Is the Enterprise Rent-A-Car Lease Program Ending? Examining Government Contract Oversight

A recent report from the Department of Justice (DOJ) Inspector General Michael E. Horowitz has shed light on the Federal Bureau of Investigation’s (FBI) management of its National Vehicle Lease Program (NVLP), specifically its $108 million contract with EAN Holdings, LLC, known as Enterprise Rent-a-Car. This audit raises important questions about government oversight and whether programs like the Enterprise Rent-a-Car lease program are truly ending, or simply evolving. The report, released recently, scrutinizes the FBI’s contract with EAN, which concluded in February 2019, and reveals significant deficiencies in how the FBI administered and monitored this program.

The DOJ Office of the Inspector General (OIG) pinpointed several key issues with the FBI’s handling of the NVLP and its agreement with Enterprise. These included failures in administration, oversight, and monitoring. Furthermore, the OIG investigated the operational consequences of the FBI’s decision to transition from Enterprise vehicles to solely using General Services Administration (GSA) leased vehicles. The FBI justified this shift as a cost-saving measure. However, the audit found that this decision was made without properly considering the practical and safety implications. A critical concern was the limitations placed on task force officers, specifically their ability to quickly exchange vehicles that might be compromised during operations.

Several key findings emerged from the OIG report. Firstly, the FBI’s procedures for reviewing invoices and managing fleet cards were found to be inadequate. This lapse in oversight resulted in approximately $540,000 in potentially unallowable fees and invoice payments, alongside an additional $1 million in fuel purchases that seemed to violate NVLP guidelines. Secondly, the report highlighted issues with vehicle citations. The FBI’s practice of automatically paying all traffic and parking tickets incurred by task force officers, without mandatory reviews to determine if these violations occurred during official duty, was criticized. Disturbingly, the audit discovered that 153 task force officers had accumulated at least five violations each, with six officers receiving 20 or more citations. Finally, the OIG found fault with the FBI’s handling of vehicle damages billed by Enterprise. The FBI did not conduct sufficient reviews of these charges and failed to demand proper documentation for vehicle damage claims.

In response to these findings, the Inspector General’s report issued 21 recommendations aimed at assisting the FBI in enhancing the implementation of the NVLP and improving contract administration, oversight, and monitoring practices. The FBI has concurred with all 21 recommendations, signaling a commitment to rectify the identified issues. Enterprise Rent-a-Car, while agreeing with the majority, disagreed with one recommendation and partially agreed with another directly related to their responsibilities. While the specific contract with Enterprise concluded in 2019, the broader issue of government lease programs and effective oversight remains relevant. This report underscores the importance of robust management and careful consideration when government agencies make decisions about transitioning or ending contracts, especially when operational effectiveness and safety are at stake.

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