Number PPP 17

Effective 6/21/05
Replaces 5/5/98

Purchasing Policy and Procedure

Vehicles, Purchase/ Lease, New/ Used, Replacement and Disposal

1. POLICY:

The UW-Madison Fleet Program Officer is responsible for the coordinated management of UW-Madison Vehicles. The Fleet Program Officer works with UW System Administration and the Wisconsin Department of Administration (DOA) in the development of vehicle use, procurement, and disposal standards, including reporting requirements. All data on vehicles must be current and maintained by the Department in cooperation with the Fleet Program Officer. All data must be recorded in the State Fleet Database. The Fleet Program Officer will work with UW-Madison departments requiring vehicles to carry out department programs to ensure needs are met, vehicle use is in compliance with the established standards, and the most efficient use is made of each vehicle.

DEPARTMENT VEHICLE COORDINATOR
A Department Vehicle Coordinator (DVC) is appointed for each division, college, or school to work with the Fleet Program Officer on all vehicle related issues. The DVC’s assist in developing and reviewing UW-Madison Central Fleet (UW-Fleet) policies and facilitate the implementation of those policies. The coordinators are also a resource to explore opportunities for sharing vehicles, rotating vehicles to ensure maximum usage, and providing information as needed to the Fleet Program Officer.

VEHICLE DEFINITION
Any automobile, truck, motor bus, self-propelled, motor-driven vehicle.   Donated vehicles and/or vehicles required by grants or gifts are not exempt from these policies and procedures.

VEHICLE PURCHASING STANDARDS
A vehicle replacement request may be made when it meets any of the following criteria. Estimates and/or other written proof is required. Digital photos are recommended.

Unsafe and/or uneconomical to operate.

Estimated repair cost exceeds fifty percent (50%) of the current book value used by UW Madison Risk Management.

Current DOA standards for miles/age are met.

In addition to the minimum replacement standards, custom-equipped vehicles require a special replacement justification. The justification must include the following elements: specific service performed by the vehicle, special requirement related to materials and/or tools transported by the vehicle, estimated annual mileage, estimated annual number of hours in service, and feasibility of contracting for the service associated with the vehicle.

VEHICLE LEASING
A vehicle lease is a contract between the University and a vendor to provide a required vehicle for 30 days or more. A vehicle rental is a short-term contract of 29 days or less. Leasing from outside vendors may be requested when: 1) a UW-Fleet Vehicle is not available and/or: 2) Federal funds are used that specifically prohibit purchasing a vehicle; or 3) funds available are insufficient for purchasing a vehicle. Leases for more than 30 days require DOA review and approval per the current Procurement Information Memos (PIM). DOA purchasing guidelines prohibit sequential thirty (30) day leases. Contact the Fleet Program Officer to obtain DOA approval. All reporting and record keeping requirements as if the vehicle is owned will apply.

The authority to rent a vehicle for less than thirty (30) days has been delegated to the University and routine purchasing procedures should be followed. Renting should only be done when UW and DOA fleet vehicles are not available.

UW Madison Risk Management will provide the appropriate insurance coverage for all leased vehicles. For leases of 30 days or more Risk Management and the Fleet Program Officer must receive the following information before the lease begins:

Copy of the contract with all terms and conditions completed.

Vehicle Year, Make, Model, Color, Warranty, Fuel Type, Engine Description, Transmission Description, Vehicle identification number, Delivery Date, Miles @ Delivery.

VEHICLES PURCHASED OUT-OF-STATE AND IN FOREIGN COUNTRIES are not exempt from these polices and procedures. Vehicles acquired for specific research projects or programs used in other U.S. states will be purchased and titled through UW Fleet and transported to its use location. Acquisition and disposal of these vehicles must comply with state regulations and the project sponsor When UW-Madison has title to a vehicle, at the completion of the project the vehicle will be declared surplus and disposed of through grant requirements, special agreements, or state procedures per DOA Procurement Manual Section PRO-F-1. Special insurance must be acquired for foreign based vehicles. Call Risk Management at 262-0375 for additional assistance.

VEHICLE DATA BASE
A data base has been created and will be maintained by UW Fleet as an adjunct to records placed on the University's capital equipment inventory management system maintained by Property Control. Department Vehicle Coordinator’s will supply data and verify the accuracy of records for all vehicles. In addition to this, departments are responsible to comply with DOA reporting requirements for the state fleet database.

Administrative Fees DOA and UW Fleet assess administrative fees. Consult with the UW Fleet Program Officer as these fees change from year to year.

2. PROCEDURES

REQUESTS FOR TEMPORARY VEHICLE USE
If a department has a need to use a vehicle, a request should be made to the Fleet Program Officer. The request should include the beginning and ending dates, estimated total mileage or monthly mileage, a requested type of vehicle, and a description of the activities the vehicle will fulfill.

VEHICLES AVAILABLE FOR TEMPORARY USE
If a department operates an under utilized vehicle, it is subject to review. The Fleet Program Officer may either find more usage or reassign the vehicle.

RESEARCH VEHICLE
Prior to receiving a research vehicle when a purchase order is required involving either sole source or a bid process, an RPA must be processed by Purchasing Services.

DISPOSAL PROCEDURES

SURPLUS PROPERTY DECLARATION--REPLACEMENT VEHICLES.
When requesting a replacement vehicle, departments must complete the Vehicle Request Explanation Form (DOA 3016) identifying the vehicle to be replaced. Contact UW Fleet Program Officer about any replacement requests or surplus property declarations.

