ALASKA Fleet Operations 1/23/20142

The State Equipment Fleet (SEF) is responsible for procuring, maintaining, and disposing of vehicles and equipment owned and operated by the State of Alaska. Manages the entire fleet of State owned vehicles & equipment Includes Alaska State Troopers, all other Executive Branch agencies, AHFC, University. 85% of SEF business involves DOT Vehicles & Equipment State Equipment Fleet (SEF) 1/23/20143

SEF is funded through the Highway Working Capital Fund (HEWCF) Revolving Fund No direct General Fund appropriation All revenues come from rates & fees charged to fleet end users All rate programs must be approved by Governors Office of Management & Budget (OMB) OMB determines SEF Budget- limits what we can spend Annual Budget- $45m - $50m Includes pass through fuel card charges for all state vehicles $30m Operating & Fuel $15m Equipment Replacement Costs recovered through operating and replacement rates calculated individually for each asset HWCF 1/23/20144

168 Full Time Employees Fleet Mgr, Parts Mgr, 5 District Managers 14 Procurement/Admin staff 15 Parts staff 132 mechanics in 55 Shops SEF Organization 1/23/20145

FLEET MAKEUP 1/23/20146 Cat/Volvo/Case/John Deere/IHC/Freightliner/Mack/Oshkosh/Ford/Chev/Dodge

1/23/20147 Alaska DOT&PF 5,700 miles of highway 15,000 lane miles 11 ferries, 33 harbors, 660 public facilities throughout the state 255 airports

1/23/ % of communities not served by roads

1/23/20149 were kind of a big deal

LOGISTICAL CHALLENGES Remote areas Limited access- geography, calendar, weather, BUDGET CHALLENGES Fuel volatility in cost and consumption End user budget & funding DOT Maintenance & Operations short funded Service Level Budgeting SEF & DOT Challenges 1/23/201410

Airport is only means of transportation in and out of the village- critical to survival Runway-open…equipment-maintained No reliable private maintenance available No scheduled air service Local availability of parts- nonexistent Logistical Challenges 1/23/201411

1/23/ Chenega Airport

1/23/ Kuskokwim River Aniak

1/23/ Kuskokwim River summer delivery

1/23/ Tununak airport SREB

1/23/ Tununak airport SREB

Rural Alaska challenges for DOT- Fuel costs $6/gal gasoline in rural hubs, $9/gal in more remote locations Operating costs- hiring contractors to maintain airports Maintenance Costs- materials & equipment must be flown in Budget Challenges 1/23/201417

Rural Alaska Challenges for SEF- Shipping of new equipment to remote locations Stock & Supplies must be kept on hand, as many locations have only one mode of transportation Lots of stale inventory Tools, Supplies, Personnel must be flown in & out Budget Challenges 1/23/201418

1/23/201419

BUDGET CHALLENGES FOR SEF Fuel volatility in cost and consumption SEF Budget includes all fuel for all agencies End user budget & funding Replacement funding not adequate FAA funded airport equipment aging rapidly Older, recycled equipment & vehicles DOT Maintenance & Operations short funded Service Level Budgeting- new approach Budget Challenges 1/23/201420

Rural Airport Equipment Grader Loader Dozer Unique problems 1/23/201421

1/23/ Airport maintenance contract operator borrows the grader

1/23/ Then borrows the dozer to pull out the grader

1/23/ And buries the loader for good measure

1/23/ Completes the triple crown