PHH Contract / Corporate Fleet Management Overview: PHH Contract / Corporate Fleet Management Overview Presented by PHH Vehicle Management Services Inc. and Purchasing Services Branch


Welcome: 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: 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: 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: 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: 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: 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: Vehicle Policy Core Policy & Procedure Manual Chapter 11 – Transportation www.fin.gov.bc.ca/ocg/fmb/manuals/CPM/11_Transportation.htm


Customer Liaison: Customer Liaison Ministry / organization fleet coordinators Quarterly working committee meetings Annual ministry / organization & government wide fleet reviews “Just a call away” PHH service PHH Interactive Purchasing Services website (under renovation)


Single Help Desk Number: 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: 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: 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 – accumulated 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: Thereafters, Carrying Costs & Rent Carrying Costs – interest 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 – amount equal to 1/72 of vehicle capital cost, charged for each month beyond 72nd month where no replacement on order


Vehicle Selectors: 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 “selector” codes Each “selector” includes a base vehicle specification, plus approved option packages Province fleet is a “utilitarian” fleet; upscale makes, models and option packages not included


Selecting Manufacturers: 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: Vehicle Ordering Ministries / organizations responsible for vehicle acquisition / re-assignment / disposal decisions Ministries / organizations identify number and class of vehicle required, and necessary options “Requisitions” (orders) submitted directly to PHH – Purchasing 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 – 10 weeks between submission of Requisition and delivery from factory to local dealer


Vehicle Acceptance: 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 dealer’s 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: Upfitting Ministries / organizations identify need and specify requirements 3 types of upfitting: dealer installed (ordered through PHH at time of vehicle order) “off the shelf” 3rd 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: 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 Province’s ICBC policy Decals and paperwork forwarded to ministries / organizations in October of each year CVIP and AirCare reminders


Service Cards: Service Cards Red Card – permits charges of all maintenance/repair services, in addition to discounted fuel purchases, at all authorized facilities throughout the province. Blue Card – permits discounted fuel purchases at major branded fuel outlets & approx. 75 independent small community suppliers.


Requesting Cards: Requesting Cards PHH automatically issues “red” cards to all new leases Ministries / organizations request “blue” cards through fleet coordinator for owned and monthly rented vehicles May request “red” cards for owned and rented units


Lost, Stolen, Cancelled Cards: 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: 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 “red” or “blue” Service Card may be used


Tires: 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 “red” card 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: Glass Replacement & Repair PHH’s 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: Maintenance & Repair Access to over 130 authorized maintenance/repair facilities around the province, providing preferred service at discounted fleet pricing.


Service Centre Network: 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: Repair Process Vehicle may be taken to any centre holding CSA Present PHH “red” card 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: Client Approval For maintenance and 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: Prince George Service Centres


Accident Management: 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?: 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 “c.a.r shop” approved 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 Driver’s Accident Report via email at: BCGOV@PHH.com Complete DAR and fax back to PHH


Accident Reports: Accident Reports First Notice of Loss compiled by PHH during initial call – copy to ministry fleet coordinator Driver’s 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: ICBC Province of BC carries minimum 3rd party liability insurance – otherwise 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 – driver will be advised at the time)


Roadside Assistance: Roadside Assistance 7 x 24 support for vehicles that no longer have access to the manufacturer’s 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: Odometer Reporting Reported monthly to PHH for all “red” card 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 “PM Scheduler” Critical metric for evaluating vehicle / fleet performance Quarterly cents / kilometre comparisons across ministries provided to fleet coordinators


Notices: Notices CVIP / AirCare Recalls Scheduled maintenance Parking tickets & traffic violations


PM Scheduler: 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: Fees & Charges PHH monthly, per vehicle fees: lease administration disposal administration service card accident management services PHH per transaction / per vehicle fees: “off selector” / “out of stock” acquisitions 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 “red” card $2.25 per month per “blue” card


Billing: 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 cont’d: Billing cont’d 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 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: 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: 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 PHH’s discretion – to maximize sales returns under contract Vehicles sold “as is, where is” 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: 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?: 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


Slide47: Thank you !!