Department of Administrative Services

1. Department of Administrative Services April 21, 2010 Fleet , Risk & Surplus Property Customer Seminar

2. Fleet Management

3. Data Quality The quality of the input you use always has an impact on the quality of the output. The solution is straightforward: if you don’t want garbage when you’re done, don’t use garbage when you begin. To improve your results, improve the quality of what you start with. The Personal MBATM

4. VITAL Data REPORTS REPORTS SPREADSHEETS SPREADSHEETS METRICS METRICS 4

5. Agency Annual Mileage Report • Annual Mileage Report by Agency calculates mileage for Business miles; • Shows current year odometer minus previous year odometer VITAL Reports • Agency Overdue Vehicle Surplus Report • Shows a list of active vehicles overdue for transfer to surplus in the site • Agency Annual Mileage Exceptions • Annual Mileage Exceptions report shows vehicles that have not had an odometer reading within 30 days of reference date. • Total Cost of Ownership (All Sites) • Calculates TCO by adding Purchase Price, Inside Labor, Outside Labor, • Fuel Cost, Insurance, Commission/De-commission Cost, Taxes and Licenses. • Total Cost Per Mile (All Sites) • Calculates Total Cost per Mile for each vehicle by adding Maintenance Cost, • Fuel Cost, Insurance, Commission / Decommission Cost, Taxes and • Licenses and dividing by the total business miles. • Vehicle Maintenance Log • Shows maintenance records for vehicles within a specific time period along • with the individual work that has been done to that vehicle. • . • Vehicle List • Show’s general information about vehicles within the Agency. This report shows the • State ID, Year, Make, Model, VIN, Status, and Fleet Status. • Vehicle Inventory and Mileage • Shows an agency’s vehicle Inventory and Mileage by Agency and Location

6. VITAL Reporting – How to Access?

7. VITAL Report

8. Vehicle Request Process “WAPPR” – Waiting Approval “WFC” – Waiting Fleet Coordinator Review “WFSS” – Waiting for FSS/OFM Approval “WOPB” – Waiting for OPB Approval VR Approver #2 Approver #1 Requester OPB OFM Fleet Coordinator / Manager-Supervisor Agency Approver “OKOPB” – OPB Final Approval “APPR” - Approved “OKFSS” – OFM Final Approval SAO PeopleSoft to Create Shell P.O.

9. Important Criteria for Vehicle RequestsPhase 1* • Weekly agency WEX Errors below 15% of total fuel transactions with final goal to be within 5%. (WEX Error Spreadsheet) • 80 % of agency’s vehicles’ odometer readings have been updated within the last 30 days. (Agency Mileage Exception Report) • No outstanding surplus vehicles greater than 180 days for disposal. (Agency Overdue Surplus Report) • Year-end Mileage update completion is greater than 90% of total fleet assets. (Agency Annual Mileage Exception Report – Date= 6/30/YYYY) • Should be within your OPB vehicle allocation *Top Ten lists may be shared with agency heads by DOAS Commissioner (i.e. Low Use/Zero mile units)

10. Wex Transaction Process High Level Maximo (VITAL)

11. Fleet Management Educational Opportunities

12. Office of Fleet Management Educational Series

13. Fleet Management Fleet Metrics

14. Accurate Data is Needed to . . . Respond to decision-makers • Is Preventive Maintenance (PM) happening regularly? • Average cost per vehicle? Identify abuse and fraud • Identify unusual usage patterns Justify requests for new vehicles • Use and maintenance of current vehicles

15. Core Data for Fleet Performance • Budget • OPB Vehicle Allocation • Vehicle Request (VR)/ Disposal Data Process Total Vehicle Count Total Fuel $ Total Fuel Gallons Total Fleet Miles Driven • Fuel • WEX Data Interface • Manual Entry Total Maintenance $ • Maintenance • ARI Data Interface • Generic Interface • Manual Entry

16. Key Metrics to Follow

17. Data in VITAL Is Improving

18. Data Errors & Gaps Still Exist* • How many passenger vehicles have odometer greater than 250,000 miles? • 547 (2.6%) • What is the highest odometer reading in VITAL (for passenger vehicle)? • 1,952,562 miles, 1992 Ford F-150 • How many vehicles do not have a current odometer reading entry for FY2010? • 503 (2.5%) • How many vehicles have zero miles? • 1,455 (7%) *Top Ten lists may be shared with agency heads by DOAS Commissioner (i.e. Low Use/Zero mile units)

