1. Property Management vs. Fleet Management Dr. Adlore Chaudier Director, Federal Fleet Management Consulting Mercury Associates Janet Dobbs Deputy Associate Director Asset and Transportation Management GSA June 2012

2. Personal Property Laws and Authorities P.L. 107-217 Title 40 Public Buildings, Property, and Works Stevenson-Wydler Technology Innovation Act of 1980 FMR Bulletin B-34, Disposal of Federal Electronic Assets FMR Bulletin B-27, Annual Executive Agency Reports on Excess and Exchange/Sale Personal Property FMR Bulletin B-26, Accountability and Stewardship of Personal Property FMR Bulletin B-25, Property Obtained Through the Use of Charge Cards

3. Personal Property Management FMR Bulletin B-26, Accountability and Stewardship of Personal Property, requires agencies to... maintain adequate inventory controls and accountability systems for property under their control and 40 U.S.C. requires the Administrator of General Services to work with the Comptroller General and other executive agencies to develop accounting systems for federal property. The term “system” includes information technology components as well as the non-automated processes and procedures used to account for federal property.

4. Property Management Defined Functions that deal with the acquisition, control, protection, utilization and disposition of Government property Cross-Functional Management of Agency Assets –Personal Property –Real Property –Facilities

5. Personal Property Management The spectrum of life-cycle management tasks associated with the ownership of personal property : –Plan –Acquire –Receipt –Store –Distribute –Proper utilization and care of property –Property accounting control –Disposition of property

6. Personal Property Management What controls should be considered for personal property? –Develop and implement agency guidance, systems, standards, and procedures relative to personal property. –Ensure that all property managers are aware of their responsibilities for accountability and control of personal property. –Ensure that training is available for agency employees involved in the accountability and control of personal property. –Ensure that personal property data is maintained through the asset life cycle to the disposal process.

7. Personal Property Management What controls should be considered for personal property? –Perform the care and handling of personal property. –Maintain appropriate inventory levels. –Develop and maintain accounting procedures to prevent and detect nonuse, improper use, and unauthorized disposal or destruction. –Ensure compatibility with agency and Federal accounting policies and standards... such as the Property Management Systems Requirements published by the Joint Financial Management Improvement Program.

8. Personal Property Management Personal Property Management means: you capture, analyze and use the data for decision-making Management means some degree of actual control over: –Who gets personal property –How much personal property –What kind of personal property –Replacement plan for and replacement of personal property –Reassignment of personal property Personal Property Management is more than –the preparation of periodic reports, –assisting users with reporting requirements, –assisting in disposal of vehicles, –entering reporting data, etc.

9. Personal Property and Fleet Overlap Motor vehicles are a form of personal property Reporting metrics differ Other differences?

10. Property and Fleet Overlap Reporting metrics differ –Physical Inventory – capital items –Cost per Mile by Vehicle Type – FAST –Budgeted Lease Vehicle Cost vs. Actual Cost –Accident Costs -- Repair: Owned/GSA Leased –Travel Logs –Utilization Management Annual utilization by type Average usage

11. Property Management Metrics “What you measure is what you get.” Inventory of Property, Supply and Disposal Warehouses -Equipment Losses (Number & $) -Non Federal recipient (transfer) report -Surplus & Exchange Sale and recycle proceeds for disposal “Fish in a barrel” for sensational reporting

12. Fleet Federal Law & Exec Orders EPAct Compliance - # and type of vehicles acquired vs total ordered E.O. 13423 & 13514 Complia nce Reduce fleet petroleum consumption by 2% annually – 2020 Increase non-petroleum fuel consumption by 10% annually Use of Plug-in Hybrid Electric Vehicle Fleet - “Everyone’s opportunity for some type of new initiative/improvement”

13. Fleet Management Responsibility FMR 102-34.345 states that you are responsible for: – “... accounting and reporting procedures... [that] will ensure accurate recording of inventory, cost, and operational data needed to manage and control motor vehicles, and will satisfy reporting requirements.”

