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Fleet management directory
Alternatively fuelled vehicles - Auctions - Benchmarking - Biofuels - Breakdown and recovery - CO2 emissions - Corporate Manslaughter and Corporate Homicide Act 2007 - Cost-benefit analysis - Daily vehicle checks - Disposal policy - Domestic hours - Driver handbook - Driver licence checks - Driver records - Driver training - Early termination cost - Excessive mileage charges - Fit for purpose - Fleet asset register - Fleet maintenance records - Fleet manager - Fuel cards - Fuel duty - Fuel management programme - Fuel usage - Gas powered vehicles - Grey fleet - Health and Safety - Hybrid vehicles - Infringements - In-house maintenance facilities - Insurance - Journey planning - Leasing - Legislative changes - Maintenance contract - Maintenance service intervals - Managing vehicle keys - MOT test - O Licence - Optimum replacement time - Over specified fleet - Personal use - PG9 - Regrooving - Replacement policy - Residual value - Retreads or remoulds - Speed limiters - Spot hire - Strategy - Tachographs - Technology advancements - Tendering - User groups - Vehicle availability - Vehicle defects - Vehicle downtime - Vehicle Excise Duty (VED) - Vehicle rotation - Vehicle tracking - Vehicle utilisation - Video conferencing - Whole-life costings -
 
Alternatively fuelled vehicles
Traditionally, vehicles have been powered by petrol or diesel engines but alternatively fuelled vehicles are now available which have lower CO2 emissions.

Examples include hybrid vehicles and those that use liquefied petroleum gas (LPG), biodiesel, or electrically charged batteries.

Electrically powered vehicles rely mainly on electricity produced from fossil fuels to recharge their batteries. CO2 is emitted as the electricity is produced but the car will be emission free.

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Auctions
Professional vehicle auctions are an option for selling vehicles. Many public sector organisations have adopted this disposal method that saves time and effort and helps ensure a competitive sale price. Some specialist auctions only sell cars but others will sell vans, light commercial vehicles, tippers, minibuses, welfare buses, ambulances, 4x4s, heavy commercial vehicles and refuse vehicles.

Across the UK there are several commercial auction websites that provide guidance on cost effective vehicle disposal.

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Benchmarking
This involves the comparison of performance of one organisation with other organisations. Performance is measured according to specified definitions and standards in order that the data is directly comparable.

Benchmarking within fleet management needs to focus not only on financial information but also on environmental issues, fuel usage, service delivery, user feedback and vehicle specifications.

Examples of benchmarking are set out below.

Transport and Plant Managers Group (All Wales Local Authority Group).

Contact: Russell Powell russell.powell@newport.gov.uk

Some local authorities have links with the Association of Public Service Excellence (APSE)

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Biofuels
These are defined as any kind of fuel artificially manufactured from living things, or from the waste they produce. In recent years it has come to mean ethanol, biodiesel or other liquid fuels made from crops including corn, sugarcane and rapeseed.

The UK Government’s Renewable Transport Fuel Obligation requires at least five per cent of the fuel sold at petrol pumps to be biofuel by 2010.

Vehicle manufacturers’ warranties will usually allow blends of up to five per cent biodiesel to be used in their engines.

As part of its Sustainable Development Strategy Pembrokeshire County Council is using bio diesel in its fleet.

Contact: Hubert Mathias hubert.mathias@pembrokeshire.gov.uk

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Breakdown and recovery
Drivers need to be aware of what they need to do if their vehicle breaks down. Organisations may provide their own breakdown and recovery services but it is usually outsourced to specialist providers.

In the event that a vehicle breaks down, drivers should have a phone number to call and should have the following information to hand:

  • vehicle registration number;
  • location of vehicle;
  • contact telephone number;
  • vehicle make, model and colour; and
  • description of problem.

Organisations also need to consider whether their drivers have access to mobile telephones.

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CO2 emissions
This refers to the release of carbon dioxide in the exhaust gases of vehicles. It is measured in g/km.

From 6 April 2002, the Government introduced a reform to company car taxation which linked the Benefit in Kind (BIK) charge for company cars, registered from 1 January 1998, as a percentage of the car's price and the CO2 emissions. The CO2 figure remains unaltered for the life of the vehicle. The Society of Motor Manufacturers provides a calculation table.

The Energy Saving Trust has produced a guide to help reduce emissions from diesel vehicles.

The CO2 emissions from hybrid vehicles, gas powered (eg LPG) vehicles and from those using biofuels are generally less than from petrol and diesel engines.

