Government Operations - Fleet Operations - Vehicle Replacement and Expansion of State Fleet (United States)

Government Operations - Fleet Operations - Vehicle Replacement and Expansion of State Fleet

Published: 2022-01-03

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R27. Government Operations, Fleet Operations.

R27-4. Vehicle Replacement and Expansion of State Fleet.

R27-4-1. Authority and Purpose.

(1) This rule is established pursuant to Subsection 63A-9-401(5).

(2) All agencies exempted from the division's replacement program shall provide the division with a complete list of intended state vehicle purchases before placing the order with the vendor.

(3) The division shall work with each agency to coordinate vehicle purchases to ensure all applicable mandates are met.

(4) The division shall assist agencies, including agencies exempted from the division's replacement program, in their efforts to ensure that all vehicles in the possession, control, and ownership of agencies are entered into the fleet information system.

(5) Pursuant to Subsections 63J-1-410(8)(f)(ii),(iii), and (iv), vehicles acquired by agencies, or monies appropriated to agencies for vehicle purchases, may be transferred to the division and, when transferred, become part of the Fleet Internal Service Fund.

R27-4-2. Fleet Standards.

(1) Before purchasing replacement and legislatively approved expansion vehicles for each fiscal year, the division's staff shall, on the basis of input from user agencies, recommend to the division:

(a) an SSFV; and

(b) a standard replacement vehicle and the features and miscellaneous equipment to be included in said vehicle for each vehicle class in the fleet.

(2) The division shall, after reviewing the recommendations made by the agency's staff, determine and establish, for each fiscal year:

(a) an SSFV;

(b) a standard replacement vehicle, along with included features and miscellaneous equipment for each vehicle class in the fleet;

(3) The division shall establish lease rates designed to recover, in addition to overhead and variable costs, the capital cost of each state vehicle.

(4) The division shall establish replacement cycles for state vehicles. The replacement cycles shall be based on vehicle time in service. Factors including a vehicle's intended use, agreements with an agency, and the intended miles per year may be used in determining the appropriate time in service. Vehicles may be replaced subject to negotiations with the agency, regardless of whether the time in service criterion is met.

R27-4-3. Delegation of Division Duties.

(1) With the approval of the executive director of the department, the division may delegate state vehicle procurement and disposal functions to institutions of higher education by contract or other means authorized by law, provided that:

(a) the funding for the procurement of state vehicles that are subject to the agreement comes from funding sources other than state appropriations, or the vehicle is procured through the federal surplus property donation program;

(b) state vehicles acquired with funding from sources other than state appropriations or acquired through the federal surplus property donation program may be transferred to the division and, when transferred, become part of the division's Internal Service Fund; and

(c) if the institution of higher education is unable to comply with (b), the institution warrants that it shall not use state appropriations to procure replacements without legislative approval.

(2) Agreements between the division and the institution of higher education shall, at a minimum, contain:

(a) a precise definition of each delegated duty or function;

(b) a clear description of the standards to be met in performing each delegated duty or function;

(d) a representation by the institution of higher education that the procurement or disposal of state vehicles that are the subject matter of the agreement shall be coordinated with the division. The institution of higher education shall, at the request of the division, provide the division with a list of all conventional fuel and alternative fuel vehicles it anticipates to procure or dispose of in the coming year. Alternative fuel vehicles shall be purchased by the agency or institution of higher education, when necessary, to ensure state compliance with United States Department of Energy Alternative Fuel Vehicle (AFV) mandates;

(e) a representation by the institution of higher education that the purchase price is less than or equal to the state contract price for the make and model being purchased;

(f) a representation that the agreement is subject to Section 63J-1-410, Internal Service Funds - Governance and Review;

(g) a representation by the institution of higher education that it shall enter into the division's fleet information system all information that would be otherwise required for state vehicles owned, leased, operated or in the possession of the institution of higher education;

(h) a representation by the institution of higher education that it shall follow state surplus rules, policies and procedures regarding related parties, conflict of interest, vehicle pricing, retention, sales, and negotiations; and

(i) a date on which the agreement shall terminate if the agreement has not been previously terminated or renewed.

