3.1.2 Replacement Vehicles

To be eligible for a replacement vehicle, agencies must demonstrate:

  • A vehicle was totaled.
  • No current vehicles are available to be reassigned based on the minimum utilization standard of 25% of the median miles driven by asset type per state entity as determined by OFM.1
  • The replacement vehicle will be "like kind" to the degree possible. If not, written justification outlining the need to meet new operating requirements must be submitted to OFM for approval.
  • All current agency vehicles are being used as originally presented for budget justification, subject validation by OPB.
  • All active agency vehicles will have current fuel and maintenance recorded in the Fleet Management Database at the time of the request.
  • The vehicle meets the replacement criteria established each budget cycle as determined by DOAS OFM, with input provided by OPB. Criteria will be based upon comparison with other similar type vehicles:
    • Total Cost of Ownership (TCO) > Book Value
      • TCO = Depreciation amount + maintenance over past two fiscal years
      • Depreciation amount = Capital Cost -- Current Book Value2

1 Information on median miles driven per year by asset type can be found on the OFM website. 

2 Information on a vehicle’s total cost of ownership can be found on the OFM website. 

*The minimum utilization standard and TCO replacement criteria was implemented in version 10 of Policy 10.