Governor McCrory’s State Vehicle Fleet Reforms Save North Carolina Millions of Dollars
Revisions put in place by Governor Pat McCrory’s Division of Motor Fleet Management have resulted in a savings of more than $2 million for the state’s latest vehicle order.
The savings were accomplished by reassessing each state agency’s operational needs and the type of vehicles it was assigned. Agencies are now being assigned the least expensive, most fuel efficient vehicles that still meet their needs.
“By taking a closer look at the way we operate, we are finding ways to make state government more efficient and reduce waste,” said Governor McCrory. “These aren’t just one-time savings, but these are efficiencies that will be on-going through the life of these vehicles.”
This revision has resulted in a purchase savings of $1.9 million for the 2016 vehicle order and an estimated fuel cost savings of $464,000 over the life of these vehicles, a total savings of $2.3 million. The Motor Fleet division projects similar savings of approximately $2 million annually over the next few years as it applies the same reforms to the remaining fleet vehicles.
Motor Fleet estimates that the state fleet’s fuel efficiency for the newly purchased vehicles will improve by 1.53 mpg per vehicle on the fleet’s 7,300 passenger cars. This represents a savings of $464,248 over seven years.
“This is a really big win in two ways,” said Governor McCrory. “Not only have we reduced waste by creating more efficiencies, we have accomplished this by improving customer service in our state agencies.”
Motor Fleet began this reform by taking a customer service approach with each agency, meeting to discuss and analyze the agency’s operational needs and comparing them to the type and functionality of the vehicles it was assigned. In some cases, agencies were able to justify their operational needs to keep a larger, more expensive vehicle. More commonly, agencies were excited to embrace the reforms and Motor Fleet was able replace their vehicles with less expensive, more fuel efficient models that still met the agencies’ operational goals.
“Customer service is an essential part of what we do in Motor Fleet and as a Department as a whole,” said Kathryn Johnston, Acting Secretary of the Department of Administration. “We are always vigilant on new ways to serve our customers better and improve efficiencies in our operations.”