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Corporate Manslaughter and Corporate Homicide Act 2007
Further details on the Act can be accessed using the following link.

The Act took effect on 6 April 2008. Organisations can be found guilty of corporate manslaughter as a result of serious management failures resulting in a gross breach of their duty of care. A breach of a duty of care can include the failure to provide vehicles used in delivering public services.

A useful guide to the corporate manslaughter act 2007 and business vehicle use.

Failure to comply with the Act could result in the loss of life, serious injury as well as considerable penalties or fines.

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Cost-benefit analysis
This is the analysis of the costs and benefits associated with a particular course of action or a choice of actions. The costs and benefits are calculated in order to decide on the best course of action or to make a decision about whether to proceed with something.

For example an organisation may want to calculate the costs and benefits of fitting tracking devices to gritter vehicles. Costs include the purchase of the tracking device, fitting the device, the ongoing revenue costs and the costs of training employees. Benefits would include improved knowledge about which roads had been gritted and at what time, improved safety for road users and the potential reduction in accidents.

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Daily vehicle checks
For safety reasons vehicles should be checked on a daily basis and defects reported immediately. Reporting should be via a daily vehicle defect sheet or equivalent. Depending on the vehicle, checks should include some or all of the following:
  • fuel, oil, water;
  • tyres and wheel nuts;
  • mirrors, indicators, horn;
  • wipers, washers, windscreen;
  • tachograph unit (if relevant);
  • speedometer;
  • brakes and electrical couplings;
  • lights, reflectors;
  • battery;
  • steering, brakes;
  • fire extinguisher;
  • seat belts; and
  • first aid box.
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Disposal policy
A disposal policy sets out how an organisation can dispose of vehicles it no longer requires.

The policy considers:

  • movement to a disposal site;
  • depreciation;
  • damage;
  • insurance;
  • commission;
  • preparation;
  • sales administration;
  • security;
  • parking;
  • unexpired road tax;
  • auction fees; and
  • speed of sale, as a general rule, costs are minimised the faster a vehicle is sold.
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Domestic hours
There are rules that restrict the number of hours that drivers are allowed to operate vehicles within a given period of time. Rules about domestic hours apply to drivers on journeys within the UK who are exempt or excluded from EU rules. The rules do not apply to the police and fire brigades.

The rules include a driving limit of 10 hours in any period of 24 hours and a duty limit of 11 hours in any period of 24 hours.

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Driver handbook
Drivers and vehicle users should be provided with a handbook which contains all of the information they need to operate vehicles safely and efficiently. This should be supplemented by driver and user training.

All drivers should be given a copy of the handbook and they should be required to sign a declaration to say they have received it. They should read and understand the handbook and keep it with them when using fleet vehicles. The handbook should contain:

  • details of the risks associated with driving;
  • organisation’s policy on driving eg use of mobile phones or satellite navigation equipment;
  • general advice on safe driving eg on topics such as driver tiredness;
  • advice on efficient or defensive driving which aims to save fuel and reduce the likelihood of accidents;
  • advice on what to do in the event of an accident; and
  • emergency contact details for breakdown, tyres and windscreen.

The Transport and Plant Managers Group (All Wales Local Authority Group) is currently working on a best practice template staff handbook.

Contact: Russell Powell russell.powell@newport.gov.uk

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Driver licence checks
Driver licences should be checked as a part of staff recruitment, as well as on an ongoing basis (ideally every six months). The Energy Saving Trust has produced a document providing detailed guidance. A number of organisations provide on-line driver licence checks. For a fee, information can be provided by private sector organisations automatically if a driver loses their licence but fails to inform their employer.
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Driver records
Organisations should record details about each driver. These records include:
  • driver licence and endorsement details;
  • training undertaken;
  • accident history;
  • whether a fuel card has been issued;
  • entitlement to drive specific vehicle types; and
  • information to support car schemes such as car grade and driver’s financial contribution.

Several public sector organisations use fleet management software to manage driver records.

