Item C-3.60 of Chapter 725, 2025 Acts of Assembly requires that a study for the relocation of the Department of General Services fleet management services be completed. Specifically, it provides the following:

The Department of General Services (DGS) shall undergo a review of the potential relocation of its Division of Fleet Management Services (DFMS), currently located at the property at 2400 West Leigh Street in the City of Richmond. The review shall include, but not be limited to, (i) examination of other properties for relocation of DFMS, and (ii) review of potential consolidation with the Virginia State Police and any other sizeable state fleet operations in the Richmond area. Virginia State Police and other affected agencies shall assist with the review as needed, which shall be provided to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by November 1, 2025.

Consistent with this requirement, DGS conducted a comprehensive study. DGS surveyed all the state agencies that have similar sizeable fleets and automotive shop operations and conducted an analysis of the current customers/clients’ base service locations. To maximize efficiency and reduce operational costs, the following agencies with larger fleets of state vehicles were proactively contacted to explore opportunities for consolidation:

Department of Corrections (DOC)
Department of Motor Vehicles (DMV)
Department of Health (VDH)
Department of Transportation (VDOT)
Department of Juvenile Justice (DJJ)
Department of State Police (VSP)
Virginia Commonwealth University (VCU)

In recent years, VCU closed its automotive-maintenance shop, and DFMS has become its primary shop and fueling station. The other agencies contacted—DOC, VDH, DJJ and DMV—are not planning to relocate and wish to continue with their present-day administrative operations in their respective agencies. None of these agencies have maintenance or repair shop operations in the Richmond area. They rely on the DFMS or the DGS Vehicle Management Control Center (VMCC) to schedule maintenance and repair services. According to VDOT, it has committed to relocating their fleet administrative function to Hanover County and they are not relocating their Colonial Heights fleet maintenance operations.

Based on the DGS survey, VSP needs to relocate their communications/radio installation shop. This is partly due to the pending construction of a new training academy that would encroach on the VSP fleet operations. However, beyond the construction of a new training facility, DGS/DFMS and VSP share critical needs and have multiple overlapping requirements. Therefore, sharing a lobby, reception, waiting area for drivers, service bays, parts and tire cages, fueling stations, car wash facility, and a large parking area for parking state vehicles is an efficient use of space and will maximize resources. This collaboration will significantly enhance the services both agencies provide to their constituents and advance their missions.

This study used three criteria to gauge the viability of the proposed site: cost, proximity to customers (including access to interstate networks), and functional capacity:

• Cost consists of net present cost calculations of all components prior to full utilization: acquisition, construction/modification, and relocation costs.

• Proximity to customers primarily includes location relative to current DGS work order locations and the VSP Headquarters. Site capacity consists of the total capabilities the site can hold, based on terrain and size measured by workorder throughput, storage capacity, and administrative support capabilities, including room for growth of the site as demand grows.

• Functional capacity takes into consideration that DGS/DFMS can provide automotive preventive maintenance and repairs to the VSP vehicles located in the Richmond area. Presently, DGS/DFMS has an 88% turn-around time within 24 hours. Consistently, the DGS/DFMS waiting customers leave the premises within 45 minutes of their scheduled appointment. During shop hours, automotive technicians are always available for breakdowns or emergencies.

To accommodate the unique program requirements and the large parking needs of both agencies and their respective missions, a total of 101,373 square feet of building with approximately 12 acres of developable land would be needed. At the time of writing of this report, DGS identified several properties in close proximity to the City of Richmond, which could support the programming necessary to develop a joint DGS/VSP facility.

Both agencies have outgrown their current facilities, and it is not feasible to renovate the existing aged facilities. It is advantageous to the agencies to consolidate their respective shops and relocate into one facility. The other potential advantage of DGS/VSP consolidation is cost savings associated with the Richmond area VSP state vehicles. Currently, VSP uses local commercial shops at a labor rate of $130 an hour. With the consolidation, DGS can provide the same automotive services at a labor rate of only $65 which represents a 50% reduction in labor costs alone. In addition, DGS/DFMS provides a lower cost for automotive parts, rather than the markups that are added by commercial shops. Furthermore, the additional savings would be realized through shared infrastructure, centralized procurement, and improved turnaround times.