While preparing to rewrite my own utilization requirements, I researched the utilization standards of several dozen public fleets. As part of my analysis I used auditor reports, and through that process, come across some interesting discoveries related to the criteria that the auditors failed to take into consideration. In most cases the auditors used very a basic and simplistic approach to their analysis by only comparing the size and population of various other public entities to determine their appropriate utilization standard. Interestingly enough, they did not evaluate (or at least state in their reports) some of the other criteria that should have been considered.

Listed below is a summary of the variables (not all inclusive) you should consider when drafting your own utilization requirements:

1.  Geographic size of the area served and population density.

It’s not only how large the land area is, but how densely it is populated. Cities that take-up relatively small areas land may have larger fleets than their county governments. Their larger fleet requirements are needed to service the increased population.

2.  Dispersion (scattering) of the user departments.

Government agencies with significant land areas may find it difficult to service the entire region through a centrally controlled facility. In such cases, the user departments may have many substations located throughout their area of responsibility. In these situations, fleet equipment duplication and over-sized fleets becomes the norm.

3.  Age and condition of the fleet.

As the fleet increases in age so does the time the equipment spends in the shop for repairs. Fleets with equipment in poor condition will generally require additional spare vehicles in order to meet the user department’s needs.  

4.  Fleet replacement programs.

This obviously relates to the age and condition criteria, but there are some variables to look for. Do the other entities have a fully or partially funded replacement program? If they have a replacement program, what specific categories of equipment are being replaced? Generally speaking, audit utilization assessments tend to target administrative and not work vehicles. Government agencies that place more emphasis on the replacement of work vehicles may purposefully allow the administrative units to age well beyond their projected replacement dates, thereby forcing the fleet management to maintain a larger administrative fleet because of equipment readiness issues.

5.  Fleet control.

This is probably the most significant and most widely ignored variable in the utilization process. You cannot control what you don’t own! You can draft all the policy memos you want, but unless the departments are willing to cooperate, you fighting a losing battle. You must have political and upper management enforcement to effect change. Let me give you a prime example of the lack of political willpower:  A large city in the southeast recently tried to reduce its fleet size after a significant number of its employees were laid-off. A utilization study was completed and clearly demonstrated the need to reduce the fleet. The report indicated that over 400 vehicles were being underutilized. Many of these vehicles could be reassigned to other department to replace older vehicles or sold at auction. The report was completed and sent to the Mayor’s office for implementation. The Mayor’s office gave two separate deadlines for the departments to turn in their vehicles. At the end of the second deadline, less than ten were turned in. The end result is that the fleet was never reduced in size.

6.  Interdepartmental sharing of equipment (pooling).

Does the agency have a pre-established and functioning equipment pool that allocates centrally-owned vehicles and equipment to all user departments?  

7.  Number of employees in specialized positions.

While utilization standards concentrate mainly on accumulated mileage there are many employees (other than police) who use their vehicle as their office space. For example: building inspectors may only drive a few miles each day to various worksites to perform inspections, but require their vehicle to be onsite in order to perform their job. They may require specialized equipment or tools in their vehicles that would prevent a mileage reimbursement program to be put in place. In usage cases such as these, you should set a utilization standard based on the number of hours the equipment is required to be in use by the employee. One standard I read required that an employee utilize their vehicle for more than 70% of the work day.

8.  Quantity of take-home vehicles.

Public agencies with very generous (or lax) take-home vehicle requirements will adversely affect utilization rates. In most circumstances, take-home vehicle policies are written by the politicians, leaving fleet management little to no control other than to track and report a vehicle’s usage.

9.  High levels of individual vehicle assignments.

Although they may not be used for take-home purposes, many user departments specifically assign vehicles to supervisory staff. As a fleet manager we generally do not get involved in how a user department internally assigns their vehicles, but their actions directly impact fleet utilization.