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Driver training
Organisations have a duty of care to train drivers and other vehicle users in order to improve their performance and keep themselves and other road users safe. Organisations need to determine what training is provided – for example, all drivers could be given generic training with those operating specialist vehicles given more advanced training. Training can be provided in-house or can be outsourced. The training should include:
  • safe and fuel efficient driving training;
    Case study: Wales & West Utilities
  • use of ancillary equipment such as water hoses on fire engines and grit spreading equipment;
  • manual handling;
  • operation of tail lifts – Gwent Healthcare NHS Trust conducts this training for its staff;
  • legislation updates – organisations such as the Freight Transport Association (FTA) are a useful source of information. Details of the high level requirements of legislation should be included in updates in newsletters.
  • familiarisation with new vehicles;
  • Blue Light training; and
  • the Minibus Driver Assessment Scheme (MIDAS) – Blaenau Gwent CBC has in-house trainers.
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Early termination cost
The contract covering the lease of a vehicle is valid for a specified time period. If an organisation wants to cancel a contract before the end date, the leasing company will usually make a penalty charge for the early return of the vehicle.
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Excessive mileage charges
The contract covering the lease or hire of a vehicle is likely to include a mileage limit. If at the end of the lease or hire period the mileage exceeds the limit specified in the contract, the lease or hire company will charge for excessive mileage. The charge will be levied at a specified rate per mile over the limit. Organisations need to be as accurate as possible when agreeing the mileage limit contained within the terms of the lease or rental. However, it can be difficult to set an appropriate mileage limit because the use of the vehicle can change during the lease or hire period. Organisations can therefore consider rotating their vehicles in order to even out mileages.

Pembrokeshire Coast National Park Authority has negotiated a net mileage contract with its leasing company. This means that while there is a charge for excessive mileage, the Authority is also given credit if at the end of the lease period, the vehicle’s mileage is below the contracted limit.

Contact: Alan Hare alanh@pembrokeshirecoast.org.uk

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Fit for purpose
This describes to a vehicle which is designed specifically for the role in which it is to be used.

In line with best practice, Bro Morgannwg NHS Trust holds workshops with drivers to discuss vehicle specification. 

Contact: Andrew Davies andrew.davies@bromor-tr.wales.nhs.uk

Welsh Ambulance Services NHS Trust consults staff on their requirements for the new design of ambulances.

Contact: Tony Cowley tony.cowley@ambulance.wales.nhs.uk

At Conwy CBC during the purchasing/commissioning of a coning vehicle, individual staff members were taken to the coachbuilder to trial the vehicle. Adjustments were made at this stage to the drop height mechanism allowing for people of differing height to operate the drop plate.

Contact: Nigel Jones nigel.jones@conwy.gov.uk

Good Practice Case study: Pertemps

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Fleet asset register
This register includes details of all vehicles in the fleet including type of vehicle, registration number, date entering the fleet and planned replacement date. The information may be stored on a computerised fleet maintenance software package and linked to maintenance schedules and insurance details including accident history. It is important to keep the register up to date and to ensure that different departments within an organisation have access to the same, up-to-date version of the register.
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Fleet maintenance records
These records include details of safety inspections, routine maintenance, vehicle defect reports and repairs to vehicles. Complete and up-to-date fleet records help an organisation to minimise cost, validate warranties and defend legal action should it arise. O Licence holders need to keep records for 15 months during which time the Vehicle and Operator Services Agency (VOSA) can inspect the records.
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Fleet manager
The fleet manager is usually responsible for the full fleet management life cycle described in this good guide. The role may include fleet engineering and the job title may reflect this. If there is no fleet manager, responsibilities for the fleet are allocated to others within the organisation.
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Fuel cards
Drivers pay for fuel using these cards and their organisations are then charged for the fuel at discounted rates usually at the end of every month. Cards are available from major oil companies and other commercial organisations.

The use of fuel cards allows organisations to monitor fuel use as the associated system can generate usage reports and highlight unusual purchases or trends.

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Fuel duty
Fuel duty is a tax levied by the Government on the price of vehicle fuel. The current rates of duty are:
  • unleaded petrol – 48.35 pence per litre;
  • ultra low sulphur diesel - 48.35 pence per litre;
  • bio diesel – 28.35 pence per litre; and
  • LPG – 12.21 pence per litre.
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Fuel management programme
Fuel can account for up to 30 per cent of fleet operating costs. The implementation of a fuel management programme can help to reduce fuel consumption and cost. This is particularly important as fuel prices continue to rise.

Such programmes include driver training in fuel efficient driving techniques, accurate recording of fuel economy, driver league tables on fuel economy, a fuel supplier review, an increase in information on fuel usage and a publicity campaign to raise awareness of the importance of fuel efficiency. A comprehensive fuel management programme is not a short-term solution because measurable improvements are not usually evident until at least six to eighteen months after implementation.

