Vehicle Allocation Methodology The Federal Perspective

1. GSA, Office of Government-wide Policy Vehicle Allocation MethodologyThe Federal Perspective NPMA NES 2014

2. Federal Fleets FY2013 • Total Inventory 635,748 • Miles traveled 4.82 billion • Operating costs $4.4 billion • 20 large fleets (>2,000) • Average age 12 years • Fleet Composition Vehicle Type • Trucks 61% • Passenger 37% • Other 1% • Fleet Composition Agencies • USPS 33% • Civilian 39% • Military 28% • Fleet Composition Sources • Agency-owned 70% • GSA Fleet 29% • Commercial lease 1%

3. Vehicle Allocation Methodology “A vehicle allocation results from a methodology that provides agency fleet managers a standard way to ensure that each vehicle in the fleet is correctly sized and is appropriate for accomplishing the agency missions.” - FMR Bulletin B-30

4. GSA Bulletin FMR B-30Background • Presidential Memorandum- Federal Fleet Performance (May 2011) directed GSA to develop and distribute to agencies a Vehicle Allocation Methodology (VAM). • Bulletin provides guidance on conducting an annual VAM to determine the optimal fleet inventory and identify resources to operate those fleets effectively and efficiently. • FMR Bulletin B-30 replaces previous guidance issued in 2004 in FMR Bulletin B-9

5. GSA Bulletin FMR B-30What is the purpose of the bulletin? • Provides guidance on the development, maintenance, and reporting of an agency VAM • Agency adherence ensures that agency vehicle fleets are correctly sized, are appropriate for accomplishing agency missions, and promotes cost-effectiveness of maintaining the fleet throughout the lifecycle • Advises agencies that a VAM should cover an agency’s entire fleet encompassing all vehicle types, including law enforcement and emergency vehicles • Provides agency fleet managers with a standard way to document the criteria and optimal vehicle allocation of a vehicle fleet

6. GSA Bulletin FMR B-30Description of a VAM Agency VAM’s must encompass the following steps: • Establish a baseline fleet inventory profile that tracks vehicles individually. (FAST line item data is coming….) • Develop vehicle utilization criteria to justify mission essential vehicles. Criteria must be specific such as but not limited to: • Mission • Miles of use per vehicle • House of use per vehicle • Ratio of employees to vehicles • Frequency of trips per vehicle • Vehicle function • Operating Terrain • Climate • Downtime

7. GSA Bulletin FMR B-30Description of a VAM cont’d • Conduct a Utilization Survey • Apply utilization criteria to each vehicle • Collect Information about each vehicle typically gathered by surveys and in-person interviews

8. GSA Bulletin FMR B-30 Description of a VAM cont’d • Determine Optimal Fleet Inventory • Identify vehicles that do not meet established criteria • Dispose of or reassign those vehicles as needed • Create a list of vehicle types approved for each organization and mission requirement • Compare existing fleet composition to mission task needs • Identify mission essential vehicles • Evaluate alternatives such as public transportation, contract shuttle services, or rental vehicles 5. Review and Update VAM annually or sooner as mission needs change

9. GSA Bulletin FMR B-30How should a VAM be documented and reported? • Integrated into the agency’s fleet management information system • Complete the VAM Reporting Tool in the Federal Automotive Statistical Tool (FAST) • Develop a fleet management plan which describes how your agency will achieve its optimal fleet inventory • Updated and submitted annually to GSA

10. GSA Bulletin FMR B-30 Fleet Management Plan Must consider and address the following items: • Schedule agency will follow to achieve its optimal inventory including plans for beginning to acquire all AFV’s by December 31, 2015. • Agency plans and schedules for locating alternative fueled vehicles in proximity to AFV fueling stations • Vehicle sourcing decisions- Agency owned or leased commercially or through GSA Fleet • Must be incorporated into their Annual Strategic Sustainability Performance Plan (EO 13514)

11. GSA Bulletin FMR B-30 • Annual requirement to complete VAM Reporting Tool and submit fleet management plan through FAST at the agency level • Agency information is reviewed by GSA and agency is issued recommendations to improve the plan • Assistance is available at www.gsa.gov/VAM

12. Next Steps: Why you need to be involved? Presidential Memo – Federal Fleet Performance: The President states the Federal Government owes “a responsibility to American citizens to lead by example and contribute to meeting our national goals of reducing oil imports by one-third by 2025 and putting one million advanced vehicles on the road by 2015.”

