Detailed Information on the
General Services Administration - Vehicle Leasing Assessment

More agressively pursuing the marketing of unbundled fleet management services to federal agencies 1 Fleet established a Customer Advisory Board to meet with customers and learn how to better address their changing needs. Fleet's first customer advisory board meeting was held on March 23 and the next one is scheduled for May 2006. 2 Internally, during FY05, Fleet Management trained every Fleet associate in a "One Team, One Fleet" training course to promote consistency to better support our customers. 3 GSA Fleet hired an outside contractor to ensure a consistent message was being communicated to all GSA Fleet associates as well as customer agencies regarding the full line of unbundled fleet services. As a result, both the Department of Army and HUD have expressed an interest in our unbundled services with a target implementation date of September 2006. 4 Fleet will publish educational program materials and customer guides for distribution to customer agencies. As of April 2006, Fleet's brochure is almost complete and has a target completion date of July 2006 with distribution to customer agencies shortly thereafter. 5 Fleet will continue to aggressively distribute educational materials related to the unbundled Fleet services through targeted customer advisory board meetings, annual customer headquarter meetings as well as the Fed Fleet Conference.

Using GSA's performance management process to improve the linkages between program performance and funding needs 1. Following the guidelines of the performance management process and the new associate performance review criteria, Fleet has linked performance goals on every associate's performance plan, at all levels of the organization (from Senior Management down to the Fleet Service Representative), directly to the national performance measure goals and program targets. 2 Fleet continues to work with the Office of the Controller in the formulation of its operating budget on an ongoing basis. In addition to establishing the program's funding requirements Fleet also works with the Controller's Office in completing the requirements of the GSA CFO's Performance Management Process including the completion of the program's Strategic Assessment and Strategy and Action Plan all which are buildng blocks for the servicewide external budget submission.

Commissioning regular, independent outside evaluations of this program that would assess the performance of the various components of the program (e.g., maintenance management, accident control, management reporting, etc.) as well as overall performance against commercial and other fleet service providers. 1. Requested the IG to perform a formal review of Fleet's cross-service fuel certification and payment policies and procedures. 2. Fleet signed an MOU with the IG and provided designated funding for tailored fraud detection and support to improve cost monitoring and will continue this partnership during FY06. 3. The IG is currently conducting a review of the controls placed on the Fleet Services Card. The goal of this audit is to check for consistency across regional loss prevention detection. 4. Fleet continues to monitor and compare our performance against standard, commercial indices and data available to ensure we are doing to best job possible (e.g. fuel, industry inflation vs. CPM inflation, operations & maintenance, services provided by competitors)

Measure: Achieve leasing rates to customer agencies that are 20% or more below industry

Explanation:

Measure: Percentage that GSA Fleet leasing rates are below commercial rates on the GSA Vehicle Leasing Schedule.

Explanation:

Measure: GSA Fleet external customer satisfaction survey score

Explanation:

Measure: Program support and operational expenses per vehicle year of operation

Explanation:This measure monitors the overall operating expenses of fleet operations

Measure: Number of Vehicles Managed Per on board

Explanation:

Is the program purpose clear?

Explanation: GSA Fleet leases vehicles and provides related fleet management services (e.g., maintenance and accident management, management reporting, etc.) to Federal agencies. GSA's purpose in providing these services is to be the most cost effective source of services that satisfy agencies' fleet management needs.

Evidence: 40 U.S.C. 472 Sec 2; 40 U.S.C 491 Sec. 211(a); GSA website

Does the program address a specific and existing problem, interest or need?

Explanation: Federal agencies, excluding the Postal Service, operate almost 380,000 non-tactical (i.e., non-military) vehicles worldwide, of which 205,000 are owned and 175,000 are leased. As funding for replacement vehicles has been cut over the past 20 years, agencies, particularly DoD agencies, have increased their reliance on leased vehicles, mostly vehicles leased from GSA.

Evidence: FY00 Federal Motor Vehicle Fleet Report - 602,626 government vehicles, including the Postal Service; 376,877 without the Postal Service.

Is the program designed so that it is not redundant or duplicative of any other Federal, state, local or private effort?

Explanation: From the narrow perspective of providing motor vehicles, GSA Fleet would appear to duplicate agencies' own vehicle programs as well as commercial vehicle leasing programs. However, GSA Fleet offers leasing rates significantly below commercial leasing companies and supports special needs that are not necessarily desirable to, or offered by, commercial providers (e.g., specialty vehicles, remote locations, customized rate structures). GSA Fleet also offers many agencies a more reliable way to replace and maintain their vehicles than those agencies are able to fund from their own appropriations. Furthermore, GSA supports government-mandated customer missions such as the introduction and operation of alternative fuel vehicles (using a variety of funding methods), and agency fleet operations reporting requirements.

