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Report: No Savings for Pittsburgh Fleet from Outsourced Maintenance

September 21, 2006

The city of Pittsburgh is not yet realizing savings from outsourcing its fleet maintenance, the Pittsburgh Tribune-Review reports.Mayor Tom Murphy expected savings of as much as $1.8 million a year when he hired First Vehicle Services of Cincinnati to take over vehicle maintenance. A city controller's audit released this week implies otherwise.There is a discrepancy in how much the city owes First Vehicle Services, hired on a three-year contract for $11.7 million. Acting City Controller Anthony Pokora says the city must pay an extra $5.4 million to First Vehicle Services. Pokora said that savings for vehicle maintenance under First Vehicle is about $500,000 over three years, not the $5.5 million the city predicted two years ago.The audit criticizes First Vehicle's performance but does not compare it to how the garage operated before privatization. The audit said First Vehicle keeps poor records on repair jobs. City vehicles have required too many repeat repairs, and repairs are being made to vehicles well past their useful life spans.The audit referenced a 2003 police car that had 15 tires replaced in 11 months. A region manager for First Vehicle says the auditors relied on less than a year's worth of data and it is too soon to draw conclusions, the Pittsburgh Tribune-Review reports.
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