Good Practice Example: Whitbread

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Fuel usage
Fuel can account for up to 30 per cent of fleet operating costs so controlling fuel use is vital. Fuel efficiency should be a major factor in vehicle selection. Organisations can reduce fuel usage by improving journey planning, modifying driver behaviour via training and introducing fuel management systems to monitor the use of fuel.
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Gas powered vehicles
LPG is an alternative fuel that can be used in vehicles, usually alongside petrol. The cost of LPG is currently about half that of petrol and diesel. A vehicle powered by LPG produces less harmful emissions than one using either petrol or diesel. However, the availability of LPG across Wales, and its reliability, have resulted in some organisations discontinuing trials.

It is often easy to convert vehicles to run on LPG but it is important to select appropriate vehicles for conversion, ensure trials are undertaken and check manufacturers’ warranty details.

Several organisations have investigated and operated LPG vehicles including:

Caerphilly County Borough Council: Mark Williams wilims@caerphilly.gov.uk

Countryside Council for Wales: Gareth Roberts gr.roberts@ccw.gov.uk

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Grey fleet
This refers to the use of employees’ own cars for business purposes. These cars tend to be older than hired or leased cars with higher CO2 emissions. The use of the grey fleet can result in higher travel costs and the significant transactional costs of processing individual expense claims.

The Office of Government Commerce (OGC) has produced guidance on the appropriate use of the grey fleet. A key issue for organisations to consider are corporate manslaughter issues as the employer has a duty of care to ensure these vehicles are safe.

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Health and Safety
The Health and Safety Executive and Department of Transport have jointly produced a booklet entitled Driving at work: Managing work-related road safety at work.

See also corporate manslaughter.

Good Practice Case study - Corgi

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Hybrid vehicles
These vehicles tend to use a petrol or diesel engine as the main source of power but also have an electric motor to assist powering the vehicle in certain driving conditions. All hybrids use regenerative braking, which means that energy generated when braking is used to charge the battery. Hybrids achieve reduced emissions due to a reduction in the need for gear changes, especially in urban traffic. Hybrid vehicles have reduced vehicle excise duty and they attract a lower personal benefit in kind tax liability.

Cwm Taf NHS Trust (which was established formally on 1 April 2008 and combined the former North Glamorgan and Pontypridd & Rhondda NHS Trusts) is currently leasing a Toyota hybrid vehicle as part of its fleet.

Contact: Bill Herridge bill.herridge@nglam-tr.wales.nhs.uk

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Infringements
The most common driving infringements are when the driver takes insufficient breaks, incorrectly completes the tachograph, fails to provide all mileage information or produces dirty or damaged charts. It is the responsibility of the employer to train drivers and discuss how infringements can be avoided. Analysis of tachograph charts may identify infringements of driving regulations.
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In-house maintenance facilities
This refers to workshop facilities owned and operated by an organisation. Advantages include improved flexibility, availability and expertise on specific types of vehicles. Disadvantages include equipment and staff overheads and a requirement to update skills to keep up with technological advances.

Neath Port Talbot County Borough Council has adopted good practice by operating an in house maintenance facility with flexible shifts covering 6 am to 9 pm. This is about matching supply and demand. It is good practice to review this annually.

Contact: Mike Donovan m.donovan@npt.gov.uk

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Insurance
An insurance policy is a contract between a party at risk and an insurer. The insurer agrees to bear all or part of the specified risks in exchange for a payment known as the insurance ‘premium’. Some organisations may choose to ‘self-insure’ by setting aside funds which will be used in the event of an accident. Whichever method is chosen, motor vehicle insurance is compulsory. The Association of British Insurers provides guidance on vehicle insurance requirements.
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Journey planning
Journey times and routes can be planned to limit journeys, mileage and duration. Staff and managers who are aware of the need to reduce mileage and duration should ask if the journey is required. A range of options can be considered including:
  • the use of video conferencing;
  • travelling with others; and
  • using public transport.

Commercial route planning software is an option for planning complex journeys and services.

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Leasing
Before deciding to lease a vehicle, the ‘whole-life cost’ should be calculated and compared to other procurement options. If leasing is the cheapest option, whole-life costing can then be used to identify the optimum lease period and supplier.

Carmarthenshire County Council undertake whole-life costing.

Contact: Steve Pilliner steve.pilliner@carmarthenshire.gov.uk

The terms of a lease are likely to involve a fixed monthly payment in return for use of the vehicle. The contract is likely to specify certain conditions on the use of the vehicle, such as a pre-agreed mileage limit with a penalty fee charged for every mile driven over this limit. It is therefore crucial to estimate the mileage as accurately as possible.

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Legislative changes
Fleet managers need to keep themselves and other staff up to date with legislative changes within fleet operations. Recent legislative changes include the Corporate Manslaughter and Corporate Homicide Act 2007 and amendments to EU drivers’ record rules.

