PART IV

WORK STATEMENT

IV-1. Objectives.

The Commonwealth of Pennsylvania is seeking to reduce costs associated with the day- to-day ground transportation necessary to conduct Commonwealth business. Specifically, the Commonwealth is seeking to decrease current costs associated with reimbursements for personal vehicle use, fees and taxes associated with existing private- sector rental agreements, and expenses associated with administering and maintaining its own fleet of daily use vehicles.

The purpose of this RFP is to solicit proposals to establish an agreement with a single, qualified car rental company that offers the best value for a comprehensive, quality rental program to the Commonwealth for passenger vehicles. Offerors shall propose economical alternatives to using personal vehicles reimbursed at the designated Commonwealth rates and to maintaining a fleet of Commonwealth-owned vehicles used on a temporary basis. While the main focus is providing passenger vehicles to Commonwealth business travelers, the Commonwealth is also interested in the availability of commercial moving and/or light duty work vehicles.

The Commonwealth seeks solutions that will maintain a high level of service to Commonwealth business travelers, including ease in making reservations, guaranteed reservations, pick up and drop off service, roadside assistance and flexible, detailed reporting to the Commonwealth.

IV-2. Nature and Scope of the Project.

A. Background. The Department of General Services, Bureau of Vehicle Management (BVM) manages a state-owned fleet of approximately 100 passenger vehicles located at 2221 Forster Street (the Commonwealth Garage) in Harrisburg, which provides secure, fenced-in parking with 24/7 security gate access, and camera surveillance. These vehicles are for the exclusive use of Commonwealth business travelers for official state business travel. Prior to implementation of the new policy referenced in subsection B, the average daily usage of the temporary fleet is 54 vehicles. Please refer to Appendix F, Commonwealth Garage Rentals for more detailed information.

Commonwealth business travelers (Commonwealth employees and non employees who are authorized to travel on official state business) also utilize rental cars throughout Pennsylvania, and at times, national car rental locations reserved by a third-party travel agency administered by the Office of the Budget, Bureau of Commonwealth Payroll Operations (BCPO). Commonwealth business travelers utilize approximately 2,500 rentals per year through third-party car rental locations, totaling approximately $225,000 in additional annual spend. Of the third-party rental locations, the top five cities and average rentals per year are: Scranton- 451, Williamsport- 408, Pittsburgh- 408, Harrisburg- 218 and Philadelphia- 174. Please refer to Appendix G, Third-party Rentals for more detailed information. Page 1 of 10 In calendar year 2011, Commonwealth business travelers were reimbursed in excess of $17 million in personal mileage reimbursements. With implementation of the new policy referenced below in subsection B, Policy, additional volume of rental car usage is expected.

B. Policy. Any contract resulting from this Request for Proposals must align with policy as summarized herein and as found in its entirety at: http://www.portal.state.pa.us/portal/server.pt/community/management_directives/711 /management_administrative_support_%28205-260%29/208571.

1. Travel. In accordance with Commonwealth Travel Policy (found within Management Directive 230.10 and Manual 230.1 both effective 1/1/12), Commonwealth business travelers or officers who need to travel by automobile for Commonwealth business must choose the least expensive option available between an agency pool vehicle; a temporary fleet vehicle; a rental vehicle; and mileage reimbursement for use of their personally-owned vehicle. A Commonwealth business traveler who does not choose the least expensive option may not be reimbursed or fully reimbursed. In making this determination, Commonwealth business travelers are strongly encouraged to utilize a state- provided Ground Travel Worksheet. The Ground Travel Worksheet can be accessed through the following link: http://www.dgs.state.pa.us/portal/server.pt/community/ground_travel/20514. This worksheet allows the employee or officer to enter the number of miles to be traveled and the number of days over which travel will occur. The worksheet then calculates the total cost per option, inclusive of fuel. This worksheet may be provided as verification that the least expensive form of automotive transportation was selected to ensure the employee is fully reimbursed.

BCPO is responsible for managing vendors and programs that provide travel services; currently including a travel agency that, in many cases, books rental car services to Commonwealth business travelers and others who use Commonwealth funds to travel. BCPO monitors and enforces travel policies, including auditing travelers’ compliance and providing/adjusting employee reimbursements; including personal vehicle mileage reimbursements.

2. Fleet. In accordance with Commonwealth Fleet Policy (found within Management Directive 615.1, Management Directive 615.16 and Manual 615.3), the Department of General Services (DGS) assumes responsibility for the maintenance and operation of all automobiles owned by the Commonwealth and assigned to any administrative department, board, or commission, with the exception of the Department of Transportation, who assumes responsibility for their own vehicle fleet. DGS must also provide a sufficient number of automobiles not assigned to a department to meet the occasional, daily or weekly temporary travel demands of Commonwealth business travelers.

