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.
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.
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:
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.
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.
The following is an overview of the management and accountability structure for light-duty vehicles in the federal government.
Departments and agencies are responsible for the management of light-duty vehicles.
Light-duty vehicles are purchased using departmental budgets and, although central agency direction can influence purchasing decisions, departments and agencies are fundamentally responsible for deciding how many vehicles they require and the composition of vehicles necessary to fulfil their operational duties.
Departments and agencies are essentially responsible for all phases of the light-duty vehicle life cycle; however, they are guided by the policy direction provided by the Treasury Board of Canada Secretariat. Most departments and agencies have in place their own internal policy related to the ownership, use, maintenance, and disposal of light-duty fleets, while other departments and agencies may simply refer to the applicable Treasury Board policies, directives, and regulations.
Additional detail on the roles and responsibilities of departments and agencies related to light-duty vehicles is contained in the Policy on Management of Materiel.
The Treasury Board of Canada Secretariat (TBS) is responsible for providing departments and agencies with leadership for the overall management of light-duty vehicles. In carrying out its mandate, the Real Property and Materiel Policy Directorate maintains the Policy on Management of Materiel, the Directive on Fleet Management: Light Duty Vehicles, and the Directive on Fleet Management: Executive Vehicles, which this guide accompanies.
Treasury Board policy on materiel management and directives on light-duty vehicles provide direction and guidance to ensure that this asset group is managed at the lowest possible overall cost, in a manner that allows for informed strategic decision making and cost-effective and efficient delivery of government programs and services. Furthermore, TBS direction seeks to ensure the light-duty vehicles are selected, acquired, used, maintained, and disposed of in ways that provide the best possible support to government operations, the environment, and other government objectives.
Within and among the federal light-duty fleet community, TBS also assumes an ongoing consultation role in order to encourage communication among the members, provide additional policy interpretation, and provide leadership in the fleet community.
Additional details on the roles and responsibilities of TBS are contained in the Policy on Management of Materiel.
Public Works and Government Services Canada (PWGSC) provides key mandatory and optional services to federal departments and agencies in support of the management of the light-duty vehicle fleets.
A primary mandatory service is the management of the vehicle procurement process, which requires PWGSC to conduct an assessment of light-duty vehicles to identify the lowest-cost candidates with the most favourable environmental profile. Departments and agencies are then required to select vehicles from this pool of candidates to the extent it is feasible.
PWGSC also negotiates all standing offers for vehicle-related services and products that can be accessed, on an optional basis, by all departments and agencies. These standing offers may include, but are not limited to, the following: fleet management services; tires and tubes; vehicle leases; vehicle conversions; vehicle markings; etc.
Additional detail on the roles and responsibilities of PWGSC is contained in the Policy on Management of Materiel.
Prior to vehicle acquisition, consideration should be given to whether the transportation requirement can be met using the existing fleet.
Where it has been determined that the existing fleet cannot meet requirements, consideration should then be given to whether the requirement can be met using alternative transportation modes including, but not limited to:
Operational needs in some departments may require vehicle ownership (e.g., the RCMP's Dog Master) and, in such cases, alternative transportation modes may not be practical.
Assuming that a particular transportation requirement cannot be satisfied by the existing fleet or by using one or more alternative transportation modes, the following should be considered in planning for vehicle acquisition.
Departments should establish annual utilization guidelines to justify the acquisition of a Crown-owned vehicle. The following section is intended to provide a benchmark for departments to use in establishing their own guidelines:
To effectively manage transportation, it is essential that departments understand the potential length of time between ordering a vehicle and receiving a vehicle.
In general, PWGSC standing offers allow a turnaround of 90 to 120 days for production and delivery of light-duty vehicles. The turnaround time allowed for alternative fuel vehicles is estimated to be between 120 and 150 days.
The following schematic provides departments with the projected automotive manufacturers' production cycle in relation to the preparation of the Government Motor Vehicle Ordering Guide and procurement of motor vehicles using the existing departmental individual standing offers (DISOs) for light-duty vehicle acquisitions. In general, the production cycle begins in September in conjunction with the awarding of the DISO.