14. Fleet Management To manage and control, you need: –Accounting and reporting tools and methods, including: – FMIS – Performance standards (metrics) – Processes for field reporting – Data for fleet management decision-making

15. Fleet Management To manage and control, you need: – Accurate inventory data – Owned inventory correct – VINs correct – Data fields correct – Information input standardized

16. Fleet Management To manage and control, you need: – Accurate cost data – Fuel (in-house & commercial), – Maintenance and repair (in-house & commercial) – Up-fitting expenditures – Added wear & tear expenses – Accident expenses

17. Fleet Management To manage and control, you need: –Accurate operational data— –Date put in service –Miles –Hours –Direct and indirect costs

18. Fleet Management Means You capture, analyze and use data for decision- making for all aspects of your fleet program You know the true cost of the fleet and managing that cost Management means some degree of actual control over: – Who gets vehicles – How many vehicles – What type of vehicles – Replacement plan and replacement of vehicles – Reassignment of vehicles

19. Fleet Administration Administration focuses on: – Preparation of periodic reports; – Assisting user groups with entering data into GSA Automotive; – Assisting with purchase or lease of vehicles and equipment; – Assisting with disposal of vehicles; – Checking charge-card expenditures; – Checking fuel charges; – Obtaining and disposing of tags; – Aggregating data for reporting; – Entering FAST data.

20. FEMP Guidance Agency Headquarters Fleet Manager –Right-size the agency fleet to the mission –Support field fleet managers in selecting petroleum reduction strategies –Review and approve fleet location site-specific strategies –Consolidate individual strategies into an overall fleet petroleum reduction strategy –Facilitate the implementation of petroleum reduction strategies fleet wide –Monitor the performance of the agency fleet in reducing petroleum use –Meet or exceed all applicable fleet requirements, including agency- specific goals and requirements –Refine the strategy based on changes in fleet characteristics and performance

21. FEMP Guidance Agency Fleet Location Manager –Ensure the fleet at the fleet location is right-sized to that location’s mission –Determine the optimal petroleum reduction strategy for that location (based on evaluating the fleet characteristics and requirements at the site) –Implement the optimal petroleum reduction strategy at the fleet location –Monitor the performance of the fleet location in reducing petroleum use –Ensure the fleet location is in compliance with all applicable fleet requirements –Refine the strategy based on changes in fleet characteristics, performance, and location miss

22. Different Priorities? Headquarters Comply with EPACT, Exec Orders, Agency and DOE Scorecards, etc. Reduce Fleet Size Alternative Fuels FAST (what the field submits) Home to Work Policies Laws, regulations Field Keep Drivers Happy Keep Vehicles Running Get New Vehicles Requirements v “Desirements” Accidents Vendors Tags Fuel FAST Tracking data in disparate programs Other jobs as assigned

23. The Field Knowledge, experience, grade level, responsible department/division vary. Almost all (96%) lack formal training in fleet management. Local supervisors lack money or don’t see value in fleet training. Different individuals in different divisions may manage vehicles and equipment. The vehicle Fleet Manager typically is responsible for FAST reporting. Fleet is often a part-time duty

24. The Field Management of light-duty owned vehicles may be separated from management of light-duty GSA Fleet vehicles. Fleet Manager may be unaware of maintenance management system and its use. Equipment Manager may be unfamiliar with FAST reporting requirements and GSA Fleet. Ability to ensure compliance with fleet-related laws, regulations, and directives hindered by decentralized fleet management approach.

25. Vehicle Assignment Vehicle Acquisition Vehicle Operation Vehicle Utilization Mechanic Supervision Registration Renewal Enforcing Policy Vehicle Maintenance & Repair Vehicle Replacement Outsourcing Alternative Fuels Accident Management Parts Procurement & Supply Fuel Procurement & Supply Dispatching Mission & Authority Facility Management Motor Pool Management Vehicle Disposal Operator/Driver Training Fleet Management Where the rubber meets the road. EFFECTIVE FLEET MANAGEMENT

26. Fleet Manager Responsibilities

27. Property and Fleet Systems Life Cycle of an Asset StartProcure Asset Receive and Add Asset to Database Modify/Update Asset Transfer Asset Set Up Inventory Scan Assets Perform Reconciliation Dispose Reinstate View Analysis & Reports Daily Operations Quarterly Financial System Integration

28. Challenges No FMIS in place Poor inventory data on owned assets Poor utilization data on owned assets Lack of policy and standard operating procedures across large organizations with geographically dispersed operations Belief of users that vehicles belong to them Inadequate training of field fleet staff Gap between HQ (policy) and field operations

29. The Future Fleet Summary The Fleet inventory will change over time Accounting for our Property will still be a requirement Lunar Electric Rover (LER) Mars Rover Ares Program

30. Questions?? Adlore Chaudier Ph.D. MERCURY ASSOCIATES, INC 262-215-5566 (cell) achaudier@mercury-assoc.com Janet Dobbs GSA 202-208-6601 Janet.dobbs@gsa.gov