Evidence: COBRA/A76/Cost Comparisons, GSA Fleet Rate Bulletin, commercial leasing rate structure, Alternative Fuel leasing structure

Is the program design free of major flaws that would limit the program's effectiveness or efficiency?

Explanation: The GSA Fleet program offers customer agencies a variety of specialized products and services to meet their changing needs. GSA Fleet offers full-service leases that include maintenance and accident management services, fuel, and management reports to agencies that want GSA to satisfy all of their vehicle needs. For agencies that own their vehicles but lack maintenance or accident management programs or management reporting systems, GSA Fleet will provide whichever missing capability that the agency wants. Agencies that have their own maintenance and accident programs, fuel contracts, and information systems may obtain vehicles under a "dry lease" (i.e., only the vehicle with no other services). In other words, GSA Fleet will provide whatever element of a high-quality, full-service vehicle management program that an agency may desire. Additional specialized products and services being offered to Fleet customers are global GPS positioning units, access to the National Law Enforcement Telecommunications System (NLETS), and hands free cell phone options.

Evidence: Automotive Fleet Magazine series, other industry publications, rate comparisons as available.

Is the program effectively targeted, so that resources will reach intended beneficiaries and/or otherwise address the program's purpose directly?

Explanation: GSA Fleet provides a wide variety of vehicles and options in order to match customer agency needs with the appropriate vehicles for their missions. Likewise, it offers a variety of rental rate packages that meet customers' needs (e.g., certain customers want their rates to cover all operating costs while others want to pay for fuel and/or maintenance and repair outside the GSA rate). For mandated customer requirements, such as acquisition of alternative fuel vehicles, GSA Fleet has developed financing methods that match the agency's resource availability. Many GSA Fleet customers need additional vehicles to meet their missions and Fleet prioritizes all requests for additionals and fills them where possible. The first priority for purchasing additional vehicles is reserved for homeland security requests and GSA attempts to fill 100% of those requests each year. The second and third priorities are funded when possible and are organized by the demands of our largest customers and all other requests.

Evidence: FY 2003 Fiscal Year Accomplishments; Fleet Service Representative Program; 751 Schedule

Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation: GSA Fleet has one longstanding long-term goal to "Achieve leasing rates to customer agencies that are 20% or more below industry rates." This goal is consistent with the GSA Strategic Goal of providing best value to the customer.

Evidence: FY 2004 GSA Strategic Plans; FSS Corporate Scorecard published in Guide to the FSS Performance Measurement System, FY 2005 Congressional Budget Justification

Does the program have ambitious targets and timeframes for its long-term measures?

Explanation: GSA Fleet has developed annual goals with ambitious targets that support the accomplishment of its long-term outcome goal, as well as ambitious targets for improving its efficiency.

Evidence: FY 2005 Congressional Justification

Does the program have a limited number of specific annual performance measures that can demonstrate progress toward achieving the program's long-term goals?

Explanation: GSA Vehicle Leasing has established the following annual performance measures to show the accomplishment of its long-term goals. 1) GSA Fleet external customer satisfaction survey score 2) Percentage that GSA Fleet leasing rates are below commercial rates on the GSA Vehicle Leasing Schedule 3) Program support and operational expenses per vehicle year of operation 4) Number of vehicles managed per on board staff.

Evidence: FY 2005 Congressional Justification, FY 2004 Business Line Score Card

Does the program have baselines and ambitious targets for its annual measures?

Explanation: Baselines were established for the measures discussed in question 2.3 based on prior year performance. These baseline results are the starting point from which future results are expected to improve upon, as such out year targets are set to improve program results into the future. The objective being to ensure that the program is continuously improving.

Evidence: FY 2005 Congressional Justification, GSA Strategic Plan, 2004 Performance Plan, FSS GPRA Strategic Plan, FSS Corporate Scorecard

Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) commit to and work toward the annual and/or long-term goals of the program?

Explanation: GSA Fleet's partners include customer agencies, auction houses, automotive manufacturers and maintenance and repair facilities. Fleet customers understand that minimizing unnecessary costs will lower rental rates. Customers are educated on the best locations for purchasing fuel, performing regularly scheduled maintenance, car washes and other vehicle services. Purchases are reviewed through Fleet's electronic database housing all credit card, maintenance and fuel transactions to ensure that customers are adhering to these best practices. Partnerships are also formed with local auction houses in an effort to obtain the highest possible resale value on Fleet vehicles. GSA Fleet's maintenance control center is staffed with certified maintenance technicians that ensure Fleet vehicles receive quality service at the lowest price. Ninety percent of GSA Fleet expenses are incurred through the use of outside vendors. Therefore, it is important that these partnerships are present to help ensure that all stakeholders work toward providing cost effective solutions for the government.

