R 231548Z OCT 09 ALCOAST 610/09 COMDTNOTE 11240 SUBJ: UNIT-LEVEL ACQUISITION AND COMMERCIAL LEASE OF PASSENGER VEHICLES A. COAST GUARD MOTOR VEHICLE MANUAL COMDTINST M11240.9 (SERIES) B. SIMPLIFIED ACQUISITION PROCEDURES HANDBOOK, COMDTINST M4200.13 (SERIES) C. COAST GUARD ACQUISITION PROCEDURES (CGAP), COMDTINST M4200.19 (SERIES) D. COMDT COGARD WASHINGTON DC 041712Z FEB 09 / OPERATING FACILITY CHANGE ORDER (OFCO) NO.015-09: ESTABLISHMENT OF SHORE INFRASTRUCTURE LOGISTICS CENTER (SILC) AND SUBORDINATE UNITS 1. PURPOSE: THIS ALCOAST INSTITUTES NEW COAST GUARD (CG) VEHICLE PROGRAM POLICIES TO ADDRESS RECENT ORGANIZATIONAL CHANGES AND REPORTS OF IMPROPER OR UNAUTHORIZED VEHICLE ACQUISITIONS. 2. BACKGROUND: A. FEDERAL LAW RESTRICTS THE NUMBER OF PASSENGER VEHICLES THAT THE CG CAN PURCHASE OR COMMERCIALLY LEASE. ACQUISITION METHODS COVERED UNDER THIS FEDERAL LAW INCLUDE PASSENGER VEHICLES THAT ARE PURCHASED, COMMERCIALLY LEASED, AND TRANSFERRED INTO THE CG INVENTORY FROM OTHER AGENCIES (SUCH AS DRMO, GSA EXCESS OR ANY OTHER OUTSIDE SOURCE). IN ADDITION, THE LAW PROHIBITS SHORT-TERM RENTALS THAT EXCEED 59 DAYS. PARAGRAPH 3.C BELOW CONTAINS SPECIFIC GUIDANCE CONCERNING SHORT-TERM RENTALS OF PASSENGER VEHICLES. B. PASSENGER VEHICLES COVERED UNDER FEDERAL LAW ARE SEDANS, STATION WAGONS, CROSSOVERS, SPORTS UTILITY VEHICLES (SUVS), PASSENGER MINIVANS, PASSENGER VANS, AMBULANCES, BUSES, OR ANY OTHER VEHICLE THAT HAS BEEN MANUFACTURED PRIMARILY FOR TRANSPORTATION OF PEOPLE REGARDLESS OF HOW THE VEHICLE IS USED. CHAPTER 1 OF REF A LISTS THE DEFINITIONS OF OTHER VEHICLE CATEGORIES. THE RESTRICTIONS OUTLINED IN PARAGRAPH 2.A ABOVE DO NOT PERTAIN TO THE NUMBER OF TRUCKS ACQUIRED BY THE CG. A TRUCK IS A VEHICLE MANUFACTURED PRIMARILY FOR TRANSPORTATION OF SUPPLIES AND EQUIPMENT AS DEMONSTRATED BY THE CLASSIFICATION OF EACH TRUCK (ITS MAXIMUM PAYLOAD RATING). THIS DEFINITION APPLIES TO ALL PICKUP TRUCKS OF ANY SIZE, INCLUDING CREW CAB (FOUR DOOR) PICKUP TRUCKS. CARGO VANS AND CARGO MINIVANS ARE ALSO CONSIDERED TRUCKS. C. THE CG PRESENTLY OWNS OR COMMERCIALLY LEASES 46 PASSENGER VEHICLES. IAW ITS ANNUAL APPROPRIATION, THE CG IS ONLY ALLOWED TO REPLACE THOSE 46 PASSENGER VEHICLES AT A RATE NOT TO EXCEED 25 PER YEAR. THE CG IS NOT AUTHORIZED TO PURCHASE OR COMMERCIALLY LEASE ANY ADDITIONAL PASSENGER VEHICLES UNLESS THEY ARE REPLACEMENTS FOR THOSE ALREADY OWNED. VIOLATION OF THIS LAW PLACES THE CG IN VIOLATION OF THE ANTI-DEFICIENCY ACT (ADA). D. THE CG HAS A TOTAL OF 3,867 PASSENGER VEHICLES AND TRUCKS IN THE CG-WIDE VEHICLE INVENTORY. THAT TOTAL IS BASED ON: 1) 46 PASSENGER VEHICLES (OWNED OR COMMERCIALLY LEASED), 2) 267 TRUCKS (OWNED OR COMMERCIALLY LEASED), AND 3) 3,554 PASSENGER VEHICLES AND TRUCKS FROM THE GSA FLEET LEASE PROGRAM. E. REF B PROVIDES ADDITIONAL INFORMATION ON THE ACQUISITION OF MOTOR VEHICLES. REF C REQUIRES ALL PROCUREMENT REQUESTS FOR PASSENGER VEHICLES BE SUBMITTED TO CONTRACTING OFFICERS WITH THE APPROVAL MEMO FROM COMDT (CG-434). F. IT IS CG POLICY THAT THE PROVIDER OF CHOICE FOR ALL CG PASSENGER VEHICLE AND TRUCK REQUIREMENTS IS THE GSA FLEET LEASE PROGRAM. REF B REQUIRES APPROVAL BY COMDT (CG-434) (FORMERLY COMDT (CG-441)) PRIOR TO ACQUISITION OF ANY MOTOR VEHICLE FROM ANY SOURCE OTHER THAN THE GSA FLEET LEASE PROGRAM. IF THE GSA FLEET LEASE PROGRAM CANNOT PROVIDE THE PASSENGER VEHICLE OR TRUCK REQUIRED FOR SUPPORT OF A CG MISSION, THEN COMDT (CG-434) WILL DETERMINE OTHER AUTHORIZED ACQUISITION ALTERNATIVES FOR CG UNITS ON A CASE BY CASE BASIS. 