13. 2014 VAM Review • 34 agencies submitted Fleet Management Plans (FMPs) to GSA in compliance with the Presidential Memorandum - Federal Fleet Performance (May 24, 2011). • Agencies’ FMPs also satisfy the instructions in OMB Circular A-11 entitled “Fleet Data Reporting in FAST”. • FMPs update progress toward achieving VAM optimal fleet inventory by December 31, 2015 • FMPs describe agency efforts to operate fleets most effectively and efficiently.

14. 2014 VAM Review GSA’s Review Focused on the Following: • Agency Deployment of Fleet Management Information Systems • Agencies’ Progress on Achieving Optimal VAM and AFV Inventories • Agency Reported VAM Utilization Criteria and Survey Questions • Motor Vehicle Sources by Agency

15. Agency Deployment of Fleet Management Information Systems • GSA asked agencies to describe their fleet management information system (Table 1) “The data needed to effectively support an agency’s Fleet Management Plan comes from an agency’s fleet management information system (FMIS)”

16. Agency Deployment of Fleet Management Information Systems • Federal executive agencies are required by Sections 15301 and 15302 of the Consolidated Omnibus Budget Reconciliation Act of 1986 (Pub. L. No. 99-272) (40 U.S.C. Sec. 17502 and 17503) to have a centralized system to: “identify, collect, and analyze motor vehicle data with respect to all costs incurred for the operation, maintenance, acquisition, and disposition of motor vehicles.” • In addition, Federal Management Regulation Part 102-34.340 requires agencies to have a FMIS at the department or agency level

17. Agency Deployment of Fleet Management Information Systems GSA recommends that: • Agencies with a FMIS centralized at the agency level should begin FAST reporting without the use of a complex hierarchy to provide the same data that already resides in the agency FMIS • Agencies should prepare their FMIS systems in order to be able to report line-item information directly to FAST for the Fiscal Year 2016 reporting cycle • Agencies that lack a centralized FMIS should: • Develop or acquire a FMIS meeting FMR 102-34 requirements; • Use FedFMS (now available from GSA at no additional cost); or • Use GSA Leased Vehicles (which includes an FMIS as part of the lease service)

18. Agencies’ Progress on Achieving Optimal VAM and AFV Inventories • Agencies established their optimal fleet inventory targets in 2011 by conducting Vehicle Allocation Methodology (VAM) studies and have until December 2015 to reach their optimal inventories. (Tables 2a through 2d) “Agencies VAM efforts have resulted in reduced Federal fleet inventory every year since 2011.”

19. Agencies’ Progress on Achieving Optimal VAM and AFV Inventories • All new light duty vehicles leased or purchased by agencies must be alternative fueled vehicles, such as hybrid or electric, compressed natural gas or biofuel beginning 1/1/2016. • An agency’s total inventory of alternative fuel vehicles (AFVs) has implications for compliance with EPAct mandated AFV acquisitions, annual petroleum reduction, and increased use of alternative fuels. • The percentage of light-duty AFVs acquired in 2013 is an indicator of an agency’s progress in preparing for the mandate to acquire 100% light-duty AFVs.

20. Agencies’ Progress on Achieving Optimal VAM and AFV Inventories

21. Agencies’ Progress on Achieving Optimal VAM and AFV Inventories GSA recommends that: • Agencies reduce the number of vehicles exempted from VAM studies. • Agency fleet managers identify and redeploy underutilized vehicles to offset mission related growth rather than acquire additional vehicles.

22. Agencies’ Progress on Achieving Optimal VAM and AFV Inventories GSA also recommends that: • Agencies continue efforts to carefully optimize vehicle size, vehicle type and fuel type to the vehicle’s location and mission use. Successful achievement of the 100% AFV acquisition mandate by December 31, 2015 requires long-term strategic planning. • Agencies should complete another VAM fleet study by FY 2016.

