Fleet Asset Utilization Analysis and Underutilized Assets

State agencies can learn about the state fleet utilization analysis and the definition of underutilized assets.

The Office of Fleet and Asset Management (OFAM) conducts an annual utilization analysis (UA) of all state fleet assets that have established minimum utilization thresholds. Fleet assets that do not meet the minimum thresholds are deemed underutilized assets. All underutilized assets without a valid justification based on the categories explained below are subject to corrective action such as redirection or disposal. Fleet assets that meet at least 75 percent of the minimum thresholds are given a 12-month grace period and re-evaluated in the next UA.

NOTE: Agencies are highly encouraged to consult with OFAM concerning other unique circumstances, that are not outlined below, in which retaining the underutilized asset would benefit their operations.

 

Justification Criteria

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An asset may be considered critical if the asset is required to be part of an agency's fleet to meet its operational needs or if the asset generates a significant cost-saving for the agency. To justify an asset as critical, agencies must demonstrate that the asset meets one of the following criteria:

  1. Essential Asset
    • Emergency response asset
    • Rapid response asset (e.g., erosion control assets, invasive species control assets, etc.)
    • Legislatively mandated asset
    • Use-restricted asset based on grant/funding

  2. Cost-effective Asset
    • Specialty asset (e.g., pesticide spraying assets, mobile repair assets, water tank assets, etc.)
    • Seasonal use asset
An underutilized asset may be justified if the vacancy in the primary operator position is the direct cause of the underutilization during the UA period.
An underutilized asset may be justified if the asset was inoperable due to pending repairs or modification during the UA period.

Corrective Action for Unjustifiably Underutilized Assets

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An unjustifiably underutilized fleet asset that does not meet the state’s recommended vehicle replacement schedules as outlined in the State Administrative Manual Section 4126 must be redirected within the agency’s fleet to be adequately utilized. When an agency has an underutilized fleet asset that can be redirected, a fleet asset replacement or acquisition request for the like-type asset on its Fleet Acquisition Plan (FAP) will not be approved. Instead, the agency will be required to redirect the underutilized asset to meet the operational need that necessitates the replacement/acquisition. Additionally, the asset requested to be replaced on the FAP must be disposed of within 180 days of its identification by OFAM.
An unjustifiably underutilized fleet asset that meets the replacement schedules must be disposed of, without replacement, within 180 days of its identification by OFAM.

RESOURCES

CONTACT

Policy Development and Compliance Unit

Department of General Services
Office of Fleet and Asset Management

1700 National Drive
Sacramento, CA 95834
FleetPolicy@dgs.ca.gov