Office of General Services

Use of GE Capital Fleet Services for Automotive Maintenance and Repair

Under a contract administered by the Office of General Services (OGS), GE Capital Fleet Services (GECFS) coordinated repair and maintenance services for vehicles owned by New York State and New York City. We examined whether repair and maintenance costs for State vehicles were adequately controlled by GECFS and whether adequate steps were taken by OGS and the State agencies using the vehicles to deter fraud and abuse by the repair shops used by GECFS.

We found that repair and maintenance costs were not adequately controlled by GECFS. For example, we identified many instances in which State agencies were billed for repairs typically covered by warranty. We also found that the cost and quality of the services provided under the contract were not monitored by OGS and generally were not monitored by the State agencies using the vehicles. With the assistance of a consultant and auditors from the New York City Comptroller's Office, we tested some of the vendors used by GECFS and found that, on three of the six State vehicles tested, State agencies were billed for unnecessary work. We recommend that certain procedures be established to provide better control over vehicle repair and maintenance costs. OGS officials generally agree with our recommendations and implemented some of these recommendations when the contract with GECFS expired and a new contract was awarded to another vendor.

For a complete copy of Report 96-S-76 click here.
For a copy of the 90-day response click here.