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Leasing Vehicles from GSA


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Leasing Vehicles from GSA

  2. 2. LEASING VEHICLES THROUGH GSA FLEET Kevin Gibson A Financial & Business Management Branch Presentation
  3. 3. Trivia Game Answer the Question and and Win Valuable Prizes...
  4. 4. Top-10 Complaints <ul><li>2. Auto Sales </li></ul>1. Home Improvement Services 6. Mail order 3. Household goods 8. Landlord-tenant disputes 5. Credit and lending 9. Utilities 10. Travel/tourism Source: NACAA and CFA 4. Auto repairs 7. Auto leasing Survey says….
  5. 5. OUR GOAL BE THE BEST VALUE FOR FEDERAL GOVERNMENT Balancing Customer Service and Costs
  6. 6. Thankful for: <ul><li>Our Customers </li></ul><ul><li>Big Three </li></ul><ul><li>Automotive Division </li></ul><ul><li>Fleet Service Representatives </li></ul> 
  7. 7. SCOPE OF OPERATIONS <ul><li>178,000 Vehicles </li></ul><ul><li>Domestic/Overseas </li></ul><ul><li>Business Type Funding </li></ul><ul><li>Partner with Service Providers </li></ul>
  8. 8. GSA FLEET VEHICLE PROFILE Major Customers Army Interior Energy Navy Transportation Air Force 178,000 Vehicles 2.0 Billion Miles Passenger Lt. Trucks 61% Other Buses 32% 5% 2%
  9. 9. How we buy Choice Contracts <ul><li>70/30 Split </li></ul><ul><li>Lowest price as equipped </li></ul><ul><li>Documented justification for non-low </li></ul><ul><li>C.F.R. </li></ul>
  10. 10. How we buy Choice Contracts <ul><li>Brand “A” car with no options = $12,000 </li></ul><ul><li>Brand “B” car with no options = $12,200 </li></ul><ul><li>Cruise control on Brand “A” costs $500 </li></ul><ul><li>Cruise control on Brand “B” costs $200 </li></ul><ul><li>Brand “A” car with cruise control = $12,500 </li></ul><ul><li>Brand “B” car with cruise control = $12,400 </li></ul>
  11. 11. Lowest Cost Option Sub-Compact Sedan - Std. Item 8C FY01 Rate: $145 mo.// $0.09 mile Replacement: 3 yrs. or 36,000 miles
  12. 12. Lowest Cost Option Compact Sedan - Std. Item 9C FY01 Rate: $165 mo.// $0.10 mile Replacement: 3 yrs. or 36,000 miles
  13. 13. Lowest Cost Option 4x2 Pickup Truck - Std. Item 61 FY01 Rate: $180 mo.// $0.125 mile Replacement: 6 yrs. or 60,000 miles
  14. 14. Lowest Cost Option Passenger Sedan - Std. Item 20 FY01 Rate: $201 mo.// $0.130 mile Replacement: 6 yrs. or 60,000 miles
  15. 15. Lowest Cost Option 4x4 Pickup Truck - Std. Item 46 FY01 Rate: $228 mo.// $0.160 mile Replacement: 6 yrs. or 60,000 miles
  16. 16. Lowest Cost Option 4x4 Carryall - Std. Item 105 FY01 Rate: $276 mo.// $0.140 mile Replacement: 6 yrs. or 60,000 miles
  17. 17. School Bus <ul><li>School buses offer you great load capacity, </li></ul><ul><li>superior visibility, comfortable turning radius – </li></ul><ul><li>and heavy-duty life expectancy. </li></ul><ul><li>Interested?! Contact your local GSA Fleet Service </li></ul><ul><li>Representative. </li></ul>GSA Fleet- drive one today!