State-owned vehicles are permanently assigned based on a minimum mileage and utilization standard. Ideally, the Commonwealth seeks to permanently assign state-owned vehicles to operators traveling 6,000 business miles across a six- Page 2 of 10 month period, or logging business miles on over 80% of the available workdays in a six-month period. For Commonwealth business travelers not meeting the minimum mileage and utilization standard, DGS maintains additional vehicles that are either assigned to agencies as shared pool vehicles or rented through a Temporary Fleet program.

DGS is responsible for enforcement of Commonwealth Fleet Policy.

C. Project Overview. Commonwealth business travelers will rent vehicles directly from the selected Offeror with the ability to make and update reservations online and over the phone or through BCPO’s third-party travel agent when the car rental is associated with air travel. Ideally, the selected Offeror will strive to integrate its reservation processes into the Commonwealth’s current travel booking practices. The selected Offeror must accept monthly payment from the Commonwealth and provide business traveler identification and accounting data on an agency-by-agency basis.

It is anticipated that the vast majority of vehicle miles will be incurred in the Commonwealth; however some out-of-state travel is expected.

The selected Offeror will also work with BVM to meet agency-specific needs, including, for example, location-specific, vehicle-specific, or longer-term rentals.

BVM will be responsible for the administration of any resulting contract. BVM reserves the right to appoint an on-site program administrator to serve as a liaison to the selected Offeror. The program administrator will be able to issue Commonwealth fuel cards and EZ passes, as well as providing any assistance necessary to the successful Offeror. By submitting a proposal, Offerors agree to work cooperatively with the program administrator.

IV-3. Requirements.

A. On-site Rental Branch. The Offeror must establish a rental branch and vehicle pool at the Commonwealth Garage within 90 days of contract execution. This branch must be open from 7:00 am to 6:00 pm all weekdays except designated state holidays. This branch must be dedicated solely for Commonwealth business travelers. This branch shall not be open to the general public.

The Commonwealth will provide office space, utilities (excluding telephone and internet services), vehicle pool parking spaces, and manual car wash and detail/vacuum access. BVM may assign an on-site administrator to work with the successful Offeror at the Commonwealth Garage. Please reference Appendix J, Commonwealth Garage Floor Plan for the floor plan, which includes square footage and other information.

The vehicles available on site must be representative of the type and quantity typically utilized by the Commonwealth. It shall be the selected Offeror’s responsibility to adjust the on-site inventory in response to utilization and to guarantee vehicle availability, The successful Offeror shall provide any requested information to the on-site administrator or designee to ensure a smooth assignment of fuel cards/EZ Passes, and the coordination of refueling vehicles when necessary. Page 3 of 10 The Commonwealth reserves the right to establish additional on-site rental branches and vehicle pools in additional Commonwealth facilities, dedicated solely for Commonwealth employee use. Such locations would be determined by mutual agreement between the Commonwealth and the selected Offeror.

B. Rental Locations. The Offeror must provide coverage throughout Pennsylvania and at major continental U.S. airports with sufficient inventory of vehicles to handle the Commonwealth’s rental requirements.

C. Vehicles. All vehicles must be no older than the previous model year, in a clean condition at the time of pickup and in excellent operating condition. Offerors must make available at a minimum vehicles in the following categories. For purposes of this RFP, Offerors shall propose vehicles in the following categories as defined by the U.S Environmental Protection Agency, U.S. Department of Energy’s Fuel Economy Guide, www.fueleconomy.gov .

 Compact Four-Door Sedan  Mid-Size Four-Door Sedan  Mid-Size Four-Door SUV  Minivan - Seven-Passenger

The Commonwealth reserves the right to specify which of the successful Offeror’s vehicles the Commonwealth will accept for the contract.

NOTE: For rental periods 30 days or longer, vehicles furnished by the Contractor pursuant to the Contract must be manufactured in North America. North America is defined as the United States, Canada, and Mexico. A motor vehicle is manufactured in North America if a substantial majority of the principal components are assembled into the final products in an assembly plant in North America. The Contractor shall be prepared to prove that the motor vehicles that will be, or have been, furnished to the Commonwealth will be or are, in fact, manufactured in North America in accordance with Sections 3731-3736 of the Commonwealth Procurement Code (62 Pa. C.S. Sections 3731-3736), known as the Motor Vehicle Procurement Act. No payment shall be made to the Contractor unless the Commonwealth is satisfied that the Contractor has complied with these provisions and the Motor Vehicle Procurement Act. Any payments made to the Contractor, which should not have been made, shall be recoverable directly from the Contractor. In addition to the withholding of payments, any person who willfully violates any of the provisions of the Motor Vehicle Procurement Act may be prohibited by any public agency from participation in Contracts awarded by the public agency for a period of five years from the date of determination that a violation has occurred.

