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PHH Contract / Corporate
Fleet Management Overview
Presented by PHH Vehicle
Management Services Inc. and Purchasing Services Branch
Welcome
Larry Wolfe, PHH Vehicle
Management Services, Vancouver 1-888-681-5426 ext.15
Brian Sugrue, Purchasing Services
Branch, Shared Services BC, Victoria
(250) 387-7334
Duncan McLelland, Purchasing
Services Branch, Shared Services BC, Victoria
(250) 387-7312
Contract
History
1997 government issues RFP
to sell / lease-back light vehicle fleet, and to outsource fleet services
1998 PHH awarded contract
2005 government issues RFP
for leasing and outsourced fleet services
2006 PHH awarded contract
Contract
Overview
2006 through 2013, with option
for single, two year extension
All ministries participate
Thirteen non-ministry organizations
Approx. 3,000 leased vehicles
Total 5,500 vehicles receiving
PHH services
Annual value of payments to
PHH, including flow-throughs to 3rd parties, $30+ million
Vehicle
Shared Services
PHH contract managed by Shared
Services BC
Blend of PHH service delivery
and Purchasing Services delivery
Government retained role where
we can implement standards and achieve procurement savings
PHH Services
Overview
Light vehicle leasing and
disposal
Vehicle procurement
Service (procurement) cards
Repair authorization
Fuel, tire and glass supplier
networks
Insurance and registration
administration
Accident management services
Notification administration
Roadside assistance
Consulting & benchmarking
PHH Interactive
Shared
Services BC Role
PHH contract management
Corporate fleet management
coordination
Light vehicle selector specification
& ITQ
Service centre specification
& procurement
Executive lease program
Non-lease vehicle procurement
Insurance negotiation (thru
Risk Management Branch)
Fleet policy development &
implementation
Vehicle
Policy
Core Policy & Procedure
Manual Chapter 11 00Transportation
www.fin.gov.bc.ca/ocg/fmb/manuals/CPM/11_Transportation.htm
Customer
Liaison
Ministry / organization fleet
coordinators
Quarterly working committee
meetings
Annual ministry / organization
& government wide fleet reviews
00ust a call away00PHH
service
PHH Interactive
Purchasing Services website
(under renovation)
Single
Help Desk
Number
1-866-574-4224
Use for:
roadside assistance
Glass Manager
VMA assistance
accident services
odometer reporting
PHH Interactive support
PHH Interactive
Identified users have secure on-line
access to all vehicle related data, through PHH InterActive, including:
Fuel Costs / Usage
Inventory / Purchase Records
Lease / Disposal Information
Maintenance Costs / History
Monthly Billing Information
Report Catalogue
Access to on-line vehicle
data, including lease costs, fuel costs/usage, maintenance & repair
costs/history, monthly billing and disposal proceeds information.
Lease
Highlights
Capital leases (for all participants)
Lease term for cars: 84 months
(7 years)
Lease term for pickups, vans,
SUVs: 72 months (6 years)
Monthly depreciation amount:
1/72 (or 1/84) of vehicle capital (purchase) price
Monthly floating interest
rate tied to Bank of Canada rate, applied to outstanding book value
(capital cost 00accumulated depreciation)
Monthly lease charge = depreciation
+ interest + PST
(+ GST if applicable)
Minimum lease period 12 months
May return to PHH anytime
after 12th month
On disposal owe PHH net book
value of vehicle
If net disposal proceeds less
than book value, then difference paid by client to PHH
If net disposal proceeds more
than book value, difference credited directly to client (including ministries)
by PHH
Thereafters,
Carrying Costs & Rent
Carrying Costs 00interest
charged on delayed pick-up units; e.g. upfitting
Thereafter Fees - $35 per
month for vehicles past last month of lease term where replacement on
order
Rent 00amount equal to 1/72
of vehicle capital cost, charged for each month beyond 72nd
month where no replacement on order
Vehicle
Selectors
Province has adopted 53 classes
of standard light vehicle types
Cover all program delivery
needs
Includes cars, vans, pickups
& SUVs of one ton and smaller
Also hybrids
Identified by unique 00elector00
codes
Each 00elector00includes
a base vehicle specification, plus approved option packages
Province fleet is a 00tilitarian00
fleet; upscale makes, models and option packages not included
Selecting
Manufacturers
Purchasing Services issues
annual tender, factory direct pricing, based on standard selector specifications
Daimler Chrysler, Ford, General
Motors, Subaru, Toyota indicate which model will be bid, by selector
For each selector single manufacturer
awarded all business, based on price
PHH purchases vehicles from
factories at prices established by the Province
Vehicles factory ordered,
delivered to local dealer selected by PHH
Results in exceptional discounts
to the Province
Vehicle
Ordering
Ministries / organizations
responsible for vehicle acquisition / re-assignment / disposal decisions
Ministries / organizations
identify number and class of vehicle required, and necessary options
00equisitions00(orders)
submitted directly to PHH 00Purchasing Services not involved
Order period November 1 to
January 31 (recommended)
Requisitions MUST be routed
through fleet coordinator. Some ministries / organizations limit the
classes / options that may be acquired.
