Guidelines on Fleet Management, Chapter 1: Light-Duty Vehicles

Assists directors and managers in implementing the government’s policy and directives related to materiel management and management of light-duty vehicles.
Date modified: 2015-02-05

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Glossary

alternative transportation modes (moyens de transport de remplacement)
Are alternatives to government owned vehicles including: rented/leased vehicles (short-term or seasonal); personal motor vehicles; taxis; trains and buses.
bi-fuel vehicle (véhicule bicarburant)
Is a vehicle with two separate fuel systems that operates on either fuel (e.g. a bi-fuel gasoline/propane vehicle can operate on either gasoline or propane).
biodiesel (biodiesel)
Is a renewable fuel for diesel engines typically produced by a reaction of a vegetable oil or animal fat with an alcohol such as methanol or ethanol in the presence of a catalyst. This chemical reaction removes the glycerin from the oil or fat. Biodiesel can be used in any concentration with petroleum based diesel fuel in existing diesel engines with little or no modification. A biodiesel blend can vary between B5 (5% biodiesel / 95% diesel) and B100 (100 % biodiesel), although biodiesel blends in Canada are generally available in ranges between B5 and B20.
capital lease (location-acquisition)
Meets one or more of the following criteria, and is classified as a purchase by the lessee (client): the lease term is greater than 75 per cent of the asset's (vehicle/equipment) estimated economic life; the lease contains an option to purchase the asset for less than fair market value; ownership of the asset is transferred to the lessee at the end of the lease term; or the present value of the lease payments exceeds 90 per cent of the fair market value of the asset. The FIS Accounting Manual defines a capital lease as a lease that, from the point of view of the lessee, transfers substantially all the benefits and risks incident to ownership of property to the lessee. Capital leases for federal government vehicles are prohibited. Any lease that is not a capital lease is an operating lease.
cost-effective (rentable)
In the context of analyzing options for alternative fuel use, cost-effectiveness is demonstrated when the additional cost of either converting the vehicle to use an alternative fuel or acquiring a factory-produced alternative fuel vehicle will be recovered in the form of fuel savings, environmental benefits, or visible leadership benefits over the life of the vehicle.
dual-fuel vehicle (véhicule à deux carburants)
Is a vehicle with two separate fuel systems that operates on one specific fuel or on both fuels simultaneously (e.g., a dual-fuel diesel/natural gas vehicle burns diesel for ignition and natural gas for the source of power and can also operate entirely on diesel).
fleet management service provider (fournisseur de services de gestion de parcs automobiles)
Is a private-sector supplier of fleet management information services and a companion credit card system.
government vehicle (véhicule gouvernemental)
Includes, for the purposes of this directive, Crown-owned vehicles and vehicles on long-term lease to the Crown used in support of departmental operations and activities.
ground transportation (transport terrestre)
Is all modes of ground transportation including government-owned motor vehicles and alternative transportation modes.
leadership vehicle (véhicule exemplaire)
Is any vehicle that, through the application of advanced technologies and/or alternative fuels, significantly reduces fuel consumption, greenhouse gas emissions and/or regulated emissions. Criteria used to define a Leadership Vehicle are established by the interdepartmental Federal House in Order Transportation Task Group and are updated and approved annually by PWGSC and the interdepartmental Government Motor Vehicle Technical Committee chaired by PWGSC.
light-duty vehicle (véhicule léger)
Means passenger cars, vans and light trucks consistent with Parts II and III of the Government Motor Vehicle Ordering Guide published by PWGSC.
mono-fuel vehicle (véhicule monocarburant)
Is a vehicle with a single fuel system that operates on one fuel only (e.g. a mono-fuel natural gas vehicle operates on natural gas only).
motor vehicle (véhicule automobile)
Is a self-propelled, wheeled or tracked piece of equipment used primarily for transporting passengers or cargo.
operating lease (location-exploitation)
Is a lease for which the lessee (client) acquires the asset (vehicle/equipment) for only a portion of its useful life. The FIS Accounting Manual defines an operating lease as a lease in which the lessor (supplier) does not transfer substantially all the benefits and risks incident to ownership of property. An operating lease is commonly used to acquire a vehicle or equipment on a short-term basis. The ownership of the asset in an operating lease clearly resides with the lessor, with the lessee bearing little or no risk if the asset becomes obsolete. At the end of the lease, the asset reverts back to the lessor, who will either sell it or lease it again to another party. From an accounting perspective, operating lease expenses are generally categorized as operating expenses while vehicle or equipment purchases are categorized as capital asset expenses. Any lease that is not a capital lease is an operating lease.
operation and maintenance expenses (dépenses liées à l'utilisatoin et à l'entretien)
Are all costs associated with the operation and maintenance of government vehicles and equipment. A fleet credit card must be used to pay for these expenses. The Guide to Fleet Management, Chapter 1: Light Duty Vehicles provides guidance on appropriate use the fleet credit card, including details on what constitutes operation and maintenance expenses.
personal use (utilisation à fins personnelles)
Is defined by Canada Revenue Agency (CRA) in Interpretation Bulletin, IT-63R5 Benefits, Including Standby Charge for an Automobile, from the Personal Use of a Motor Vehicle Supplied by an Employer – After 1992.
unauthorized use (utilisation non autorisée)
Is travel in a government vehicle that is not authorized or is not in support of conducting government business. In some departments, personal use of government vehicles may be considered unauthorized, while in other departments personal use may be authorized but remains a taxable benefit for the driver.
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