Fleet management: vehicle rotation criteria - law enforcement agencies

FBI Law Enforcement Bulletin,The, August, 2002 by Curtis W. Exley

If one common denominator exists that links law enforcement agencies across America, it is the ever-present patrol vehicle. From small-town police departments to large state agencies, the need for economical, high-performance, and comfortable patrol vehicles remains absolute.

While the demand for police vehicles is universal, each agency has its own specific needs. Those needs should focus on agency objectives, financial and operating capabilities, replacement specification, and overall efficiency. With each specific category in mind, the requirement for improved fleet management should become clear.

Transportation equipment costs rank second as the greatest expenditure that a law enforcement agency faces, just below personnel salaries and benefits. Considering cost and frequency of fleet vehicle replacement, law enforcement agencies must consider improved strategies for developing budget estimates and priorities. These estimates should include the bidding process, life-cycle estimates (i.e., vehicle operation and maintenance), purchase and lease options, vehicle rotation or replacement, and fleet liability.'

PROCUREMENT OF LAW ENFORCEMENT VEHICLES

Throughout the United States, law enforcement agencies of all sizes annually purchase a varied number of vehicles to replace outdated or worn-out equipment and, when possible, to increase the size of existing fleets. Procurement is a small word given to a large and extremely detailed process. Once an agency begins the procurement process, it must examine a wide range of considerations, then prioritize and evaluate them. Agencies should weigh specifics on equipment, such as size, dynamics, acceleration, top speed, braking, ergonomics, communications, and fuel economy, according to their relative importance. (2)

However, one of the major areas of concern over procurement speaks directly to budget constraints and the number of vehicles necessarily targeted for replacement. "The posture of the company operationally and financially needs to be explored and the fleet's strategies should compliment the company's strategies short and long term." (3)

A law enforcement agency continually evaluates its budget according to specific needs and potential for growth, coupled with its ability to match increasing costs of equipment and calls for service. External factors, such as politics, hiring standards, and downsizing, ultimately take precedent over equipment prior to the bidding process. Once an agency has established the budget and given a dollar amount to the area of equipment, the bid process can begin.

Bid Process

All agencies, large or small, have mandatory guidelines that they follow. However, new data and specified requirements on vehicle equipment pose additional responsibilities on the individuals or groups responsible for outlining criteria involved with the bidding process. Typically, agencies base selection of option packages on input from other departments and line personnel, word-of-mouth, or what they learn at law enforcement conferences.

After this, agencies review performance tests. Two agencies, the Michigan State Police and the California Highway Patrol, represent trend setters in performance testing. (4) Each year, the two agencies perform a series of predetermined tests that rate police vehicles on their capabilities and performance qualities. These tests ultimately give light to a specific vehicle that has placed highest in all categories and will predominantly depict what most agencies will strive to attain with their bidding process. "Every year since 1978, the Michigan State Police has conducted performance tests on a wide variety of police and special service vehicles. The results of these tests are plugged into a unique competitive bidding formula. One percent of the lowest bid is used as a bid adjustment figure. Better vehicle performance, in six weighted categories from top speed to fuel economy, is rewarded with a dollar and cents advantage." (5)

Once the agency has reviewed all of the data provided by budget analysts and performance standard testing, it can begin the bidding process. "The purchasing process of police cars typically begins with a law enforcement agency drawing up a wish list for what it wants in a vehicle. This list, called a specification, is then submitted to area auto dealers (in some cases, corporate representatives) for bids. The dealers calculate how much the vehicle will cost them, equipped as requested, from the manufacturer and then tack on their overhead costs along with a profit." (6)

For years, the perception has existed that most agencies opted for the lowest bid on their fleet vehicles. Often, the manufacturer or dealer with the sharpest pencil merits the award of the bid. This, in itself, can translate into the ideology of the lowest bid. In actuality, however, it usually is the auto dealer's sales team that steps outside the traditional paradigms of pricing. When that occurs, agencies can get the vehicles they want.