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Treasury Board of Canada Secretariat

Guide to Fleet Management

Guide to Fleet Management

Chapter 1: Light-Duty Vehicles

Table of Contents

1. Introduction

1.1 Purpose

1.2 Scope

1.3 The materiel management life cycle

1.4 Chapter organization

2. Light-Duty Vehicle Management in the Federal Government

2.1 Roles and responsibilities

2.1.1 Federal departments and agencies

2.1.2 Central agencies

3. Planning

3.1 Planning transportation requirements

3.1.1 Considering alternatives to acquisition

3.2 Planning for vehicle acquisition

3.2.2 Establishing guidelines to justify acquisition

3.2.3 Understanding procurement timelines

3.2.4 Selecting vehicle class and type

4. Acquisition

4.1 Accessing Public Works and Government Services Canada
procurement arrangements

4.2 Methods of supply for the acquisition of vehicles

4.3 Purchasing leadership vehicles

4.4 Purchasing additional vehicle options

4.5 Seeking deviations from the Government Motor Vehicle Ordering Guide

4.6 Acquiring vehicles through dealer stock

4.7 Selecting alternative fuel vehicles

4.7.1 Criteria for selecting an alternative fuel vehicle

4.7.2 Purchasing a manufactured alternative fuel vehicle

4.7.3 Aftermarket conversions of gasoline vehicles

4.7.4 Reusing conversion equipment

4.7.5 Maintenance of alternative fuel vehicles

4.7.6 Emission monitoring for all alternative fuel vehicles

4.8 Vehicle rental and leasing

4.8.1 Long-term rental and leasing

4.8.2 Vehicle operating leases

5. Operation, Use, and Maintenance

5.1 Fuel issues

5.1.1 Purchasing low-level ethanol fuel

5.1.2 Purchasing alternative transportation fuels

5.1.3 Fuel loyalty cards

5.1.4 Safety issues with refuelling

5.2 Risk management issues

5.2.1 Defining an authorized driver

5.2.2 Authorizing an authorized driver

5.2.3 Defining an authorized passenger

5.2.4 An approach to managing risk to the Crown

Contractor-controlled insurance

Government insurance

Government assumes full risk

Government assumes partial risk

5.3 Vehicle management and allocation

5.4 Vehicle use and operation

5.4.1 Personal use of vehicles

5.4.2 Complying with the Federal Identity Program Policy

5.4.3 Seeking exemption from the Federal Identity Program Policy

5.4.4 Idling of departmental vehicles

5.4.5 Smoking in departmental vehicles

5.4.7 Registration of departmental vehicles

5.4.8 Green defensive driving courses

5.4.9 Using snow tires on departmental vehicles

5.5 Data collection, credit cards, and fleet information systems

5.5.1 Obtaining the services of a fleet management service provider

5.5.2 Appropriate use of fleet database

5.5.3 Reporting vehicle odometer readings

5.5.4 Appropriate use of fleet credit cards

5.6 Fleet liability and insurance

5.6.1 Proof of insurance while travelling in Canada

5.6.2 Commercial insurance

5.6.3 Vehicles driven to the U.S.

6. Disposal

6.1 Planning for disposal

6.2 Disposal of vehicles

6.2.1 Establishing guidelines for vehicle disposal

6.2.2 Disposal methods

Appendix A: References

Appendix B: Benchmarks for Annual Utilization and Disposal

Benchmarking for disposal standards

U.S. government disposal/replacement guidelines

Fleet Research, Incorporated (second quarter 2003 survey)

Benchmarking for annual utilization guidelines

Benchmarking for Quality in Public Service Fleets, 1993

Fleet Research Incorporated (second quarter 2003 Survey)

Transportation in Canada 2002

Appendix C: Guidelines for Assessing Cost-Effectiveness and
Operational Feasibility of Alternative Fuel Vehicles

Assessing operational feasibility

Assessing life cycle cost-effectiveness

Appendix D: Green Fleet Management Checklist

Procedure and policy



Operation, use, and maintenance


Other useful sites and information

  1. Introduction

1.1 Purpose

This chapter of the Guide is intended to assist directors and managers in implementing the government’s policy and directives related to materiel management and more specifically the management of light-duty vehicles.

Organized around a life cycle approach, this chapter provides guidelines and best practices that complement the mandatory direction provided in the Policy on Management of Materiel and the Directive on Fleet Management: Light Duty Vehicles. In some cases, this chapter also details procedures to be followed stemming from the application of other Treasury Board directives. This format enables directors and managers to adhere to a common set of procedures and to ensure their decision-making and management practices are consistent with the full range of best practices and guidelines relevant to the management of light-duty vehicles.

1.2 Scope

Flowing from the Policy on Management of Materiel, which provides policy direction on the management of all departmental assets, and the Directive on Fleet Management: Light Duty Vehicles, which provides direction related to the management of light-duty fleets, this chapter sets out guidelines and best practices for the management of light-duty vehicles.

Whereas the government’s fleet of light-duty motor vehicles represents a significant capital and ongoing operational and maintenance expense to the government, it is critical that departments not only manage and operate fleets according to a common set of mandatory requirements but also consider a wide range of guidelines and best practices.

This chapter’s content highlights and expands on some mandatory policy direction, as well as providing guidance and additional information on the management of light-duty vehicles. Some content directly links to the government’s policy requirements, while other content reflects good managerial practices that go beyond the requirements of Treasury Board policy.

The content of this chapter and its associated directives and policy, should be read in conjunction with other policies and requirements that, although they have an impact on the management of light-duty vehicles, are outside the scope of this document. The reader is encouraged to review the references included in the Policy on Management of Materiel.

1.3 The materiel management life cycle

The extended life of materiel assets has important implications for decision makers. For instance, an acquisition decision that is based on the lowest purchase price but that ignores potential operating and maintenance costs may result in a higher overall cost. Therefore, it is important to understand all phases in the materiel management life cycle. Managing effectively requires that an appropriate level of management interest and control be maintained through all phases in the materiel asset’s life cycle. These phases are summarized in the following diagram:

The physical life cycle of materiel has three distinct phases:

  1. acquisition;

  2. operation and use; and

  3. disposal.

To this, a fourth phase, planning and monitoring, is added, representing a continuous process wherein the information outputs from each phase are used as inputs to planning. Planning and monitoring processes thus apply during all other phases in the materiel management life cycle. In addition, the management control process provides the foundation on which the life cycle phases of materiel are built.

Materiel management strategies must always take into consideration the full life cycle costs and benefits of alternatives to meeting program requirements.

By using life cycle costing techniques, the total costs to the Crown of owning or leasing materiel assets can be evaluated prior to acquisition. This is accomplished by taking into account such factors as operation and maintenance costs, and possible future disposal costs in addition to capital costs. Estimating life cycle costs also creates standards by which costs can be monitored and controlled after acquisition. By adopting this approach throughout, departments can move towards ensuring that their materiel management decisions are financially prudent and represent the best value to the Crown.

1.4 Chapter organization

This chapter of the Guide to the Life Cycle Management of Motor Vehicles is organized into sections consistent with the four phases of the life cycle of materiel: planning; acquisition; operation, use, and maintenance; and disposal. Within these phases, and where applicable, additional subheadings are used to clearly distinguish subject matter.
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