(3) The division may terminate an agreement if the results of administrative audits conducted by either the division or the department reveal that the institution did not comply with the terms of the agreement.

R27-4-4. Vehicle Replacement.

(1) All state vehicles shall, subject to budgetary constraints, be replaced in accordance with the established replacement cycle for that vehicle, unless the division and the leasing agency agree to other terms.

(2) Prior to purchasing replacement vehicles, the division shall provide each agency contact with a list identifying any underutilized vehicles within their fleet, all vehicles that are due for replacement, and the SSFV that will be purchased to take the place of each vehicle that is on the list as due for replacement.

(3) Agencies may request a non-SSFV only if one or more of the following justifications are cited:

(a) passenger space;

(b) type of items carried;

(d) police pursuit capacity;

(e) off-road capacity;

(f) 4x4 capacity;

(g) emergency service capacity;

(h) attached equipment capacity; or

(i) other justifications as approved by the division director or designee.

(4) Agencies may petition the executive director of the department, or the executive director's designee, for a review if the division director or designee denies a request to replace a state vehicle with a non-SSFV.

(5) Agencies may request replacement of vehicles with a history of excessive repairs. A request to replace vehicles with a history of excessive repairs is subject to budgetary constraints and the approval of the division director or their designee.

(6) Agencies may petition the department's executive director, or the executive director's designee, for a review if the division director or their designee denies a request for the replacement of state vehicles with a history of excessive repairs.

(7) If the vendor does not deliver the replacement vehicle to the agency, the agency shall have five working days to pick up the replacement vehicle from the division, after receiving official notification of its availability. If the vehicles involved are not exchanged within the five-day period, a daily storage fee will be assessed and the agency will be charged the monthly lease fee for both vehicles.

(8) The division is responsible for ensuring that the state fleet complies with federal AFV and Environmental Protection Agency (EPA) mandates. The division may require that a certain number of replacement vehicles, regardless of the requesting agency, be alternative fuel vehicles to ensure compliance with these mandates.

R27-4-5. Fleet Expansion.

(1) Any expansion of the state fleet requires legislative approval.

(2) Agencies shall provide proof to the division of the requisite legislative approval and funding for any requests to purchase a vehicle which will expand the state fleet, or for any requests to place "do not replace" vehicles on a replacement cycle. An agency shall be deemed to have the requisite legislative approval for purchasing expansion vehicles or for placing "do not replace" vehicles on a replacement cycle only if these actions are explicitly authorized by the Executive Appropriations Committee

(3) The following constitute acceptable proof of legislative approval of the requested expansion or placement of a "do not replace" vehicle on a replacement cycle:

(a) written communication with the agency confirming authorization and citing the specific line item in the appropriations bill providing said authorization;

(b) written verification from the agency's analyst in the Governor's Office of Planning and Budget or the Legislative Fiscal Analyst indicating that the request for expansion was authorized by the legislature; or

(4) Prior to purchasing an expansion vehicle, the division shall provide each agency contact with the SSFV that will be purchased.

(5) Agencies may request a non-SSFV only if one or more of the following justifications are cited:

(a) passenger space;

(b) type of items carried;

(d) police pursuit capacity;

(e) off-road capacity;

(f) 4x4 capacity;

(g) emergency service capacity;

(h) attached equipment capacity; or

(i) other justifications as approved by the division director or their designee.

(6) Agencies may petition the executive director of the department, or the executive director's designee, for a review in the event that the director of the division or their designee denies a request for the expansion vehicle to be a non-SSFV.

(7) The requesting agency shall provide proof to the division of legislative approval for purchasing an expansion vehicle. When needed, the division shall provide copies of the proof to the Division of Finance to transfer funds from the requesting agency to the division.

