To identify the management practices that managers of public and private fleets considered essential to cost-efficient fleet management, we conducted interviews at two levels. However, the PCMI’s Task Force on Federal Motor Vehicle Fleet Management found that federal agencies faced obstacles to managing a cost-efficient fleet and complying with COBRA requirements. Unpredictable funding and restrictive agency solicitations limited agencies’ ability to select a more cost-efficient alternative for managing and replacing their fleets. As recommended by the task force, in 1993 OMB issued uniform guidance—(1) minimum quality standards, (2) a cost-comparison handbook, and (3) a cost accounting guide—for conducting cost-comparison studies. These practices were conducting utilization assessments to determine the right size of the fleet and to establish a baseline for fleet operations; having information and supporting management information systems to enable managers to make sound decisions and assess performance; comparing, or benchmarking, the cost and performance of a fleet with those of the best fleets; funding the fleet through a revolving fund; and centralizing fleet management responsibilities to (1) establish written policies, procedures, and other guidance; and (2) identify opportunities for improving fleet cost-efficiency. Since COBRA was enacted, most federal agencies have continued to operate their fleets without considering other alternatives.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the federal government's management of its motor vehicle fleet, focusing on: (1) obstacles to achieving cost-efficient fleet management; and (2) public and private fleet management practices that might be applicable to the federal fleet.

What GAO Found

GAO found that: (1) obstacles to cost-efficient federal fleet management include the lack of uniform guidance for conducting valid cost-comparison studies, insufficient vehicle information, unpredictable funding, and restrictive agency solicitations that limit private-sector competition; (2) in 1993, the Office of Management and Budget (OMB) issued uniform guidance for conducting valid cost-comparison studies in response to a task force recommendation; (3) most federal agencies continue to operate their fleets without complying with statutory requirements for cost-efficiency; (4) improving fleet management requires a cost-conscious culture; and (5) essential management practices for cost-effective fleet operation include assessing vehicle utilization to determine the appropriate size of the fleet, establishing a fleet operation baseline, having needed information and supporting management information systems to assess performance, comparing costs and performance with the best fleets, funding the fleet through a revolving fund, and centralizing fleet management responsibilities.