Evidence: GSA Fleet Operating Procedures

Are independent evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation: An independent, two-part, customer satisfaction survey is done on GSA Fleet annually by the Claes Fornell group from the University of Michigan to monitor customer perception. However, this survey does not include all of the elements required to satisfy this requirement, e.g., to evaluate the effectiveness of the program.

Evidence: Claes Fornell International Annual Customer Satisfaction Strudy

Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program's budget?

Explanation: GSA Fleet utilizes the performance management process (PMP) to tie long-term goals, initiatives and annual performance to the budget for the upcoming year. Through the PMP cycle, budget requests are specifically linked to the accomplishment of long-term and annual goals as well as strategic action plans and initiatives. GSA Fleet is financed by a revolving fund and uses a financial planning model to project its resource requirements by cost category for ten years into the future. The model considers the basics metrics of the program (fleet size, expected growth, miles to be driven, expected inflationary pressures) and then focuses cost and performance targets in specific, strategic areas to align with long-term goals. For example, the model projects how much funding will be needed to annually replace the optimal portion of the fleet to maintain customer satisfaction and lower maintenance cost. The model also identified the 2004 buy-out costs to implement planned staff reductions to achieve efficiency improvements. "What-if" analyses are also run on a regular basis to determine the benefit of trimming costs in certain cost areas.

Evidence: FY 2005 Congressional Justification. Official GSF Financial Plan with Actual Results vs. Plan. Automotive EOY Forecast. Guide to the FSS Performance Measurement System. Guide to GSA Performance Management Process

Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation: Following the FY 2004 PART review, GSA Fleet revised and established new annual performance goals and measures which support a revised long-term program goal. These new performance measures are tied to GSA's agency wide strategic goals, and are also focused on the program's operations and continuously improving program operations into the future by focusing on program efficiency and meeting customer needs.

Evidence: FY 2005 GSA Strategic Plans; FSS Corporate Scorecard published in Guide to the FSS Performance Measurement System, FY 2005 Congressional Justification

Has the agency/program conducted a recent, meaningful, credible analysis of alternatives that includes trade-offs between cost, schedule, risk, and performance goals and used the results to guide the resulting activity?

Explanation: GSA Fleet routinely reviews actual versus planned results for a number of performance measures and examines alternative approaches for addressing problems. For example, GSA Fleet recently conducted an analysis that determined the need for implementation of dry rate schedules to meet cost objectives for overseas leasing. GSA Fleet also studied lease vs. buy options to determine optimal cost savings in the vehicle procurement process. In addition, GSA Fleet continues to review its Fleet Management Centers' performance in relation to business indicators.

Evidence: GSA Rate Bulletin, FMS data, Price Waterhouse Coopers Study, GSA Fleet Regional FMC reviews, IG reviews

Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation: GSA Fleet monitors its financial results and gathers performance data on a wide variety of measures. GSA Fleet briefs senior management and the regions monthly on program performance. GSA Fleet also holds numerous customer meetings and focus groups during each year throughout the country and uses the feedback from these meetings to improve the quality of fleet service.

Evidence: GSA Fleet Official Financial Statements, Quarterly Management Review (QMR) given to the GSA Chief of Staff, Manheim market reports, and Quality Deficiency Reports, NAFA, Automotive Fleet cost comparisions and analysis, commercial benchmarks.

Are Federal managers and program partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) held accountable for cost, schedule and performance results?

Explanation: GSA Fleet contractors are held accountable for contract results. Contractor performance is reviewed annually prior to renewal of option years on multi-year contracts. Concessions are considered and negotiated when necessary. Federal Managers are held accountable for cost-control initiatives related to their individual program financial performance measures.

Evidence: Annual Contract Reviews, Fleet Management Center Reviews, QMRs and Quality Deficiency Reports.

Are funds (Federal and partners') obligated in a timely manner and spent for the intended purpose?

Explanation: All Program funds are obligated in a timely manner and spent for the intended purpose. It is an inherent part of the GSA accounting system requirements that obligations be established prior to processing payments for goods and services. This ensures that payments correspond to their intended purpose.

Evidence: GSA funds' accounting policy/procedures follow established accountability procedures set forth in several internal and external guidance documents, e.g., OMB Circular A11, the Treasury Financial Manual, and various GSA internal policy handbooks. FY2003 Congressional Budget Justification. GSA Fleet 10 Year Plan.

Does the program have procedures (e.g. competitive sourcing/cost comparisons, IT improvements, appropriate incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation: GSA Fleet first implemented goals and performance measures in 1998. These goals are distributed, discussed and shared at all levels of the GSA Fleet Program. The Regional Fleet Managers and the Director of the GSA Fleet Program meet quarterly to discuss program issues, policies, goals, and the long term vision of the program The performance targets are changed annually to reflect what behavior the program is striving to change, e.g. reduce maintenance/repair costs, reduce overhead costs, or increase the use of electronic processes.