April | May | June | July |
---|---|---|---|
NPP | GMVOG | ||
Build-out | |||
DISO-2 |
August | September | October | November |
---|---|---|---|
GMVOG | Vehicle Production | ||
DISO-2 | DISO-1 |
December | January | February | March |
---|---|---|---|
Vehicle Production | |||
DISO-1 | DISO-2 |
Prior to selecting a vehicle class to meet operational requirements, departments should consider opportunities to rationalize either the overall fleet size or the class they are considering.
In considering a rationalization of the overall fleet size, departments may want to consider whether one new vehicle, e.g., a minivan, would be able to meet the range of transportation requirements previously satisfied by two vehicles, e.g., a mid-size sedan and a full-size van.
In assessing opportunities to rationalize a particular vehicle class, departments may want to consider the following:
Departments and agencies should consider making call-ups for vehicle purchases using electronic purchasing tools such as the Government of Canada e-Purchasing system.
Four methods of supply are presently used by PWGSC for vehicle acquisitions. Each method has its benefits, although the departmental individual standing offer (DISO) method is the most appropriate and widely used. The four methods are as follows:
A competitive request for standing offer is issued every year around June, in which manufacturers are requested to provide prices for new model year vehicles in accordance with specifications and popular option combinations contained in the Government Motor Vehicle Ordering Guide. DISOs are then issued (effective September 1) to those manufacturers offering the lowest responsive price on each specific item, including all alternative fuel vehicles available from these manufacturers.
The evaluation of bids takes into consideration the fuel consumption and greenhouse gas emissions for all vehicles with a gross vehicle weight rating of up to 3,856 kg (8,500 lbs.). The prices quoted for these vehicles are revised once, halfway through the standing offer period (effective January 1). Vehicles can be ordered until the expiry date of the standing offer, which is usually July 31.
The specifications, options, and prices of the vehicles offered at the lowest responsive or a lower responsive cost are identified in the document entitled DISO Prices on the PWGSC vehicle procurement website. PWGSC clients across Canada can use this information to order the vehicles that best meet their requirements.
The government vehicle inventory (GVI) method of supply was introduced in 1980 to supersede the dealer stock method of supply.
Urgent vehicle requirements often arise as a result of accidents, theft, fire, program changes, etc. At one time, these vehicles could be supplied only through dealer stock purchases. However, the vehicles on the dealers' inventories were mostly outfitted with options tailored for the consumer retail market, making them more expensive than the fleet vehicles normally required to meet the federal government's operational needs. In addition, discount levels from dealerships were not and are still not as significant as those provided to the federal government for vehicles ordered from the DISO. The GVI method is designed primarily to assist PWGSC client departments with urgent vehicle requirements.
GVI consists of PWGSC ordering vehicles through the DISO several times per year, for a variety of typical government vehicles to be held in manufacturers' storage lots until needed. Should a client department require a vehicle on an urgent basis, the PWGSC vehicle procurement officer quickly issues a contract to the manufacturer with shipping instructions, and the delivery is effected anywhere in Canada from the storage lot to the appropriate local dealership within 21 days.
Departments should consult the PWGSC vehicle procurement website for the latest GVI availability list. That list also contains the names of the PWGSC vehicle procurement officials to contact in order to confirm the availability of these vehicles and to reserve them.
As indicated under "Government vehicle inventory," urgent vehicle requirements often arise as a result of accidents, theft, fire, program changes, etc. Most of these urgent requirements are filled through PWGSC's GVI program. However, some vehicles cannot be provided through GVI and must be purchased from local dealers' stocked inventories. The dealer stock method is the least desirable and the most costly of the vehicle procurement methods of supply, but it is still a necessary tool in the complete supply system.
PWGSC regional offices can handle dealer stock purchases of passenger cars and light-duty trucks, provided that the authority to proceed has been granted by PWGSC headquarters. Executive vehicles are to be purchased exclusively by the vehicle procurement officials at PWGSC headquarters.
In accordance with the Directive on Fleet Management: Light Duty Vehicles, dealer stock purchases must be avoided whenever possible. They must be made only on an exceptional basis, with the approval of PWGSC, and only if there is absolutely no other alternative available to meet the customer requirements.