D. Rental Periods. Offerors must makes vehicles available on a half-day, daily, weekly, monthly, three (3) month, six (6) month and twelve (12) month unlimited mileage basis. These periods are defined as indicated below: - Half-day: Four consecutive hours prior to 12:00 pm or four consecutive hours after 2:00 pm. - Daily: One consecutive twenty-four hour period, starting at the time of pick- up. Page 4 of 10 - Weekly: One consecutive, seven-day period, starting at the time of pick-up. - Monthly: One consecutive, thirty-day period, starting at the time of pick-up. - Three months: Three consecutive, thirty-day periods, starting at the time of pick-up. - Six months: Six consecutive, thirty-day periods, starting at the time of pick- up. - Twelve months: Twelve consecutive, thirty-day periods, starting at the time of pick-up.

During the term of the contract, the Commonwealth reserves the option to request rental rates for any additional, available types/classes of vehicles in the successful Offeror’s fleet, which may be added to the contract at the Commonwealth’s discretion.

E. Reservations. 1. Offerors must have the capability of accepting reservations for Commonwealth business travelers in the following ways:

a. On-Line. Offerors must have a secure, web-based reservation system that is responsive to the conditions within this Statement of Work. b. Telephone. Offerors must provide a toll-free line for reservations. c. Third-Party Agent. Offerors must agree to accept reservations for travelers from the Commonwealth’s third-party agent. d. Walk-In. Offerors must have the capability of fulfilling requirements of walk-in travelers.

2. The Offeror’s reservation system must be structured to collect necessary information from travelers to verify they are an approved Commonwealth business traveler prior to confirming any reservation or providing a vehicle. The Commonwealth may also dictate additional information to be collected at the time of reservation including, but not limited to: departure and destination location, and a general statement of itinerary. If any interfaces to Commonwealth systems are necessary, all must comply with applicable Information Technology Bulletins (ITB’s) issued by the Office of Administration, Office for Information Technology (OA-OIT). ITB’s may be found at http://www.portal.state.pa.us/portal/server.pt? open=512&objID=416&PageID=210791&mode=2.

F. Guaranteed Vehicle Availability. When a reservation is made and accepted, the selected Offeror must ensure the requested vehicle is available at the appointed time. If necessary, the selected Offeror must upgrade to the next available class of vehicle at no additional cost to the Commonwealth in order to satisfy the reservation and guarantee vehicle availability.

G. Insurance Protection. In addition to the minimum level insurance required by the state in which the car is rented, rental rates must include:

 Loss damage waiver protection that relieves the Commonwealth of financial responsibility if the vehicle is lost, damaged or stolen; AND

Page 5 of 10  Supplemental liability insurance in a combined single limit amount per occurrence of not less than $1,000,000 per accident for bodily injury, death, or property damage to others arising out of the use or operation of the rental vehicle.

H. One-way Rentals. There will be no additional fee for one-way rentals, provided the vehicle is returned to one of the Offeror’s regular branches in the Commonwealth or to any Baltimore or Washington airport.

I. Vehicle Pick-up and Return. Offerors must accommodate vehicle pick-up and return for Commonwealth business travelers with reservations, from 7:00am through 6:00pm all weekdays except designated state holidays.

J. After Hours Vehicle Pick-up and Return. Offerors must provide for after-hours and weekend vehicle returns (such as a key drop box). On occasion, it may be necessary for Commonwealth business travelers to depart prior to 7:00am. Provisions must be made for these early departures, such as a pick-up after 5:00pm the day prior to rental or special arrangements for pick-up before 7:00am of the morning of the rental. No additional fees may be billed for early pick-up or late return including weekends.

K. Fuel. Each vehicle must be supplied with a full tank of fuel. Commonwealth business travelers will attempt to replace any fuel used during the rental period before returning the vehicle. If the selected Offeror needs to replace fuel after the rental is returned, the fuel must be replaced at a cost not to exceed the established price per gallon published in the Ground Travel Worksheet then in effect without any additional fee added to the cost of replacing fuel in rental vehicles. The Commonwealth may elect to refuel vehicles returned to the Commonwealth Garage at the Commonwealth pumps without incurring additional charges.