19. Example of Scorecard* • *Shared with agency heads by DOAS Commissioner

20. Vehicle Utilization* • What is vehicle utilization? • Miles driven compared with expected use • Fleet policy states that all state vehicles will be utilized a minimum of 14,000 miles per year (Policy No.10, Revision #6) • 6,000 minimum in campus environment • Low use vehicles must be classified in VITAL and reviewed for continued need *Governors Office and Legislature asking for this low use data

21. Fleet Management Service Contracts

22. DOAS Fleet Service Contracts/Toolbox • Maintenance Management Services (ARI) • Fuel Management Services – Wright Express (Wex) • Enterprise Rent-A-Car (Vehicle acquisition) • Daily rentals • Short-term (Walk-Away) leases (Pilot program) • Car share and pooling solutions (New WeCar program) • Vehicle decision-making calculators

23. Fuel Management Program Statewide Fleet Contracts - Benefits • Maintenance Management Program - Contract #SWC-90816 • Lease/Rental Car Program (Ask for 03A1534)

24. How the ARI Program Can help your fleet? • Automate Data Capture (no Maximo entry by users) • Reduced Maintenance Costs – 10-20% w/National vendors • Reduced Overhead/Administration Costs-Consolidated Billing • Provides Detailed Audit Trails • Warranty and Post Warranty Recovery • Access 24/7/365 to Call Center w/ASE certified Tech with toll-free access - 1-800 CAR-CARE • State drivers call techs that are ASE certified and negotiate on your behalf • Provides more time and resources to focus on agency core mission objectives • Provides a state and nation wide vendor network • Detailed vehicle dashboards, KPIs, analysis and reports

25. GA Vendor Network Coverage National Account Vendors 38,000 shops nationwide 1,117 shops in Georgia 10-20% off retail pricing Independent Vendors 52,000 shops nationwide; 3,826 in Georgia ARI rates each vendor according to speed of repair, willing to negotiate and accuracy of invoice ARI can add your current specialized vendors to our network

26. Cost Avoidance* • Administrative cost avoidance = $29.84 vehicle/month • Direct repair cost avoidance = $9.92 vehicle/month • Program cost is $8.66 vehicle/month * Based on FY2009-10 program savings.

27. Reports, helps, alerts, charts, and graphs Custom Dashboards – With Your Agency KPIs to Better Manage Agency Fleet Vehicles

28. How to Participate with ARI? OFM Meets with Agency to discuss program and benefits Agency provides vehicle Listing to OFM ARI puts together Vehicle Operators Packets & sends To Agency Coupons, Phone #’s, & Procedures

29. Summary Wex Fuel Management Program Key Benefits: • Wex program works similar to P-Card program w/access to over 90% of retail vendors accepting Wex for fuel and maintenance purchases at reduced prices aiding driver from price shopping. • Provides 24/7/365 access to online tools, calculators, pre-authorized spending limit ability, purchase alerts, transaction limits, exception reports, etc. • Secure cards assigned to vehicles and PINs assigned to employees reducing occurrence of slippage, misuse and fraud. • Secure access to “Real-time” fuel data allowing agency focus on auditing tasks versus administrative tasks. (e.g. invoice processing, checks, postage, reimbursement, ordering, inventory mgt, data entry, invoice processing costs, telephone calls, data entry, fuel reimbursement expenses..etc.). • Potential Fleet Savings/Year for 500 vehicle fleet/1000 employees can be $333,667 (Average of 24.3% reduction in costs)

30. Manage Purchase Alerts • Purchase Alerts are generated from parameters you set • Receive email notification when a transaction exceeds your purchase guidelines • Allows the transaction to authorize so your driver can stay on the road • Fast activity reporting helps you address any problems quickly Choose from a variety of parameters: • Number of transactions per day • Out-of-state transactions • Off-hours transactions • Day of the week • Dollars per day • Dollars per transaction • Gallons per transaction • Fuel type

31. WEXOnline® > Reporting > Exceptions In addition to Purchase Alerts, you can query exceptions at your convenience using the Exception Reporting Feature.

32. WEXOnline® > Tool Kit > Fuel Price Mapping

33. How To Order Fuel Cards E-mail form to: fms@doas.ga.gov OFM emails template to Wright Express OFM reviews Spreadsheet Template Complete a Fuel Card Spreadsheet Template Sends WEX cards to Agency

34. Enterprise Rent-A-Car State Contract Options • Daily Rental Vehicles (Ask for 03A1534) • Short Term Closed End Lease Vehicles (Pilot Program) • Car Share and Pool Vehicles (WeCar coming soon) Key Benefits: • Leverages operating expense budget • Reduces largest costs of fleet ownership (i.e. Depreciation, administrative overhead) • Reduces excessive reimbursement, streamlines billing, information and reporting • Provides a wide variety of vehicles • Increased driver productivity using free pick up for instate rentals • Real-time reservation online reservation portal to over 212 store locations statewide • Roadside assistance for enhanced driver safety and security • Cost comparison calculation tool