Requisitions are allocated by PWGSC headquarters to regional offices. The Vehicles Team forwards an authorization form along with the requisition to the appropriate regional office with instructions to send a copy of the contract to the Vehicles Team in order to input the pertinent data into the Vehicle Statistical Information System (VSIS). This is also a follow-up system to ensure that the contract has been issued.
Section 4.5 of this guide provides details on the procedures to follow if the need to acquire vehicles through dealer stock occurs.
On occasion, vehicle requirements might not be appropriate for the above-mentioned methods of supply, whereas individual purchases for particular vehicles are more suitable to meet particular needs.
For example, Foreign Affairs Canada or the Canadian International Development Agency require some vehicles for export to various countries worldwide. The vehicles in question must meet motor vehicle safety standards that are in effect in the countries where the vehicles will be utilized. Many provisions must be considered for these vehicles, such as the preparation for overseas shipping, the shipping costs, and the availability of dealer services in particular countries, etc.
Departments considering the "special production" method of supply should consult the PWGSC vehicle procurement website to obtain the names of the PWGSC vehicle procurement officials to contact for further advice. These names are listed in the document entitled GVI Availability List.
Departments may consider the acquisition of leadership vehicles and may emphasize leadership principles in vehicle selection to the extent considered acceptable within their organization by recognizing the environmental benefit to be gained in relation to the cost of the vehicle.
Criteria used to define a leadership vehicle are established by the Federal House in Order Transportation Task Group but are updated and approved annually by PWGSC and the intradepartmental Government Motor Vehicle Technical Committee chaired by PWGSC. Consult officials responsible for the Federal Vehicles Initiative at Natural Resources Canada for additional information on the criteria used to evaluate candidates for leadership vehicles.
In deciding whether to purchase additional options on vehicles, departments should consider the following:
To obtain approval from TBS for deviations from the Government Motor Vehicle Ordering Guide (GMVOG) related to vehicle options, minimum features, and vehicle class, the procedure below must be applied:
Departments are reminded that purchases of light-duty vehicles through dealer stock are on an emergency basis only, and are not justifiable on grounds of planning difficulties, year-end surplus spending, or the length of the procurement process.
PWGSC has the authority to rule against any dealer stock justification that demonstrates poor planning.
To obtain separate approval from PWGSC for dealer stock purchases, departments must follow the procedure below:
To ensure compliance with the Alternative Fuels Act, departments should meet the following criteria prior to selecting an alternative fuel vehicle:
Appendix C to this chapter contains additional information on these criteria.
The following should be considered prior to purchasing a manufactured alternative fuel vehicle:
Departments should consider the following prior to converting a gasoline vehicle to alternative fuel capability:
Moving conversion equipment from one vehicle to another is not recommended. However, when conversion equipment is reused, it must comply with the requirements in the paragraph above and renewed warranty provisions must exist for the installation and use of the alternative fuel equipment in a second vehicle.
An effective alternative fuel vehicle must meet emission standards throughout the vehicle's useful life cycle. Departments must maintain their vehicles regularly in accordance with the manufacturer's specifications.
Departments are to maintain the Transport Canada fuel consumption rating for each vehicle in the fleet, and the dates and kilometre readings when the emission tests are conducted in the fleet database. Copies of all emission test results (and corrective action taken in the case of failed tests) are to be retained on file for any audit or inquiry from internal auditors or TBS.
Departments should consider the following prior to entering into a vehicle lease:
Departments opting to lease vehicles should note that only operating leases are permitted. The Financial Administration Act prohibits capital leases. The most recent operating leases were available through the PWGSC standing offers for vehicle leases until the end of September 2006.
The Directive on Fleet Management: Light Duty Vehicles requires federal government employees to purchase low-level ethanol fuel (commonly referred to as E-10) for gasoline-powered vehicles, whenever available, when travelling for government purposes. This includes travel in a rented, leased, or government-owned vehicle.
