State of Arkansas Vehicle Acquisition Process Arkansas Department of Finance and Administration –...

State of ArkansasVehicle Acquisition Process

Arkansas Department of Finance and Administration – Office of Administrative

Services

Arkansas Department of Finance and Administration

Who must follow the Vehicle Acquisition Process?

Executive Branch State Agencies Institutions of Higher Education

Who is not covered:Constitutional Officers – Attorney

General, Secretary of State, etc. Constitutionally Created Agencies:

Highways, Game & Fish, Lottery


What Vehicles are covered through the Vehicle Acquisition Process?

◦Ark. Code Ann. § 22-8-203 (1) "Automobile" means a motorized vehicle equipped with pneumatic tires used for the transportation of persons . . .”

◦Mainly, that means vehicles weighing less than one ton. Vehicles weighing more than one ton will use a shorter process.

◦This does not cover construction equipment, ATVs, etc.


When can you make a request to acquire a vehicle?When can an agency request a vehicle? Answer: It depends…..

◦ If the source of funding to be used to purchase the vehicle is special revenue DFA-OAS will accept requests at any time

◦ If the source of the Funding to be used is the MMV (Motor Vehicle Acquisition Process) DFA-OAS accepts MMV requests between

July 1 and Sept. 15


Fleet Size

Ark. Code Ann. § 19-4-906: Agency fleets are limited to the amounts set by the Arkansas Legislature

Will the agency increase the total size of its fleet?◦Fleet increases must comply with law and be

justifiedWill the agency provide a vehicle to be

replaced?◦Replacement vehicles must meet minimum

qualifications

Increasing the size of an agency’s fleet

All fleet increases must be requested in writing with appropriate justification for the increase. DFA-OAS will process the request and, if the request is approved, go forward with acquiring the vehicle

Ark. Code Ann. § 19-4-906 limits the number of vehicles that an agency can own. Either amend the law to allow for additional vehicles orObtain an emergency order of the Governor through

DFA-OASArkansas Department of Finance and

Administration


Replacement Vehicle Requirements

Before DFA will consider a vehicle-replacement request:

The replacement vehicle must be five years old or older

Actual mileage must exceed 75,000, orThe projected repair cost of the vehicle

over the next year must be more than half the wholesale value of the vehicle;

Like-for-Like Requirement or justification for upgrade


What Type of Vehicle Is being Acquired? State Contract

If you are purchasing a vehicle off of the state contract: http://www.dfa.arkansas.gov/offices/procurement/contracts/Pages/default.aspx

Example: ◦TYPE ADA: Four (4) Door Mid-Size

Sedan◦MFG & Model: Dodge Avenger SE ◦$15,620.00◦AWARDED TO: Springdale Dodge Jeep

– Vendor Number: 100189963

http://www.dfa.arkansas.gov/offices/procurement/contracts/Pages/default.aspx




What Type of Vehicle Is being Acquired? Non-Contract

What if you aren’t buying off the state contract?

Used vehiclesSpecialized vehicles not covered by the

Contract

See DFA - Office of State Procurement Rules on Acquisition of Vehicles outside the Contract. OSP’s approval of the acquisition will be necessary to continue the vehicle-acquisition process.

What is the source of funds?

Purchases through the Prioritized List Process (MMV) are funded through DFA.

All other vehicles purchased must be made with “special revenue”, i.e. not general revenue.

If special revenue is to be used, DFA-OAS will ask for confirmation of spending authority



State Agency Vehicle Application (SAVA)

All vehicle acquisition requests should be generated using the SAVA system.

The main SAVA login page can be accessed here: https://www.ark.org/sava/index.php

https://www.ark.org/sava/index.php

https://www.ark.org/sava/index.php

Filing an Acquisition Request


To begin the process of requesting a vehicle, users must log into SAVA and select “State Vehicle Request” from the SAVA Main Menu


Filing an Acquisition RequestCompleting the State Vehicle Request requires several items of information:

First, whether the vehicle to be acquired is an

• Addition, or • Replacement

Second, whether the funds to be used are

• Agency Funds (Special Revenue) or

• MMV Funds

Third, whether the vehicle to be purchased is:

• On the state contract and if so, the Contract Type, or

• Not on the state contract and a description of the vehicle

Filing an Acquisition Request


If the vehicle to be purchased is on the state contract, use the drop-down menu to select the correct vehicle type.

