Federal Fleet Management: Lessons Learned from the Department of State NPMA National Education Seminar Fleet Track

Transcription

1 Federal Fleet Management: Lessons Learned from the Department of State 2014 NPMA National Education Seminar Fleet Track

2 The Department of State Diplomacy at Work The Department s diplomatic activities range from providing assistance to Americans overseas, to public diplomacy and State visits, to reporting and analysis. Key Goals and Initiatives Serving American Families and Businesses Control of Immigrant and Non-Immigrant Visas Public Diplomacy Building Global Economies Assisting Global Development Peace Keeping Missions Global Health 2

3 The Department of State A Mission with Global Reach Mission Shape and sustain a peaceful, prosperous, just, and democratic world, and foster conditions for stability and progress for the benefit of the American people and people everywhere. 3

4 Supporting the Department s Mission Global Fleet Operations Managing the Department s global fleet requires bringing domestic and international networks together across multiple agencies to promote safety and security and encourage efficient use of resources. 80,000 Customers 14,070 Vehicles 309 Motor Pools 40+ Other Government Agencies 9 Bureaus Supporting one Department mission by Providing Security The Department s fleet transports and protects Americans in high threat locations. Supporting Diplomatic Priorities Congressional delegations, VIP and multi-lateral conferences are supported by the Department s fleet. Transporting Staff and Visitors All visitors to post are transported by the Department s fleet. Enabling Daily Operations The Department has vehicles to support all operations from emergency response to embassy maintenance services. 4

5 Supporting the Department s Mission The Fleet Landscape With over 14,000 vehicles located at more than 300 motor pools worldwide, the Department operates the largest civilian government fleet in the world. Fleet Composition Vehicle Status Law Enforcement Status Overseas DS OBO FMO IBWC In Service Received Non-LE Vehicles LE Vehicles Inventory Size Vehicle Type Bus/Amb HD Truck Limo Pick-Up Sedan/Coupe Station Wagon SUV 5

6 Key Challenges Operating a Global Fleet The Department s mission and global presence present significant challenges to the effective and efficient management of the fleet. Decentralized Management Total Visibility & Accountability Capturing Total Cost of Ownership Federal Accountability Reporting & Compliance Support for Other Agencies Ability to Maintain Vehicles Effectively Unique Vehicle Needs High Vehicle Mortality Rates Complex Disposal Processes Fleet Challenges Post Environment Delayed Delivery Evolving Mission Priorities Varying Terrains & Climates Multi-Purpose Vehicles Response to Surge Requirements 6

7 Key Challenges Total Visibility & Accountability In FY2006, the Department was facing a Material Weakness in property management due in large part to limited and inaccurate information on its large inventory of vehicles. Prior Year Acquisitions Prior Year Disposals we assess the Department s property accounting challenges as a material weakness in FY ILMS Asset Management deployments begin FMIS development begins First global Vehicle Allocation Methodology and Fleet Management Plan Material Weakness identified, with emphasis on accounting for motor vehicles Full vehicle inventories conducted during ILMS deployments to mitigate Material Weakness FMIS deployments begin FMIS fully deployed 7

8 Key Challenges Reporting & Compliance Presidential Memorandum: Federal Fleet Performance We owe a responsibility to American citizens to lead by example and contribute to meeting our national goals of reducing oil imports by one-third by 2025 and putting one million advanced vehicles on the road by GSA Guidance Federal Automotive Statistical Tool (FAST): Provide data for federal fleet analysis based on regulatory requirements three times a year during various data calls. Bulletin FMR B-15 Fleet Management Information System (FMIS): Implement a centralized system to identify, collect, and analyze motor vehicle data with respect to all costs incurred for the operation, maintenance, acquisition, and disposition of motor vehicles. Bulleting FMR B-30 Vehicle Allocation Methodology (VAM): Annually provide a standard way to ensure that each vehicle in your fleet is correctly sized and is appropriate for accomplishing the agency s missions. Bulletin FMR B-30 Fleet Management Plan (FMP): Annually describe how your agency will achieve its optimal fleet inventory, alternative fuel schedule, sourcing decisions, and incorporate in strategic sustainability performance plan. 8

9 Fleet Management at Department of State The Department s Journey The Department developed a comprehensive fleet management strategy and implemented new tools, technologies and processes to better manage its fleet. Building the Foundation FMC Engaging key stakeholders to address fleet management CAP Identifying ways to better account for the Department s fleet Implementing Key Initiatives FMIS Creating a standard system to manage global fleet operates VAM Assessing the size and composition of the fleet Pursuing Continuous Improvement FMP Articulating the Department s strategy for reaching fleet goals Data Analytics Tracking progress and identifying areas for improvement 9

