Item C01
BOARD OF COUNTY COMl\HSSIONERS
AGENDAITEMSU~RY
MEETING DATE:
September 19,2001
DMSION:
Public Works
BULK ITEM: Yes x No
DEPARTMENT:
Fleet Management
AGENDA ITEM WORDING: Approval of a Professional Consulting Services Agreement with DMG-
MAXIMUS, INC., under State of Florida Contract 973-001-00-1, to conduct a comprehensive review of
and provide a report on Fleet Management's operation and practices.
ITEM BACKGROUND: DMG-MAXIMUS, INe. will review the efficiency and cost competitiveness
of Fleet Management to determine the soundness of the Department's business and management
practices, and whether opportunities exist to improve the quality and/or lower the cost of services. Once
all information-is gathered, DMG-MAXIMUS, INC. expects to deliver a draft report to the County in
approximately W-12 weeks.
PREVIOUS RELEVANT BOCC ACTION:
Management.
Several preVIOUS discussions for a study of Fleet
CONTRACT/AGREEMENT CHANGES: n/a
.
STAFF RECOMMENDATION:
Approval as stated above.
TOTAL COST: $39,601
BUDGETED: Yes: x* No:
*Funds will be transferred from Fleet Reserves
into Fleet's operating budget for FY02
COST TO COUNTY: same
.
REVENUE GENERATED: Yes
No x
APPROVED BY: County Atty.: x
OMB/Purchasing: x Risk Management: x
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DIVISION DIRECTOR APPROVAL:
Dent Pierce
DOCUMENTATION: INCLUDED: -X- TO FOLLOW:
NOT REQUIRED:
DISPosmON:
AGENDA ITEM #:
I ..--. c: f
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: DMG-MAXIMUS. INC.
Contract #
Effective Oats:
Expiration Date:
Contract Pu
on Fleet Ma
Contract Manager:
Beth lato
(Name)
4560
(Exl)
Public Works - #1
(Department/Stop #)
for BOCC meeti
A enda Deadline: Se mber 5, 2001
CONTRACT COSTS
Total Dolrar Value of Contract: $39.601
Budgeted? Ye~. No 0
Grant $
County Match: $
Current Year Portion: -0-
Account Codes: 504-23501-530340
4Funds will be transferrud from Fleet reseIVes
into Fleet's operating budget for FY02
ADDIT10NAL COSTS
Estimated Ongoing Costs: $ nla Iyr. For:
(Not included in dollarvaluo ab0v8) (e.a.. maintenance utilities ianitorial salanes. etc.)
CONTRACT REVIEW
.~'
Changes - Date
o te n Needea I
Division Director W J YesO No[id'" ~ P'
RiskMan~ment W YeSONoE! (A,W~cJ'-I'o... "1
O.M.B.lPurchasing ~ YedNoO -
County Attomey i/nIH YesD N
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o OMS FOlm Revised 2127101 MCP 12
PROFESSIONAL CONSULTING SERVICES AGREEMENT
This Agreement made this _ day of , 2001, by and between the
MONROE COUNTY, a political subdivision of the State of Florida, hereinafter referred to as
Client, and DMG-MAXIMUS, INC., an Illinois corporation authorized to do business in the
State of Florida, hereinafter referred to as Consultant.
In consideration of the mutual promises contained herein, the parties agree as follows.
1. SCOPE OF SERVICES: Consultant shall be responsible to perform the services set
forth in its proposal dated July 30, 2001, which is attached hereto as Exhibit A and incorporated
herein by reference.
2. TERM: Consultant shall commence services on , 2001 and complete
services by , 2001 unless conditions arise outside of Consultant's control
which impede completion by that date. Consultant agrees to perform its services in a
professional, expeditious manner.
3. COMPENSATION:
Client agrees to pay Consultant a fee not to exceed $39,601. This amount includes $33,560 for
professional services, and $6,041 for out-of-pockets expenses for travel, per diem, printing and
postage; travel expenses are only reimbursable as provided in Sec. 112.061, Florida Statutes.
Upon request, Consultant shall provide documentation of its expenses. Consultant shall invoice
the Client as follows:
. 70% of professional services, plus any out-of-pockets expenses, upon satisfactory
presentation of draft report to Client;
. 30% of :aprofessional services, .plus any out-of-pockets expenses, upon satisfactory
presentation of final report to Client.
Consultant's invoice shall provide detail sufficient to -the Client's requirements. The Client shall
pay the invoice within thirty (30) days of Client's receipt ofthe invoice.
