3. Vehicle Acquisition

3.1 General Acquisition Procedures

State agencies are required to acquire vehicles from the statewide contracts developed by the State Purchasing Division. Vehicles not on statewide contract and vehicles with special specifications not on contract will be purchased in accordance with DOAS SPD regulations with prior approval of OFM/OPB.

Agencies are authorized to operate mid-size automobiles but are encouraged to acquire compact automobiles wherever possible. If subcompact or compact automobiles for specific jobs are too small to satisfy the operating needs of those jobs, an agency is authorized to obtain midsized automobiles. Mid-sized automobiles are those typically defined as such by rental car companies. These automobiles are usually four-door, can accommodate up to four persons comfortably (with a maximum of five persons), and hold up to four pieces of luggage.

Agencies have full discretion on the size of automobiles that they may obtain, up to and including midsized automobiles, light duty trucks, and heavy-duty trucks based on their own assessments of their business needs.

Requests for full-size automobiles, SUVs or vehicles with options not included in the equipment shown in the vehicle standard specification must be justified in the request to OFM. OFM will coordinate with OPB and provide the agency written notification of approval decisions prior to purchase.

State vehicles are acquired using various funding sources. Whether they are acquired through the Annual Operating Budget, Agency Program Funds, Federal Funds, Grants, Donations or other means, all will be managed as state vehicles and must be in compliance with all applicable state statutes, rules, regulations, policies and procedures

3.1.1 New Vehicles

To obtain a new vehicle as an addition to the current inventory, agencies must demonstrate:

All active agency vehicles are being used as originally presented for budget justification, subject to validation by OPB.
The new vehicles are for additional staff or new program/unit.
The new vehicles will be utilized a minimum of 25% of the median miles driven by asset type, per state entity as determined by DOAS OFM.
All active agency vehicles will have current fuel and maintenance recorded in the Fleet Management Database.

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.

3.1.3 Alternative Fuel Vehicles

Energy Policy Act (EPAct) Alternative Fuel Vehicle (AFV) requirements apply if an agency owns, operates, leases, or otherwise controls 50 or more Light Duty Vehicles (LDVs) in the United States that are not on the list of excluded vehicles.

Alternative Fuel Vehicle options are made available through current statewide contracts. All purchases must comply with Policy 10. Vehicle models identified for purchase and use in attainment areas that are not recognized as alternative fuel capable will require justification and approval by OFM prior to purchase.

See section 9.2 of this manual for further information on AFV.

3.1.4 Used Vehicles

Agencies may request authorization to purchase used automobiles but must demonstrate that the cost of each automobile purchased does not exceed the fair market value of the vehicle as determined by the National Automotive Dealers Association (NADA).

In addition, the agency must have a pre-purchase vehicle inspection conducted by an independent shop or technician to determine its overall condition. All used automobiles must comply with the requirements of the Vehicle Acquisition Matrix found in Appendix C-3 and Section 5.4 of Policy 10.

3.1.5 Leasing Vehicles

Agencies may enter a lease agreement for vehicles in lieu of purchasing only with prior approval from OFM.

Agencies must also provide a cost analysis comparing lease to purchase and demonstrating cost benefit. The cost analysis along with lease terms including the number of years, obligation per year and whether the lease includes a lease to own option to help determine long-range costs versus a vehicle purchase must be uploaded to the vehicle request form in the Fleet Information System. All leasing shall be conducted through leasing contracts established by DOAS State Purchasing.

3.1.6 Donated Vehicles

With prior approval from OFM and where permitted by law, state agencies are authorized to take title and possession of vehicles donated to the state and to provide funds for the operation, maintenance and protection of these vehicles.

Unless approved by OPB, donated vehicles cannot be accepted as state property with any conditions or exceptions. Neither can they be returned to the donor nor can any portion of their value or of any proceeds from their disposal be returned to the donor. Once donated, they are no different from state vehicles acquired in any other way and must be properly registered, licensed, and insured. Donated vehicles will not be replaced with appropriated funding. It will be the agency’s responsibility to obtain funding external to state appropriations to replace the vehicle. Donated vehicles must comply with the requirements of the Vehicle Acquisition Matrix found in Appendix C-3.

3.1.7 Inter-Agency Vehicle Transfers

Inter-Agency Transfers occur when property is moved between state agencies or entities. Except where prohibited by law or other provisions of this policy, transfer of vehicles between agencies may be authorized by DOAS Fleet Management.

Agencies must request a vehicle transfer through the surplus management system via DOAS Surplus Property Division. OFM will verify that the vehicles meet the requirements specified in the Vehicle Acquisition Matrix found in Appendix C-3 prior to approving the transfer.

Agencies requesting vehicle transfers for temporary use in responding to statewide emergencies should contact the Director of Fleet Management to facilitate the temporary transfer.

3.2 Classification of Vehicle Use

When agencies are anticipating adding vehicles to their inventories, they must select a “Primary Use” classification as part of the acquisition process from the following list:

Administrative
Emergency/Medical
Law Enforcement
Mixed Use
Utility
Interstate/Intercity Bus Transportation
Daily or Short-Term Rental
Student Transportation
Transit
Off Road
Overnight Use
Fire Equipment
Other

Vehicles are classified by the agency at the time of purchase and recorded in the Fleet Management System by OFM. Changes to vehicle use classifications may only be entered by OFM and/or OPB. Requests for changes should be submitted to OFM via email.

3.3 Vehicle Request Process

All vehicle requests must be submitted to OFM using the Vehicle Request Form housed within the Fleet Information Management System, which automatically routes to the appropriate personnel for approval. Once the approved request is returned to the agency, the purchase order can be prepared. This purchase order must be submitted to OFM for approval. No vehicle can be purchased or leased until this purchase order has been approved. State contract vendors will not accept a purchase order without OFM approval.

Upon receipt of a new vehicle, OFM requires vehicle information to ensure the vehicle asset is properly recorded in the Fleet Information System. Agencies are required to complete the Vehicle Asset Creation Form that contains the information needed to create the vehicle asset in the state Fleet Information Management System. Vehicle orders must be submitted by May 15^th of the fiscal year. Any orders received after May 15^th will be deferred to the following fiscal year. Emergency requirements, which justify orders after the cutoff date (e.g., replacement of a totaled vehicle) or changes in the vendor(s) awarded the statewide contract, may be considered on a case-by-case basis. Vehicles shall not be purchased outside of the statewide contract from dealer stock without the written approval of DOAS State Purchasing Division.