  18. 18. Rate Structure <ul><li>Monthly rate and Mileage Fee </li></ul><ul><ul><li>Guarantees future replacement </li></ul></ul><ul><ul><li>Includes fuel </li></ul></ul><ul><ul><li>Includes maintenance/repair </li></ul></ul><ul><ul><li>Includes cost of our operation </li></ul></ul><ul><ul><li>Includes cost to sell vehicle </li></ul></ul><ul><li>Goal is to keep rates at/below inflation </li></ul><ul><li>No penalty for excessive mileage </li></ul>
  19. 19. Rate Structure <ul><li>What they do NOT cover </li></ul><ul><li>Vehicle Misuse/Abuse </li></ul><ul><li> Unauthorized Purchases </li></ul><ul><li> Accident Damage </li></ul><ul><li> Maintenance/Replacement of Agency </li></ul><ul><li>Owned Equipment </li></ul><ul><li> Dispatching, Driver Services, etc. </li></ul>
  20. 20. What Affects the Rates <ul><li>Inflation </li></ul><ul><ul><li>Vehicles, maintenance, fuel </li></ul></ul><ul><li>Implementing Temporary Fuel Surcharge </li></ul><ul><li>Over maintaining vehicles </li></ul><ul><li>Use of premium fuel </li></ul><ul><li>Disposal market </li></ul>
  21. 21. OPTIONAL EQUIPMENT RATES WHAT ARE THEY? <ul><li>Designed to help recover cost of additional options above base price of vehicle </li></ul><ul><li>Located at back of rate bulletin </li></ul>
  22. 22. Vehicle Acquisition Timeline <ul><li>Federal Vehicle 2001 Standards Conference – May 2001 </li></ul><ul><li>Meeting with Customers Spring/Summer </li></ul><ul><li>Letters Sent to Customers Summer </li></ul><ul><li>Choice Renewal July/August </li></ul><ul><li>Awards Made November </li></ul><ul><li>Call for Requisitions December </li></ul><ul><li>Orders Sent to OEMs January/February </li></ul><ul><li>Vehicle Deliveries Begin Spring - Summer </li></ul>
  23. 23. Greening the Government <ul><li>Signed on April 21, 2000 </li></ul><ul><li>Directed Federal agencies to take a leadership role in the reduction of vehicular petroleum consumption </li></ul><ul><li>Reduce fleet’s annual petroleum consumption by at least 20 percent by the end of FY 2005, 3 MPG increase by 2005 </li></ul><ul><li>Through increases in fleet efficiencies and the use of alternative fuels </li></ul>Presidential Executive Order (E.O.) 13149
  24. 24. COKE vs. PEPSI
  25. 25. Have You Considered Rightsizing? <ul><li>Executive Order and CFR Compliance </li></ul><ul><li>EO 13149 </li></ul><ul><li>CFR 101.38 -103 </li></ul><ul><li>Saves you money </li></ul><ul><li>Save taxpayer money </li></ul>
  26. 26. Snapshot of Taxes Median One- and Two-Income Families 1998 Stats $68,605 $36,579 Salary $6,083 Two-Earner One-Earner $1,931 Taxes
  27. 27. Neon $11,075 Stratus $13,373 Expedition $25,384 Cherokee $18,532 Caravan $17,509 Suburban $30,032
  28. 28. Interior Make/Model Volume MPG Class Ford Escort 87.2 n/a Sub-Compact Ford Contour 90.2 30 Compact Dodge Neon * 90.3 32 Sub-Compact Oldsmobile Alero 91 29 Compact Honda Civic 91.4 CNG TBD Pontiac Grand AM 91 28 Compact Chevy Cavalier * 91.5 29 Sub-Compact Chevy Corsica 92.7 n/a Compact Ford Focus * 94.1 33 Sub-Compact Dodge Stratus 95.9 28 Compact Chevy Malibu 98.6 27 Compact Ford Taurus 104.7 28 Midsize
  29. 29. Dag-Nab it!!! All I wants is a full size sedan. FSR
  30. 30. Interior Dimensions Mid-Size Large Taurus Crown Vic Head Room (Ft/Rr) 40.0/38.1 39.4/38.0 Leg Room (Ft/Rr) 42.2/38.9 42.5/39.6 Shoulder Room (Ft/Rr) 57.3/56.6 60.8/60.3 Hip Room (Ft/Rr) 54.5/55.7 57.1/58.7
