A recent report by the Department of Justice (DOJ) Inspector General Michael E. Horowitz has shed light on the Federal Bureau of Investigation’s (FBI) oversight of its National Vehicle Lease Program (NVLP), specifically examining a $108 million contract with EAN Holdings, LLC, also known as Enterprise Rent-a-Car. This audit scrutinizes the administration of a program designed to provide leased and rented vehicles to 2,800 task force officers across the nation, a contract that concluded in February 2019. The findings raise important questions about government contracts and whether programs like the Enterprise Rent-a-Car lease program are facing increased scrutiny and potential changes.
The DOJ Office of the Inspector General (OIG) report uncovered significant deficiencies in the FBI’s management, supervision, and monitoring of the NVLP and its agreement with EAN. Beyond administrative issues, the report also highlights operational concerns stemming from the FBI’s decision to transition away from Enterprise vehicles to an exclusive reliance on General Services Administration (GSA) leased vehicles. The FBI justified this shift solely on anticipated cost savings. However, the audit reveals a lack of thorough consideration regarding the operational and safety implications of this change. One key concern is the limitations placed on task force officers’ ability to quickly exchange vehicles, a crucial capability when vehicles are compromised during operations.
Several key findings from the OIG report underscore the issues within the FBI’s management of the Enterprise Rent-a-Car lease program:
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Inadequate Invoice Review and Fleet Card Controls: The FBI’s processes for reviewing invoices and controlling fleet cards were found to be insufficient. This lapse resulted in approximately $540,000 in potentially unallowable fees and invoice payments under the contract. Furthermore, around $1 million in fuel purchases were identified that appeared to violate NVLP guidelines. This financial mismanagement points to a need for stricter oversight in government lease programs.
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Problematic Handling of Vehicle Citations and Safety: The FBI’s practice of automatically paying all traffic and parking citations incurred by task force officers without mandatory review is concerning. This blanket payment occurred regardless of whether the violations were incurred during official duty. The report revealed that 153 task force officers had accumulated at least 5 violations each, with a disturbing 6 officers receiving 20 or more citations. This raises questions about accountability and safety within the program.
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Insufficient Review of Vehicle Damage Billings: The FBI’s review of damage charges billed by EAN was deemed inadequate. Critically, the FBI did not consistently demand proper documentation for vehicle damages. This lack of diligence in verifying damage claims could lead to inflated costs and potential financial irregularities in the vehicle lease program.
To address these identified shortcomings, the OIG report issued 21 recommendations aimed at assisting the FBI in enhancing the NVLP’s implementation, contract administration, oversight, and monitoring. The FBI has concurred with all 21 recommendations, signaling a commitment to improve its management practices. EAN, while agreeing with most recommendations directly related to them, disagreed with one and partially agreed with another, indicating potential areas of ongoing discussion and adjustment as a result of the audit. The report serves as a critical examination of government vehicle lease programs and highlights the importance of robust oversight and accountability, especially as agencies consider shifting program structures and priorities in contracts like the Enterprise Rent-a-Car lease program.
