1. FLEET FOCUS 2012 Presented by Michael Bisogno, CAFM Director, OFMS

2. Fleet Focus 2012 Agenda – State Motor Fuel Program Update – MY2012 Vehicle Update – Lifecycle Cost Analyses – Minimum Mileages – FY12-13 Outlook

3. State Motor Fuel Program History:  DGS was directed by the General Assembly to procure, through a competitive procurement process, gasoline and diesel fuel for state and local entities.  Procurement process was conducted and contracts were awarded on August 11, 2010 for bulk diesel and gasoline, and a fuel card contract for the purchase of fuel from commercial retail fuel providers.  The resulting contracts were combined to form the State Motor Fuel Program and are managed by the Office of Fleet Management Services.

4. State Motor Fuel Program Mission:  Reduce the burden of fuel purchases on agencies and localities  Streamline the procurement process  Improve quality and productivity  Lower costs by aggregating supply  Emphasize the participation of localities and institutions of higher education to increase the purchasing ‘footprint’. Products:  Bulk Fuel  Consignment Fuel  Fuel Cards Vendors:  Mansfield Oil Company - Bulk Fuel (Bristol District), Consignment Fuel, Fuel Card  James River Solutions – Bulk Fuel (Remaining Districts)  PAPCO – Ferry Fuel

5. State Motor Fuel Program –Year 1 Total Usage – 17.5 million gallons – $57 million Fuel Cards – ~5 million gallons Bulk Fuel – ~17.5 million gallons

6. State Motor Fuel Program

7. Fleet Focus 2012 MY 2012 Vehicle Update – Police Cars – Many new options – Midsize vs. Fullsize – Lifecycle Costs – New SUV’s – What to expect in the future?

8. Fleet Focus 2012 Lifecycle Cost Analysis – Net Acquisition Cost – Fixed Costs – Operating Costs – Personal Use Costs – Total Lifecycle Costs

9. Fleet Focus 2012 Variables to Calculate Lifecycle Costs 1. Target Months in Services 2. Target Replacement Mileage 3. Expected Mileage Per Month 4. Adjusted Months in Service 5. Daily Mileage 6. Annual Interest Rate, or Cost of Money 7. Monthly Interest Rate, or Monthly Cost of Money 8. Lease Management Fee per Month, or Administrative Overhead per Month 9. Depreciation Rate, both Annual and Monthly 10. Fuel Cost per Gallon 11. Estimated Personal Use 12. Cost to Provide Loaner Vehicle, either per day or per mile 13. Insurance Cost per Vehicle (if applicable)

10. Fleet Focus 2012

11. Minimum Mileages – Why are they important? – How are they abused? – When should exemptions be granted? ClassMileage Compact8,000 Mid-Size8,500 Full-Size9,000 Mini-Van11,000 SUV-Small10,000 SUV Large13,000 Pickup Compact 4x28,000 Pickup Compact 4x49,000 Pickup Full-Size 4x210,000 Pickup Full-Size 4x411,000

12. Fleet Focus 2012 New OFMS Form-1 – Excel Based – More user-Friendly Updates to OFMS Safety Module

13. Fleet Focus 2012 Questions Contact us Office of Fleet Management Services 2400 W. Leigh St. Richmond VA 23220 804.367.6525 www.dgs.virginia.gov/fleet