If you have indicated that the vehicle to be acquired is to replace an existing vehicle within the agency’s fleet, you will need to identify that vehicle by using a drop-down menu as well. All vehicles are identified by the last four digits in the Vehicle Identification Number (VIN). You will also be asked to enter the current mileage on the vehicle and the cause for replacing it.


Filing an Acquisition RequestAfter entering the information for the vehicle acquisition request, save the request in SAVA and print out the request.

SAVA will assign a Request Number to each vehicle requested.

After printing, sign and date the request, then scan and email to DFA-OAS.

In the email, include a description of the funds to be used. If needed, provide justification for a “fleet increase” or an upgrade.

DFA-OAS will process the request and respond when and how appropriate.


Additional Information to Include

Justification for:An increase in the size of the

Agency’s fleetAn upgrade of the vehicle, i.e. not “like

for like”Also include:If using Agency Funds, a description

of the funds and authorization to use funds to purchase a vehicle


The Prioritized List (MMV)Ark. Code Ann. § 22-8-205: . . . the Department of Finance and Administration shall prepare a prioritized ranking for the then-current fiscal year based upon: (1) Age of the vehicle to be replaced; (2) Actual and projected mileage of the vehicle to be replaced; (3) A history of repair costs of the vehicle to be replaced; (4) Number and average age of each state agency's fleet of vehicles; and (5) Condition of state agency fleet and cost of maintenance of its vehicles.

One additional Criteria: DFA requires that all requests made under the Prioritized List process must be ranked in order of NEED.


The Prioritized List (MMV)

Requests for vehicles through the MMV process should be made on an agency-wide basis;

Requests should be ranked in order of need.

The Prioritized List (MMV)The Prioritized List is:Conducted annually in the late summer,

early FallUses State Funds (i.e. General

Improvement Fund)A competitive process designed to make

the most-efficient use of State fundingThe number of vehicles purchased

depends on the availability of State funds.



Agency-Funded Acquisitions

Agencies can purchase vehicles outside the MMV process with special revenue. ◦After approval of a vehicle-acquisition request,

agencies will be asked to provide proof of authorization to purchase a vehicle with agency funds

◦Can be filed at any time.


Financials After approval of a Vehicle

Acquisition Request, DFA-OAS will request financial information from the purchasing agency.

The agency will then be asked to create the Asset Shell information in AASIS.

The requesting agency will receive an excel file from DFA-OAS with the required information identified. This information is necessary for the DFA-OAS to process payment within AASIS.

Asset Fund Cost Functional IO or Exterior Interior

Shell Fund Center Center Area WBS # Color Color

Please Supply

Total $ amount

$ 53,740.00 Ar XYZ Department

Delivery Address Street → City → Zip → Arkansas ZIP

Contact Name → Phone Number →

DFA-OAS requires financial information from the agency

DFA-OAS will also request information on the delivery address for the vehicle


Sales Tax on Vehicles Under Act 1405 of 2013, the Motor Vehicle Acquisition Fund (MMV) will be providing appropriation necessary to pay both the purchase price of the vehicle and any applicable sales tax. Agencies will no longer be required to provide the appropriation for these funds

“. . . he or she shall transfer on his or her books and on the books of the Auditor of State and the Treasurer of State an amount that is equal to the price of the vehicles and that includes applicable state and local sales and use taxes from the fund from which the funding is available to the Motor Vehicle Acquisition Revolving Fund.”

Agencies will be required to calculate the amount necessary in sales tax prior to submitting the necessary financial information to DFA for the purchase of the Vehicle. At the appropriate time, DFA will then transfer over an amount equal to both the price of the vehicle and any applicable sales taxes.

Sales Tax on Vehicles


Sales and use taxes for vehicles are based on the residence of the purchaser. For State Agencies, that address will be the primary address of the agency. This information is submitted on the IPR created for the vehicle.

Agencies can determine applicable State and local sales and use taxes by entering address information here: http://www.arkansas.gov/dfa/excise_tax_v2/st_zip.html.

http://www.arkansas.gov/dfa/excise_tax_v2/st_zip.html


Sales Tax on Vehicles Sales Tax on Vehicles is calculated as:

• State sales tax (6.5 %) applies to the full purchase price of the vehicle

• City and County taxes apply to the first $2,500 in value

Example: ADA Mid-Size Sedan (Dodge Avenger SE): $15,620

State: $1,015.30City/Count: $62.50Total Tax: $1,077.80

Total Cost: $16,697.80


What then?

Once a request is completed and submitted correctly, DFA will respond with any questions or comments and will submit a copy of the signed request after approval.