The Ethanol Fuel Initiative at Natural Resources Canada is designed to increase the use of ethanol as a renewable and low greenhouse gas-emitting transportation fuel. The current strategy is to promote and encourage the use of ethanol-blended gasoline, in both low-level (up to 10 per cent ethanol) and high-level (up to 85 per cent ethanol, E-85) blends. Most vehicles can use low-level blends today, and flexible-fuel vehicles can use E-85. For more information, visit Natural Resources Canada's Federal Fleet Initiative and vehicle fuels websites.
While E-10 fuel consists of a blend of 10% ethanol and 90% gasoline, low-level ethanol-blended fuel is defined as gasoline blended with ethanol in low concentrations. In Canada, low-level ethanol-blended fuel is manufactured and available in a range of concentrations from 5% to 10% ethanol content.
Although the Directive on Fleet Management: Light-Duty Vehicles relates to the purchase of E-10 fuel, the intent of the requirement is to increase the purchase of low-level ethanol blends in general. As such, purchasing a fuel containing up to 10% ethanol is consistent with the requirement.
Low-level ethanol blends are available at service stations across Canada. To obtain a list of locations of fuel stations selling low-level ethanol blends:
Departments are encouraged to develop guidelines to assist drivers of departmental vehicles to identify conveniently located fuel stations that supply E-10 fuel. Such guidelines should also emphasize the requirements of this directive and provide clear instructions for drivers on measures to be taken to ensure compliance with these requirements.
For more information on low-level ethanol blends, visit the Canadian Renewable Fuels Association's website.
Departments and agencies should take reasonable measures to increase access to alternative fuel for departmental vehicles, including:
Departments should contact officials responsible for the Federal Fleet Initiative at Natural Resources Canada for further information and assistance in expanding the use of alternative fuel within their fleets.
The Values and Ethics Code for the Public Service states that public servants should at all times act in such a way as to uphold the public trust. Public servants shall perform their duties and arrange their private affairs so that public confidence and trust in the integrity, objectivity, and impartiality of government are conserved and enhanced. Public servants shall act at all times in a manner that will bear the closest public scrutiny.
In accordance with the principles of the Values and Ethics Code, government employees are not permitted to accumulate rewards and/or points on their own personal loyalty cards (e.g., Air Miles, Petrol-Points, or other types of reward points) for fuel purchases made using the government fleet credit card while operating a government vehicle for government business. Further, government employees are not permitted to receive cashbacks for fuel purchases and/or repairs made using the Government of Canada fleet card.
Chapter 2 of the Code, "Conflict of Interest Measures," provides specific guidance on avoiding and preventing situations that could give rise to a potential, apparent, or real conflict of interest. These measures are key to helping ensure that the public service can and will be seen to be carrying out its responsibilities in an objective and impartial manner. The conflict of interest measures prohibit the solicitation of gifts, hospitality, or other benefits for personal gain.
Fraudulent use of a fleet credit card (e.g., receipt of kickbacks, theft, etc.) is a criminal offence against the Crown and may result in severe penalties. Departments are reminded to ensure that they have control measures in place to avoid improper practices and illegal acts related to the use of the fleet credit card. Any improprieties and allegations of offences against the Crown should be reported and investigated, and departments must take appropriate action.
Departments should ensure that any and all safety issues associated with refuelling are communicated to users of departmental vehicles. Basic safety procedures should be followed when refuelling vehicles. Departments should consult with their departmental Occupational Health and Safety coordinator for additional information.
Departments should consider that a common definition of authorized driver includes:
Departments should also consider that a common definition of employee includes:
To ensure all employees acknowledge the terms of use of a departmental vehicle, departments may consider requiring employees to review and sign a form detailing authorized and appropriate use of a government vehicle.
The authority to use a departmental motor vehicle would be valid until the form is withdrawn, but should be reviewed at least annually by a manager.
Content of such an authorization form may include:
Departments should obtain, and retain a record of, proof of insurance, including an indemnification to the Crown, from authorized drivers who are not government employees before such drivers are permitted access to a departmental vehicle. Access to departmental vehicles must be withdrawn once the proof of insurance coverage expires.
Departments should consider that a common definition of authorized passenger includes:
Only authorized passengers may be carried in departmental motor vehicles; however, a motor vehicle operator may provide emergency transportation without prior authorization under the following circumstances:
Such instances should be documented by the driver as soon as possible following completion of the trip and documentation should be provided to the appropriate manager.