10 The Fleet Management Council (FMC) Establishing Institutional Leadership and Oversight The Department formed the FMC in 2007 with representation from over 15 bureaus and offices to improve the overall management, accountability, cost-effectiveness, data collection and reporting on the fleet. The FMC consists of stakeholders from 6 regions and 9 domestic bureaus. A/LM A/OPR M/PRI BP CGFS/ICASS OBO INL DS IBWC WHA EUR NEA/SCA EAP AF FMC Areas of Focus Ensuring accuracy of global inventories Promoting comprehensive, real-time reporting through a global, standard FMIS Developing an agency-wide VAM Implementing strategies for cost control and rightsizing Defining policies for fleet acquisition, replacement planning and disposal Establishing safety programs and policies Addressing alternative fuel and fleet efficiency mandates 10

11 Can The Corrective Action Plan (CAP) Building a Roadmap to Achieve Total Accountability State applied a CAP methodology to facilitate structured problem-solving and build consensus among stakeholders using collaborative decision-making strategies. Identify and Frame the Deficiency Analyze the Cause Find Solutions Implement, Monitor and Evaluate External: OIG, Independent Auditor, GAO, Media, and other sources Diagnostic Issue Tree Why? Solution/Decision Tree How? Implementation Plan P1 P2 P3 P4 M1 M2 M3 M4 CAP Tracker Internal: Analytics, Strategic Planning, Data Flow Diagram, OIG Audit Plan Review, Independent Assessments, and other sources Vet the Hypotheses Hypothesis Rank H1 1 H2 4 H3 2 Decision Matrix Want Action Progress Owner AI1 JG AI2 TC AI3 DB Monitor & Evaluate 11

12 The Corrective Action Plan Organization Motor Vehicles Contractor Held Property Personal Property Program Property Financial Transactions Systems Analysis Solution The major projects and initiatives identified by CAP stakeholders Corrective Action Plan FY14 Action Owner Improve Motor Vehicle Ac Status Evidence Actions The key actions and tasks aligned to each project or initiative Planned and Actual Dates Detailed tracking of schedule progress Ownership & Evidence Parties responsible for execution and evidence collected to support outcomes Send communications on importance of audit John Smith documentation for vehicles. Plan Start: 4/1/13 Actual Start: 5/1/13 Ensure that at least 2 users Plan End: 5/31/14 Actual End: -- at each site have access to Jane Smith system of record. Default asset fields based on procurement data when the asset record is created. Lock down asset In Service dates to facilitate accurate depreciation calculations. Implement scanning and automated reconciliation solution for vehicles. John Smith Jane Smith Jane Smith 12

13 The Corrective Action Plan Key Outcomes Strengthened internal controls around key vehicle acquisition, assignment and disposal processes Online fleet documentation repository and real-time utilization data for audit readiness Timely and accurate financial reporting based on total accountability of vehicle inventory Improved fleet management with targeted reductions Data-driven performance analysis and decision-making on vehicle purchases and disposals Single standard property and fleet management system of record 13

14 Managing Global Operations The Integrated Logistics Management System (ILMS) ILMS is a modular-based, fully integrated, logistics management system that supports global operations and integrates with the FMIS. Supply Chain Performance ILMS Portal Ariba Status Tracking Momentum Acquisitions s Fleet Management Ariba Contracts Asset Management Warehouse Distributio Management n Final Receipt Loanable Property Expendables Diplomatic Diplomatic Pouch and Mail Mail Transportation n 14

15 One World, One Supply Chain Transforming the Department s Supply Chain Future Continuous Improvement of Global Operations Driving New Efficiencies and Enabling the Department to Better Accomplish its Mission 15

16 Developing an FMIS Standardizing Operations and Increasing Visibility Fleet managers and stakeholders helped to derive a high-level requirements framework for FMIS, which became a foundation for the program. FMIS Dispatch Vehicles Employees Maintenance Reports Receive trip request from eservices overseas and ILMS domestically Create trip tickets for requests submitted by phone or Create trip tickets for daily events, shuttles, VIP visits, and other special events Assign drivers and vehicles to trip tickets Enter data on distance driven and actual dates/times at the end of a trip Manage fleet records on OFVs, Leased Vehicles, Other Agency Vehicles, and POVs Enter vehicle title, registration, insurance information, and associated expenses Manage registration and insurance renewal requirements Assign Tag #s to vehicles Track vehicle maintenance, expense, assignment, and status history Enter key details on employees, including license information and medical and accident history Upload information on training and certification activities Manage training, certification, and licensing renewal requirements Create employee schedules Create work orders for preventive, inspection, corrective, accident, and recall maintenance Create preventive maintenance schedules and define intervals specific to each vehicle in the fleet Bulk upload fuel tickets from fuel card systems Enter costs associated to maintenance and fuel from in-house and commercial sources Run the DS-1777 and DS-1778, and access the OF-108 Run the FMO Gasoline Report Run the ICASS Motor Pool Services & Maintenance Workload Report, with distance driven & vehicles by Agency Name Capture all data necessary for FAST, with auto-calculations and integration to the MV Survey in ILMS 16

