We should stop paying approximately $30.00 - $50.00 for each government vehicle oil change for an estimated fleet of 600,000 vehicles government wide. Currently, we use hundreds of oil change facilities including national brands, car dealerships, etc. I recommend that we negotiate flat rate fee's for individual oil changes at 3-5 national brands and implement guidance for using these brands. If a designated brand is unavailable in certain areas, use spending limits of $25.00 - $35.00 per oil change.
Take our estimated number of 600,000 government fleet vehicles (per N. Roland, Automotive News 3/30/2011). If we negotiate a flat rate and estimate a very light savings of $1.00 per oil change with each vehicle getting two per year, this small change in how we obtain oil changes =1.2 million dollars in savings. More than likely we will obtain a more significant savings than $1.00 per oil change equaling tens of millions in savings.
In summary, reducing the cost of an individual government vehicle oil change is outright easy to implement and achieve. The overall savings to the large fleet of government vehicles (600,000+) will undoubtly exceed many millions.