An emergency situation does not include transporting relatives, family, or friends to school, daycare, work, or appointments. Family members should not travel in a departmental vehicle when employees are on travel status and a departmental vehicle is the approved mode of transportation.
In deciding on the most appropriate manner of underwriting the risk to the Crown for damage to the vehicle, driver injury, or third-party claims, departments should consider the following:
For situations where contractors may be required to use departmental vehicles, there are four basic options available to departments to ensure appropriate use of insurance and the appropriate approach to risk management:
Under this option, the contractor provides proof of insurance to cover the risk and, at the department's option, provides a limited or unlimited indemnification of the Crown against damage to the vehicle and third-party risks.
This method should be the general rule in most contractual circumstances, as it puts the onus on contractors to arrange their own insurance in accordance with the customs of the trade. Contracting authorities should ensure that contractors make prudent use of insurance commensurate with their financial capability, and their legal and contractual liability.
This method may be appropriate when there are specific advantages to be gained such as insuring against high-risk activity, preserving an arm's length relationship, gaining economy, and getting insurer provided services such as claims settlement.
Under this approach, the government assumes all the risk under the self-underwriting policy, just as is done for vehicles operated by employees.
Under this method, the government assumes the risk of damage to the vehicle where negligence is not involved and requires an indemnification from the contractor against third-party risks.
Departments are encouraged to carefully review the requirements and methodology contained in the Treasury Board Integrated Risk Management Framework and policy to develop an appropriate and reasonable approach to managing risk as it relates to motor vehicle operation and use.
Departments should pool vehicles internally (within the department) to the fullest possible extent. In complexes where there are two or more departments, departments should also consider sharing a pool of vehicles.
Assignment of a vehicle to one individual is strongly discouraged unless justified by operational requirements (e.g., the Dog Master at the RCMP).
Departments should ensure that users of federal vehicles are aware of interpretations of personal use in the Income Tax Act by reading the Canada Revenue Agency's Interpretation Bulletin IT-63R5 and Employer's Guide T4130 on Taxable Benefits, Chapter 1.
Departments must comply with the requirements of the Income Tax Act and with Canada Revenue Agency's Interpretation Bulletin IT-63R5 by establishing a system to ensure personal use of vehicles is declared and the taxable benefit is properly applied.
The corporate signature ("Government of Canada" or departmental name, in both languages, with the Canadian flag) and the Canada wordmark must appear on all motor vehicles, including vehicles on long-term leases, in accordance with requirements of the TBS Federal Identity Program Policy (FIP).
To identify vehicles on short-term rentals, departments may consider using temporary markings such as a placard displayed on the vehicle or a magnetic-backed marking, instead of the more permanent standard markings.
PWGSC has a national master standing offer (PDF document - 4.35 MB) (NMSO) in place for signage services (signs, decals, etc.). The benefit of accessing this NMSO is that all signage is consistent with FIP requirements.
In the case of designated leadership vehicles, additional FIP-approved marking is acceptable.
Departments citing concerns of safety for vehicles bearing standard markings may consider temporary markings, such as a magnetic-backed marking or placard, for such situations.
Departments seeking exemption from the FIP Policy should contact the FIP policy centre directly.
Measures departments should employ to eliminate unnecessary idling may include:
Smoking is not permitted in government vehicles as they are considered part of the workplace. In accordance with the Treasury Board Policy on Smoking in the Workplace, departments have an obligation to promote a safe and healthful working environment that is free, to the extent possible, of tobacco smoke and they must ensure that no person smokes in the workplace.
While this policy does not specifically prohibit smoking in motor vehicles when occupied by only one employee, departments are required to promote vehicle sharing and pooling to the maximum extent possible. Employees that are sharing motor vehicles should not be exposed to the effects of smoking in a motor vehicle.
Departments should take measures to discourage the use of cellular telephones (handheld and hands-free) while operating a departmental vehicle. Departments should emphasize and communicate all of the safety issues associated with using a cellular telephone while operating a departmental vehicle.
All federal and provincial laws and regulations governing the use of cellular telephones must be observed and override any information contained in this directive in the event of a discrepancy between those laws and regulations, and this directive.