23. Agency Reported VAM Utilization Criteria and Survey Questions • GSA asked agencies to include in their 2014 Fleet Management Plans their vehicle allocation methodology (VAM) survey questions as well as their vehicle utilization criteria. (Table 3) “A VAM study provides agency fleet managers a standard way to ensure that each vehicle in the fleet is justified, correctly sized, and is appropriate for accomplishing agency missions.”

24. Agency Reported VAM Utilization Criteria and Survey Questions • At the heart of the VAM process is a survey questionnaire through which agencies gather the information needed to identify their optimal fleet inventories and develop vehicle utilization criteria to justify mission essential vehicles. • In turn, utilization criteria helps a fleet manager determine whether to retain, dispose, or reassign individual vehicles in an agency’s fleet. • Specific utilization criteria are set individually by each agency (and sometimes by individual service or bureau within an agency) based on mission requirements.

25. Agency Reported VAM Utilization Criteria and Survey Questions • Of the 34 agencies that reported, 29 provided evidence of having used survey questions during their most recent VAM survey. • The most often surveyed topics included criticality of mission, amount of miles, number of trips, and number of passengers/amount of cargo carried. • 32 agencies also provided specific utilization criteria or showed evidence that they have criteria they use to determine whether to retain or dispose of a vehicle.

26. Agency Reported VAM Utilization Criteria and Survey Questions GSA recommends that: • Agencies should develop and document the specific questions used in their VAM vehicle user surveys and include them in with their annual Fleet Management Plan. • FMR Bulletin B-30 provides examples of questions that should be considered when developing survey questions.

27. Agency Reported VAM Utilization Criteria and Survey Questions GSA also recommends that: • Agencies should establish and document specific vehicle utilization criteria for motor vehicle justification. This criteria should be reviewed at least annually and action taken when underutilized vehicles are identified. Utilization can be measured in miles driven, trips taken, hours of use, or other criteria used to measure vehicle use and identify underutilized vehicles. • Knowing the amount and type of cargo and/or passengers regularly transported, the terrain the vehicle travels, the climate, kinds of weather expected, and criticality of the mission will help determine the best vehicle suited to accomplish mission work.

28. Motor Vehicle Sources by Agency “The source from which vehicles are acquired has a major impact on an agency's’ ability to operate a cost efficient fleet.” (Table 4) Per Section 17504(a)(2) of 40 USC 175, Federal Motor Vehicle Expenditure Control, the head of each executive agency shall include with the appropriation request the agency submits under section 1108 of title 31 for each fiscal year, a statement that justifies why the existing and any new motor vehicle acquisition, maintenance, leasing, operation, and disposal requirements of the agency cannot be met through the Interagency Fleet Management System operated by the Administrator of General Services, a qualified private fleet management firm, or any other method which is less costly to the Federal Government.

29. Motor Vehicle Sources by Agency • Agencies generally report that GSA leased vehicles are typically less costly to operate than agency owned or commercially leased vehicles. • Furthermore, customers leasing vehicles from GSA are supported by a vehicle management information system, a maintenance management system, an accident management system, and driver safety training at no additional cost.

30. Motor Vehicle Sources by Agency • However, there are legitimate reasons why some Federal missions are best met with agency owned vehicles or even commercially leased vehicles, such as for meeting short term vehicle needs, locations where GSA cannot support the vehicle operation, or where very specialized or highly modified vehicles are required. • Nevertheless, to obtain maximum savings and the benefit of an array of fleet services, use of GSA leased vehicles should be first considered wherever they can be used to successfully complete agency missions.

31. Motor Vehicle Sources by Agency GSA recommends that: • Agencies should acquire vehicles from the least costly source able to supply vehicles capable of accomplishing agency missions. • Agencies should document and be able to provide a data-driven justification for acquiring vehicles from other than the most cost effective source.

32. More information • Discuss with your Agency Fleet Manager • www.gsa.gov/vehiclepolicy • Quarterly FEDFLEET meetings • E-mail vehicle.policy@gsa.gov • Questions? • Thank you!