4. TERMINATION: The Client may terminate this Agreement with or without cause upon
giving thirty (30) days written notice to Consultant. In the event the Client terminates this
Agreement, <;onsultant shall be entitled to be paid for professional services and expenses
incurred through the date of receipt of notice of termination. Consultant may terminate this
Agreement with or without cause upon giving thirty (30) days written notice to the Client. In the
event Consultant terminates this Agreement, Consultant shall be entitled to receive compensation
and expenses. accrued to the date of receipt of notice of termination.
5. PERSONNEL: Consultant represents that it has, or will secure at its own expense, all
personnel necessary to perform the services required under this Agreement. All of the services
required hereunder shall be performed by Consultant or under its supervision, and all personnel
engaged in performing the services shall be qualified to do so. All services to be performed
hereunder shall be in accordance with professional standards in the field.
6. SUBCONTRACTING: Consultant may subcontract for services hereunder upon
receiving the consent, in writing, of the Client. Consultant agrees to notify the Client in writing
of any such subcontracts and the services to be petformed in accordance with the subcontracting
arrangement.
7. INSURANCE: Consultant shall provide certificates of insurance, as identified in the
attached insurance schedules marked GLl, PROl, VLl and WCl, prior to commencement of the
engagement. The certificates shall clearly indicate that the Consultant has obtained the required
insurance coverage including identification of the type and amount of coverage. In the absence
of written notification to Consultant, the certificate of insurance as presented shall constitute
compliance with any and all insurance requirements.
8. INDEMNIFICATION: Each party shall be responsible for its own acts and will be
responsible for all damages, costs, fees and expenses which arise out of the petformance of this
Agreement and which are due to that party's own negligence, tortious acts and other unlawful
conduct and other unlawful conduct and the negligence, tortious acts and other unlawful conduct
of its respective agents, officers and employees. Client will indemnify Consultant for negligent
acts of Monroe County employees to the extent allowed by Sec. 768.28, Florida Statutes.
9. ASSICNMENT: The parties hereby agree that Consultant may assign, conveyor
transfer its interest, rights and duties in this Agreement to an affiliated company or its parent
company which succeeds to substantially all of the business of the Consultant.
10. TIME OF PERFORMANCE: Consultant shall petform the services required hereunder
in a timely, professional manner. The Consultant shall not be considered in default by reason of
any failure in performance which arises from causes outside the control of Consultant or its
subcontractors.
.'
11. OWNERSHIP OF DOCUMENTS: Consultant shall deliver to the Client all
deliverables required to be submitted consistent wi,th the Scope of Services hereunder. All
working papers shall remain the property of Consultant. Consultant shall maintain its working
papers for a period of 3 years from the date of execution of this Agreement.
12. INFORMATION. Consultant shall assume without incurring any liability therefore that
all information and data provided by the Client is accurate, timely, and complete.
.
13. SEVERABILITY: If any term or provision of this Agreement shall be held invalid or
unenforceable, they are, to that extent deemed omitted. The rest of this Agreement shall remain
in full force and effect.
14. WAIVER OF BREACH: The waiver of either Consultant or Client of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any subsequent
breach by either Consultant or Client.
15. AMENDMENTS: No amendment or variation of the terms and conditions of this
Agreement shall be valid unless the same is in writing and signed by all of the parties hereto.
2
16. THIRD PARTIES: The Client and the Consultant are the only parties to this
Agreement and are the only parties entitled to enforce its terms. Nothing in this Agreement
gives, is intended to give, or shall be construed to give or provide, any right or benefit, whether
directly or indirectly or otherwise, to third persons.
17. INTERPRETATION: The validity, interpretation and effect of this Agreement shall be
determined under Florida law. All actions arising directly or indirectly as a result or in
consequence of this Agreement shall be instituted and litigated only in courts having situs in the
State of Florida. If other agreements, the terms of which are the same or substantially the same
as this Agreement, have been executed by Consultant, interpretation of this and such other, same
or similar agreements shall be applied uniformly. Any provision found to be invalid or
unenforceable shall have no effect upon the validity of any other section of this contract.
18. ENTIRE AGREEMENT: This is the entire agreement of the parties and supercedes all
prior written and oral communications between them with respect to the subject matter hereof
Any change, alteration or modification of this agreement must be in writing and signed by the
parties and cannot be changed or modified orally.
19. NOTICES: All written notices, demands or requests of any kind which either party
may be required or may desire to serve on the other in connection with this Agreement may be
served (as an alternative to personal service) by registered or certified mail or air freight services
that provide proof of delivery. Any such notice or demand so served by registered or certified
mail shall be deposited in the United States mail with postage and fees thereon fully prepaid, and
addressed to the parties so to be served as follows:
If to Consultant:
."
DMG-MAXIMUS, INC., Ltd.
630 Dundee Road, Suite 200
Northbrook, Dlinois 60062
If to Client:
MONROE COUNTY
Director of Public Works
5100 College Road
Key West, FL 33040
.