After submitting financial information:◦DFA-OAS will create the purchase order and

place the order with the vendor◦Request agency will receive a copy of the PO◦DFA-OAS will pay the invoice with the money

transferred from your Financial Spread Sheet

What to do when the new vehicle arrives?

Add the Vehicle to the State Fleet (under Vehicle Inventory List)

Make sure you check the drop down for alternative fuel. Note: Vehicles capable of operating on E85 are considered alternative Fuel.

Make sure you have the Request Number assigned by SAVA for that vehicle

Make sure you enter the 4 digit Vin carefully◦ The Vin Number cannot be

altered once the Record has been created


How to Dispose of Vehicles through M & RThe agency is required to submit a Surplus Disposal Form (SDF).Go to: www.ark.org/eforms/forms.php

This is site password protected and you will need to contact M & R 501-565-8645 for a User Name and Password.

After M & R receives your Surplus Disposal Form, someone from M & R will contact you to schedule the delivery of the vehicle.

How to Turn in the Old Vehicle?

http://www.ark.org/eforms/forms.php


Once M&R has completed the SDF Form, a copy is sent to DFA-OAS. Upon receipt, DFA-OAS removes the vehicle from the State inventory.

If the vehicle was used as part of a replacement request, the requesting agency has 30 days from receipt of the new vehicle to turn in the old vehicle to M&R.

How to Turn in the Old Vehicle?


Before you deliver the vehicle to M & R

Clean the vehicle inside and outRemove all agency and personal itemsRemove Gas/Fleet CardsTurn in two (2) ignition keys for each vehicle

When a vehicle is being pulled from service, TURN IT IN TO M & R don’t just park it until you have approval and money to replace it. Please do not sign the front or back of titles


What about a wrecked Vehicle?In the event of an accident. Contact the insurance company so a damage evaluation can be made on the vehicle. If the vehicle is a Total Loss, contact M & R for instructions.

If the vehicle needs to be towed, ask for it to be taken to the nearest State owned property or deliver to M & R.Accident Reports must be made to the State insurance provider: Bancorp South Insurance ServicesFor Claims Reporting between 8 a.m. and 4 p.m., Monday - Friday: (501) 664-7705After Hours Claims Reporting: (501) 664-9252


What about vehicles weighing one ton or more?

Agencies will follow the same process for approval. However, agencies must handle the creation of the purchase order and payment of the invoice.

Requests to acquire a vehicle of one-ton or greater must still be approved by DFA. However, the purchasing agency will handle the acquisition after approval of the Vehicle Acquisition Request.

Where do you take your vehicle requests and questions?

The Department of Finance and Administration – Office of Administrative Services

DFA-Office of Administrative Services, c/o Larry Dahlberg, State Vehicle Manager; [email protected];

(501) 682-6823

Jake Bleed, Asst. Administrator; [email protected]; (501) 371-6006


mailto:[email protected]

mailto:[email protected]


Questions that were asked during the Forum1. There is a problem with STAR

(vehicle registration) – This has been resolved!

2. Does an institution of higher education pay sales or use tax on a vehicle? No, ACA § 26-52-410 gives them an exemption

3. For agencies who only have cash funds, do they follow the same process as everyone else? Yes, see next slide for further explanation


3. continued The process required to obtain DFA approval for the

acquisition of a vehicle applies to “cash-only agencies”, aka those not funded through General Revenue, in most respects. Cash Fund Agencies must enter vehicle information into SAVA and submit requests according to the requirements described in this presentation.

However, after receiving DFA approval to acquire a vehicle, Cash Fund Agencies will not be asked to submit fund information and will instead handle the purchase transaction themselves. In addition, cash fund agencies cannot participate in the prioritized list process (MMV). See Ark. Code Ann. § 19-4-901 et. seq, which deals with fleet sizes and acquisition of vehicles generally and applies to all agencies except constitutional officers and official guests of the State. See also Ark. Code Ann. § 22-8-101, dealing with vehicle acquisitions and with specific limitations regarding the prioritized list process.

November ForumThursday, November 14, 10:00 –

11:30

AGENDA:◦THINK Certification Program◦Periscope Holdings

Material Master Data Cleanup Procurement Transformation

December 12, 2013There will not be a December

Forum MeetingAR NIGP is hosting a

presentation: ◦“Negotiation Strategies in the Public

Sector”◦Phillip Ellison, C.P.M., Executive

Director of Supply Chain Services, Spring Independent School District, Houston, TX

◦Holiday Inn Airport◦10:00 - Noon

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