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Learn About the Lease Program

The Office of Vehicle Management (OVM) offers a Lease Program that secures funding to purchase vehicles directly and lease them to Commonwealth Agencies and Departments (Agencies).

Lease Program

  • Applies only to light duty and passenger vehicles available on a Statewide Contract.
  • Agencies wishing to participate must execute a Master Vehicle Lease and Assignment Agreement prior to submitting vehicle requests to OVM.
  • Vehicle requests must be submitted to OVM in a manner that allows time for review, approval, order, production and delivery of each vehicle, including upfit if applicable, prior to the end of that fiscal year.
  • Vehicle requests must be approved by OVM and the Financial Signatory Authority of the requesting agency or department (Agency CFO).
  • The source of funding for monthly lease fee payments must be included with the vehicle request.
    • Agencies certify that sufficient funding for the obligations associated with each leased vehicle is available through the funding sources identified within the vehicle request.
  • It is expected that an existing vehicle be surrendered for each new vehicle leased.
    • Vehicle requests must identify the existing vehicles being surrendered, for example:
      • Active vehicles, or
      • Vehicles surrendered to OVM with the 12 months immediately preceding the request that were not attached to another replacement.
  • Vehicle requests will be reviewed to ensure compliance with fuel efficiency.

Sample Lease Agreement

 

Lease Availability

  • Lease availability is announced by OVM.
  • Agency Fleet Manager (AFM) reviews vehicle needs and funding availability with agency CFO.
    • If an agency wishes to lease vehicles through OVM, a Master Vehicle Lease and Assignment Agreement (Lease Agreement) is signed.
  • AFM submits vehicle requests to OVM for review, in required spreadsheet format.
  • OVM reviews, edits (if necessary), and approves request.
  • AFM obtains detailed quotes from dealers.
  • Agency & OVM review, edit (if necessary), and approve quotes.
  • OVM requests approval from agency CFO via email to order vehicles based on approved quotes.
    • Request for approval includes the quantity of vehicles, their descriptions, and expected costs.
    • Agency CFO approval via email acts as legal and financial commitment for approved vehicle(s) in accordance with the lease agreement.
      • If agency CFO does not provide approval via email, OVM will not order the requested vehicle(s).
  • Once a vehicle is ordered, delivered, and placed in service, a lease schedule is issued to agency outlining the vehicle details and relevant financial commitment.

Administrative and Maintenance and Repair Services for Leased Vehicles

In addition to financial leasing, OVM provides administrative and maintenance/repair services for leased vehicles.

An Administration fee is charged to cover expenses incurred by OVM to provide services including:

  • Vehicle purchasing through Statewide Contracts.
  • The receipt and inspection of all new light duty and passenger vehicles.
  • Registrations, titles, and plates (including renewals and duplicates).
  • Fuel card management (Statewide Contract for fuel card and fuel card management services).
  • Coordination of maintenance, repair (including tires), and accident subrogation services and provision of vehicle packets (Statewide Contracts for maintenance management and accident subrogation services).
  • Driver accident reporting, monitoring, and follow-up.
  • Fleet inventory and data system management.
  • Vehicle redeployment or disposition management.
  • Assisting department fleet managers.
  • Compliance and auditing.
  • Management of the 1-800-How Am I Driving Program and other citizen complaints.
  • Domicile approval process and IRS reporting services.
  • Management of federal reporting and alternative fuel mandates.

A Maintenance or Repair Fee is charged to cover expected maintenance costs for normal wear and tear incurred by each leased vehicle.

Wear and tear coverage does not include the following:

  • Cosmetic or rust repairs, including mirrors and glass.
  • Damage due to accidents, regardless of fault.
  • Interior damage, including damage to upholstery, floor mats, door panels, dashboards, glove box, or consoles.
  • Radio, communications, or navigation equipment.
  • Keys, interior caging, or security devices.
  • Vehicle cleaning.
  • Repair or replacement of additional equipment, such as plows, sanders, and lights.
  • Damage due to vandalism or negligence.
  • Loss or damage to personal items.

The Agency or Department leasing the vehicle is responsible for any of the repairs noted above.

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