35. The comparison tool can be accessed at http://ssl.doas.state.ga.us/vehcostcomp/ One day trip using a mid-size saves $12 with an additional $7 savings using a compact car

36. Transportation Decision Tool Example – Lease

37. Why Non-State Vehicle Ownership Alternatives? • Vehicle ownership can be a costly decision if made unwisely, • Provide agencies with other low cost transportation alternative, • Reduce POV and avoid excessive costs, vehicle and employee downtime, • Increase vehicle utilization and reduce the state’s fleet size, • Provide lower cost transportation alternatives to agencies with unreliable vehicles using costly alternatives to provide mission critical transportation, • Leverage Enterprise Rent-a-car’s fleet expertise as an industry consultant under DOAS direction to provide State agencies with alternative and cost-effective transportation solutions, • Propose reliable and safe transportation alternative • Provide the State with validation process regarding use of short-term leasing options to both right-size fleet and provide more cost-effective agency transportation solutions.

38. Example: Lease Program Costs $257.47 Lowers total monthly cost to operate a state vehicle

39. OFM Team Member Contact Information Steve Saltzgiver - steve.saltzgiver@doas.ga.govor 404-651-7263 General information, leasing, policy, legislation, best practice, etc. Jim Sever – jim.sever@doas.ga.govor 404-657-6907 Special projects, Agency data profiles, VITAL access, etc. Allyson Williams – allyson.williams@doas.ga.govor 404-657-6935 Data analysis, agency profiles/scorecards, management reports, etc. Roger Kennedy – roger.kennedy@doas.ga.govor 404-656-6295 Wright Express and ARI participation, access and information, etc. Bobby Arrington – bobby.arrington@doas.ga.govor 404-657-6908 Vehicle Requests (VRs), VITAL helpdesk, VITAL Training, etc. John Wynn – john.wynn@doas.ga.govor 404-657-6930 VITAL DB Performance, Special data queries, VITAL reporting, etc. General/Other – Office Fax 770-357-3193 General Mailbox fms@doas.ga.gov

40. Questions & Answers

41. Risk Management Services

42. Risk Management Services • Self-Insurance mechanism of the State of Georgia • RMS handles nearly all exposures associated with the operations of Georgia State Government assumed under the Georgia Tort Claims Act, Georgia State Law and Federal Statutes • With $26.5B in property assets, 130,000 WC covered lives, $525M in liabilities under management, RMS would be in the top 25 of worldwide insurance organizations • Sovereign Immunity waived under Georgia Tort Claims Act

43. Risk Management Services • How we operate: • Claims Mitigation- Internal claims staff handle retained losses • Risk Financing- Purchase excess coverage in the insurance market and manage the RMS Trust Funds • Risk Consulting- Support other state and quasi-state functions • Loss Control– Comprehensive Loss Control Program (CLCP) designed to help agencies avoid or minimize losses in their organization. • Enterprise Risk Management approach to loss prevention • Annual Risk Report– Comprehensive report on risk related activities

44. Risk Management Services Auto Liability & General Liability

45. Risk Management Services Auto Insurance Program • Auto Liability follows the driver not the vehicle • Auto Physical Damage covers the asset - State vehicle for comprehensive and collision • Auto Accidents - touch nearly all areas of RMS, therefore, auto exposures receive additional attention • Single event most likely to result in the death of a state employee • Top 3 most expensive Workers’ Compensation claim type

46. Risk Management Services Auto Program Statistics • 100,000+ potential drivers • FY2008 – 650 accidents involving Auto Liability • Currently only 8700 of the states 21,000 vehicles are insured for Auto Physical Damage • Average total cost of an accident $21,000. • Cost of APD coverage – 1% of market value • Cost for Auto Liability Coverage - $0 for 8 years

47. Risk Management Services How Auto Exposures are addressed: • Comprehensive Loss Control Program • Driver Qualification • Driver Training • Accident Review Panels • Participant Deductible Adjustments • Vehicle Maintenance • Claims Trending • “Report My Driving” Stickers and post complaint call driver training • Support post accident Drug and Alcohol testing

48. Risk Management Services General Liability Exposures • Slip and Fall cases • Negligent Road Design and/or Maintenance • Prisoner Civil Rights cases • Professional Negligence/ Malpractice • Employment Practices Liability • All cases brought under the Georgia Tort Claims Act, Georgia State Law and Federal statutes

49. Questions & Answers

50. Risk Management Services Property Insurance