In 2011 and 2012, California Governor Jerry Brown issued a pair of executive orders that created both an opportunity and a dilemma for the Office of Fleet and Asset Management (OFAM) in the state’s Department of General Services (DGS). Brown directed OFAM—which oversees the state’s 50,000 vehicles—to reduce its fleet by 7,000 vehicles, increase the proportion of light duty fleet purchases that are Zero Emission Vehicles (ZEV) to 25 percent by 2020, and cut statewide petroleum use by 50 percent by 2030. On the one hand, this meant that OFAM had the chance to make a significant contribution to the mission of reducing greenhouse gas emissions. On the other hand, it raised difficult questions. How would OFAM balance “green goals” and departmental needs (e.g., public safety vehicles with special performance requirements)? In addition, how would the division remain competitive with other suppliers (e.g., rental car agencies)? “If we just have a green fleet and vehicles that people don’t like at a higher cost, they’re not going to go to us,” said DGS Director Daniel Kim. “Our costs escalate and then that’s just a vicious cycle.”
DGS responded to these directives with a multifaceted strategy that blends data and analytics, nudge principles, design thinking, and shifts in human capital to help OFAM maximize the environmental rewards while minimizing financial risk. “It doesn’t take a lot of big ideas,” said Kim of the agency’s approach. “It could be a bunch of small ideas done simultaneously that can make a difference.”
In crucial respects, the foundation for DGS’s response to Brown’s directives began to take shape in 2005 when the agency faced a very different kind of challenge: The Sacramento Bee reported that OFAM could not locate 30,000 of its 70,000 assets. “It was true,” Kim reflected. “It’s not like they were stolen. We didn’t know where they were at any given time.” DGS swung into action by creating a Fleet and Asset Management System (FAMS) that required all state departments to submit data on their vehicles (e.g., vehicle identification numbers, fuel type, mileage, and purchase date). Looking back, Kim suggested that the “crisis was a good thing because it forced us to recognize [that] we need some kind of system.”