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Craig J. Nichols, Secretary Customer Focus Group Meeting Rental Vehicles State Term Contract Contract No. 518-020-10-1 May 21, 2014

Customer Focus Group Meeting

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Customer Focus Group Meeting. Rental Vehicles State Term Contract C ontract No. 518-020-10-1 May 21, 2014. Welcome & Introductions. Meeting Facilitator Trey Collins, Division of State Purchasing Contract Manager Michelle MacVicar, Division of State Purchasing Customer Focus Group - PowerPoint PPT Presentation

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Page 1: Customer Focus Group Meeting

Craig J. Nichols, Secretary

Customer Focus Group Meeting

Rental Vehicles State Term ContractContract No. 518-020-10-1

May 21, 2014

Page 2: Customer Focus Group Meeting

2

Welcome & Introductions

Meeting FacilitatorTrey Collins, Division of State Purchasing

Contract ManagerMichelle MacVicar, Division of State Purchasing

Customer Focus GroupPlease state your full name and your agency

Page 3: Customer Focus Group Meeting

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Meeting Guidelines

Please turn off / silence cell phones

If you have to leave the telephone, please do not put your line on hold; hang-up and call back

Feel free to ask questions at any time

Please state your full name and agency name when speaking

Page 4: Customer Focus Group Meeting

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Meeting Agenda

• Overview of the Current Contract

• Discussion of Current Contract

• Results of DMS Customer Survey

• Discuss Possibilities for Improvement

• Final Thoughts & Closing

Page 5: Customer Focus Group Meeting

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Table of ContentsOverview of the Current Contract

Overview of the Current Contract

Discussion of Current Contract

Results of DMS Customer Survey

Possibilities for Improvement

Final Thoughts & Closing

• Contract Term: 9/30/09 – 9/29/14 State Purchasing plans to renew the Avis contract for one year

(through 9/29/15) State Purchasing plans to allow the Enterprise contract to expire

on 9/29/14

• Contract Volume Car rentals through Avis account for more than 99 percent of

contract sales Truck rentals through Enterprise account for less than one

percent of contract sales

Contractor Total FY 12-13 Spend

% of Contract Spend

Avis Rent-A-Car $ 18,594,192 99.69%Enterprise Leasing (trucks only) $ 57,393 0.31%Total $ 18,651,585 100%

Page 6: Customer Focus Group Meeting

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Table of ContentsRental Cars Overview

Elements of the Current Contract

Discussion of Current Contract

Results of DMS Customer Survey

Possibilities for Improvement

Final Thoughts & Closing

• Rental discounts offered average 70.4% off list price (includes insurance and loss damage waiver (LDW) savings)

• Car Rental Features Unlimited mileage Insurance and LDW included Personal use (rate only) SUV discount when executive order is issued Fuel not included

• Car Rental Locations Three Tallahassee locations: Southwood, Downtown and

Tallahassee Regional Airport 155 Avis rental locations in Florida

• Rental Car Vehicle Classes Subcompact Minivan Compact 12 Passenger Van Mid-Size/Intermediate Standard SUV Full Size 4-Door Standard SUV (Executive

Order)

Page 7: Customer Focus Group Meeting

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Table of ContentsRental Trucks Overview

Elements of the Current Contract

Discussion of Current Contract

Results of DMS Customer Survey

Possibilities for Improvement

Final Thoughts & Closing

Standard Pick-Up (2500 lbs) Parcel Van (14’) 3/4 – 1 Ton Pick-Up (10,700 lbs) City Van (14’-16’) Panel Van (2500 lbs) Straight Truck (16’-24’)

• Truck rental discounts average 44% off list price

• Truck Rental Features 500 miles per day Insurance and LDW included Personal use (rate only) Fuel not included

• Truck Rental Locations One Tallahassee location (Ryder serving as subcontractor) 17 Enterprise truck rental locations in Florida

• Rental Car Vehicle Classes

Page 8: Customer Focus Group Meeting

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Table of Contents

Discussion of Current Contract

Elements of the Current Contract

Discussion of Current Contract

Results of DMS Customer Survey

Possibilities for Improvement

Final Thoughts & Closing

What features of the current contract should State Purchasing retain in any new solicitation?

• Vehicle Classifications: Do we have the right vehicles?

