Posts Tagged: Government Fleet

NYC’s Fleet Management Plan to Reduce Fleet Costs by $71 Million

A recent report from New York City Mayor Michael Bloomberg’s Office included recommendations that will save NYC taxpayers an estimated $71 million in fleet management cost over the next four years by streamlining government fleet management, centralizing fleet operations, cutting vehicle fuel use, and decreasing the number of fleet vehicles. It’s part of the Mayor’s overall plan to save taxpayers over $500 million over the next four years by significantly increasing government efficiency.

According to the NYC Mayor’s Office report “the city spends approximately $667 million annually on fleet operations — this includes $283 million on maintenance, $120 million for fuel, $14 million for fuel tank compliance, maintenance, and spill remediation, and approximately $250 million for vehicle and equipment procurement. Maintenance expenditures consist of salary, which includes overtime, differential and fringe benefits; overhead – including building maintenance and rent; and vendor expenditures, including parts and maintenance services. Salary alone represents 70% of the NYC’s expenditures for maintenance.”

Bloomberg’s administration wants to centralize the city’s fleet operations. The report showed high quantity of decentralization across the city’s fleet operations which is not very efficient. The city employs more than 1,500 fleet management people that repair vehicles at 126 shops, each with their own set of equipment, staff, and parts inventory. Based on these numbers alone, it is clear that there is room for improvement in the fleet operations department.

US Government Committed to Reducing Greenhouse Gas Emissions

Did you know that the Federal government produces more greenhouse gas pollution than any other company or organization in the US? The US government is actually the single largest energy consumer in the entire country. The federal government’s annual utility and fuel bill in 2008 was over $24.5 billion. Because the government is responsible for such a huge portion of the country’s greenhouse gas emissions, President Obama recently created an Executive Order on Federal Sustainability called Leadership in Environmental, Energy and Economic Performance. His ambitious new policy, announced in July 2010, will reduce greenhouse gas pollution from non-direct sources such as employee commuting and travel by 13% by year 2020.

These new regulations demonstrate the level of Obama’s commitment to reducing greenhouse gas emissions produced by federal government operations. This all-new commitment further increases the government’s greenhouse gas reduction goals set in January 2010 which are expected to reduce the government’s greenhouse gas emission by 28% by 2020. The goals set in January are supposed to reduce greenhouse gas pollution produced from direct sources such as Federal fleet vehicles and buildings. The government owns 600,000 fleet vehicles and manages nearly 500,000 buildings. Clearly Obama is trying to set a good example for the entire country and is trying to create a green fleet for America.