Service of any such notice or demand so made by mail shall be deemed complete on the day of
actual delivery as shown by the addressee's registry or certification receipt. Either party hereto
may from time to time, by notice in writing served upon the other as aforesaid, designate a
different maiJing address, or (a) different or additional person(s) to which or to whom all such
notices or demands are thereafter to be addressed. Persons named to receive copies of notices
are listed for accommodation only and are not required to be served to comply with service of
notice on a party (are required to be served to comply with service of notice).
20. VENUE. Venue for any litigation arising under this agreement must be in a court of
competent jurisdiction in Monroe County, Florida. This agreement is governed by the laws of
the State of Florida.
3
21. ETHICS CLAUSE. Consultant warrants that it has not employed, retained or otherwise
had act on its behalf any former County officer or employee subject to the prohibition of Section
2 of Ordinance No. 010-1990 or any County officer or employee in violation of Section 3 of
Ordinance No. 020~ 1990. For breach or violation of this provision, the County, may, in its
, discretion, tenninate this contract without liability and may also, in its discretion, deduct from
the contract or purchase price, or otherwise recover the full amount of any fee, commission,
percentage, gift, or consideration paid to the former County officer or employee.
22. PUBLIC ENTITIES CRIME STATEMENT. A person or affiliate who has been placed
on the convicted vendor list following a conviction for public entity crime may not submit a bid
on a contract to provide any goods or services to a public entity, may not submit a bid on a
contract with a public entity for the construction or repair of a public building or public work,
may not submit bids on leases of real property to public entity, may not be awarded or perform
work as a contractor, supplier, subcontractor, or consultant under a contract with any public
entity, and may not transact business with any public entity in excess of the threshold amount
provided in Section 287.017, Florida Statutes, for Category Two, for a period of thirty-six (36)
months from the date of being placed on the convicted vendor list.
23. FUNDING A V AILABILITY. Monroe COWlty's performance and obligation to pay under
this contract, is contingent upon an annual appropriation by the Board of County Commissioners.
IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT all as of
the day and year frrst above written.
DMG-MAXIMUS, INC.
By:
Title:
~
Date:
(SEAL)
Attest: Danny 1. Kolhage, Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
By:
Deputy Clerk
Mayor/Chairman
4
MAXIMUS
HELPING GOVERNMENT SERVE THE PEOPLE-
July 30, 2001
Mr. James L. Roberts
County Administrator
Monroe County
Public Service Building II
5100 College Road
Key West, Florida 33040
Dear Mr. Roberts:
Pursuant to our recent discussion, the Fleet Management Services Group of MAXIMUS,
INC. is pleased to submit this proposal to conduct a review of Monroe County's fleet
operation and fleet management practices. Although you may be familiar with the work
of our firm in such areas as cost plan and user fee development, you may not know that
we also ar~ the largest fleet management consulting firm in North America. The
members of the MAXIMUS Fleet Group - which was established in 1992 as a separate
business unit of David M. Griffith & Associates (acquired by MAXIMUS in 1998) - have
reviewed more state and local government fleet operations than has any other
consulting firm. In fact, our current clients in the state of Florida alone include the
counties of Seminole, Volusia, Hillsborough, Pinellas, and Sarasota, and the City of
Bradenton. We also are in the process of negotiating a contract to perform a fleet
management review similar to the one described in this proposal for the City of Orlando.
We are confident that this experience will enable us to perform a highly successful
project for Monroe County.
Our proposal includes the following sections:
. Scope of Services;
· Qualific~tions and Experience;
· Project Staffing;
· Timeline and Budget; and
. Contracting Procedures.
Thank you very much for giving us the opportunity to submit this proposal. We are
excited about the prospect of working with Monroe County and look forward to hearing
from you.
Very truly yours,
p~~~
Paul T. Lauria
Vice President
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSUL TING SERVICES
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PROJECT APPROACH
It is our understanding that Monroe County is seeking an experienced fleet
management consulting firm to conduct a review of the efficiency and cost
" competitiveness of its fleet management organization, the Department of Central
Services of the Public Works Division. The objective of this project is to review
the soundness of the Department's business processes and management
practices in absolute terms and relative to industry best practices (where
applicable) and to determine whether opportunities exist to improve the quality
and/or lower the cost of its services.
In order to meet this objective, we will briefly but thoroughly review all facets of
the management and operation of the Department of Central Services. Our
proposed work plan is designed to quickly home in on areas in which
improvement opportunities exist, and to avoid devoting unnecessary effort or
expense to areas of endeavor in which Central Services' performance is
fundamentally sound. We will conduct the review in a way that saves both time
and money while ensuring that trouble spots or cost savings opportunities are
identified and prioritized for further investigation and/or remediation.
. .