L. Roadside Assistance. The selected Offeror must provide 24-hour, seven-days a week emergency roadside assistance for rental vehicles. This service must include a single toll- free number for rental customers which shall promptly provide all necessary roadside assistance to Commonwealth business travelers. Services that must be included, at a minimum, include:

1. Replacement of lost keys (including remote entry devices) 2. Flat tire service 3. Lockout service (if keys are locked inside the vehicle) 4. Jump-starts 5. Fuel delivery services of up to three (3) gallons of fuel if a vehicle is out of fuel.

M. Direct Billing. The selected Offeror must establish a direct billing method with the Commonwealth that does not require the use of a Commonwealth business traveler’s personal or Commonwealth-issued credit card. Furthermore, this billing method must ensure the Commonwealth is not charged any sales or use tax not normally paid by the Commonwealth, or other fees charged in retail situations. The Commonwealth through BVM would prefer to issue no more than one payment monthly for all rentals, fuel and allowable ancillary charges. Please see Appendix H, Direct Bill XML Mapping for minimum data and format requirements. Please also see Appendix I, XML FB50 Schema for corresponding schema information. Page 6 of 10

However, in the case of certain independent or non-SAP Commonwealth agencies (such as Boards, Commissions, etc.), who may participate in this contract, the Commonwealth reserves the right for those agencies, as designated, to receive a separate billing and make direct payment on a monthly basis by use of a government credit card or other form of payment. It is anticipated that these will be the exception to the previously-stated, preferred direct billing method.

The selected Offeror must provide the name and a toll-free telephone number for the individual(s) responsible for handling all disputed billing issues. The selected Offeror must respond to each billing issue within 24 hours and provide a resolution for correcting such problems prior to the next billing.

N. Management Reports. The selected Offeror must provide a variety of administrative reports at scheduled intervals and on request and also provide the Commonwealth’s contract administrator direct access to any available on-line or electronic databases and reporting systems. Reports must be comprehensive in order to effectively and efficiently monitor the Commonwealth’s rental program and must be provided at no additional cost.

The reports shall include, but are not limited to, the following data points as applicable:

• Reservation date • Travel Dates • Commonwealth Agency • Agency Organization • Accounting Codes • Business Traveler Name • Business Traveler ID • Pick-up/Drop-off Location(s) • Travel Destination (if applicable) • Method of booking • Vehicle Year/Make/Model • Odometer readings • Rental period • Rental costs • Fuel Costs (if applicable) (shown in days) • Ancillary fees • Total Cost (if applicable) (Rental+Fuel+Ancillary fees)

Reports must be able to be easily sorted and summarized by any data point as required for agency review and shall subtotal by Business Traveler, Agency Organization and Commonwealth Agency for reconciliation.

IV-4. Tasks. The following identified tasks must be addressed by the Offeror in its Technical Submittal:

A. On-site Rental Branch. Describe in narrative form your capability and work plan to fulfill the requirements identified in section IV-3, A, On-site Rental Branch.

B. Rental Locations. Offerors must supply a complete listing of all rental locations that will support any resulting contract as described in section IV-3, B, Rental Locations. For Pennsylvania locations, this listing must include the address and hours of operation.

C. Vehicles. Please provide the make/model of vehicles offered in the categories described in section IV-3, C, Vehicles. Please confirm your ability to provide North American manufactured vehicles for rentals greater than 30 days. Page 7 of 10 D. Rental Periods. Please confirm your ability to provide rentals in response to the rental periods described in section IV-3, D, Rental Periods.

E. Reservations. Please describe in detail your ability to accept reservations from Commonwealth business travelers in each of the ways identified in section IV-3, E, 1 Reservations. Please describe in detail your proposed reservation system, identify the information it will collect during the reservation entry process and explain how it will be easily adapted or configured for use under conditions indicated in this Statement of Work and in accordance with Commonwealth Travel Policy, as stated in section IV-2, B, 1 Commonwealth Travel Policy of this Request for Proposals. If interfaces to Commonwealth systems are proposed, please explain their purpose and architecture and how you will comply with applicable Information Technology Bulletins (ITB’s) issued by the Office of Administration, Office for Information Technology (OA-OIT). ITB’s may be found at: http://www.portal.state.pa.us/portal/server.pt? open=512&objID=416&PageID=210791&mode=2.

F. Guaranteed Vehicle Availability. Please describe your ability to manage guaranteed reservations, inventory and vehicle upgrades as described in section IV-3, F, Guaranteed Vehicle Availability. Please describe your inventory management plan for corporate customers, how that plan will ensure sufficient inventory at rental locations in the Commonwealth, and how you will monitor and adjust inventory to meet the needs of Commonwealth business travelers.