(8)(a) If the requesting agency receives legislative approval for placing a "do not replace" vehicle on a replacement cycle, the requesting agency shall;

(i) provide the division with proof of approval and funding; and

(ii) request the Division of Finance transfer funds to the division. The amount of transferred funds shall equal the depreciation the division would have collected for the number of months between the time that the "do no replace" vehicle was put into the service and the time that the requesting agency begins paying the applicable monthly lease rate for the replacement cycle chosen.

(b) In no event shall the division purchase a replacement for the "do not replace" vehicle if the requesting agency fails to provide funds necessary to cover the depreciation costs in Subsection (8)(a)(ii).

(9) Upon purchase, the expansion vehicle shall be added to the state fleet and a replacement cycle shall be established.

(10) The division is responsible for ensuring that the state fleet complies with federal AFV mandates. The division may require that a certain number of expansion vehicles, regardless of the requesting agency, be alternative fuel vehicles to ensure compliance with these mandates.

R27-4-6. Vehicle Feature and Miscellaneous Equipment Upgrade.

(1) Any additional vehicle features or miscellaneous equipment added to SSFVs which increase the overall cost of the vehicle shall be deemed vehicle feature and miscellaneous equipment upgrades. A feature or miscellaneous equipment upgrade occurs when an agency requests:

(a) that a replacement vehicle have a non-standard feature. For example, when an agency requests that an otherwise standard replacement vehicle have a diesel rather than a gasoline engine; and

(b) the installation of additional miscellaneous equipment not installed by the vehicle manufacturer. For example, when an agency requests that light bars or water tanks be installed on an otherwise standard replacement vehicle.

(2) Requests for miscellaneous equipment upgrades shall be made in writing and, shall:

(a) present reasons why the upgrades are necessary to meet the agency's needs; and

(b) be signed by the requesting agency's director or the appropriate budget or accounting officer.

(3) All requests for miscellaneous equipment upgrades shall be subject to review and approval by the division director or their designee. The division director or their designee shall approve any vehicle feature or miscellaneous equipment upgrades upon determining that they are necessary and appropriate for meeting the agency's needs.

(4) Agencies may petition the executive director of the department, or the executive director's designee, for a review if the division director or their designee denies a request for a miscellaneous equipment upgrade.

(5) Miscellaneous equipment upgrades must be approved and paid for by the agency prior to purchasing a state vehicle. A miscellaneous equipment upgrade fee shall be assessed to the agency, which will cover the total cost associated with providing the additional miscellaneous equipment. Upon approval of the division director, the agency may agree to pay the fee in installments, provided the installment agreement does not delay the payment of the general debt.

(6) Agencies that agree to installment payments shall indemnify and make the division whole for any losses incurred from damage to or loss associated with the state vehicle or its miscellaneous equipment.

R27-4-7. Agency Installation of Miscellaneous Equipment.

(1) The division director, with the approval of the executive director of the department, may enter into a Memorandum of Understanding allowing agencies to install miscellaneous equipment on state vehicles if:

(a) the agency has the necessary resources and skills to perform the installations; and

(b) the agency has received approval for installing miscellaneous equipment as required by Subsection R27-4-6(5).

(2) Each Memorandum of Understanding for the installation of miscellaneous equipment shall, at a minimum, contain the following provisions:

(a) monthly lease fees shall be charged to the agency from the date the agency receives the state vehicle;

(b) the agency shall indemnify and hold the division harmless for any claims made by a third party related to the installation of miscellaneous equipment on state vehicles while the vehicle is in the agency's possession and control;

(c) the agency shall indemnify the division for any damage to state vehicles resulting from installation or de-installation of miscellaneous equipment; and

(d) the agency shall enter the following information regarding the miscellaneous equipment into the division's fleet information system, regardless of whether the item is held in inventory, currently installed on a vehicle, or sent to surplus:

(i) item description or nomenclature;

(ii) manufacturer of item;

(iii) item identification information for ordering purposes;

(iv) procurement source;

(v) purchase price of item;

(vi) expected life of item in years;

(vii) warranty period;

(viii) serial number;

(ix) initial installation date;

(x) current location of item;

(xi) anticipated replacement date of item;

(xii) actual replacement date of item;

(xiii) date item was sent to surplus; and

(xiv) SP-1 number;

(e) a provision requiring the agency to obtain insurance from the Division of Risk Management in amounts sufficient to protect the agency from damage to, or loss of, miscellaneous equipment installed on state vehicles.