As with" all our consulting engagements, we will employ a highly interactive
approach in conducting this review. We will consult regularly with the County
Administrator (or his designated representative), with other appropriate County
officials, and with the Central Services director and his staff on information
gathering efforts, evaluation methods, preliminary findings and conclusions, and
potential recommendations. Our overarching goal will be to assist the County in
identifying ways to optimize the cost effectiveness of its fleet management
endeavors, not to cut costs at the expense of customer service or safety or to
assign "fllame for any deficiel)cies in performance that we uncover. Candid
feedback, prompt identification of opportunities for improvement, and
recommendations that are reasonable and ~Iimplementablen will be the hallmarks
of our approach.
PROJECT WORK PLAN
Task 1: Project Kickoff and Information Gathering
.'
We will begin by providing the County with a written information request that
describes the types and format of data and documentary material on the
County's fleet operation that we would like to obtain to conduct the review. The
requesfed data will include a fleet inventory containing information on each
vehicle and piece of equipment such as year, make, model, classification, vehicle
10 number, agency name, in-service date, original purchase price, replacement
cost, Iife-to-date maintenance and repair cost, current meter reading, utilization
during a recent 12-month period, and maintenance and repair costs during a
recent 12-month period (broken out by labor, parts, and subcontractor charges).
MAXIMUS
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSUL TING SERVICES
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Other data requested will include such items as hours charged to work orders by
each mechanic, the dollar value of parts in inventory, and the total number of
vehicle accidents and accident repair costs.
Additionally, we will want to review available documentary material such as
business plans and mission statements, formal policy and procedure statements,
organization charts, and position descriptions; a history of previous years'
spending for fleet replacement; and operating and capital budgets that identify all
fleet-related costs. We will work with the Central Services Department to devise
ways to develop or to proceed without particular types of data that may not be
available.
We will conduct an initial site visit to meet with the Administr.ator, key Central
Services personnel, and other appropriate officials to review the objectives and
scope of the project, and to work with staff to identify sources of data and answer
any questions relating to our information request. We will also interview key
Central Services personnel and customer organization representatives and begin
familiar~zing ourselves with the fleet operation.
,
After this. visit and initial round of interviews and discussions, we will finalize the set of
performance measures to be used for gauging current levels of performance. The
specific measures of performance we will use will depend on the quantity and quality
of the data available from the Department of Central Services.
Task 2: Quantitative Performance Evaluation
In this task we will calculate and interpret (subject to the availability of the
necess~ry data) quantitative l}1easures of fleet performance. We will compare
the Ce~tral Services Department's performance against established industry
standards in key functional areas. Examples of the types of performance
measures we will compare may include, but are not limited, to the following:
. Salvage value as a percentage of original purchase price;
. Disposal costs as a percentage of salvage proceeds;
.
. Average annual vehicle utilization;
. Ratio of maintenance employees to vehicle equivalents;
. Average vehicle age;
. Rate of vehicle availability;
. Total maintenance and repair cost per vehicle equivalent;
. Preventive maintenance compliance rate;
. Fleet availability percentage;
. Sup.ervisor to mechanic ratio;
MAXIMUS
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSUL TING SERVICES
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. Mechanic productivity;
. Parts inventory turnover rate; and
. Parts usage per vehicle equivalent.
We will use performance statistics such as these to understand where there are
areas of particular strength or weakness and significant cost savings opportunities.
This will help focus our investigation in the next task so as to quickly identify
opportunities for improvement.
Task 3: Review of Functional Areas of Fleet Management
In this task our project team will examine and evaluate the efficiency and
effectiveness of each major functional area of fleet management using a variety
of methods including 1) review of documentary material on fleet management
and operations, 2) conduct of additional interviews of fleet management officials
and personnel, representatives of fleet customer departments, and other
appropriate officials, 3) site visits to maintenance and fueling facilities, and 4)
observation of shop operations. Following is a description of the functional areas
we will 'review in this task.
. .
Organizational Structure and Staffing. We will examine the current
organizational structure of the Department of Central Services, focusing on the
appropriateness of functional responsibilities; staffing levels; job descriptions;
supervisory span of control; and coordination of efforts across organizational
lines.
Vehicle Acquisition and Disposal. We will examine the specification
develo~rnent and vehicle acq~i.sition and disposal processes including:
. How use.r department requirements are determined;
. The development of bid specifications, including the use of functional versus
technical specifications, and the inclusion of enhancements such as operator
and mechanic training in the specifications;
. The potential for bundling purchases to capture economies of scale;
..
. Vehicle acceptance procedures;
. Vehicle upfitting procedures and costs;
. Veh~cle decommissioning and deaccessioning procedures; and
. Vehicle disposal procedures.