17 Developing an FMIS Integration with ILMS With integration to the Department s supply chain system, FMIS helps manage the fleet through one standardized system. Asset Management Fleet Management Information System ILMS is the system of record for all Department assets, including motor vehicles. Reports information to FAST. Vehicles entered into ILMS for financial reporting and asset tracking purposes. FMIS is the system of record for capturing Department fleet utilization data. Captures fleet utilization data for FAST. Vehicles entered into FMIS for fleet management functions. DoS Vehicles, Leased Vehicles, & Other Agency Vehicles Vehicle acquisition, modification, and disposal data POVs Asset Management Fleet Management Information System FAST Templates Vehicle Survey Data FAST Reporting Data eservices Trip Requests (Dispatch Module) 17

18 Developing an FMIS Key Functionality The FMIS Dispatch / Motor Pool homepage provides motor pool staff a view of all trip requests that are pending their action. Full list of all trip requests can be filtered by trip end date and other key elements to sort and prioritize. Color provides dispatchers immediate insight into the status of a request. Dispatchers can schedule trips using a complete list of where customers need to be picked up and dropped off. 18

19 Developing an FMIS Key Functionality FMIS combines a simple interface with useful features, such as automatic conversions and data integration from Asset Management. Easy navigation to all FMIS modules. Starting Odometer prepopulates with the vehicle s current Odometer Reading. Local currency defaulted per module. Daily currency exchange rate updates. Automatic currency conversion. Odometer Readings are displayed in Miles and Kilometers. Automatic Starting and Ending Odometer conversions. 19

20 Hours Driven Developing an FMIS Deployment Status To date, FMIS has been deployed to 198 sites, equating to 82% of the Department s fleet. An additional 13 will be deployed by August Mission Russia FMO Motor Pool Revenue, in $k Trip Tickets Opened Nov Dec Jan Feb Mar Apr Moscow Avg of other Posts Oct Nov Dec Jan Feb Mar Apr Mission Germany Top 4 Drivers Size of bubble: % of trip tickets Kingston Fuel Cost by Month, in $k DRIVER 1 DRIVER 2 DRIVER 3 DRIVER 4 Mission Thailand Main Cost by Type previous 6 months Miles Driven CORRECTIVE PREVENTIVE Sep Oct Nov Dec Jan Feb Mar Apr Key Completed FMIS Deployments 20

21 Developing an FMIS Key Outcomes The Department s FMIS provides accessible, reliable, and robust data to motor vehicle personnel and management. Visibility Process Automation Management Oversight Visibility across the entire fleet Automates FAST reporting Strengthens internal controls and increases data reliability Data available enterprise-wide Integrates online customer data with other Department systems Facilitates auditing capabilities Captures all vehicles and vehicle related expenses Integrates vehicle attributes for improved accountability Supports green initiatives through paperless processing Enables easy table queries and custom reporting Eliminates manual calculations for reporting Enables informed decision-making around fleet size and composition 21

22 Optimizing the Department s Fleet The VAM & FMP Using the robust fleet data available through FMIS, the Department conducts a global VAM and develops an agency-wide FMP annually. Gather Fleet Data Capture Diagnostic Assess Fleet Optimize Fleet VAM Annually, the Department surveys fleet vehicles worldwide to evaluate the size and composition of the fleet and identify vehicles for disposal. Calculate Total Cost of Ownership Take Action FMP The Department uses data from the VAM and FMIS to establish and document a strategy to manage the fleet. 22

23 Completing the VAM The VAM Process The FMC coordinates with agency leadership and fleet managers to determine key criteria, administer a worldwide survey and facilitate review and approval of rightsizing recommendations. Motor Vehicle Surveys FMIS Stats Global Assessment of Results Management Review Data Analysis Review & Justification Approval Vehicle utilization data from FMIS and qualitative survey responses from the field analyzed Motor pool supervisors and fleet managers assess recommendations and provide feedback Regional and domestic leadership assess proposals from the field and confirm final actions Vehicles categorized as Retain, Questionable and Eliminate List of vehicles proposed to Retain or Eliminate Finalized list of vehicles to Retain or Eliminate, with Target Fleet Size identified 23

