A MAN A MISSA MAN A MISSA CAR A CURVEA CAR A CURVE

HE KISSED THE MISSHE KISSED THE MISSAND MISSED THE CURVEAND MISSED THE CURVE

BURMA-SHAVEBURMA-SHAVE

LEASING VEHICLES THROUGH LEASING VEHICLES THROUGH GSA FLEETGSA FLEET

A Financial & Business Management Branch PresentationA Financial & Business Management Branch Presentation

Trivia Game

Top-10 ComplaintsTop-10 Complaints

2. Auto Sales2. Auto Sales

1. Home Improvement Services 1. Home Improvement Services 6. Mail order 6. Mail order

3. Household goods 3. Household goods 8. Landlord-tenant 8. Landlord-tenant disputes disputes

5. Credit and lending 5. Credit and lending 9. Utilities9. Utilities

10. Travel/tourism10. Travel/tourism

Source: NACAA and CFA Source: NACAA and CFA

4. Auto repairs4. Auto repairs

7. Auto leasing7. Auto leasing

Survey says….

OUR GOALOUR GOAL

BE THE BEST VALUE FOR

FEDERAL GOVERNMENT

BalancingCustomer Service

andCosts

Thankful for:Thankful for:•Our CustomersOur Customers•Big ThreeBig Three• Automotive DivisionAutomotive Division•Fleet Service Fleet Service RepresentativesRepresentatives

178,000 Vehicles178,000 Vehicles

Domestic/OverseasDomestic/Overseas

Business Type FundingBusiness Type Funding

Partner with Service Partner with Service ProvidersProviders

SCOPE OF OPERATIONSSCOPE OF OPERATIONS

Major Customers Army

Interior Energy Navy

Transportation Air Force

178,000 Vehicles2.0 Billion Miles

Passenger

Lt. Trucks 61%

OtherBuses32% 5%

2%

GSA FLEET GSA FLEET VEHICLE PROFILEVEHICLE PROFILE

70/30 Split 70/30 Split

LowestLowest price as equipped price as equipped

Documented justification for non-lowDocumented justification for non-low

C.F.R.C.F.R.

How we buyHow we buyChoice ContractsChoice Contracts

Brand “A” car with no options = $12,000 Brand “A” car with no options = $12,000 Brand “B” car with no options = $12,200Brand “B” car with no options = $12,200

Cruise control on Brand “A” costs $500Cruise control on Brand “A” costs $500Cruise control on Brand “B” costs $200Cruise control on Brand “B” costs $200

Brand “A” car with cruise control = $12,500Brand “A” car with cruise control = $12,500 Brand “B” car with cruise control = $12,400Brand “B” car with cruise control = $12,400

How we buyHow we buyChoice ContractsChoice Contracts

Sub-Compact Sedan - Std. Item 8C

FY01 Rate: $145 mo.// $0.09 mileReplacement: 3 yrs. or 36,000 miles

Lowest Cost Option

Compact Sedan - Std. Item 9C

FY01 Rate: $165 mo.// $0.10 mileReplacement: 3 yrs. or 36,000 miles

Lowest Cost Option

4x2 Pickup Truck - Std. Item 61

FY01 Rate: $180 mo.// $0.125 mileReplacement: 6 yrs. or 60,000 miles

Lowest Cost Option

Passenger Sedan - Std. Item 20

FY01 Rate: $201 mo.// $0.130 mileReplacement: 6 yrs. or 60,000 miles

Lowest Cost Option

4x4 Pickup Truck - Std. Item 46

FY01 Rate: $228 mo.// $0.160 mileReplacement: 6 yrs. or 60,000 miles

Lowest Cost Option

4x4 Carryall - Std. Item 105

FY01 Rate: $276 mo.// $0.140 mileReplacement: 6 yrs. or 60,000 miles

Lowest Cost Option

School BusSchool Bus

School buses offer you great load capacity,

superior visibility, comfortable turning radius –

and heavy-duty life expectancy.

Interested?! Contact your local GSA Fleet Service

Representative.