Vehicle Operation. We will examine the definition and enforcement of driver
responsibilities in areas such as pre-trip inspections and defect reporting; driver
certification and training programs; and accident management procedures.
MAXIMUS
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSULTING SERVICES
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Vehicle Assignment and Usage. In this area, we will review how vehicles are
assigned to departments and the monitoring of vehicle utilization. We will
examine:
· How new vehicles (additions to the fleet) are justified;
. The use of pool vehicles versus permanently assigned vehicles;
. The reporting and monitoring of utilization information.
We will also assess the use of economic incentives (e.g., through a cost charge-
back process) to encourage fleet users to maximize the utilization of assigned
vehicles.
Vehicle Replacement. In this area we will examine the processes used to
determine when fleet assets should be replaced, and to assure that all assets are
replaced in a timely manner, including:
. Replacement policies or guidelines for the various types of units in the fleet;
· Actual replacement practices based on funding levels over the last several
years;
. Long term replacement planning efforts;
. Short-term replacement decision-making procedures; and
. Procedures for handling replacement contingencies such as wrecked and
stolen vehicles.
Fleet Maintenance. In this area, we will investigate all aspects of the
management and control of fleet maintenance and repair activities and day-to-
day shop operations. The speCific practices we will review in this area include:
. Preventive maintenance programs;
. Pre-trip inspection procedures;
. Defect reporting and service writing;
. Wan:anty purchasing and claims management;
. Work scheduling, assignment, and control;
. Road calls and field service;
. Mechanic supervision;
. Quality assurance;
· Use and control of vendor-performed services, including outsourcing versus
in-house provision of services;
. Customer communication and feedback mechanisms;
MAXIMUS
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSUL T1NG SERVICES
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· Maintenance personnel management (e.g., supervision, training, certification,
etc.);
· Staffing levels; and
· Maintenance facilities and support equipment.
Parts Procurement and Supply. In this area we will examine all aspects of the
maintenance parts provisioning process, including:
· Establishment, use, and renewal of parts contracts and blanket purchase
agreements;
· The adequacy of the inventory mix and size (dollars and line items);
· The balance between parts retrieved from stock as opposed to those
purchased as needed;
· The adequacy of inventory control procedures;
. Expenditure authorization, bid solicitation, and purchase order issuance for
as-needed purchases;
II
· Parts running and delivery, receiving and confirmation;
. Parts picking and disbursement (Le., counter service);
. The number and frequency of stock-out situations; and
. The range of obsolete parts existing in the parts inventory.
Fleet Funding and Financial Management. In this area, we will review the
followin"'g aspects of the funding and financial management of the fleet (as
appropriate): .'
.'
. Budgeting and cost control;
. Charge-back rate base content and rate structure;
. Rate development and updating;
.'
· Billing, collections, and cash management; and
· Fund management and balances.
Management Information Systems. Finally, we will examine the adequacy of
the fleet management system(s) used by Central Services, and of the data
capture, input, verification, processing, analysis, and reporting methods in each
of the functional areas in which such processes are applicable, including fleet
asset management (e.g., equipment master file, utilization monitoring, and
MAXIMUS
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSUL TING SERVICES
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vehicle replacement analysis); maintenance management, parts management,
and financial management.
" Task 4: Document Findings and Recommendations
We will present our findings and recommendations in a formal project report.
The report will contain a discussion of each major finding and the nature of any
associated improvement recommendations. We will submit the report in draft
form for review and comment and make revisions as necessary. We will provide
any reasonable number of bound copies of the final document to the County.
Task 5: Make Formal Presentation of Study Results (optional)
Due to the complexity of the issues facing a fleet management organization, our
clients often ask us to formally present our study results to elected officials or
department and division directors. We welcome the opportunity to do so and
have found such presentations to be an effective means of getting key decision
makers'to embrace our recommendations.
.
In our experience, however, preparing and delivering formal presentations
requires enough extra effort that it is unfair to both MAXIMUS and Monroe
County to include the costs of this service in our proposal unless we agree at the
outset that such a presentation is required. Consequently, we offer this service
as an optional deliverable, the price for which we will provide at the County's
request.
QUALlP:ICATIONS AND EXPERIENCE
t'
About MAXIMUS, INC.
MAXIMUS, INC. is a 25 year-old, publicly traded (NYSE: MMS) management
consulting and program management firm. Headquartered in Reston, Virginia,
the firm employs over 4,000 individuals in more than 140 offices in the United
States. The company recently announced that all of its constituent companies,
includin~ DMG-MAXIMUS, will be fully integrated into, and assume the name, of
the parent company this year. DMG-MAXIMUS has operated as a wholly owned
subsidiary since it was acquired by MAXIMUS in May 1998.
