Arizona Transportation Department saves $6M managing state vehicle fleets

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The Arizona Department of Transportation (ADOT) took over the management of fleet vehicles last year for more than 60 state agencies, a move that has saved the state more than $6 million.

“The fleet consolidation effort is a win-win for taxpayers and the state,” ADOT Director John Halikowski said. “We are already witnessing savings by reducing the size of the state’s fleet, ordering in bulk, and selling vehicles online. We are creating uniform guidelines and processes that will maximize resources and provide improved service to customers.”

Consolidation reduced the number of underutilized sedans, minivans, half-ton pickups, and SUVs. ADOT sold more than 1,000 vehicles and received 15 percent above Blue Book value on average.

The state fleet operations follow the same guidelines. ADOT changed preventative maintenance schedules from 6,000 miles to 8,000 miles within manufacturers’ guidelines.

Consolidation also leads to a standardized vehicle replacement system and a cost-savings statewide fleet tire policy.

When ADOT must replace vehicles, it can take advantage of savings by leveraging order size.

Consolidation was included in the overall state budget package at the close of the 2021 legislative session. ADOT was given the authority to consolidate the fleet and implement standardized best management practices to reduce duplication, cut costs and improve processes.