Directive on the Management of Materiel

These procedures replace the following Treasury Board policy instruments:

• Directive on Fleet Management: Light Duty Vehicles (November 1, 2006)
• Directive on Fleet Management: Executive Vehicles (August 9, 2018)

Mandatory procedures are as follows:

• A.2.3.1

  Materiel management practitioners are responsible for the following:

  Planning

  • A.2.3.1.1Taking appropriate action to identify, assess and minimize risks associated with the acquisition, operation and divestment of vehicles.
  • A.2.3.1.2Ensuring that a mechanism is in place to determine whether ongoing and new operational requirements can be met within the existing fleet or through the use of other options that are financially and environmentally responsible.
  • A.2.3.1.3

    Substantiating the requirement for the acquisition or replacement of government vehicles by:

    • A.2.3.1.3.1Aligning the vehicle’s function with program requirements;
    • A.2.3.1.3.2Assessing the need for a vehicle by taking into consideration the vehicle’s physical condition and financial, operational, environmental and accessibility criteria;
    • A.2.3.1.3.3Rationalizing departmental fleet size;
    • A.2.3.1.3.4Selecting the most appropriate and efficient vehicle class and type, with consideration for vehicle and engine size, that meets operational requirements, and
    • A.2.3.1.3.5Incorporating manufacturers’ production lead times into the planning and replacement cycle for vehicle acquisitions;
  • A.2.3.1.4Establishing internal policies and controls to prioritize the procurement and use of zero-emission (ZEV) vehicles in the light-duty fleet;
  • A.2.3.1.5For departments with a fleet of ten or more vehicles, developing and maintaining a long-term Strategic Fleet Greening Plan approved by the senior designated official that outlines the pathway to achieving the federal government’s targets for a green fleet. This plan must present multi-year costed projections for vehicle purchases, consider operational feasibility, and optimize fleet size and relevant supporting measures, policies or infrastructure. Departments must maintain rolling two-year purchase projections and budgets for vehicles;

  Acquisition

  • A.2.3.1.6In accordance with subsection A.6.1 of Appendix A of the Directive on the Management of Procurement, the use of Public Services and Procurement Canada’s (PSPC’s) standing offers and supply arrangement is mandatory for motor vehicles;
  • A.2.3.1.7Ensuring, when rentals or leases are used, that the classes, engines, options and minimum features are consistent with those contained in PSPC’s established methods of supply;
  • A.2.3.1.8

    When delays are expected in the delivery of a new vehicle or emergencies occur, considering temporary arrangements in the following order:

    • A.2.3.1.8.1Extending the use of the vehicle being replaced;
    • A.2.3.1.8.2Using another departmental vehicle; or
    • A.2.3.1.8.3Using a rental vehicle until the ordered vehicle is delivered by the manufacturer;

  Operation and maintenance

  • A.2.3.1.9Ensuring that government vehicles are used only for authorized government purposes and according to departmental policies;
  • A.2.3.1.10Taking measures to reduce greenhouse gas emissions and modernize the fleet based on government requirements;
  • A.2.3.1.11Purchasing premium fuel only when it is required by the vehicle manufacturer;
  • A.2.3.1.12Ensuring that employees who have access to government land vehicles understand that the Government of Canada self-underwrites the risks associated with the use of such vehicles. As such, there is no requirement to purchase commercial insurance coverage, with the exceptions outlined in subsection A.2.3.1.13;
  • A.2.3.1.13

    Ensuring that appropriate commercial insurance coverage is arranged through PSPC for:

    • A.2.3.1.13.1Land vehicles registered in Canada that are driven in the United States;
    • A.2.3.1.13.2Vehicles used for government programs by operators who are not Crown servants; and
    • A.2.3.1.13.3All executive vehicles;
  • A.2.3.1.14

    Tracking and maintaining required information about the fleet using a fleet management information system and a fleet card, as required. The fleet management system must:

    • A.2.3.1.14.1Capture all mandatory data fields outlined in subsection A.2.3.1.18 through manual entry, automatic population and the collection of data from the fleet card;
    • A.2.3.1.14.2Generate a single, coherent, department-wide view of all vehicle maintenance, operating and repair costs related to fleet management;
    • A.2.3.1.14.3Supply information to support planning and decision-making; and
    • A.2.3.1.14.4Be kept up to date, complete and accurate;
  • A.2.3.1.15

    Using the appropriate designated card for land vehicle fleets, where issued, to:

    • A.2.3.1.15.1Pay for all operations and maintenance expenses of government vehicles registered in Canada; and
    • A.2.3.1.15.2Ensure that expenses paid with a fleet card are limited to those needed for the operations and maintenance of the government vehicle or motorized equipment to which the fleet card is assigned, wherever possible;
  • A.2.3.1.16Reporting to the appropriate authority all expenditures on the operations and maintenance of government vehicles that were made without the use of a fleet card, for input into the fleet management database. Such expenditures include the use of other means of payment made to a vendor who refuses to accept the fleet card for payment; and
  • A.2.3.1.17Ensuring that designated fleet cards are not used to pay for the purchase and installation of decals and equipment add-ons acquired as aftermarket improvements.
  • A.2.3.1.18

    Mandatory data collection fields for fleet land vehicles are as follows:

