Government Operations

Fleet Operations

Rule 4: Vehicle Replacement and Expansion of State Fleet

Effective Date: 02/21/2023

Admin. Code Reference: R27-4

Rule Type: Current Rule

R27. Government Operations, Fleet Operations.

R27-4. Vehicle Replacement and Expansion of State Fleet.

R27-4-1. Authority and Purpose.

This rule is established pursuant to Subsection 63A-9-401(5).

R27-4-2. Fleet Standards.

(1) The division shall ensure that the state can obtain optimal utilization of, and the greatest residual value for all state vehicles

(2) The division shall review agency motor vehicle utilization on an annual basis to identify state vehicles that, on the basis of the applicable replacement cycle, are either being under or over utilized.

(3) The division shall provide the results of the motor vehicle utilization review to each agency for use in agency efforts to ensure full utilization of all state vehicles.

(4) The division shall establish replacement cycles for state vehicles. The replacement cycles shall be based on vehicle time in service.

(a) Factors including a vehicle's intended use, agreements with an agency, and the intended miles per year may be used in determining the appropriate time in service.

(b) Vehicles may be replaced subject to negotiations with the agency, regardless of whether the time in service is met.

(5) If a vehicle is turned in for replacement as scheduled but did not reach mileage intended under the applicable replacement cycle, the division shall conduct a utilization review of that agency's fleet to ensure the vehicle is needed. The review may result in the vehicle being:

(a) replaced with a new vehicle;

(b) sold; or

(6) Pursuant to Subsections 63J-I-410(8)(f)(ii), (iii), and (iv), vehicles acquired by agencies, or monies appropriated to agencies for vehicle purchases, may be transferred to the division and, when transferred, become part of the Fleet Internal Services Fund.

(7) An agency may transfer vehicles throughout its agency as needs change.

(8) Vehicles that are used exclusively in education for the purposes of teaching automotive technology or developing and testing new automotive technologies are outside the scope of this rule.

(9) The SSFV is a compact sedan, which shall be the vehicle type most commonly used when conducting state business. When adequate infrastructure is available, the SSFV will be an AFV.

R27-4-3. Vehicle Acquisition Criteria.

(1) All state vehicles shall, subject to budgetary or market constraints, be replaced in accordance with the established replacement cycle for that vehicle, unless the division and the leasing agency agree to other terms.

(2) Before purchasing expansion or replacement vehicles, the division shall provide each agency contact with a list identifying any underutilized vehicles within their fleet, all vehicles that are due for replacement, and the SSFV that will be purchased to take the place of each vehicle that is on the list as due for replacement.

(3) The division shall work with the agency to determine the appropriate vehicle to purchase.

(4) Agencies may request a non-SSFV only if one or more of the following justifications are cited:

(a) passenger space;

(b) type of items carried;

(d) police pursuit capacity;

(e) off-road capacity;

(f) 4x4 capacity;

(g) emergency service capacity;

(h) attached equipment capacity;

(i) average driving range; or

(j) other justifications as approved by the division director or designee.

(5) If a non-SSFV is replaced, it will be replaced with a non-SSFV matching the specification of the prior vehicle unless the agency requests a change.

(6) Agencies may petition the executive director of the department, or the executive director's designee, for a review if the division director or designee denies a request to replace a state vehicle with a non-SSFV.

(7) Where practical, an AFV will be purchased for use in the state fleet.

(a) The division is responsible for ensuring that the state fleet complies with federal AFV and Environmental Protection Agency (EPA) mandates.

(b) The division may require that a certain number of vehicles, regardless of the requesting agency, be alternative fuel vehicles to ensure compliance with these mandates.

(8) All agencies exempted from the division's replacement program shall provide the division with a complete list of intended state vehicle purchases before placing the order with the vendor.

R27-4-4. Vehicle Replacement.

(1) Agencies may request replacement of vehicles with a history of excessive repairs. A request to replace vehicles with a history of excessive repairs is subject to budgetary constraints and the approval of the division director or their designee.

(2) Agencies may petition the department's executive director, or the executive director's designee, for a review if the division director or their designee denies a request for the replacement of state vehicles with a history of excessive repairs.

(3) The division and agency shall coordinate timely exchange of vehicles upon delivery of a new vehicle.