Monthly rate and Mileage FeeMonthly rate and Mileage Fee Guarantees future replacementGuarantees future replacement Includes fuelIncludes fuel Includes maintenance/repairIncludes maintenance/repair Includes cost of our operationIncludes cost of our operation Includes cost to sell vehicleIncludes cost to sell vehicle

Goal is to keep rates at/below Goal is to keep rates at/below inflationinflation No penalty for excessive mileageNo penalty for excessive mileage

Rate StructureRate Structure

What they do NOT coverWhat they do NOT cover Vehicle Misuse/AbuseVehicle Misuse/AbuseUnauthorized PurchasesUnauthorized PurchasesAccident DamageAccident DamageMaintenance/Replacement of AgencyMaintenance/Replacement of Agency

Owned EquipmentOwned EquipmentDispatching, Driver Services, etc.Dispatching, Driver Services, etc.

Rate StructureRate Structure

InflationInflation Vehicles, maintenance, fuelVehicles, maintenance, fuel

Implementing Temporary Fuel Implementing Temporary Fuel SurchargeSurcharge Over maintaining vehiclesOver maintaining vehicles Use of premium fuelUse of premium fuelDisposal marketDisposal market

What Affects the What Affects the RatesRates

Designed to help recover Designed to help recover cost of additional options cost of additional options above base price of vehicleabove base price of vehicle

Located at back of rate Located at back of rate bulletinbulletin

OPTIONALOPTIONALEQUIPMENTEQUIPMENT

RATESRATES

WHAT ARE THEY?WHAT ARE THEY?

Federal Vehicle 2001 Standards Conference – May 2001o Meeting with Customers Spring/Summero Letters Sent to Customers Summero Choice Renewal July/Augusto Awards Made Novembero Call for Requisitions Decembero Orders Sent to OEMs January/Februaryo Vehicle Deliveries Begin Spring - Summer

Vehicle Acquisition Timeline

GreeningGreening the the

GovernmentGovernment

Signed on April 21, 2000

Directed Federal agencies to take a leadership role in the reduction of vehicular petroleum consumption

Reduce fleet’s annual petroleum consumption by at least 20 percent by the end of FY 2005, 3 MPG increase by 2005

Through increases in fleet efficiencies and the use of alternative fuels

Presidential Executive Order (E.O.) 13149

COKECOKEvs.vs.

PEPSIPEPSI

Have You Have You Considered Considered

Rightsizing?Rightsizing?

• Executive Order and CFR Compliance EO 13149 CFR 101.38 -103• Saves you money• Save taxpayer money

Snapshot of TaxesSnapshot of TaxesMedian One- and Two-Median One- and Two-

Income FamiliesIncome Families

One-EarnerOne-Earner Two-EarnerTwo-Earner

SalarySalary $36,579$36,579 $68,605$68,605

TaxesTaxes $1,931 $1,931 $6,083$6,083

1998 Stats1998 Stats

Neon $11,075

Stratus $13,373

Expedition $25,384

Cherokee $18,532

Caravan $17,509

Suburban $30,032

Make/ModelMake/Model VolumeVolume MPGMPG ClassClass

Ford EscortFord Escort 87.287.2 n/an/a Sub-Compact Sub-CompactFord ContourFord Contour 90.290.2 3030 Compact CompactDodge NeonDodge Neon * * 90.390.3 3232 Sub-Compact Sub-CompactOldsmobile AleroOldsmobile Alero 9191 2929 Compact CompactHonda CivicHonda Civic 91.491.4 CNGCNG TBD TBDPontiac Grand AMPontiac Grand AM 9191 2828 Compact CompactChevy CavalierChevy Cavalier * * 91.591.5 2929 Sub-Compact Sub-CompactChevy CorsicaChevy Corsica 92.792.7 n/an/a Compact CompactFord FocusFord Focus * * 94.194.1 3333 Sub-Compact Sub-CompactDodge StratusDodge Stratus 95.995.9 2828 Compact CompactChevy MalibuChevy Malibu 98.698.6 2727 Compact CompactFord TaurusFord Taurus 104.7104.7 2828 Midsize Midsize

InteriorInterior

Dag-Nab it!!!All I wants is a full size sedan.

