Vehicle Leasing and Assignments | Buildings and General Services

State departments may lease vehicles for dedicated full-time use from Fleet Management Services (FMS).

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Contacts
Forms & Policy
Vehicle Requests
Costs, Rates, & Responsibilities
Vehicle Maintenance & Repairs
Managing Your Active Lease
Cancelling a Lease

Contacts

Each leasing department is assigned a Purchase/Lease Coordinator and a Maintenance Technician as primary points of contact. Be sure to keep their information handy for any questions or assistance.

If you're unsure who to contact, feel free to email our main Fleet inbox at BGS.FleetServices@Vermont.gov. We'll make sure your inquiry gets directed to the right person

Forms & Policy

For a full list of Fleet forms and policy, please visit our Forms page.

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Vehicle Requests

For Replacements and New Assignments:

Departments must complete the Fleet Vehicle Request & Justification Form and email it to their Purchase & Lease Coordinator. Please ensure your justification is thorough so we understand the full detail of your needs. Especially if you are requesting to expand the fleet (add a new vehicle to your department’s fleet). If our lease analysis doesn’t show obvious cost savings, the department will need to provide thorough and adequate justification.

Before getting started, it’s important that departments clearly designate a primary contact for fleet coordination and ensure that this person understands their role and any department-specific policies.

The process typically follows these steps:

1. Submit a Request or Receive Notification

Departments can submit a New/Replacement Vehicle Request Form, or FMS will notify the department’s contact when it’s time to replace a vehicle in accordance with the fleet replacement policy.

Replacing an Existing Vehicle:
FMS evaluates vehicle replacement needs annually, considering factors like age, mileage, condition, and maintenance history. Vehicles are typically replaced after 6 years or 80,000 miles, whichever comes first.

Departments can also request replacements outside the standard review by submitting the form with sufficient justification.

2. Request Validation and Vehicle Order

Once we receive the completed form, FMS will validate the request, confirm lease details, and place the order based on state contract specifications. This process may take up to several months, depending on market availability.

Throughout this time, FMS will collaborate with vehicle users, and designated department contacts to select the most suitable vehicle. Vehicle specifications and pricing will then be submitted to the business office for final approval and signatures from those identified by the department.

3. Vehicle Delivery and Lease Start

Once the vehicle is ready, the department will be notified for pickup at the Montpelier Fleet Office. The final lease agreement will then be sent to the department contact, and the new lease will officially begin.

For consideration:

Seasonal Assignments:

Departments may request seasonal vehicles (for periods longer than one month but less than one year). FMS fulfills these requests using decommissioned vehicles that are still in acceptable condition. However, availability is limited, and we cannot guarantee that a vehicle, or a vehicle that meets specific needs (such as a truck or gas-powered vehicle), will be available.

To inquire about seasonal vehicle availability, email your Purchase & Lease Coordinator as early as possible.

State-Owned License Plates:

State vehicles use designated license plates. If your department needs an exemption (e.g. safety), fill out the License Plate Exemption Form and have it signed by your agency head.

Loaner Vehicles:

FMS does not typically have extra vehicles that can be used as a temporary replacement if your vehicle is out of service.

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Costs, Rates, & Responsibilities

In addition to your monthly lease rate, some additional costs are:

Fuel: all vehicles will come with a fuel card.
Accident Deductibles: all vehicles are insured with state liability coverage and collision insurance – with a $500 deductible per incident. Claim processing and vehicle repair cost are included in the cost of the lease.
Special Equipment that may be needed (such as plows, caps, etc.)
Reimbursement for misuse of fuel card or non- authorized expenses.
See maintenance for additional costs.

Lease Rates:

Rates are calculated based on the vehicle, department-requested upfit equipment, projected maintenance/repair costs, insurance, and administrative expenses. An annual mileage limit is established, and departments will be billed for excess mileage during the annual review.

Special Equipment and Aftermarket Additions:

Departments can request the installation of special equipment (e.g., safety seats, radios, emergency lights) at their own expense. While equipment added during the vehicle purchase can be included in the lease, the department remains responsible for maintenance and replacements.

Keeping a Vehicle that has Exceeded Replacement Thresholds:

If you choose not to replace the Fleet Vehicles that FMS has recommended for replacement and if the vehicle has 75,000 or more miles on it; is 6 years old or older; or is considered in fair to poor condition, Fleet Management Services reserves the right to only complete preventative maintenance on the vehicle. If the vehicle needs repair, FMS may remove the vehicle from service.

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Vehicle Maintenance and Repairs

Maintenance Schedule:

All vehicles must follow the manufacturer's recommended maintenance schedule. FMS monitors this and sends alerts when service is due, which includes a list of local vendors. These alerts are triggered by odometer readings at the fuel pump, so accurate odometer entry is critical.