Evidence: GSA Fleet Regional Business Indicators

Does the program collaborate and coordinate effectively with related programs?

Explanation: GSA Fleet collaborates with the Department of Energy on alternative fuel issues and with GSA Automotive on planning alternative fuel vehicle purchases for GSA Fleet. GSA Fleet recently provided the Department of Energy with data for FAST reporting purposes. Additionally, Fleet has entered into an MOU with the Secret Service to give them priority access to vehicles to support special events.

Evidence: MOU with Secret Service, Intra agency collaboration with GSA Vehicle Acquisition

Does the program use strong financial management practices?

Explanation: GSA has received clean audit opinions for 16 consecutive years. No material internal control weaknesses for several years.

Evidence: GSA's FY2003 Annual Accountability Report

Has the program taken meaningful steps to address its management deficiencies?

Explanation: GSA Fleet routinely assesses its performance against annual targets for headquarters and regional offices. When performance problems are identified, GSA Fleet initiates corrective actions, including the development of new programs, where necessary.

Evidence: GSA Fleet Business Indicators

Is the program managed by maintaining clearly defined deliverables, capability/performance characteristics, and appropriate, credible cost and schedule goals?

Explanation: Every aspect of GSA Fleet's operation is monitored by monthly reviews of performance measures. The monthly standards assess Fleet's schedule performance (has the vehicle been ordered on time, been assigned to the customer within an acceptable time period, been maintained at acceptable intervals, and after retirement been sold within an acceptable time period) as well as cost performance (was the vehicle purchased at an acceptable discount from MSRP, were rates raised the minimal extent necessary to meet financiang needs, was the vehicle maintained at an acceptable cost, was the overall cost of operating the vehicle acceptable, were the proceeds from the sale of the vehicle acceptable). "Acceptable" in these cases means these results will result in GSA Fleet achieving its strategic cost and product quality objectives.

Evidence: Federal Vehicle Standards, Fleet Management Review Initiative, AMP, FMS, automotive manufacturer contracts

Has the program demonstrated adequate progress in achieving its long-term performance goals?

Explanation: GSA Fleet has met or exceeded its established targets for the annual performance measures which support the program's long-term goal. For example in FY 2003, GSA Fleet leasing rates were almost 37% below commercial rates on the GSA Vehicle Leasing Schedule, versus a target of 20% below.

Evidence: Business Line Scorecard, FY 2005 Congressional Justification

Does the program (including program partners) achieve its annual performance goals?

Explanation: GSA Fleet has met or exceeded the established targets on three of its four annual performance measures that have been established to support the program's long-term goal. Program results and targets are documented in the measures section.

Evidence: FY 2005 Congressional Justification

Does the program demonstrate improved efficiencies or cost effectiveness in achieving program goals each year?

Explanation: GSA Fleet has met one of its two efficiency targets.

Evidence: FY 2005 Congressional Justification and Business Line Scorecard

Does the performance of this program compare favorably to other programs, including government, private, etc., with similar purpose and goals?

Explanation: Numerous studies have shown that GSA Fleet offers its customers full service vehicle leases significantly below the comparable costs charged by commercial vehicle leasing companies. Agencies proposing to have GSA Fleet take over some of their vehicles perform a cost/benefit study of joining GSA Fleet versus staying independent or using a commercial vendor. GSA Fleet has performed consolidations with over 70 government organizations who felt that GSA Fleet offered them the best value; in many cases, because GSA Fleet could finance timely vehicle replacements whereas their own agencies were unwilling to do so.

Evidence: Navy 751 contract, Consolidations Review, Red Cross, COBRA, NAFA cost comparisons, Automotive Fleet cost comparisons.

Do independent evaluations of sufficient scope and quality indicate that the program is effective and achieving results?

Explanation: Fleet's annual customer satisfaction survey is conducted by an independent party and has determined that GSA Fleet has one of the highest scores in the Federal Government. GSA Fleet also compares its leasing prices to those of the private sector contained on Automotive's 751 vehicle leasing schedule and shows significant savings. These are the most important indicators of the program's effectiveness in providing best value to agencies and taxpayers.

Evidence: Customer Survey, Air Force Audit Agency Study, Air Force Europe Study, COBRA pricing results, Customer Memorandums of Understandings

Were program goals achieved within budgeted costs and established schedules?

Explanation: In FY03, GSA Fleet met or exceeded three of the program's four annual performance measure targets within the program's budget.

Evidence: FY 2005 Congressional Justification, Business Line Scorecard