Departments may choose to seek recovery of any motor vehicle accident costs resulting from cellular telephone use and a failure to observe any applicable federal and provincial laws and regulations on the part of the driver.
Departments should comply with provincial legislation and regulations for vehicles by:
Where possible, departments should arrange for bulk registration of vehicles to reduce administrative costs. The first line of all addresses on vehicle registrations should include consistent wording to refer to the department, such as the department's applied title.
Departments should provide, or participate in, driver training courses where appropriate and required, including:
The Federal Fleet Initiative (FFI) supports the green defensive driving course offered by the Canada Safety Council and may provide funding assistance to departments interested in providing this training to drivers of departmental vehicles.
While this course focusses on safe driving practices, it also highlights the environmental benefits associated with defensive driving. This course is available as a one-day classroom course or a two-hour online course.
Departments interested in this course should contact Natural Resources Canada officials at 613-995-7436.
For additional safety, departments may want to consider the use of snow tires on all vehicles during the winter season. This guide promotes this as a good practice on all existing vehicles in the fleet, where appropriate, and not necessarily at the time of vehicle acquisition.
All federal and provincial laws and regulations governing the use of snow tires on motor vehicles must be observed and override any information contained in this directive in the event of a discrepancy between the laws and regulations, and this directive.
The Treasury Board Motor Vehicle Operations Directive emphasizes the importance of safety in the operation of government vehicles. It is essential that vehicles remain mechanically safe and they must be operated in a prudent manner. Employees are not required to operate a vehicle that is deemed unsafe or that is loaded in a hazardous manner.
Buses and motor vehicles used for transporting flammable substances must be equipped with a dry chemical fire extinguisher. Information on the rating, standards, and location of the fire extinguisher is provided in the Treasury Board Motor Vehicle Operations Directive.
Motor vehicles shall be equipped with first aid kits in accordance with the requirements of Part XVI, Schedule I, subsection 16.7(1), of the Canada Labour Code.
Every motor vehicle accident is to be investigated, the cause or causes determined, and appropriate corrective action taken. Additionally, a hazardous occurrence accident report shall be completed in compliance with section 15.3 of Part XV, "Hazardous Occurrence Investigation, Recording and Reporting," of the Canada Labour Code.
In order to be consistent with section 15.11 of Part XV identified above, departments shall maintain a written record of vehicle repairs or replacement as a result of accidents for a period of 10 years.
In addition, departments should complete a copy of the Motor Vehicle Accident Report (GC 46) form and maintain it, along with the vehicle's history file.
Departments and agencies may obtain the services of a fleet management service provider by either issuing a call-up against a standing offer for fleet management information services (PDF document - 7.09 MB) negotiated by the federal government or engaging in a separate competitive process if warranted.
Departments and agencies should monitor fuel consumption and vehicle operating and maintenance records to ensure that they are up to date. Regular monitoring of these data will ensure accuracy and integrity of data and better data for internal and external reporting purposes.
Departments should track data related to all alternative transportation modes, including daily rentals, vehicle leases, personal motor vehicle use, and taxis to enable effective management of transportation within the organization. Essential data to be collected include the duration and distance of trips taken, the total number of trips, and the associated cost.
Departments are not obligated to report and/or enter fleet-related information in the vehicle management database on ancillary equipment that can be transferred from one vehicle to another and that will be removed prior to disposal (e.g., safety screens, weight tie-downs, light bars, winches, aftermarket electronic equipment, etc.).
Odometer readings should be reported regularly—at the very least, on a monthly basis—to ensure the fleet information system is current.
Departments ensure the following best practices are followed:
Proof of ownership or leasehold interest by the federal government should suffice as proof of insurance for federal government vehicles. Departments may, however, obtain proof of insurance cards from the TBS website if deemed necessary.
While the federal government self-underwrites travel in government-owned vehicles, departments should consider obtaining commercial insurance for leased vehicles in the following circumstances:
PWGSC arranges a contract annually to provide commercial insurance to cover third-party liability risks and personal injury for travel to the U.S. Damage to a federal vehicle registered in Canada while on official business outside Canada is covered by the self-underwriting policy.
