Enterprise pilot program : closed-end/step-down "walk away" lease

As a former state auditor, I'm concerned about accountability and stewardship of the vehicles; DJJ has instituted, what I feel are pretty comprehensive controls in making sure we get our money's worth...
-Doug Peetz, DJJ
Fleet Plan Goals and Objectives: 1. Reduce overall state fleet size by
10-15% 2. Leverage capital dollars to reduce
state appropriations needed to acquire vehicles 3. Reduce vehicle repair costs 4. Reduce fuel expenses by 5-8% 5. Increase vehicle safety reducing state's overall liability exposure 6. Increase vehicle reliability reducing effect of downtime expenses 7. Decrease state's CO2 footprint improving health and air quality 8. Improve state efficiencies by increased employee productivity and morale
DID YOU KNOW?
Agencies can avoid $1m in POV paid drivers operating over 14,000 miles/year.
Leasing can reduce cents per mile from .50 to .29 with 4-5 year lease.
DOAS repository lists fleet inventory; 30% of repair data and 60% of fuel transactions.
DOAS increased use of ARI repair contract by 87% in 2009.
DOAS reports 25% of fleet uses ARI repair contract services.
ARI reports 47 drive-train failures occurred between JanJun 2009 costing $113,576.
DOAS fuel contract throughput in 2009 was 1.2m gallons at cost of $36.7m.
Lease program captures "total costs of fleet operation".

Enterprise Pilot Program Closed-End/Step-Down "Walk-away" Lease
Why state needs leasing solution as fleet tool?
State agencies are dodging fleet policy to meet critical transportation needs. State agencies cannot procure adequate funds to purchase/replace vehicles timely. State paid approximately $10.4m to drivers in 2009 for POV use. State paid 10 drivers over $10,000 each in 2009 for POV use. State paid 18,450 state drivers total of $16.2m in 2008 for POV use. State paid 9 state drivers over $20,000 each in 2008 for POV use. State paid a single driver $29,534 in 2008 for POV use. State vehicle allocation has become a barrier to agencies' making wise economic fleet
decisions (e.g. DECAL leased 1 vehicle versus 13 potential vehicle applications.) State's aging fleet is creating agency "hoarding behavior" to maintain spares. State agencies are choosing "bad" transportation alternatives to save budget dollars.
Department of Juvenile Justice (DJJ) Leasing Program Success!
BAD - Procuring transportation using POVs for high mileage use (AVG = $.55 CPM)
o DJJ discovered they were paying 50 users' excessive POV reimbursements for miles traveled between 20,000 and 32,000 miles/year.
o DJJ estimated 50 drivers would be paid $913,477 for POV use to procure client transportation to fulfill their mission.
o DJJ analysis found using "daily rentals" on state contract would be more cost-effective than paying drivers for POV use.
BETTER Procuring transportation using daily rentals vs. POV use (AVG = $.40 CPM)
DJJ use of daily rentals reduced POV expenses paid to drivers by $302,750 annually. DJJ estimated total cost avoidance switching from POV use to daily rentals would yield
$1,426,924 in 4 year period.
BEST Procuring transportation using leases vs. daily rental use (AVG = $.29 CPM)
DJJ leased 52 vehicles using DOAS Pilot Program at reduced rate versus daily rental solution avoiding additional $130,522 annually.
DJJ estimated total cost avoidance switching from daily rentals to leases would yield additional $715,602 dollars in 4 year lease period.
DJJ found leases would reduce monthly repair from $52 down to $42 and total avoidance would be $24,960 for 52 vehicles over 4 year period.
DJJ found leasing newer vehicles could reduce fuel costs up to 8% compared to 9 year old fleet.
Additional "Pilot Program" Benefits
Leasing reduces sunk costs of owning allowing state to "pay as it goes for vehicles versus pay before it goes" alleviating agency hoarding behaviors.
Leasing naturally reduces state fleet size by allowing surplus to sell older vehicles no longer needed as spares to backup less reliable front-line units.
Leasing reduces state fleet age which decreases excessive repair costs, fuel, downtime, and employee time wasted.
Leasing newer vehicles leverages purchasing dollars, increases vehicle reliability, safety and reduces potential accident litigation costs.
Leasing significantly reduces agency POV and fleet budget expenses.