Maintenance Process:

Your Maintenance Technician will notify you when routine maintenance is due (such as oil changes). However, vehicle drivers often notice non-routine issues like worn tires, unusual noises, or the need for brake repairs. When your department identifies such maintenance needs, promptly contact your Maintenance Technician by phone or email to report the concern. Once a need for service has been identified, either originating from your maintenance technician or the department:

Your Maintenance Technician will provide next steps and a list of preferred local vendors.
The leasing department will schedule service, selecting a vendor from the list, and coordinate vehicle drop-off and pick-up.
The service provider will bill Fleet Management Services (FMS) directly. FMS will pass on any costs not covered by the lease through the department's monthly lease invoice.

Oil Changes:

Fleet vehicles use full synthetic oil, which should be changed every 10,000 miles or six months, whichever comes first. Exceptions will be communicated by FMS for specific vehicles.

What is Covered in the Lease:

Routine maintenance (oil changes, tire rotations)
Wear and tear from normal use (brakes, tires, etc.)
Repairs under the manufacturer’s warranty

What is Not Covered:

Off-road or improper use damage
Non-factory-installed equipment repairs
Towing for non-mechanical issues (e.g., lockouts, running out of fuel)
Consumables (wipers, washer fluid, cleaning products)

Studded Tires:

All state vehicles run winter tires all year. For studded snow tires, please reference the Studded Tires Guidance before submitting a Studded Tires Request Form.

Reporting Issues:

If you notice warning lights, unusual noises, or other potential issues, report them to your assigned service technician or contact FMS immediately at (802) 828-3821. Repairs must be pre-approved by FMS to avoid additional billing to your department.

For non-covered expenses, FMS pays the bill and then charges back the departments accordingly.

Please Note: FMS does not typically have extra vehicles that can be used as a temporary replacement if your vehicle is taken out of service.

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Managing Your Active Lease

To ensure your leased vehicles continue to meet your department’s needs while minimizing costs and downtime, it’s important to regularly monitor and manage key aspects of your vehicle fleet throughout the lease period.

1. Department Contacts

Each department has one main point of contact to coordinate leased vehicles. This contact will work with Fleet Management Services (FMS) and handle all communication regarding the vehicles, ensuring a smooth and efficient experience.

Notify FMS of Contact Changes: If your department's point of contact changes, please inform FMS as soon as possible to avoid disruptions in communication and management.

2. Compliance with Policies

Make sure any drivers in your department are aware of and follow the policies regarding vehicle use, maintenance, and home-use approvals. Including, but not limited to:

Operators will observe all federal and state laws at all times while operating a state vehicle.
Use of a handheld electronic devise – including a cellphone – is prohibited. If an employee must, it’s important that they pair their phone and become familiar with operating the hands-free device BEFORE driving.
Smoking and picking up hitchhikers is strictly prohibited in all state-owned vehicles.
Transportation of alcoholic beverages is prohibited, except in the case of Department of Liquor Control employees and members of the State Police while conducting state business.
All passengers will wear seat belts at all times when the vehicle is in operation.
Any operator of a state-owned vehicle will comply with the State law on idling.

3. Taking a Vehicle Home:

Employees may take a fleet vehicle home with prior approval. If the vehicle is needed for home use more than 12 times per year, you must complete the Home Use Request Form and obtain approval from your agency head.

Before requesting home use, ensure the employee is familiar with Bulletin 2.3, Section 6, as it outlines the impact on payroll for take-home vehicles. Review the bulletin here:

4. Utilization Monitoring

Regularly review vehicle usage to ensure compliance with required utilization thresholds. While FMS conducts a formal utilization review annually, internal reviews can help you identify underutilized vehicles early, reducing unnecessary costs. Vehicles falling below the threshold should be considered for return to FMS.

If returning a vehicle isn't an option, look for opportunities to balance usage. Reassigning vehicles between drivers can help prevent mileage overages on high-use vehicles while optimizing the overall health and efficiency of your fleet.

One easy way for departments to collect odometer readings is by having employees utilize a Vehicle Usage Log. But you can also request a report from FMS at any time.

5. Maintenance Compliance

Adhering to the manufacturer’s recommended maintenance schedule helps prevent costly repairs and ensures your vehicles are running smoothly. FMS sends reminders when maintenance is due—make sure your team is responsive to these alerts.

Similarly, leasing departments are responsible for keeping vehicles clean, inside and out. Departments will bear the costs of cleaning supplies or professional services. Any returned vehicle requiring professional cleaning will result in additional charges.

6. Regular Review of Lease Terms

Periodically review the terms of your lease to ensure all parties are clear on mileage allotments, condition expectations, and any policy changes. This will help avoid surprises during the annual lease review and streamline the renewal or return process.