2026

How Phoenix Is Building Its Next Generation of Fleet Technicians

With more than 8,000 vehicles and pieces of equipment to maintain, the City of Phoenix could not afford to wait for fully trained technicians to walk through the door. Instead, they revamped their entire workforce strategy and showed how public fleets can create their own talent pipeline while preparing existing employees for increasingly complex vehicles.

Read More →
A youtube graphic with a collage fleet images.
Operations•October 2, 2026

What’s Slowing Your Fleet Down?

Could a change in how work gets done help your fleet return vehicles to service sooner?

Read More →
A story graphic with data and cars.
Operations•by Nichole Osinski•October 1, 2026

Can Public Fleets Trust the Data Driving Their Decisions?

Public fleets have more data than ever, but inconsistent records and missing information can still undermine maintenance, replacement, and cost decisions.

Read More →
Ad Loading...
John Deere 40 P-Tier Compact Excavator
Operations•September 28, 2026

John Deere Introduces 40 P-Tier Compact Excavator

John Deere is adding a compact excavator designed for crews that need to move equipment between jobsites and handle multiple types of work with one machine. The 40 P-Tier weighs less than 10,000 pounds and offers configurable hydraulics, attachment options, and connected fleet-management capabilities.

Read More →
A cheat sheet thumbnail with images of a checklist and fleet image.
Operations•September 25, 2026

How Leading Fleets Improve and Why Business Plans Matter

This week, we look at what past Leading Fleet winners can teach us about making progress, plus how to build a business plan your fleet will actually use.

Read More →
hall of fame logo with award
Operations•by Staff Writer•September 25, 2026

Nominate a Fleet Leader for the 2027 Public Fleet Hall of Fame

Do you know a fleet leader who has made a lasting impact on the industry? Nominate this fleet professional for the 2027 Public Fleet Hall of Fame.

Read More →
Ad Loading...
A youtube graphic with fleet images.
Operations•September 23, 2026

Why Fleet Business Plans Need Three Perspectives

A fleet business plan should help agency leaders understand the fleet’s value, give the organization a clear direction, and establish shared expectations with customer departments.

Read More →