    Administrative information and identification information

    • Department name (or client code)
    • Program name
    • Ownership (leased or owned)
    • Status of vehicle (active or inactive)
    • Government fleet vehicle number
    • Vehicle identification number (VIN)
    • Associated fleet card number(s)
    • Type of card (vehicle-specific, non-specific, dedicated second card, seasonal)
    • Fleet card on-system date (date that the card is first connected to the fleet information system)
    • Status of card (active or inactive)
    • Card limit
    • Cancellation date of card

    Vehicle tombstone data

    • Model year
    • Make
    • Model
    • Vehicle specification code used by PSPC (if available)
    • Number of cylinders in engine (two digits)
    • Size of engine by litres
    • Transmission: automatic (A) or manual (M) and the number of gears (3, 4 or 5) or variable (V)
    • Fuel type capability of the vehicle and grade requirement (where applicable)
    • Fuel system
    • Licence plate and province or territory
    • Vehicle category and subcategory
    • Assigned status (pooled, driver assigned, etc.)

    Vehicle location and billing information

    • Physical location: street address, city, province/territory and postal code
    • Billing address: street address, city, province/territory and postal code

    Utilization statistics

    • On-road or taken-on-strength date (including leased or rented vehicles)
    • On-system date (if different from taken-on-strength date)
    • Out-of-service or sale date of vehicle
    • Current odometer reading in kilometres
    • Current odometer date
    • Days of use

    Vehicle costing and life-cycle information

    • Capital cost of vehicle
    • Vehicle maintenance and repair costs (for both internal and external maintenance and repair, including warranty work if notified)
    • Vehicle maintenance and repair service dates (for both internal and external maintenance and repair, including warranty work if notified)

    Fuel

    • Bulk or retail fuel or electricity purchase
    • Date of purchase
    • Total units of purchase, by specific fuel type and grade
    • Name and location of supplier or owner of bulk facility, if applicable
    • Unit cost of fuel or electricity purchased
    • Total purchase cost
• A.2.3.2

  In addition to the above requirements, the following requirements apply only to executive fleet vehicles:

  • A.2.3.2.1Executive vehicles are authorized only for ministers and eligible senior officials. Authorized users of executive vehicles are Cabinet ministers, ministers of state, secretaries of state, deputy ministers of the Crown, and eligible senior officials who are entitled to make use of an executive vehicle.
  • A.2.3.2.2

    Eligible senior officials are those who meet all the following requirements:

    • Are Government in Council appointees;
    • Hold a full-time position with a personal classification equivalent to the DM 2 level (GC 9-10 or GCQ 9-10) or above;
    • Are deputy heads; and
    • Occupy the most senior position in the organization.
  • A.2.3.2.3The authorized maximum price limit for executive vehicles is established by the Comptroller General of Canada and communicated annually to PSPC and the Privy Council Office.
  • A.2.3.2.4The actual total price paid for an executive vehicle, excluding taxes and aftermarket equipment or accessories installed in an executive vehicle for reasons of security and efficient government business, must fall within the applicable limit and includes the cost of all factory-installed equipment and accessories and all preparation and delivery charges.
• A.2.3.3

  Authorities and exceptions are as follows:

  • A.2.3.3.1The Comptroller General of Canada has the authority to determine the most appropriate method of procurement for executive vehicles.
  • A.2.3.3.2The Treasury Board must approve exceptions to the authorized maximum price limit, executive vehicle standards and selection of executive vehicles.
• A.2.3.4Ministers, eligible senior officials, and persons related to these authorized users are allowed to make personal use of their assigned executive vehicles when these vehicles are not required for official use.
• A.2.3.5

  Personal use of executive vehicles is considered a taxable benefit under the Income Tax Act and must be reported as income in accordance with the Canada Revenue Agency’s guidance on taxable benefits.

• A.2.3.6The list of authorized executive vehicles is established annually by PSPC based on the Comptroller General of Canada’s authorized maximum price limit. PSPC’s established methods of supply are communicated to the Treasury Board of Canada Secretariat and the Privy Council Office and must be used by organizations when selecting their executive vehicles.
• A.2.3.7As of January 1, 2025, executive vehicle acquisitions must be ZEVs.
• A.2.3.8When transferring a vehicle from the light-duty fleet to the executive fleet, the vehicle must be consistent with the criteria for eligible executive vehicles according to the Directive on the Management of Materiel.
• A.2.3.9An executive vehicle must meet executive business requirements, authorized user needs and, where possible, the personal preference of the authorized user.
• A.2.3.10

  An executive vehicle is eligible for replacement once it has reached six years or 150,000 km. However, the vehicle may be replaced:

  • A.2.3.10.1at any time if a gasoline-powered or hybrid-electric executive vehicle is replaced with a ZEV; or
  • A.2.3.10.2at any time if the vehicle is transferred to the executive fleet of another department; or
  • A.2.3.10.3after three years if the vehicle is transferred to the light-duty fleet, provided there is a documented operational need for the vehicle in the light-duty fleet.
• A.2.3.11Authorized price limits will be reduced by 25% if these conditions are not met.
• A.2.3.12If it is cost-effective, a surplus zero-emission executive vehicle can be transferred to another minister or eligible senior official in the department or agency, or it can be transferred to the departmental fleet.
• A.2.3.13Executive vehicles must not bear external identification markings such as those identified in subsection 3.1 of the Federal Identity Program Manual.