The Directive on Fleet Management: Executive Vehicles was rescinded on May 13, 2022. It has been replaced by the Directive on the Management of Materiel.
This directive is effective as of November 1, 2006, and incorporates changes effective as of August 9, 2018
This directive applies to all departments as defined in section 2 of the Financial Administration Act unless specific acts or regulations override the act.
Although the Treasury Board Policy on Management of Materiel provides direction on managing departmental materiel assets throughout their life cycle, this directive contains additional direction on managing executive vehicles.
The objective of this directive is to ensure that the Government of Canada's executive vehicle fleet, while meeting the needs of authorized users, is managed with:
All requirements related to data collection, credit cards and fleet information systems set out in the Treasury Board Fleet Management Directive: Light Duty Vehicles also apply to the federal executive vehicle fleet.
This directive is issued pursuant to the Financial Administration Act, subsections 7(1)(a) and 9(2).
Definitions to be used in interpreting this directive are in the Appendix.
Authorized users of the federal executive vehicle fleet are:
Eligible senior officials are those who:
The authorized maximum price limit for executive vehicles is established by the Comptroller General of Canada. These limits are adjusted annually (either increased or decreased) in order to:
The Treasury Board of Canada Secretariat (TBS) will communicate maximum price limits annually to:
The actual total price paid for an executive vehicle must fall within the applicable limit and includes:
Note: The following aftermarket equipment and accessories installed in an executive vehicle for reasons of security and efficient government business are excluded from the actual total price of a vehicle:
Vehicle leases must be avoided unless specific operational requirements dictate that they be used. When vehicle leases are required, the purchase price of the leased vehicle must fall within the applicable authorized maximum price limit.
Subject to the exceptions set out in subsection 5.2.6 of this directive, authorized maximum price limits will be reduced by 25% for:
The Treasury Board must approve exceptions to the authorized maximum price for executive vehicles.
The type, size and quality of executive vehicles purchased must be comparable, in general, to those of vehicles purchased in the private sector for similar use. Individuals purchasing such vehicles must act with probity and exercise prudence in acquiring and using government property.
Executive vehicles must provide adequate and cost-effective transportation for official purposes and meet some of the user's personal preferences and needs. These vehicles must, above all, be highly reliable, safe and secure for the users.
Executive vehicles must be zero-emission or hybrid-electric vehicles. The number of vehicles operating on alternative fuels is subject to the Alternative Fuels Act at all times.
An executive vehicle must meet executive business requirements and must fall within one of the following categories:
The Treasury Board must approve exceptions to executive vehicle standards.
PSPC has exclusive authority for acquiring executive vehicles. Departments must conclude all transactions for executive vehicles with PSPC headquarters and must not discuss any terms of acquisition with dealers.
PSPC will:
In order to support the government's objective to green its operations, departments must take action to initiate the replacement of conventional fuel-powered vehicles six years after they were first used. Departments may opt to use life-cycle costing principles to determine when to replace hybrid and alternative fuel vehicles.
Executive vehicles must be purchased through PSPC headquarters at the best available price and in compliance with the procurement practices stipulated in:
Trading in executive vehicles and purchasing used vehicles are prohibited practices because they are not cost-effective for the federal government.
Executive vehicles acquired through dealer stock:
Departments must inform the PSPC contracting authority of the acceptance date of each vehicle acquired.
When emergencies occur or delays are expected in the delivery of a new vehicle, consideration must be given first to extending the use of the vehicle being replaced and then to:
Departments must consider the environmental effects of the acquisition, use and maintenance of executive vehicles. Guidelines on Fleet Management, Chapter 1: Light Duty Vehicles contains a Green Fleet Management Checklist to help departments ensure that they manage their fleet in an environmentally responsible manner.
E-10 fuel must be used when available in all executive vehicles that are equipped with engines that operate on regular gasoline.
Vehicles equipped to operate on E-85 ethanol must use this fuel when available. If E-85 ethanol is not available, these vehicles can operate on E 10 ethanol and must use it when it is available.
Departments must take measures to eliminate unnecessary idling of executive vehicles. Examples are:
Notwithstanding the normal government practice to "self-underwrite" government vehicles, all motor vehicles provided to the following must be fully insured commercially, with coverage for official and personal use:
Proper insurance coverage is to be arranged through PSPC.
At a minimum, the insurance policy must include the following coverage, as determined to be appropriate by PSPC:
Guidelines contained in Guide to Fleet Management, Chapter 2: Executive Vehicles, include recommended minimum coverage.
PSPC will:
Departments and agencies are responsible for the cost of deductibles on the insurance policy.
Departments must:
Executive vehicles must be disposed of in accordance with the requirements of:
The following may make personal use of executive vehicles provided by their departments or agencies when these vehicles are not required for official use:
An executive vehicle may also be made available for personal use to persons related to the authorized user, provided that:
Under the Income Tax ActFootnote 1, use of an executive vehicle for anything other than official use:
For more information on their obligations under this legal requirement, including a definition of "personal use," departments should refer to the Canada Revenue Agency's Interpretation Bulletin IT63R5 Benefits, Including Standby Charge for an Automobile, from the Personal Use of a Motor Vehicle Supplied by an Employer - After 1992.
Executive vehicles must not bear external identification markings such as those identified in subsection 3.1 of the Federal Identity Program Manual.
Note: This section is meant to inform departments of other significant roles in managing executive vehicles. In and of itself, it does not confer an authority.
The Privy Council Office is responsible for:
Relevant legislation
Related Treasury Board policy instruments
Enquiries about this policy instrument should be directed to the departmental organizational unit that is responsible for fleet vehicles.
For interpretation of this policy instrument, the responsible organizational unit should contact TBS Public Enquiries.
A fuel for use in motor vehicles to deliver direct propulsion that:
When used as a sole source of direct propulsion energy, an alternative fuel is a blended fuel (containing gasoline or diesel) when the alternative fuel portion makes up at least 50% of the blend (includes flex-fuel and bi-fuel vehicles).
A credit card provided by a fleet management support services provider, to be used for:
Normally, a credit card should be assigned to one executive vehicle.
A hybrid-electric vehicle that is propelled by both an internal combustion engine and an electric drivetrain that draws power from on-board batteries that cannot be recharged by plugging into the grid. A hybrid-electric vehicle uses the following to recharge its batteries:
Includes plug-in hybrid, battery-electric, hydrogen, and fuel-cell vehicles:
Paragraphs 6(1)(a), (e), (e.1), (k) and (l) and subsections 6(1.1), (2), (2.1) and (7) (also subsections 15(1), (1.3), (1.4), (5) and (7) and paragraph 12(1)(y))