Replacing Government Sedans Yearly Would Result in Fuel and Cost Savings

LCD-78-245: Published: May 8, 1979. Publicly Released: May 8, 1979.

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The General Services Administration (GSA) is the only large organization that replaces its rental fleet on a 6-year cycle. By converting to a 1-year replacement cycle GSA could save about $9.1 million a year on lower maintenance cost and higher resale values.

Commercial rental and leasing companies replace daily rental vehicles on a 1-year cycle and long-term lease vehicles every 2 to 3 years. Since 1954, 10 government studies have shown that the current 6-year or 60,000 mile replacement standard for GSA sedans is not the most economical and should be shortened. GSA has not had experience in replacing its total sedan fleet annually, therefore, it does not know what improvements could be gained.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: With the concurrence and the cooperation of the Director, Office of Management and Budget (OMB), the Administrator, GSA, should: (1) conduct a pilot study to test a 1-year replacement cycle in one or more of GSA regional motor pools; (2) adopt a 1-year replacement policy if the test results are positive; and (3) consider the merits of a 2-year cycle if the results of the pilot test prove GSA cannot effectively manage a 1-year replacement cycle. The Director, OMB, should monitor GSA efforts and evaluate the feasibility of adopting a shorter replacement standard for other civil agencies and Department of Defense sedans.

    Agency Affected:


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