Fleet Management Consulting Services
MAXIMUS is the leading provider in North America of consulting services to in-
house fleet management organizations. The organizations with which we have
worked operate extremely diverse fleets comprised of on- and off-road
construction and maintenance equipment; police, fire, and medical emergency
response vehicles; transit buses; school buses; heavy-duty trucks; and all
manner of passenger vehicles and light-duty trucks. Individual fleet management
MAXIMUS
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSULTING SERVICES
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organizations we have worked with maintain as many as 500 different types of,
and as many as 15,000 individual, vehicles and pieces of equipment. Client
organizations we have served include as many as a dozen separate fleet
management organizations with oversight of combined fleets comprised of as
" many as 26,000 units.
Unlike other consulting firms that advise clients on fleet management matters,
the MAXIMUS Fleet Management Services Group has a unique mix of
professionals that combine well over 100 years of hands-on professional
transportation and fleet management experience with degrees in a number of
management science disciplines, including transportation planning, logistics,
management, public administration, engineering, and finance. Prior to
commencing their consulting careers, members of the Group have served as
managers or analysts in public transportation, pupil transportation, fleet
management, public works, and internal audit organizations in the US armed
forces, local government (e.g., Los Angeles County, Kansas City, KS), and the
utility (Public Service of Colorado, Pacific Gas & Electric), vehicle manufacturing
(Asplundh), and telecommunications (Verizon) industries.
Our fle'~t management consulting work falls into a number major service
categories, including:
. Fleet management program evaluation. A hallmark of our program
evaluation consulting services is the use of a strategic approach to improving
fleet management organization performance. This approach is grounded in
the belief that there are many interdependencies among specific and
seemingly unrelated fleet management activities that must be addressed in
orde~ to optimize fleet efficiency and effectiveness. For example, vehicle
relia'Oility cannot be achie~ed by focusing on vehicle maintenance practices
while ignoring vehicle replacement processes. Consequently, we evaluate
and identify opportunities to improve the entire spectrum of vehicle
management processes, including those associated with:
- Vehicle specification and acquisition;
- Vehicle assignment, utilization, and operation;
- Vehicle maintenance;
- Parts procurement and supply;
- ~~hicle fueling; and
- Vehicle disposal and replacement
We also evaluate the business management processes used to run fleet
management organizations, including:
- Organization structure and staffing levels;
MAXIMUS
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSUL TING SERVICES
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- Human resources management;
- Financial management;
- Asset management;
- Risk management;
- Customer relationship management; and
- Information management.
In evaluating fleet management program performance in each of these areas,
we use a number of structured methodologies and analytical tools that fall
roughly into three categories: process mapping and gap analysis; quantitative
performance measurement and benchmarking; and quantitative conditions
(e.g., fleet age, utilization levels, costs, etc.) measurement and analysis.
· Strategic planning and business process reengineering. Evaluating fleet
management business processes is not the same thing as improving them.
Achieving real improvement requires using program evaluation findings as the
fouru:iation for a strategic improvement plan and for the reengineering of
deficlent business processes. In recognition of this need, MAXIMUS has
developed Rroprietary business planning software - a program called
FleetSMARTM - to assist our clients in making the transition from evaluation
to corrective action. This program allows an organization to develop and
track progress toward the implementation of specific process reengineering
and implementation activities.
The Fleet Management Services Group also works with organizations to
ree~~ineer specific business processes, principally through the development
and. Implementation of new organizational structures, position descriptions,
policy and procedure statements, and information technology-based
analytical tools. Many organizations know where their fleet management
business processes are deficient but simply do not have the experience, time,
or personnel resources in-house to overhaul outmoded and inefficient
practices. MAXIMUS's services fill this void, ensuring that expensive
consulting reports do not simply sit on a shelf gathering dust, but actually
resuU in a healthy return on investment.
· Determination of optimal vehicle replacement cycles. Members of the
Fleet Group first developed a computer program for analyzing alternative
vehi~le replacement cycles almost 15 years ago. Using equivalent annual
cost analysis, we can identify optimal replacement cycles - from the
standpoint of minimizing the life cycle cost of the asset - for mission-critical
vehicle and equipment classes. Empirical determination or validation of
replacement guidelines is useful for evaluating and making decisions
regarding trade-offs between vehicle capital and operating costs. Its real
value, however, stems from its ability to secure managerial and customer
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSUL TING SERVICES
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(i.e., fleet user) support for changes in vehicle replacement practices and
associated expenditures.
· Development of fleet replacement plans and financing strategies. The
biggest impediment to replacing vehicles in a timely manner usually is not a
lack of knowledge as to when and how often assets should be replaced, but a
lack of sufficient financial resources to replace all of the vehicles that
managers, operators, and mechanics alike know should be replaced.