(4) Agencies that have a need to keep an already replaced vehicles are to inform the division in writing of this need. The division shall offer a Memorandum of Understanding to the agency to allow the agency to continue to lease the already replaced vehicle for an agreed upon term, typically 18 months. When the term expires, the vehicle must be returned to the division for disposal.

(5)(a) If the requesting agency receives legislative approval for placing a do not replace vehicle on a replacement cycle, the requesting agency shall provide the division with proof of approval.

(b) In no event shall the division purchase a replacement for the do not replace vehicle if the requesting agency fails to provide funds necessary to cover the depreciation costs.

R27-4-5. Fleet Expansion.

(1) Any expansion of the state fleet requires legislative approval.

(2) Before seeking legislative approval, Agency must contact division to discuss available options.

(3) Agencies shall provide proof to the division of the requisite legislative approval and funding for any requests to purchase a vehicle which will expand the state fleet, or for any requests to place do not replace vehicles on a replacement cycle. An agency shall be deemed to have the requisite legislative approval for purchasing expansion vehicles or for placing do not replace vehicles on a replacement cycle only if these actions are explicitly authorized by the Legislature.

(4) The following constitute acceptable proof of Legislative approval of the requested expansion or placement of a do not replace vehicle on a replacement cycle:

(a) written communication with the agency confirming authorization and citing the specific line item in the appropriations bill providing said authorization;

(b) written verification from the agency's analyst in the Governor's Office of Planning and Budget or the Legislative Fiscal Analyst indicating that the request for expansion was authorized by the Legislature; or

(5) When needed, the division shall provide copies of the proof to the division of Finance to transfer funds from the requesting agency to the division.

(6) Upon purchase, the expansion vehicle shall be added to the state fleet and a replacement cycle shall be established.

R27-4-6. Vehicle Feature and Miscellaneous Equipment Upgrade.

(1) Any additional vehicle features or miscellaneous equipment added to vehicle which increase the overall cost of the vehicle shall be deemed vehicle feature and miscellaneous equipment upgrades. A feature or miscellaneous equipment upgrade occurs when an agency requests:

(a) that a replacement vehicle have a non-standard feature. For example, when an agency requests that an otherwise standard replacement vehicle have a diesel rather than a gasoline engine; or

(b) the installation of additional miscellaneous equipment is not installed by the vehicle manufacturer. For example, when an agency requests that light bars or water tanks be installed on an otherwise standard replacement vehicle.

(2) Requests for miscellaneous equipment upgrades shall be made in writing by the agency's assigned fleet contact and, shall present reasons why the upgrades are necessary to meet the agency's needs.

(3) All requests for miscellaneous equipment upgrades shall be subject to review and approval by the division director or their designee. The division director or their designee shall approve any vehicle feature or miscellaneous equipment upgrades upon determining that they are necessary and appropriate for meeting the agency's needs.

(4) Agencies may petition the executive director of the department, or the executive director's designee, for a review if the division director or their designee denies a request for a miscellaneous equipment upgrade.

(5) Miscellaneous equipment upgrades must be paid for by the agency. A miscellaneous equipment upgrade fee shall be assessed to the agency, which will cover the total cost associated with providing the additional miscellaneous equipment. The agency may pay the fee in installments or upon purchase as agreed upon with the division.

(6) Agencies that agree to installment payments shall indemnify and make the division whole for any losses incurred from damage to or loss associated with the state vehicle or its miscellaneous equipment.

R27-4-7. Agency Installation of Miscellaneous Equipment.

(1) The division may enter into a Memorandum of Understanding allowing agencies to install miscellaneous equipment on state vehicles if the agency has the necessary resources and skills to perform the installations.

(2) The agency shall enter the following information regarding the miscellaneous equipment into the division's fleet information system, regardless of whether the item is held in inventory, currently installed on a vehicle, or sent to surplus:

(i) item description or nomenclature;

(ii) manufacturer of item;

(iii) item identification information for ordering purposes;

(iv) procurement source;

(v) purchase price of item;

(vi) expected life of item in years;

(vii) warranty period;

(viii) serial number;

(ix) initial installation date;

(x) current location of item;

(xi) anticipated replacement date of item;

(xii) actual replacement date of item;

(xiii) date item was sent to surplus; and

(xiv) SP-1 number;

(3) Agencies shall indemnify the division for any damage to, or loss of, miscellaneous equipment installed on state vehicles;

(4) The division shall provide training and support services for the fleet information system and charge agencies a Management Information System (MIS) fee to recover these costs.