(f) Agencies shall indemnify the division for any damage to, or loss of, miscellaneous equipment installed on state vehicles;

(g) that the division shall provide training and support services for the fleet information system and charge agencies a Management Information System (MIS) fee to recover these costs; and

(h) a date on which the agreement shall terminate if the agreement has not been previously terminated or renewed.

(3) Agreements permitting agencies to install miscellaneous equipment on state vehicles may be terminated if the agency fails to comply with the terms of the agreement.

R27-4-8. Vehicle Class Differential Upgrade.

(1) Requests for vehicles other than the SSFV established by the division that result in an increase in vehicle cost shall be deemed a vehicle class differential upgrade. A vehicle class differential upgrade occurs when, regardless of additional features or miscellaneous equipment:

(a) the requested replacement vehicle, although within the same vehicle class as the vehicle being replaced, is not the standard replacement vehicle established by the division for that class; or

(b) the agency requests that a vehicle be replaced with a more expensive vehicle belonging to another class. For example, when an agency requests to have a standard 1/2-ton truck replaced with a standard 3/4-ton truck, or to have a compact sedan replaced with a mid-size sedan.

(2) Requests for vehicle class differential upgrades shall be made in writing and shall:

(a) present reasons why the upgrades are necessary to meet the agency's needs; and

(b) be signed by the requesting agency's director or the appropriate budget or accounting officer.

(3) All requests for vehicle class differential upgrades shall be subject to review and approval by the division director or their designee. Vehicle class differential upgrades shall be approved only when:

(a) the division director or their designee deems that the planned replacement vehicle is clearly inadequate or inappropriate for meeting the demands of changing operational needs; and

(b) the division director or their designee deem that the requested vehicle upgrade is necessary and appropriate for meeting safety, environmental, or health or other special needs for drivers or passengers.

R27-4-9. Cost Recovery.

(1) State vehicles shall be assessed rates designed to recover vehicle costs; a division administrative fee; MIS fee; and where applicable, the variable costs associated with each vehicle.

(2) The division shall calculate the lease and associated rates according to the vehicle's cost, the vehicle's expected service period, and the type of lease applicable.

(3) The division shall review agency motor vehicle utilization on an annual basis to identify state vehicles that, on the basis of the applicable replacement cycle, are either being under or over utilized.

(4) The division shall provide the results of the motor vehicle utilization review to each agency for use in agency efforts to ensure full utilization of all state vehicles.

(5) If a vehicle is turned in for replacement earlier than expected under the applicable replacement cycle, a rate containing a shorter replacement cycle period shall be implemented for the replacement vehicle.

(6) If a vehicle is turned in for replacement as scheduled, but did not reach mileage intended under the applicable replacement cycle, the division shall conduct a utilization review of that agency's fleet to ensure the vehicle is needed. The review may result in the vehicle being:

(a) replaced with a new vehicle;

(b) sold; or

(7) The division shall begin the monthly billing process when the agency receives notice in writing that the vehicle is ready for service.

(8) Agencies that have a need to keep an already replaced vehicle are to inform the division in writing of this need. The division shall offer a Memorandum of Understanding to the agency to allow the agency to continue to lease the already replaced vehicle for an agreed upon term, typically up to 18 months. When the term expires, the vehicle must be returned to the division for disposal.

R27-4-10. Executive Vehicle Replacement.

(1) Executive vehicles are available only to employees who are assigned a vehicle as part of their compensation package, in accordance with state statute.

(2) Each fiscal year the division shall establish a standard executive vehicle purchase price.

(3) Executives may elect to replace their assigned vehicle at the beginning of each elected term or appointment period, or as deemed necessary for the personal safety and security of the elected or appointed official.

(4) When the executive leaves office, the vehicle shall be sold in accordance with State Surplus Property Program policies and procedures.