Funding shortfalls usually result from a lack of appreciation of the magnitude
and year-to-year volatility of replacement spending needs in virtually all fleets,
and the consequent lack of a replacement planning and financing program
that can anticipate and accommodate these costs.
MAXIMUS's fleet replacement planning services help organizations project
long-term replacement costs and develop programs for financing these costs
that will make replacement funding requirements smooth and ~redictable.
We use our proprietary replacement planning program FleetARM M to project
future replacement dates and costs for every single asset in the fleet over a
10 to 20-year planning period. We can analyze the impact on near and long-
term)eplacement costs of a wide array of variables ranging from fleet size
and .composition to vehicle purchase and upfitting costs, inflation rates, and
salvage values. We also use FleetARM™ to identify year-by-year budgeting
requirements associated with alternative financing approaches such as lease-
purchase agreements, a sinking fund, or cash financing.
Information gleaned from the development of a fleet replacement plan also
can be used to estimate the impact of changes in vehicle replacement cycles
on fleet availability and reliability, fleet maintenance and repair costs and, by
extar1sion, mechanic staffing requirements.
· Fleet cost of service analysis and cht!-rge-back system design. Many in-
house fleet management organizations charge the costs of the vehicle
replacement, management, maintenance, and fueling services they provide
back to the organizations that use them. Properly designed charge-back
rates are crucial not only for ensuring the solvency of fleet organizations that
are financed entirely through user charges, but for promoting the cost-
effeGtive provision and consumption of fleet management and maintenance
services. A good charge-back system illustrates the linkages between the
behavior of fleet users, the performance of fleet services providers, and the
costs of owning and operating a fleet.
MAXIMUS is the industry leader in the development of cost charge-back rates
and billing systems for fleet management organizations. We have developed
such systems for fleet organizations with annual operating budgets of as
much as $85 million, and with location-specific billing rates for organizations
with as many as two dozen maintenance facilities. We can develop fully
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSUL TlNG SERVICES
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loaded usage-based; service-based, or hybrid rate structures that strike the
right balance between cost recognition and ease of administration.
Our rate development work has given the Fleet Group extensive experience
in the identification and analysis of the direct and indirect, and avoidable and
unavoidable costs of providing fleet maintenance and other services. We can
use this information to assess many facets of a fleet management
organization's performance, including the appropriateness of mechanic
staffing levels, the reasonableness of mechanic productivity and efficiency
rates, the magnitude of maintenance overhead costs, and the soundness of
such practices as rebuilding engines and transmissions in-house as opposed
to outsourcing this type of work to vendors.
· Implementation and integration of fleet management information
systems. MAXIMUS has extensive experience in defining requirements and
developing specifications for, and implementing and integrating automated
fleet management information systems. For example, we recently completed
a project in which we provided quality assurance and project management
assistance to the Department of Citywide Administrative Services pursuant to
the i'r.nplementation of a new fleet system in 11 departments in the City of
New'York that manage a fleet of 26,000 vehicles and pieces of equipment.
The Fleet Group performs gap/fit analyses of commercial off-the-shelf
(COTS) fleet management and ERP software for fleet management
organizations; provides project management services for the implementation
of COTS systems; and develops and integrates Intranet-based tools such as
document imaging systems, electronic repair manuals, and on-line parts
catalogs for fleet maintenance organizations. The combination of
prof~ssional fleet management experience, business process knowledge, and
. information technology expertise in the Division is unmatched among fleet
management consulting firms. This enables us to assist our clients in
maximizing the deployment, use, and benefits of automated systems by
reducing their focus on data processing and directing their energies toward
the use of information so as to achieve more knowledgeable and effective
management decision making.
· Development of maintenance facility master plans. A safe, efficient
maintenance facility design calls for a clear delineation of a maintenance
operation's functional requirements; requirements that typically are
understood by fleet management professionals, but not by the architectural
and "engineering firms that usually develop such designs. MAX/MUS works
extensively with fleet maintenance organizations before they build new
facilities to define their operational requirements and to create master plans
that not only accommodate these needs but take advantage of the latest
developments in maintenance shop technology and maintenance process
safety and efficiency.
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSUL TING SERVICES
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Our facility programming services include the complete and detailed
assessment of space needs associated with maintenance organization
structure and staffing levels; fleet size and composition; in-house versus
outsourced service delivery practices; fleet maintenance and parts
management operating processes; management information systems
configuration; and facility location and site characteristics. We evaluate costs
of renovation versus new construction; develop schematic designs and facility
specification documents; create bid specifications; and provide quality
assurance of A&E-provided design and engineering services.