  31. 31. 4x4 vs. 4x2 – Cost and MPG 16 $5,568 105b Ford Expedition 4x4 10 6,180 108 Ford Excursion 4x4 20 $4,992 105 Ford Explorer 4x4 19 $4,572 25 Chevy Astro 4x4 24 $3,972 20 Dodge Caravan 4x2 MPG Annual Lease Item Make/Model
  32. 32. 4x4 vs. 4x2 <ul><li>Cost </li></ul><ul><li>MPG </li></ul><ul><li>Traction/Off Road Ability </li></ul><ul><li>Image </li></ul><ul><li>Taxpayer Perception </li></ul>
  33. 33. How come I can’t get a vehicle built with all the options listed in the Federal Standards? <ul><li>Answers: </li></ul><ul><li>It’s too expensive </li></ul><ul><li>The manufacturers did not bid it </li></ul>
  34. 34. AFV User Program GSA provides up to $4M in funding DOE provides funding for infrastructure/ marketing
  35. 35. GSA FLEET IS AT YOUR SERVICE <ul><li>Controlling costs/keeping rates low </li></ul><ul><li>Tracking purchases better </li></ul><ul><li>Standardizing customer letters </li></ul><ul><li>Identifying methods to improve MPG </li></ul>
  36. 36. CONSOLIDATING Your Vehicles with GSA FLEET
  37. 37. WHY CONSOLIDATE? <ul><li>Significant Savings Realized </li></ul><ul><li>- Limited funds to purchase </li></ul><ul><li>vehicles </li></ul><ul><li>- Fleet has aged, maintenance </li></ul><ul><li>costs have increased </li></ul><ul><li>- Vehicles become less fuel </li></ul><ul><li>efficient </li></ul><ul><li>- Fleet mix is inappropriate for </li></ul><ul><li>mission </li></ul><ul><li>- Commercial leasing is costly </li></ul>
  38. 38. CONSOLIDATION BENEFITS <ul><li>Best non-agency option </li></ul><ul><li>Guaranteed vehicle replacement </li></ul><ul><li>GSA assumes financial risk </li></ul><ul><li>Flexibility in fleet configuration </li></ul><ul><li>Modernized fleet </li></ul><ul><li>AFV customer planning assistance </li></ul><ul><li>Automated information systems </li></ul>
  39. 39. CONSOLIDATION PARTNERS U.S. Army Corps of Engineers U.S. Marines U.S. Army Europe U.S. Navy U.S. Air Force Department of Energy
  40. 40. PHASES OF CONSOLIDATION <ul><li>GSA/Customer dialogue </li></ul><ul><li>Agency analysis/decision </li></ul><ul><li>Identify vehicle inventory </li></ul><ul><li>Business case profile approved </li></ul><ul><li>Memorandum of understanding </li></ul><ul><li>Establish timeline </li></ul><ul><li>Interagency support agreements </li></ul>
  41. 41. Customer Responsibilities <ul><li>Operate vehicles as if it were yours </li></ul><ul><li>Obtain scheduled PM services </li></ul><ul><li>Maintain vehicle appearance & cleanliness </li></ul><ul><li>Avoid vehicle misuse/abuse </li></ul><ul><li>Report all accidents promptly to the AMC </li></ul>
  42. 42. Customer Responsibilities (cont..) <ul><li>Use self-service fuel pumps </li></ul><ul><li>Use regular unleaded fuel </li></ul><ul><li>No smoking in Government vehicles </li></ul><ul><li>Safeguard keys and credit card </li></ul><ul><li>Pay GSA Fleet bill promptly </li></ul>
  43. 43. GSA Fleet and Customers working together <ul><li>Contact the local Fleet Service Representative </li></ul><ul><li>Fleet Service Representatives are the “key” to resolving customer concerns </li></ul><ul><li>Visit GSA Fleet on the Internet at: </li></ul>
  44. 44. How to reach GSA Fleet General Services Administration Fleet Management Division 1941 Jefferson Davis Highway Crystal Mall Building 4 – Rm. 819 Arlington, VA 22202 Phone: (703) 305-6278 Fax: (703) 305-7258 Internet: