FLEET FOCUS 2012

Presented by

Michael Bisogno, CAFMDirector, OFMS

Fleet Focus 2012

Agenda– State Motor Fuel Program Update

– MY2012 Vehicle Update

– Lifecycle Cost Analyses

– Minimum Mileages

– FY12-13 Outlook

State Motor Fuel ProgramHistory:

DGS was directed by the General Assembly to procure, through a competitive procurement process, gasoline and diesel fuel for state and local entities.

Procurement process was conducted and contracts were awarded on August 11, 2010 for bulk diesel and gasoline, and a fuel card contract for the purchase of fuel from commercial retail fuel providers.

The resulting contracts were combined to form the State Motor Fuel Program and are managed by the Office of Fleet Management Services.

State Motor Fuel Program• Mission:

Reduce the burden of fuel purchases on agencies and localities Streamline the procurement process Improve quality and productivity Lower costs by aggregating supply Emphasize the participation of localities and institutions of higher education to increase the

purchasing ‘footprint’.

• Products: Bulk Fuel Consignment Fuel Fuel Cards

• Vendors: Mansfield Oil Company - Bulk Fuel (Bristol District), Consignment Fuel, Fuel Card James River Solutions – Bulk Fuel (Remaining Districts) PAPCO – Ferry Fuel

State Motor Fuel Program –Year 1

• Total Usage– 17.5 million gallons

– $57 million

• Fuel Cards– ~5 million gallons

• Bulk Fuel – ~17.5 million gallons

State Motor Fuel Program

Fleet Focus 2012

• MY 2012 Vehicle Update– Police Cars – Many new options

– Midsize vs. Fullsize – Lifecycle Costs

– New SUV’s

– What to expect in the future?

Fleet Focus 2012

• Lifecycle Cost Analysis– Net Acquisition Cost

– Fixed Costs

– Operating Costs

– Personal Use Costs

– Total Lifecycle Costs

Fleet Focus 2012

Variables to Calculate Lifecycle Costs1. Target Months in Services

2. Target Replacement Mileage

3. Expected Mileage Per Month

4. Adjusted Months in Service

5. Daily Mileage

6. Annual Interest Rate, or Cost of Money

7. Monthly Interest Rate, or Monthly Cost of Money

8. Lease Management Fee per Month, or Administrative Overhead per Month

9. Depreciation Rate, both Annual and Monthly

10. Fuel Cost per Gallon

11. Estimated Personal Use

12. Cost to Provide Loaner Vehicle, either per day or per mile

13. Insurance Cost per Vehicle (if applicable)

Fleet Focus 2012

Vehicle Acquisition / Usage Data Enter Acquisition Cost $21,246 Enter Annual Finance Percentage Enter Fuel Price per Gallon $2.72 Enter Annual Operational Cost $1,528 Enter the Estimated MPG 25 Enter Expected Monthly Mileage 1486 Enter One-way Commuting Distance 10 Enter Commuting Days Per Week 5

Standard IRS Reimbursement Rate $0.555

Summary

Accumulated Mileage 110,000Life Cycle Max Months 74Years in Service 6.2Operational Cost $9,421.68 $127.32 Per Month Fixed Cost $28,118.16 $0.26 Per Mile Fuel Cost $11,968.00 $0.11 Per Mile Total Lifetime cost $40,086.16 $6,500.46 Per Year

Monthly Cost $541.70 $27.09 Daily Rate Total Cost Per Mile $0.36

At this Utlization Level - it is more economical to provide a Commonwealth-Owned Vehicle

For Commuting Approval Only

Monthly Cost of Commuting Lifetime Commuting Use Costs

Monthly Commuting Mileage 400 Fixed Cost $10,790.35Personal Commuting Use 27% Fuel Cost $3,221.53Monthly Commuting Cost $145.82 Total Commuting Cost $10,790.35

Monthly Cost of Business Lifetime Business Use costs Monthly Business Mileage 1086 Fixed Cost $17,327.81

Commonwealth Business Use 73% Fuel Cost $8,746.47Monthly Business Cost $395.89 Total Business Cost $26,074.27

Commuting Assignment not Approved .

OFMS Vehicle Justification CalculatorA Vehicle Lifecycle Cost Comparison Tool

$0.00

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Cost per Mile

Personal Reimbursement Commonwealth Vehicle

Instructions Contract Prices

Fleet Focus 2012

• Minimum Mileages– Why are they important?

– How are they abused?

– When should exemptions be granted?

Class Mileage

Compact 8,000

Mid-Size 8,500

Full-Size 9,000

Mini-Van 11,000

SUV-Small 10,000

SUV Large 13,000

Pickup Compact 4x2 8,000

Pickup Compact 4x4 9,000

Pickup Full-Size 4x2 10,000

Pickup Full-Size 4x4 11,000

Fleet Focus 2012

• New OFMS Form-1 – Excel Based

– More user-Friendly

• Updates to OFMS Safety Module

Fleet Focus 2012

Questions

Contact us

Office of Fleet Management Services2400 W. Leigh St. Richmond VA 23220

804.367.6525

www.dgs.virginia.gov/fleet