Departments should provide the insurer, through PWGSC, with estimates of travel to the U.S. based on the prior year's data. The insurer arrives at an annual charge for insurance and provides proof of insurance documents for vehicles on a request basis.
Departments should consider the following best practices in planning for vehicle disposal:
At the time a vehicle is purchased, departments must predetermine the likely disposal time frame and ensure budgets anticipate potential replacement costs.
Departments are encouraged to establish lifecycle guidelines for their light-duty fleets to enable effective disposal planning. As the determination of an appropriate life cycle for light-duty vehicles can vary widely across departments, the following section provides a benchmark for departments to use in tailoring their own guidelines.
For the disposal of government surplus assets, departments should be familiar with the Treasury Board Directive on Disposal of Surplus Materiel.
The following table provides a summary of the life cycle guidelines currently in effect in some federal departments:
Vehicle Class | Age (Years) | Total Kilometres Accumulated |
---|---|---|
Sedans and wagons | 5 | 120,000 |
Light trucks | 5 | 120,000 |
Sedans and wagons | 7 | 140,000 |
Light trucks | 7 | 140,000 |
Sedans and wagons | 5 | 80,000-100,000 |
Light trucks | 6 | 120,000 |
Sedans, wagons and vans | 3-5 | 100,000 |
Light-duty trucks | 6 | 80,000 |
Range (Sedans and wagons) | 3-7 | 80,000-140,000 |
Range (Light trucks) | 5-7 | 80,000-140,000 |
Appendix C provides additional benchmarks that may also be useful.
Departments should use the vehicle remarketing standing offer (PDF version 963.38 KB) negotiated by PWGSC for all vehicle disposals. The current standing offer is in place with the Independent Canadian Auction Network (ICAN). The direct disposal services of the Crown Assets Disposal Directorate at PWGSC may also be accessed when deemed appropriate by the department.
Trade-ins are not permitted for light-duty vehicles.
Transfers of vehicles between departments are permitted and must be consistent with TBS policy on asset disposal and government accounting practices.
Please direct enquiries about this policy instrument to the organizational unit in your department responsible for this subject matter. For interpretation of this policy instrument, the responsible organizational unit should contact: TBS Public Enquiries.
The following is a list of additional sources of information about the ownership and management of light-duty vehicles and policies affecting the management of this asset group.
The following appendix provides some examples of annual utilization and disposal standards that may be useful to federal government departments in establishing their own standards.
The following is not intended to serve as a mandatory standard for all departments.
The following guidelines are contained in part 102-34 ("Motor Vehicle Management") of the Federal Management Regulation of the United States government. These regulations are mandatory and apply to all executive agencies of the U.S. federal government.
Motor Vehicle Type | Years | Miles | Equivalent Kilometres |
---|---|---|---|
Sedans/station wagons | 3 | 60,000 | 96,000 |
Light trucks (less than 12,500 pounds gross vehicle weight rating) | 6 | 50,000 | 80,000 |
Minimum standards are stated in both years and miles; agencies are instructed to use whichever standard occurs first.
Government-owned motor vehicles may be replaced sooner if they need body or mechanical repairs that exceed the fair market value of the motor vehicle.
The replacement standard is a minimum only, and therefore, the government-owned motor vehicles may be kept longer if they can be operated without excessive maintenance costs or substantial reduction in resale value.
The following statistics are based on survey responses from 426 fleet managers across the United States and Canada. The average fleet size of survey respondents is 1,009 vehicles, primarily passenger cars and light-duty trucks.
Approximately 12 per cent of the survey base is comprised of fleets in Canada. Business fleets represent over half (58 per cent) of the survey base, while approximately 37 per cent of respondents operate government/public-sector fleets. The remainder of the survey base consists of private/non-government utility fleets (5 per cent).
Type of Fleet | Average Kilometres | Average Years |
---|---|---|
Business fleets | 132,352 | 4 |
Government/public-sector Fleets | 161,335 | 7 |
Private utility fleets | 167,075 | 5 |
The following statistics are extracted from a publication of the National Association of Fleet Administrators, Inc. (NAFA Foundation). The objective of this publication is to establish a database on public service fleets that can be used by members of NAFA and other fleet managers to benchmark their performance.