Interior DimensionsInterior Dimensions

Mid-Size LargeTaurus Crown Vic

Head Room (Ft/Rr) 40.0/38.1 39.4/38.0Leg Room (Ft/Rr) 42.2/38.9 42.5/39.6Shoulder Room (Ft/Rr) 57.3/56.6 60.8/60.3Hip Room (Ft/Rr) 54.5/55.7 57.1/58.7

4x4 vs. 4x2 – Cost and MPG4x4 vs. 4x2 – Cost and MPG

Make/Model Item Annual Lease MPG

Dodge Caravan 4x2 20 $3,972 24

Chevy Astro 4x4 25 $4,572 19

Ford Explorer 4x4 105 $4,992 20

Ford Expedition 4x4 105b $5,568 16

Ford Excursion 4x4 108 6,180 10

4x4 vs. 4x24x4 vs. 4x2

Cost MPG Traction/Off Road Ability Image Taxpayer Perception

How come I can’tHow come I can’tget a vehicle built with all get a vehicle built with all the options listed in the the options listed in the Federal Standards?Federal Standards?

Answers:Answers:

1.1. It’s too expensiveIt’s too expensive

2.2. The manufacturers did not bid itThe manufacturers did not bid it

GSA provides up to GSA provides up to $4M in funding$4M in funding

DOE provides funding DOE provides funding for infrastructure/ for infrastructure/ marketingmarketing

AFV User ProgramAFV User Program

Controlling costs/keeping rates low

Tracking purchases better

Standardizing customer letters

Identifying methods to improve MPG

GSA FLEET GSA FLEET IS AT YOUR SERVICEIS AT YOUR SERVICE

CONSOLIDATINGCONSOLIDATINGYour VehiclesYour Vehicles

with with GSA FLEETGSA FLEET

Significant Savings Realized - Limited funds to purchase vehicles - Fleet has aged, maintenance costs have increased - Vehicles become less fuel efficient - Fleet mix is inappropriate for mission - Commercial leasing is costly

WHY CONSOLIDATE?

Best non-agency option Guaranteed vehicle replacement GSA assumes financial risk Flexibility in fleet configuration Modernized fleet AFV customer planning assistance Automated information systems

CONSOLIDATIONCONSOLIDATION BENEFITSBENEFITS

U.S. Army Corps of Engineers U.S. MarinesU.S. Army EuropeU.S. NavyU.S. Air ForceDepartment of Energy

CONSOLIDATION PARTNERS

GSA/Customer dialogue Agency analysis/decision Identify vehicle inventory Business case profile approved Memorandum of understanding Establish timeline Interagency support agreements

PHASES OF PHASES OF CONSOLIDATIONCONSOLIDATION

Customer Customer ResponsibilitiesResponsibilities

• Operate vehicles as if it were yours

• Obtain scheduled PM services

• Maintain vehicle appearance & cleanliness

• Avoid vehicle misuse/abuse

• Report all accidents promptly to the AMC

Customer Customer Responsibilities Responsibilities

(cont..)(cont..)

• Use self-service fuel pumps

• Use regular unleaded fuel

• No smoking in Government vehicles

• Safeguard keys and credit card

• Pay GSA Fleet bill promptly

GSA Fleet GSA Fleet and Customers working and Customers working together together

• Contact the local Fleet Service Representative

• Fleet Service Representatives are the “key” to resolving customer concerns

• Visit GSA Fleet on the Internet at: www.fss.gsa.gov/vehicles/www.fss.gsa.gov/vehicles/leasingleasing

How to reach GSA How to reach GSA

FleetFleet General Services AdministrationGeneral Services Administration

Fleet Management DivisionFleet Management Division1941 Jefferson Davis Highway1941 Jefferson Davis Highway

Crystal Mall Building 4 – Rm. 819Crystal Mall Building 4 – Rm. 819Arlington, VA 22202Arlington, VA 22202

Phone: (703) 305-6278 Fax: (703) 305-Phone: (703) 305-6278 Fax: (703) 305-7258 7258

Internet: Internet: www.fss.gsa.gov/vehicles/leasingwww.fss.gsa.gov/vehicles/leasing