Plan on 8 0010 weeks between
submission of Requisition and delivery from factory to local dealer
Vehicle
Acceptance
Local offices responsible
for taking acceptance of vehicles
Confirm that vehicle as delivered
matches PHH Requisition before accepting
You will be asked to sign
the dealer00 order copy accepting delivery
PHH arranges for insuring
and registering of vehicle prior to acceptance
Each vehicle to have full
tank of fuel
PHH will send Service Card
to fleet coordinator for forwarding to you
No other actions necessary
at field office level
Upfitting
Ministries / organizations
identify need and specify requirements
3 types of upfitting:
dealer installed (ordered
through PHH at time of vehicle order)
00ff the shelf003rd
party suppliers; e.g winches and bumpers
fabrication & installation;
e.g. incarceration units & Conservation Officers involving custom
metal fab. and electronics installation
3 sourcing options:
acquire directly
acquire through PHH
acquire through Purchasing
Services
Insurance
& Registration
Province carries minimum 3rd
party insurance through ICBC, otherwise self-insures
PHH registers and insures
new leased vehicles
Ministries / organizations
do for owned vehicles
Monthly rental suppliers do
for rentals
PHH manages annual renewal
of all vehicles covered by Province00 ICBC policy
Decals and paperwork forwarded
to ministries / organizations in October of each year
CVIP and AirCare reminders
Service
Cards
Red
Card 00
permits charges of all maintenance/repair services, in addition to discounted
fuel purchases, at all authorized facilities throughout the province.
Blue
Card 00
permits discounted fuel purchases at major branded fuel outlets &
approx. 75 independent small community suppliers.
Requesting
Cards
PHH automatically issues 00ed00
cards to all new leases
Ministries / organizations
request 00lue00cards through fleet coordinator for owned and monthly
rented vehicles
May request 00ed00cards
for owned and rented units
Lost,
Stolen, Cancelled Cards
Lost & stolen cards:
call fleet coordinator immediately or PHH Vancouver at:
1-888-681-5426
ext. 20
Limited liability to Province
in terms of losses, provided PHH promptly notified
If a card is no longer required,
contact your ministry / organization fleet coordinator to arrange for
cancellation
Fuel
PHH has volume discount pricing
in place with all major oil companies and large independents, plus selected
local suppliers
Recommended order of priority
for purchases:
Tier One
DOMO
FAS
Canadian Tire
Esso
Super Save
Tier Two Co-op
Husky Mohawk
7-11
- Tier Three
Chevron
Shell
Petro Canada
Either 00ed00or 00lue00
Service Card may be used
Tires
PHH has volume discount arrangements
with:
Bridgestone / Firestone
Dunlop
Goodyear
Michelin
Toyo
Uniroyal / Goodrich
Yokohama
Vehicles may be taken to local
dealer of any of above manufacturers
Present 00ed00card
PHH VMA authorizes transaction
For advice on tire selection
and confirmation of discounted prices, call PHH VMA at 1-866-574-4224
select Vehicle Maintenance Assistance
Discounted prices will be
shown on PHH invoice
Glass
Replacement & Repair
PHH00 Glass Manager program
offers discounted pricing, repair authorization and assurance of service
quality
Glass Manager is delivered
through Belron Glass Manager (Standard Auto Glass) and the Glass Partnership
(Speedy Auto Glass)
Both networks include their
own shops plus local independents
For advice on glass selection
and confirmation of discounted prices, call PHH Glass Manager at
1-866-574-4224
PHH invoices show glass pricing
after discounts
Maintenance
& Repair
Access to over 130 authorized
maintenance/repair facilities around the province, providing preferred
service at discounted fleet pricing.