The following data are based on a survey that was sent to each public-service fleet member of NAFA and to selected other public-service fleet managers; 90 fleet managers responded to the survey. Respondents represent a diversity of fleets both in terms of the types of organizations they represent and the composition of their fleets. The size of the fleets managed by the respondents ranges from 250 vehicles to over 10,000 vehicles.
Motor Vehicle Type | Median | Low 20% | High 20% | |||
---|---|---|---|---|---|---|
Miles | Km | Miles | Km | Miles | Km | |
Sedans | 12,000 | 19,200 | 8,650 | 13,840 | 15,560 | 24,896 |
Light trucks | 11,000 | 17,600 | 8,431 | 13,490 | 15,000 | 24,000 |
See above for additional information on the source of the following data.
Type of Fleet | Average Kilometres per Year |
---|---|
Business fleets | 35,643 |
Government/public-sector fleets | 21,808 |
Private utility fleets | 23,360 |
The following statistics were extracted from a Transport Canada report entitled Transportation in Canada 2002. These statistics are based on the 2001 Canadian vehicle survey that was conducted in the 10 provinces and included 16.8 million light vehicles (i.e., vehicles with a gross weight less than 4,500 kilograms)
Type of Vehicle | Average Kilometres per Year |
---|---|
Note: Figures in this table exclude the territories. Source:Canadian Vehicle Survey, Statistics Canada, and Transport Canada calculations. | |
Car | 15,600 |
Station wagon | 15,000 |
Van | 19,800 |
Sport utility | 19,300 |
Pickup truck | 18,200 |
Average | 16,900 |
This appendix provides a consistent approach for determining whether a vehicle would be capable of operating cost-effectively on alternative fuels over its useful life in the federal fleet. It also provides further guidance on what constitutes operational feasibility.
Some change in operational procedure must be expected to accommodate using and refuelling alternative fuel vehicles. In specific cases, in spite of best efforts, it may not be operationally feasible to use alternative fuels in some locations or for specific vehicles.
Departments must ensure the manufacturer has qualified the local service dealership to service the type of alternative fuel vehicle being purchased or leased. Not all original equipment manufacturer dealerships may be qualified or equipped to service the alternative fuel vehicles sold by the manufacturer.
All of the following should be in place to make the use of alternative fuels operationally feasible:
In assessing the life cycle cost-effectiveness of using alternative fuel vehicles, departments are encouraged to use the Alternative Fuels Guide to conduct the cost-effectiveness test.
This software package was developed by Natural Resources Canada to provide purchasers of alternative fuel vehicles with an easy-to-use tool to determine the cost-effectiveness of purchasing original equipment manufacturer vehicles capable of operating on the following alternative fuels: natural gas; propane; and E85.
Cost-effectiveness of alternative fuel vehicles is calculated using the price differential between the gasoline and ATF prices based on gasoline-equivalent volumes. These volumes are determined using conversion factors that account for the energy content of each fuel. These conversion factors are incorporated into the software package.
Following is a checklist of best environmental practices related to the management of light-duty vehicles. This checklist has been organized according to the four phases of the materiel life cycle. An additional category has also been included to address procedure and policy issues.
Sound procedures and policies lay the groundwork for good fleet management practices that not only reduce fleet costs but also minimize the environmental impact of operating a fleet. Following are some relevant best practices related to procedure and policy:
During the planning stage, departments should consider the following best green practices:
During the acquisition stage, departments should consider the following best green practices:
The U.S. Environmental Protection Agency and California Air Resource Board provide an emission certification program for aftermarket conversion kits.
Low-level ethanol is covered by manufacturer warranty on any vehicle produced since the 1970s.
During the operation, use, and maintenance phase, departments should consider the following best green practices:
Black or dark brown drippings are typically motor oil or grease.
Yellow or green drippings indicate leaking coolant or antifreeze.
Pink or red drippings are likely transmission fluid.
Clear drippings may be brake fluid, power steering fluid, or gasoline.
Provided below are some useful sites related to fleet greening practices.
The physical life cycle of materiel has three distinct phases:
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.