(5) Executives shall have the option of choosing a vehicle other than the standard executive vehicle, with the cost being based on the standard executive vehicle purchase price.

(a) The alternative vehicle selection should not exceed the standard executive vehicle purchase price parameter guidelines.

(b) If the agency chooses an alternative vehicle that exceeds the standard vehicle purchase price guidelines, the agency shall pay the difference in price between the vehicle requested and the standard executive vehicle purchase price.

R27-4-11. Capital Credit or Reservation of Vehicle Allocation for Surrendered Vehicles.

(1) If an agency voluntarily surrenders a vehicle to the division under the capitalization credit program, the agency shall receive a capital credit allowing the agency to retain authorization toward a replacement vehicle.

(2) If an agency voluntarily surrenders a vehicle to the division the division shall:

(a) hold the vehicle allocation open; and

(b) maintain the surrendering agency's capital credit for a period not to exceed the remainder of the fiscal year within which the surrender took place, plus an additional five fiscal years.

(3) The surrendering agency's failure to request the return of the vehicle surrendered prior to the end of the period established in this section shall result in:

(a) removal of the surrendered vehicle or allotment from the state fleet;

(b) loss of the agency's capital credit; and

(4) The division shall not hold vehicle allocations or provide capital credit to an agency when the vehicle that is being surrendered:

(a) has been identified for removal from the state fleet to comply with legislatively mandated reductions in state fleet size;

(b) is identified as a "do not replace" vehicle in the fleet information system;

(d) is a seasonal vehicle that has already been replaced.

(5) Any agency that fails to request the return of a voluntarily surrendered vehicle prior to the end of the period set forth in this section must comply with the requirements of Section R27-4-5, Fleet Expansion, to obtain a vehicle to replace the one surrendered.

R27-4-12. Inter-agency Vehicle Reassignment or Reallocation Guidelines.

(1) The division shall ensure that the state is able to obtain optimal utilization of, and the greatest residual value for all state vehicles.

(2) The division shall, on an annual basis, conduct a review of state fleet motor vehicle utilization to determine whether the vehicles are being utilized in accordance with the mileage requirements contained in the applicable replacement cycles.

(3) The division shall provide the results of the utilization review to each agency for use in agency efforts to ensure optimal utilization of state vehicles in their possession or control.

(4) In conducting the review, the division shall collect the following information on each state fleet vehicle:

(a) year, make and model;

(b) VIN;

(d) as applicable, the authorized driver or program each vehicle is assigned to;

(e) location of the vehicle; and

(f) class code and replacement cycle.

(5) Agencies shall be responsible for verifying the information gathered by the division.

(6) The division shall compare actual vehicle utilization with the mileage requirements contained in the applicable replacement cycle. This comparison shall be used to identify vehicles that may be candidates for reassignment, reallocation, reclassification, or elimination.

(7) The division may reassign, reallocate, or eliminate the replacement of vehicles that are chronically out of compliance with the applicable utilization standards when:

(a) intra-agency reassignment or reallocation of vehicles fails to bring vehicles into compliance with applicable replacement cycle mileage schedules within a replacement cycle; or

(b) a cost-benefit analysis on the time the vehicle is used does not warrant the vehicle to remain within the agency.

(8) If the division requires an agency to relinquish a vehicle due to a reassignment or reallocation, the agency may petition the executive director of the GOPB, or the executive director's designee, for a review. Vehicles that are the subject matter of petitions for review shall remain with the agency until such time as the executive director of the GOPB or the executive director's designee renders a decision on the matter.

KEY: fleet expansion, vehicle replacement

Date of Last Change: January 3, 2022

Notice of Continuation: October 22, 2021

Authorizing, and Implemented or Interpreted Law: 63A-9-401(1)(a); 63A-9-401(1)(d)(v); 63A-9-401(1)(d)(ix); 63A-9-401(1)(d)(x); 63A-9-401(1)(d)(xi); 63A-9-401(1)(d)(xii); 63A-9-401(4)(ii)