Service
Centre Network
Ratio of 1 centre: 50 vehicles
Usually minimum of two centres
per community
CSAs awarded by zone in Victoria,
Vancouver, Nanaimo, Kamloops, Prince George
Total 131 centres province-wide
Network includes local independents,
dealerships and chain outlets
Re-tendering in several small
communities
Repair
Process
Vehicle may be taken to any
centre holding CSA
Present PHH 00ed00card
Service centre will conduct
initial assessment and call PHH VMA if work > $200
PHH VMA reviews recommended
work and pricing, and authorizes if acceptable
Repair work undertaken
Operator accepts vehicle and
signs work order
PHH pays only approved charges
PHH bills ministry / organization
monthly for 3rd party charges
Client
Approval
For maintenance and repairs
< $200 centre may proceed on client00 say so 00don00 have to
call PHH VMA
For repairs between $200 and
$750 PHH authorizes without obtaining client approval
For repairs > $750 PHH
VMA must call designated ministry / organization contact for approval
to authorize
Some ministries; e.g. MOT
have $1000 threshold
Prince
George
Service Centres
928 4th Ave
Prince George Auto Tech Inc.
1039 Great St
Fountain Tire
1073 West Central St
Kal Tire
1995 20th Ave
Northland Dodge Chrysler Ltd.
1764 Queensway
Fort George Alignment
710 2nd Ave
Esslinger Motors
1702 Lyon St
B & F Auto Service
Accident
Management
PHH Accident Management Program provides
a range of client services:
Immediate focus on driver/passenger
needs
Roadside Assistance, toll-free,
24/7
Notification to client
Repairs by ICBC Certified
Auto Repair Centres
Coordination / administration
through Shared Services and Risk Management when appropriate
In An
Accident?
Call 1-866-574-4224, select
Accident Services
Provide accident services
technician with details
Incident number issued
PHH will direct driver / operator
to recommended ICBC 00.a.r shop00approved location
Provide incident number to
shop and direct shop to call PHH at 1-866-574-4224
PHH takes responsibility for
negotiating, authorizing, paying repairs
Obtain PHH Driver00 Accident
Report via email at: BCGOV@PHH.com
Complete DAR and fax back
to PHH
Accident
Reports
First Notice of Loss compiled
by PHH during initial call 00copy to ministry fleet coordinator
Driver00 Accident Report
to be faxed to PHH
Original of DAR retained by
driver, with copy to fleet coordinator
Detailed accident reports
available to fleet coordinators through PHH Interactive
PHH will provide facility
to identify accident damage > $2000
ICBC
Province of BC carries minimum
3rd party liability insurance 00otherwise self-insures
if another vehicle involved,
and is insured by ICBC, PHH Accident Services will coordinate subrogation
with ICBC and provincial Risk Management Branch and arrange for credit
of proceeds as applicable
Accidents involving out of
province vehicles not insured by ICBC handled by Risk Management Branch
(different procedures apply 00driver will be advised at the time)
Roadside
Assistance
7 x 24 support for vehicles
that no longer have access to the manufacturer00 program:
Jump starts & battery
boosts
Towing
Opening locked or frozen doors
Installation of spare tire
Topping up of up to 10 litres
of regular fuel
Pay call out fee, plus 3rd
party charges
Delivered through BCAA
Odometer
Reporting
Reported monthly to PHH for
all 00ed00card vehicles
Three reporting options:
- single spreadsheet for all units in a ministry
- toll-free IVR for individual vehicles
- driver online for individual vehicles
Available through PHH Interactive
Feed into 00M Scheduler00/font>
Critical metric for evaluating
vehicle / fleet performance
Quarterly cents / kilometre
comparisons across ministries provided to fleet coordinators
Notices
CVIP / AirCare
Recalls