Future legislation includes Driver Training Directive in September 2008 passenger vehicle drivers and Euro 5 emission standards for cars and vans in September 2009 for goods vehicle drivers.

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Maintenance contract
This is an agreement between an organisation that runs a fleet of vehicles and a maintenance provider. The contract should set out the details of an agreed programme of maintenance on each vehicle within the fleet, specifying, for example, the frequency of maintenance and agreed levels of support provided.

For hired and leased vehicles, maintenance is usually part of the fixed monthly charge but this is not always the case.

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Maintenance service intervals
This is the length of time between vehicle services and inspections. For O Licence holders this time period must be declared and adhered to. Typically, O Licence vehicles over 3,500 kg must be inspected every six weeks.

For cars, the service interval usually follows manufacturers’ guidelines.

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Managing vehicle keys
To avoid the theft of vehicles or theft from vehicles, keys should be kept securely and issued to drivers when required. Spare keys should also be kept securely. Keys should only be issued to drivers who have been trained to drive particular vehicles, and this should form part of the workplace transport safety policy.
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MOT test
The Ministry of Transport (MOT) test ensures vehicles are safe and roadworthy. Vehicles under 3,500kg gross weight, such as cars and small vans, are tested annually but do not require an MOT for the first three years of their life.

Vehicles over 3,500 kg gross weight which are not exempt from testing are tested annually at either a goods vehicle testing station or a designated operator workshop.

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O Licence
Any organisation which operates goods vehicles for commercial purposes on UK roads requires an O Licence. Vehicles of more than 3.5 tonnes gross plated weight must be maintained under the O Licence.

The following vehicles are exempt from the O Licence:

  • Police - all vehicles;
  • Fire - all vehicles;
  • Ambulance - all vehicles; and
  • Local authorities’ vehicles used for snow clearance or the distribution of salt on roads.

If an O Licence is held it is important to keep it up to date with details including a named officer, numbers of vehicles and trailers and details of the maintenance arrangements. This covers public sector bodies. Anyone operating small goods vehicles, defined as one with a gross plated weight of not more than 3.5 tonnes (or 1,552 kg unladen if there is no plated weight) is excluded.

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Optimum replacement time
This is the point in a vehicle’s life when the costs of retaining the vehicle outweigh the benefits. Typically this could be when warranties run out or when an MOT test is required (three years for cars).

If a vehicle is being returned to the leasing company, good planning is required to ensure that the replacement vehicle is ordered in sufficient time. If this does not happen additional monthly payments will be charged and potentially excessive mileage charges made. Organisations should identify the optimum replacement time by undertaking a ‘whole-life costing’ exercise.

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Over specified fleet
If a vehicle is over specified it means that it has unnecessary features as a result of ineffective procurement. For example, vehicles could have unnecessary extras fitted or have too large an engine. As well as incurring unnecessary expenditure, over specification can lead to unnecessary fuel consumption and higher than necessary maintenance costs.

When deciding on vehicle specification an appropriate cross-section of users should be involved to ensure optimal vehicle specification.

Similarly, the software package used to support the fleet may be over specified and have unused features.

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Personal use
Personal use of an organisation’s vehicle includes use that is not business-related such as commuting to the driver’s workplace which is generally a taxable benefit in kind. The rules on private use should be included in the driver handbook.

Business use of an organisation’s vehicle is use of the vehicle to perform some aspect of a job required by an employer. It can include making deliveries or collections and travelling between offices and sites during the working period.

Professional organisations – these organisations provide information, guidance and networking opportunities to fleet managers and users. Examples include:

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PG9
PG9 certificates are normally issued by a Vehicle Operator Services Agency vehicle examiner for more serious vehicle defects which may affect the roadworthiness of the vehicle or render it unsafe. The issue of this certificate will mean that the organisation is prohibited from using the vehicle until the defects are remedied. Some police officers are trained and authorised to issue PG9s.

If the prohibition is immediate, the vehicle cannot be moved on the public highway. Depending on the seriousness of the defect, prohibition of the vehicle can be delayed for up to 10 days allowing the vehicle to be moved on the public highway until the date specified.

To remove the prohibition, the vehicle must pass an MOT test. The MOT certificate and PG9 must then be presented at a local police station so that a clearance notice can be issued.

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Regrooving
Tyre regrooving is the recutting of a worn tyre to ensure it has adequate tread depth. This adds life to a tyre without the need to purchase a new one. Regrooving must be undertaken in line with the manufacturer’s guidance.
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Replacement policy