3. ACTION: A. COMDT (CG-43), AS THE NEW CG VEHICLE PROGRAM MANAGER WILL REINFORCE ALL OF THE EXISTING REQUIREMENTS AND ADMINISTRATIVE POLICIES WHILE ALSO INSTITUTING NEW PROCEDURES (OUTLINED IN PARAGRAPH 4 BELOW) TO IMPROVE THE ACCOUNTABILITY OF THE CG-WIDE INVENTORY OF ALL PASSENGER VEHICLES AND TRUCKS. REF D ESTABLISHED THE SHORE INFRASTRUCTURE LOGISTICS CENTER (SILC), WHICH REPORTS TO COMDT (CG-43). THE SILC WILL BE RESPONSIBLE FOR ENFORCING ALL HQ VEHICLE POLICIES. B. OVER THE NEXT 12 MONTHS, COMDT (CG-434) AND THE SILC WILL VERIFY THE CURRENT CG-WIDE INVENTORY OF ALL PASSENGER VEHICLES AND TRUCKS AND ESTABLISH VEHICLE ALLOWANCES FOR CG UNITS. THE VEHICLE ALLOWANCE SHALL DETERMINE FUTURE UNIT FUNDING FOR VEHICLES. C. ALL CG UNITS MUST EMPLOY CAUTION CONCERNING SHORT-TERM RENTALS FOR PASSENGER VEHICLES. A SHORT-TERM RENTAL IS DEFINED AS A RENTAL AGREEMENT FOR 59 CALENDAR DAYS OR LESS PER REFERENCES A AND B. FEDERAL LAW PROHIBITS SHORT-TERM RENTALS THAT EXCEED 59 DAYS. RENTAL FOR MORE THAN 59 DAYS IS CONSIDERED A COMMERCIAL LEASE AND IS AN ADA VIOLATION IF NO OFFSETTING VEHICLES ARE REMOVED FROM THE CG INVENTORY. A SERIES OF SEQUENTIAL RENTALS LESS THAN 59 DAYS EXTENDING PAST THE 60-DAY LIMIT SHALL NOT BE USED TO CIRCUMVENT THE NEED FOR A COMMERCIAL LEASE. D. TO AVOID ANY UNAUTHORIZED COMMITMENTS OR POSSIBLE ADA VIOLATIONS ALL CG UNITS MUST COMPLY WITH THE NEW PROCEDURES OUTLINED IN PARAGRAPH 4 BELOW. CG PERSONNEL MAY BE HELD PERSONALLY LIABLE FOR ADA VIOLATIONS IN THE PROCESS OF ACQUIRING VEHICLES. E. COMDT (CG-913) WILL PROMULGATE A COCO ALERT CONCERNING THE ACQUISITION OF VEHICLES. COMDT(CG-913) AND COMDT(CG-434) WILL INCORPORATE THE CHANGES OF THIS ALCOAST IN THE NEXT UPDATE OF REFERENCES A AND B. 4. NEW POLICY: A. UNITS SHALL OBTAIN APPROVAL FROM COMDT (G-434) PRIOR TO THE ACQUISITION OF ALL NEW AND USED PASSENGER VEHICLES OR TRUCKS. THIS NEW POLICY BROADENS THE CURRENT REQUIREMENT TO INCLUDE ALL ACQUISITIONS FROM: 1) THE GSA FLEET LEASE PROGRAM, 2) PURCHASE, 3) COMMERCIAL LEASE, AND 4) TRANSFER FROM OTHER AGENCIES (SUCH AS DRMO, GSA EXCESS, OR ANY OTHER OUTSIDE SOURCE). B. UNITS SEEKING APPROVAL FOR VEHICLE ACQUISITION SHALL SUBMIT A REQUEST MEMORANDUM SIGNED BY THE UNIT CO OR OINC TO COMDT (CG-434) VIA SILC-BSD. THE MEMO SHALL INCLUDE: 1) THE CURRENT INVENTORY OF ALL VEHICLES AT THE UNIT, 2) JUSTIFICATION FOR ADDITIONAL VEHICLES REQUIRED BASED ON THE UNITS MISSION(S) AND PAL, AND 3) A DESCRIPTION OF THE PROPOSED METHOD OF ACQUISITION AND FUNDING SOURCE. 5. POC: ADDITIONAL QUESTIONS OR COMMENTS REGARDING THESE SUBJECTS SHOULD BE ADDRESSED TO EITHER THE COMDT (CG-434) POC, MR. HENRY HERZBERG AT 202-475-5666 OR BY E-MAIL AT HENRY.J.HERZBERG (AT) USCG.MIL, OR THE SILC-BSD POC, LTJG DEVIN POMRANKY AT 757-628-4495 OR BY E-MAIL AT DEVIN.L.POMRANKY2 (AT) USCG.MIL. 6. RDML T.P. OSTEBO, ASSISTANT COMMANDANT FOR ENGINEERING AND LOGISTICS, SENDS. 7. INTERNET RELEASE AUTHORIZED.