Scheduled maintenance
Parking tickets & traffic
violations
PM Scheduler
Ministries / organization
fleet coordinators may request scheduled reports of maintenance due
Automatic email notification
when a vehicle is due for preventive maintenance is also an option
Fees &
Charges
PHH monthly, per vehicle fees:
lease administration
disposal administration
service card
accident management services
PHH per transaction / per
vehicle fees:
00ff selector00/ 00ut
of stock00acquisitions
new vehicle change orders
third party decal costs
up-fitting coordination /
procurement (if requested)
third party disposal costs;
e.g. auctioneers
annual insurance and registration
renewal
process parking and traffic
violation tickets
roadside assistance
Purchasing Services Shared
Services fee:
$3.25 per month per 00ed00
card
$2.25 per month per 00lue00
card
Billing
Leases: PHH submits single,
monthly invoice to Purchasing Services. Electronic chargebacks
and invoices issued to each ministry / organization to recover payments.
Fleet services (including
3rd party charges): PHH submits single, monthly invoice
to ministry / organization. Internal recoveries usually made.
Insurance: ICBC submits single,
annual premium invoice to Purchasing Services. Journal vouchers and
invoices issued to each ministry / organization to recover payments.
Billing
cont00
All transaction details (except
insurance payments) available immediately in PHH Interactive
Transaction details at vehicle,
cost centre, ministry levels
Electronic invoice option
available
Fleet coordinators receive
detailed hard copies of each invoice
Electronic
Billing
Electronic Billing
Provides the client with a secure on-line
invoice
option rather than receiving large multi-page
detailed monthly paper invoices:
PHH Electronic Billing Presentment
(EBP)
Review on-line via PHH InterActive
Reduce administrative paperwork
Audit up to 18 months of historical
payments
Remit payment the same way
as a paper invoice
Billing
Disputes
Cost centres are responsible
for verifying the accuracy of charges billed by PHH
In the event of a discrepancy
contact your ministry / organization fleet coordinator
Under our contract ministries
/ organizations pay the full amount of the invoice, with credits issued
in the next month if warranted
Vehicle
Disposal
Ministries/ organizations
determine when vehicle declared surplus for disposal, if earlier than
end of lease term
Public auctions in Prince
George and Surrey
Web based sales through Vancouver
Manner of disposal at PHH00
discretion 00to maximize sales returns under contract
Vehicles sold 00s is, where
is00/font>
PHH may undertake detailing
and minor repairs if net sale price would increase
Employees may bid on vehicles
if sold at public auction
Direct sales to employees
not permitted
General experience is that
net sales proceeds will exceed book value on disposals of vehicles 42
months or older
Disposal
Procedures
Sales Notice Form submitted
to PHH via fleet coordinator
Prompt pickup and sale within
average of 30 days and maximum of 60 days
PHH cancels registration and
insurance
24 hours notice of pickup
PHH transportation request
form must be signed by ministry/ organization and auto carrier
Ministries / organizations
responsible for declaring accident damage > $2000 to PHH
Up-fitting that must be removed
for security or safety considerations must be identified to PHH
Need Additional
Help?
First point of contact ministry
fleet coordinator. See for list: www.pc.gov.bc.ca/cmg/Vehicle%20Coordinators.htm
For contract, policy, and
service centre advice: Purchasing Services
(250) 387-7334
For PHH assistance (other
than service requests): 1-888-681-5426 Karen Carson or David Holdsworth
Thank you !!
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