Governor Herbert introduced the SUCCESS program in January of 2013. He asked every state agency to improve efficiency of operations by 25% over the next four years. By June, 2016, DAS had achieved a 38% increase in auditable efficiency gains. The Division of Fleet Operations (DFO) fully embraced this challenge to increase their own performance. By rethinking business processes, DFO cut operating expenses by over 30% while launching efforts to improve utilization, reduce emissions, ensure customer access to quality cars, and right-sizing maintenance costs. Their improvement strategies include utilization, pollution, and purchasing.
Using mileage to measure utilization can be misleading—a more accurate measure is time. So what would it look like if we paid for vehicles only when we needed them? This is what the Enterprise pilot project, launched at the Multi State Agency Building, was all about. Fleet was able to eliminate 65 vehicles from the fleet and replace them with…nothing. Enterprise Rentals is filling this gap. By not maintaining a fleet to accommodate peak usage, but rather partnering with the private sector to fill in the gaps, utilization has increased and ownership costs have decreased.
All 2007 and earlier vehicles are the immediate target to be removed from the fleet because, in many cases, they release over twice the smog pollutants into Utah air than their newer counterparts. As Tier 3 engines and fuel enter the market in 2017, even further reductions can be achieved. With this simple strategy, emissions from fleet vehicles can be reduced by up to 30%.
During FY2016, Fleet issued an RFP and made an award to a private sector vendor to partner with the State in developing a new model, which may lead to the privatization of a portion of the fleet. Wheels, Inc. will advise the State in the areas of purchasing, financing, utilization, and surplus of vehicles as the division works to create a more flexible and adaptable model for agencies who have diverse and unique missions.
Fleet continues to apply the framework of SUCCESS and apply innovative thinking that is resulting not only in increased efficiency, but also in savings to Utah tax payers.