R27-4-8. Cost Recovery.

(1) State vehicles shall be assessed rates designed to recover vehicle costs; a division administrative fee; MIS fee; and where applicable, the variable costs associated with each vehicle.

(2) The division shall calculate the vehicle payback and associated rates according to the vehicle's cost, the vehicle's expected service period, and any agreement made with the agency.

(3) If a vehicle is turned in for replacement earlier than expected under the applicable replacement cycle:

(a) the division may require the agency to pay the remaining balance of the vehicle; and

(b) a rate containing a shorter replacement cycle period may be implemented for the replacement vehicle.

(4) The division shall begin the monthly billing process when the agency receives notice in writing that the vehicle is ready for service.

R27-4-9. Executive Vehicle Replacement.

(1) Executive vehicles are available only to employees who are assigned a vehicle as part of their compensation package, in accordance with state statute.

(2) Executives may select any vehicle that is reasonable, allowed within purchasing code and rule, and within the budget available from their agency.

(3) Executives may elect to replace their assigned vehicle at the beginning of each elected term or appointment period, or as deemed necessary for the personal safety and security of the elected or appointed official.

(4) An executive vehicle shall be sold in accordance with State Surplus Property Program policies and procedures.

(5) The agency shall budget and pay for executive vehicles the same as other vehicles in their fleet.

R27-4-10. Capital Credit or Reservation of Vehicle Allocation for Surrendered Vehicles.

(1) If an agency voluntarily surrenders a vehicle to the division under the capitalization credit program, the agency shall receive a capital credit allowing the agency to retain authorization toward a replacement vehicle.

(2) If an agency voluntarily surrenders a vehicle to the division the division shall:

(a) hold the vehicle allocation open; and

(b) maintain the surrendering agency's capital credit for a period not to exceed the remainder of the fiscal year within which the surrender took place, plus an additional five fiscal years.

(3) If the surrendering agency does not use the credit within the timeframe established in Subsection (2)(b), the credit will be transferred to the Division for an additional five fiscal years. The division may use the credits to:

(a) expand shared motor pools; or

(b) reallocate an authorized vehicle count to another agency.

(4) Before reallocation under Subsection (3)(b), the following requirement shall be met:

(a) the requesting agency shall undergo a utilization assessment lead by the Division; and

(b) the division shall report the reallocation to the Office of the Legislative Fiscal Analyst.

(5) Upon expiration of an unused credit transferred to the division under Subsection (3), the authorized count of vehicles in the state fleet shall be reduced.

(6) The division shall not hold vehicle allocations or provide capital credit to an agency when the vehicle that is being surrendered:

(a) has been identified for removal from the state fleet to comply with legislatively mandated reductions in state fleet size;

(b) is identified as a do not replace vehicle in the fleet information system;

(d) is a seasonal vehicle that has already been replaced.

(7) Any agency that fails to request the return of a voluntarily surrendered vehicle before the end of the period set forth in this section must comply with the requirements of Section R27-4-5, Fleet Expansion, to obtain a vehicle to replace the one surrendered.

R27-4-11. Inter-agency Vehicle Reassignment or Reallocation Guidelines.

(1) The division may reassign, reallocate, or eliminate the replacement of vehicles that are chronically out of compliance with the applicable utilization standards when:

(a) intra-agency reassignment or reallocation of vehicles fails to bring vehicles into compliance with applicable replacement cycle mileage schedules within a replacement cycle; or

(b) a cost-benefit analysis on the time the vehicle is used does not warrant the vehicle to remain within the agency.

(2) If the division requires an agency to relinquish a vehicle due to a reassignment or reallocation, the agency may petition the executive director of the GOPB, or the executive director's designee, for a review. Vehicles that are the subject matter of petitions for review shall remain with the agency until the executive director of the GOPB or the executive director's designee renders a decision on the matter.

KEY: fleet expansion, vehicle replacement

Date of Last Change: February 21, 2023

Notice of Continuation: August 3, 2026

Authorizing, and Implemented or Interpreted Law: 63A-9-401(1)(a); 63A-9-401(1)(d)(v); 63A-9-401(1)(d)(ix); 63A-9-401(1)(d)(x); 63A-9-401(1)(d)(xi); 63A-9-401(1)(d)(xii); 63A-9-401(4)(ii)