G. Insurance Protection. Please confirm that your rental rates include the Loss Damage Waiver Protection and Supplemental Liability Insurance coverages described in Section IV-3, G, Insurance Protection.

Offerors may submit a separate rate schedule of “optional” add-on services such as Personal Accident Insurance, Additional Liability Insurance, Personal Property Insurance, etc. which will be considered for inclusion at the sole discretion of the Commonwealth. Please note, that if submitting a separate rate schedule it may only be included with your separately sealed Cost Submittal.

H. One-way Rentals. Confirm and explain your ability to allow rental returns as described in Section IV-3, H, One-way Rentals.

I. Vehicle Pick-up and Return. Please describe in detail how you will accommodate any Commonwealth business traveler with reservations when normal rental business hours are not from 7:00am through 6:00 pm.

J. After Hours Vehicle Pick-up and Return. Confirm and explain your ability to accommodate after hours vehicle pick-up and return as described in Part IV-3, J, After Hours Vehicle Pick-up and Return.

K. Fuel. Please describe in detail how you will ensure that each rented vehicle will be supplied with a full tank of fuel. Please confirm your understanding of refueling charge limitations, and provide in detail an explanation of the process and controls you will have

Page 8 of 10 in place to assure the Commonwealth that it is paying the contractually agreed to fuel rates and only for fuel associated with Commonwealth travel.

L. Roadside Assistance. Please describe in full detail your roadside assistance program, which must be available 24-hours a day, seven-days a week for all rental vehicles, and must include a toll-free number for rental customers. Your explanation must include a specific listing of services provided at no cost and those for which an additional fee may be required. Do not list any pricing in your Technical Submittal; any fees must be included with your separately sealed Cost Submittal as instructed therein. If the Offeror does not include a breakdown of Roadside Assistance fees with its Cost Submittal, it is assumed that the fees are included in the proposed rental rates and therefore a separate fee cannot be charged once a signed contract is in place.

M. Direct Billing. Please describe in detail how your company will ensure all Direct Billing requirements are met as explained in section IV-3, M, Direct Billing.

N. Management Reports. Please describe your understanding and ability to provide the reporting capability specified in section IV-3, N, Management Reports. Also submit the following two sample reports:

1. Monthly Agency Invoicing/Reconciliation Report: This report must detail all reservations made and rentals utilized in a one-month billing period. Offerors’ sample report must demonstrate the ability to show at minimum all data points as referenced in IV-3, N, Management Reports.

2. Monthly Commonwealth Invoice/Reconciliation Report: This report must detail all reservations made and rentals utilized by all participating Commonwealth agencies in a one-month billing period. Offerors’ sample report must demonstrate the ability to show at minimum all data points as indicated above and the ability to sort results on various data points as well as the ability to subtotal by both agency and agency sub-accounts.

O. Value Added Services. The following are additional services that are viewed as highly valued by the Commonwealth. Please address each numbered service listed below separately and describe your willingness and capability to provide each as a part of your proposal. Please explain in detail whether you could meet or exceed these services or provide any additional services not mentioned.

1. Fleet Origination. It is the Commonwealth’s preference to utilize vehicles manufactured in North America by the three traditional major American motor vehicle manufacturers: General Motors, Chrysler Corporation and Ford Motor Company. The Commonwealth understands that in order to fulfill all requirements it may be necessary to occasionally provide vehicles from other manufacturers, but those instances should be minimal. Please describe your capacity to provide vehicles from General Motors, Chrysler Corporation and Ford Motor Company as first preference.

2. Alternate Fuel and Hybrid Vehicles. Please describe your capacity to provide alternate fuel and hybrid vehicles where available. Page 9 of 10 3. Customer Pick-up and Drop-off. Please describe your ability to provide pick- up and drop-off service to rental customers. Describe any limitations to providing these services.

4. Specially Equipped Vehicles. Please describe your capability to supply vehicles specially equipped with mobility devices for Commonwealth business travelers with disabilities.

5. Commercial Moving and Light Duty Work Vehicles. Please describe your capability to provide commercial moving and light duty work vehicles.

6. Volume Discounts. Please provide details for any volume discount programs that your company could offer the Commonwealth. Do not include any actual pricing in your Technical Submittal; limit your description to general parameters only (e.g., percentage discounts; volume tiers, etc.).

7. Prompt Payment Discounts. Please provide details for any prompt payment discount programs that your company could offer the Commonwealth.

If any additional fees or rental rate categories apply to the Value Added Services you can provide, please submit a separate schedule of such fees as an attachment to your Cost Submittal.

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