Fleet Management Consulting Clients
Our current and past clients include organizations with fleet operations in many
of the largest metropolitan areas in the country, including:
. New York - Department of Citywide Administrative Services, Port Authority of
New York and New Jersey, Triboro Bridge and Tunnel Authority; New York
Gas Group/Department of Transportation
. Los -Angeles - City. Office of the Chief Administrative Officer, Department of
Gen~ral Services, Board of Public Works, Department of Water and Power;
County. Internal Services Department, Department of Public Works
. Chicago - Office of Budget and Management, Department of Fleet
Management, Chicago Transit Authority, Chicago Park District,
Commonwealth Edison Company
. Houston - City. Department of Finance and Administration; Harris County.
Direg.tor of Management Services and Budget, Facilities and Property
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Man'agement Department;: Flood Control District; Houston Port Authority;
Houston Lighting & Power Company
. Dallas - Department of Equipment and Building Services
. Detroit - Department of Transportation
. Philadelphia - Delaware River Port Authority, Southeastern Pennsylvania
Transit Authority
. San Diego - Office of the City Manager; Water Department; San Diego Gas &
Electric Company
. San Antonio - Department of Purchasing and General Services
. Phoenix - Department of Public Works; Cox Communications Company
. Kansas City - City: Parks and Recreation Commission; Department of Public
Works; Kansas City International Airport; Wyandotte County: Department of
Public Works
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSUL TING SERVICES
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· Washington, DC - Department of Public Works, Water and Sewer Authority,
Metropolitan Police Department
· San Francisco - Pacific Gas & Electric Company
. Indianapolis - Office of the Mayor
· New Orleans - City Administrative Office; New Orleans Public Service, Inc.;
New Orleans International Airport Authority
· Milwaukee - Department of Public Works; Wisconsin Power & Light Company
· Atlanta - Georgia Power Company
· Minneapolis:- Department of Public Works
· Tampa - City. Department of General Services; Hillsborough County. Office
of the County Administrator; Tampa Electric Company
· Honolulu - Department of Public Works; Hawaiian Electric Company
· Long Beach - Department of General Services
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In addition, the MAXIMUS Fleet Group has worked with 29 states (including as
many as 13 different fleet management organizations in a single state), and
literally hundreds of small and mid-size governmental, school district, and transit
authority fleets.
Although many of the consulting divisions of MAXIMUS work almost exclusively
with public-sector clients, the Fleet Group has considerable experience working
with a ~iverse mix of corporate fleets, including those of Exxon, McDonald's,
Sprint, Siemens, Media General Corporation, Phillips Petroleum, Southern New
England Telephone, Cox Communication$, Thompson Newspapers, Darden
Restaurants, Walt Disney World Company, and Giorgio Foods.
The Group also has worked with the fleet management organizations of many
investor-owned utility companies over the years, including:
· Baltimore Gas & Electric
· Carolina Power & Light
· Commonwealth Edison
. Georgia Power
· Hawaiian Electric
· Houston Lighting & Power
· New Orleans Public Service
. Niagara Mohawk Power
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PROPOSAL TO PROVIDE FLEET MANAGEMENT CONSUL T1NG SERVICES
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. Pacific Gas & Electric
. Public Service Electric & Gas
,. San Diego Gas & Electric
. Southern Indiana Gas & Electric
. Tampa Electric
· Wisconsin Power & Light
A complete list of our fleet management consulting clients is included in the
appendix.
PROJECT STAFFING
Mr. Paul Lauria, Director of the MAXIMUS Fleet Management Services Group,
will serve as project director. Mr. Tony Yankovich, a Senior Consultant in the
Fleet Group, will serve as lead analyst. Staff support will be provided by other
members of the Fleet Group as needed. Resumes for Mr. Lauria and Mr.
Yankovich are included in the appendix.
II
PROJECT TIMELlNEAND BUDGET
We are prepared to commence this project within two weeks of executing a
contract or receiving written authorization to proceed pending the finalization of a
contract, and anticipate submitting our draft report 10 to 12 weeks thereafter.
Our proposed budget for this project is a fixed price of $39,601. This amount
include~ $33,560 for professional services and $6,041 for out-of-pocket
expenses for travel, per diem, printing, and postage. The out-of-pocket
expenses are estimated at 18 percent of ourprofessional fees.
Please be assured of our willingness to discuss changes in our proposed work
plan and budget if a different approach to this study would better meet the needs
of the County.
CONTRACTING PROCEDURES
In order to avoid the time and expense of going through a formal RFP process,
Monroe County can retain MAXIMUS to perform this review by issuing a task
order under State of Florida Contract 973-001-00-1 Professional Consulting
Services for Management Skills. We have included a copy of MAXIMUS's task
order agreement with the State of Florida in the appendix.
We currently are performing fleet management consulting engagements under
this contract for the counties of Vol usia, Hillsborough, Pinellas, and Sarasota,
and are in the process of negotiating the scope of a task order to conduct a
comprehensive fleet management and operations review for the City of Orlando.
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