• Mileage: Is unlimited mileage important?

• Personal Use: Mandatory or optional for vendor?

• Trucks: Do we need a state contract for truck rentals?

• Tallahassee Locations: Do we need another Tallahassee location?

• Additional Florida Locations: Do we need new locations in other areas of the state?

• Other?

Page 9: Customer Focus Group Meeting

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Table of ContentsResults of DMS Customer Survey

Elements of the Current Contract

Discussion of Current Contract

Results of DMS Customer Survey

Possibilities for Improvement

Final Thoughts & Closing

• DMS issued a survey to 1,985 agency customers and received 527 responses (26.5% response rate)

• Respondents’ Primary Office Locations 67% of respondents are in Tallahassee 33% of respondents are in another part of the state

• Respondents’ Usage Levels 24% of respondents rent less than once per quarter 47% of respondents rent at least once per quarter 29% of respondents rent more than once per month

• Overall Customer Satisfaction Approximately 88% of respondents indicated that they are

satisfied or very satisfied Approximately 8% of respondents stated that they are neutral Less than 4% of respondents indicated dissatisfaction

Page 10: Customer Focus Group Meeting

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Table of Contents

Procurement Opportunity

Customer Survey Results

Contract Performance

Opportunities for Improvement

• Approximately 65% of respondents rent vehicles most frequently from one of the three Tallahassee locations

• There was little consensus in the locations suggested by Respondents who selected “Other”

• In a separate question, approximately 82% of respondents indicated that their typical rental location is conveniently located to their office

Rental Locations

27%

13%

25%

10%

5%

20%

What Avis rental location do you use most frequently?

Tallahassee Southwood of -fice complexTallahassee airportTallahassee downtown lo-cationAirport location in my cityDowntown location in my cityOther

Page 11: Customer Focus Group Meeting

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Table of Contents

Procurement Opportunity

Customer Survey Results

Contract Performance

Opportunities for Improvement

Of the respondents in Tallahassee, approximately 80% rent vehicles from either the Southwood or Downtown location.

Tallahassee Rental Locations

41%

20%

39%Tallahassee Southwood office complex

Tallahassee airport

Tallahassee downtown location

Page 12: Customer Focus Group Meeting

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Rental & Service Issues

Of the 527 survey respondents, 68 (13%) reported experiencing an issue that was not resolved to their satisfaction. The most frequently cited issues are presented in the chart below.

Car not clean at pickup

Car reserved was not

available at pickup

Rude service Gas tank not full at pickup

Mechanical problems

Charged wrong price

No cars available for reservation

47.8%

40.3%

29.9%26.9% 26.9%

22.4%19.4%

Page 13: Customer Focus Group Meeting

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Table of Contents

Procurement Opportunity

Customer Survey Results

Contract Performance

Opportunities for Improvement

• Given a damaged car at pick-up

• Problems returning vehicle

• Roadside service issues

• Reservation was lost in the system

• Charged taxes when showing tax exempt card

• Avis Sunpass transponder issues

• Other?

Other Rental & Service Issues

Page 14: Customer Focus Group Meeting

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Possibilities for Improvement

51.0%

28.2%25.9%

14.0%

32.3%

What improvements to current state contract rental car services would you suggest?

Page 15: Customer Focus Group Meeting

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Table of ContentsOther Possibilities for Improvement

Elements of the Current Contract

Discussion of Current Contract

Results of DMS Customer Survey

Possibilities for Improvement

Final Thoughts & Closing

• Toll Payment Process

• Additional Training for Contractor Staff Regarding Provisions of State Term Contract

• Customer Information Materials

• Vehicle Return & Security Issues

Page 16: Customer Focus Group Meeting

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Final Thoughts & Closing

• Review any agency action items

• Review any DMS action items

• Rental Vehicles Industry Meeting (5/29)– Industry Meeting Public Meeting Notice (VBS Link)– Volunteers for Agency Panel

• Volunteers for evaluation or negotiation

Page 17: Customer Focus Group Meeting

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Contact Information

Trey Collins, Associate Category Manager (850) 488-9996; [email protected]

Michelle MacVicar, Contract Manager (850) 414-6131; [email protected]

Page 18: Customer Focus Group Meeting

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Thank you for your participation in today’s meeting.