Colorado Springs city government and Colorado Springs Utilities signed a five-year contract last week with an international company that will provide fleet maintenance services for both entities beginning next year.
City officials said outsourcing fleet maintenance of more than 3,500 vehicles and equipment is estimated to save the city and Utilities more than $4 million — in addition to reduced labor and vehicle costs — throughout the five-year contract.
The organizations announced in a news release that Virginia-based Serco Inc. will initiate services beginning Jan. 1.
“Although the city’s fleet management program has consistently earned high marks for performance, the decision to outsource the program was part of the city’s reorganization efforts to provide cost-savings that would allow enhanced city services with direct impact to our citizens,” said Chief of Staff Laura Neumann.
Upon Jan. 1, Serco will take charge of all vehicle maintenance for the two organizations except for those belonging to the Colorado Springs Fire Department, the release said.
“Serco has a solid presence in the Colorado Springs community, having 500 employees and several subcontractors in the area directly contributing to the growth and financial health of the community,” according to the release. “The current Serco Colorado Springs workforce has expertise in a wide range of technologies and services required to support the local and global missions of the Department of Defense and other government agencies.”
Serco, which is the American division of British government services company Serco Group PLC, employs 10,000 workers in the U.S. and has an annual revenue of $1.2 billion.