24 Generating Recommended Actions Retain, Questionable, Eliminate The FMC provides VAM recommendations to managers for each motor pool along with specific and transparent reasoning for recommended actions. Utilization Weighted measure of Miles/Year, Hours/Year, and Trips/Year Criticality Assessed according to vehicle type, purpose, public transportation options, and pooling/sharing options Recommended action for each vehicle in the Department s fleet Retain Questionable Eliminate Vehicle Type Armored Vehicle Type Van Vehicle Type Sedan Trips/Week 4 to 6 Hours/Trip Model Year 2012 Miles Driven 12,000 Trips/Week 1 to 3 Hours/Trip Model Year 2005 Miles Driven 94,000 Trips/Week <1 Hours/Trip Model Year 2000 Miles Driven 1,100 Pooling? No Pooling? Yes Pooling? Yes 24

25 Identifying Efficiencies VAM Results Through the VAM, the Department was able to identify substantial cost savings by reducing the fleet size. Department Wide Impact Post Spotlight: Conakry Reduced fleet size by 22% (65 49 vehicles) based on VAM Recommendations. All vehicles disposed Were over 5 years old (average age of 7.8 years) Accounted for over $40k in maintenance and fuel costs that year 8 of the vehicles drove less than 5k km that year 25

26 Creating a Fleet Strategy The FMP The FMP is a collaborative and comprehensive document that provides clear goals and an actionable vision for the management of the fleet. 1 Gather information from Department stakeholders Department Fleet Stakeholders Bureau Management Officers Post Fleet Managers Washington Leadership Global Fleet SMEs What obstacles does the agency face in optimizing its fleet? How are vehicles primarily used, and how do mission requirements translate into the need for particular vehicles? What are the plans to correct any deficiencies, and what factors hinder correction? Discuss any trends toward larger, less fuel-efficient vehicles and the justifications for such moves. Describe efforts to reduce vehicles assigned to a single person. 2 Document Results 3 Implement Fleet Plan Criteria for Justifying & Assigning Vehicles Explanation of Fleet Size and Cost Changes Initiatives to Control Fleet Size & Cost Vehicle Replacement Strategy Increased ownership in and accountability for implementation results from involvement in development of plan Vehicle Sharing Practices and Plans 26

27 Assessing Opportunities for Improvement Fleet Analytics The Department developed FleetStat and other analytical tools to help fleet managers track progress toward reaching their target fleet size. Is Post on track to reach optimal fleet size goals identified through the Vehicle Allocation Methodology (VAM) process? How many trip requests are completed Monthly? Weekly? Daily? What percentage of the fleet is SUVs? What percent use alternative fuels? Is Post replacing its fleet at the optimal age? How many miles per vehicle annually at Post? Which vehicles are incurring the highest costs of ownership? What is the average fuel economy for each vehicle at Post? 27

28 Fleet Management at Department of State Next Steps The Department continues to utilize, improve upon, and add new tools, technologies and processes to better manage its fleet. Building the Foundation FMC Monthly meetings to review fleet policies and initiatives CAP Monthly meetings to review actions and status Implementing Key Initiatives FMIS Deployment continues, with enhancements implemented bimonthly in response to customer feedback VAM Conducted annually, with monthly disposal compliance reporting to validate progress Pursuing Continuous Improvement FMP Updated annually to reflect latest priorities and initiatives Data Analytics Development of additional dashboards and dedicated team to assess opportunities 28

29 Lessons Learned Best Practices in Fleet Management The Department of State identified these best practices and lessons learned from the implementation and deployment of its fleet programs. 1 Leadership is essential. 6 Pilot new systems, processes and tools. 2 Form effective partnerships across the agency. 7 Experiment with different training and deployment strategies. 3 Use data-driven analysis to uncover root causes. 8 Access to data is empowering. 4 Engage the field as early as possible. 9 Develop a plan collaboratively. 5 Communication and outreach are key. 10 Validate success with the data. 29

30 Contact Info Cecilia Coates Director of Program Management and Policy U.S. Department of State Kristin Hollister Manager Accenture Management Consulting About Department of State The Department of State is the lead U.S. foreign affairs agency within the Executive Branch and the lead institution for the conduct of American diplomacy. Established by Congress in 1789, the Department is the oldest and most senior executive agency of the U.S. Government. The Department is led by the Secretary of State, who is nominated by the President and confirmed by the U.S. Senate. The Secretary of State is the President s principal foreign policy advisor and a member of the President s Cabinet. The Secretary carries out the President s foreign policies through the State Department and its employees. The Department is headquartered in Washington, D.C. and has an extensive global presence, with more than 270 embassies, consulates, and other posts in over 180 countries. About Accenture Accenture is a global management consulting, technology services and outsourcing company, with approximately 289,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, Its home page is 30