The DOA 3016 form is used to declare the vehicle surplus and request a replacement.

All vehicles will be sold at the DOA State vehicle auctions unless special circumstances prohibit sale at public auction.

The replacement vehicle must be available for sale within 60 days of the date the new vehicle is delivered. This means it is cleaned and prepped for auction with the condition report completed, all UW signs/logos/markings/radios/equipment removed, and available for the auctioneer to pick up and transport to the auction site.

DOA will schedule vehicle auctions. The Fleet Program Officer will notify departments when vehicles are scheduled to be sold.

The Fleet Program Officer will be responsible for having vehicles inspected and repaired prior to sale. The department will be responsible for all costs of preparing a vehicle for sale. Preparation cost will be deducted from the gross sales price of the vehicle.

If a vehicle to be sold is not in operating condition, it may be sold "as is." The Fleet Program Officer will be responsible for having the vehicle towed to the auction site. The department will be responsible for all costs of towing. The towing cost will be deducted from the gross sales price.

Following sale, the department will be issued a credit on their accounting control ledger statement for the net sales price of the vehicle (all costs of sale will be itemized). In some cases net proceeds are required to be deposited to the State Budget Stabilization fund see DOA Procurement Manual PRO-F-1.

The Fleet Program Officer will be responsible for data entry to the central database noting the disposition of a vehicle.

SURPLUS PROPERTY DECLARATION-OTHER. In the event a vehicle is involved in an accident and is totaled (not repairable), the department must report this to Risk Management and the Fleet Program Officer.

The Fleet Program Officer will prepare a Request and submit it to DOA and copy to State Surplus Property for approval for disposal other than by auction.

If a vehicle involved in an accident is considered a "total loss," the vehicle will be disposed of by Risk Management in accordance with standard claims procedures.

The department will be reimbursed for the actual cash value less deductible the vehicle by Risk Management. Proceeds from the disposal of the vehicle will be returned to Risk Management.

SURPLUS PROPERTY DECLARATION--SPECIAL PURPOSE VEHICLES

When vehicles are acquired for a specific program or project that has a definite end date, the vehicle(s) associated with the project must be disposed of when the project ends.

When a project or program ends the department is responsible for notifying the Fleet Program Officer that a vehicle is available for disposition.

If a department wants to retain the vehicle, another vehicle must be identified for disposal.

The Fleet Program Officer will be responsible for completing the Surplus Property Declaration Form and submitting it to DOA. The method of disposition will be determined on a case by case basis.

If the project sponsor's terms specify the method of disposition, the department is responsible for notifying the Fleet Program Officer of these requirements. The Fleet Program Officer will confirm the information with Research Administration.

VEHICLE LEASING PROCEDURES

Contact UW Fleet Program Officer to see if UW Fleet or another state fleet can meet your needs.

RENT FOR LESS THAN THIRTY DAYS
A request to rent a vehicle for less than thirty days is made through the routine requisition process.

To request a Rental vehicle submit a funded requisition to the Purchasing. The requisition must include time period when vehicle is needed, description of the type of vehicle needed, and estimated cost of the lease.

LEASES FOR MORE THAN THIRTY DAYS
DOA authorizes purchases for all leases for more than thirty days per current Procurement Information Memorandum. The approval process is lengthy and may involve the direct review of the Governor.

Departments should submit a requisition through their regular process along with a written justification for the lease to the Fleet Program Officer.

The Fleet Program Officer and Purchasing Services will prepare the request for purchasing authorization and submit it to DOA.. Special circumstances justifying sole source leasing should be explained in the justification memo.

All insurance for leased vehicles will be handled by UW-Madison Risk Management. The department must report the make, model, year and market value of the leased vehicle to Risk Management prior to the beginning date of the lease. Failure to report this information will mean the department assumes all risk.

All reporting/record keeping requirements that apply to owned vehicles also apply to vehicles leased for more than thirty days.

The following must be provided to the Fleet Program Officer and Risk Management Prior to signing the lease contract:

  1. Copy of the contract with all terms and conditions completed.
  2. Vehicle Year, Make, Model, Color, Warranty, Fuel Type, Engine Description, Transmission Description, Vehicle identification number, Delivery Date, Miles @ Delivery.

VEHICLE DATA BASE REPORTING PROCEDURES

DATA BASE VERIFICATION AND UPDATE
At least each fiscal year DVC’s will be sent a report listing the vehicles operated by the division. The DVC’s should review and verify all information listed in the report and return it to the Fleet Program Officer.

The current mileage on all vehicles must be reported monthly in the State Fleet Database. This is accomplished by making use of the Fleet internet Portal. Each vehicle must have a Risk Management approved driver recorded as a contact and that person is responsible to log in to the fleet portal monthly to report miles.

The Fleet Program Officer and/or DOA will publish other reporting requirements and Departments are responsible to comply with them.

DATA ENTRY
The Fleet Program Officer will facilitate all data entry; Departments are responsible for providing correct and timely information.

Data for new vehicles will be entered at the time the vehicle is registered.

Disposition data will be entered at the time the vehicle is sold.

If a vehicle is totaled, it is the responsibility of the DVC report this fact to the Fleet Program Officer to ensure accurate records and to initiate replacement procedures.

CONTACTS: UW-Madison Fleet Program Officer, 262-5689; Vehicle titles and licensing, 265-6253

 

REFERENCES

PRO F 1, State Statute 20.915

PRO-D-16 State Procurement Manual