Rescinded [2022-05-13] - Directive on Fleet Management: Executive Vehicles

Authorized users of the federal executive vehicle fleet are:

• Cabinet ministers
• ministers of state
• secretaries of state
• deputy ministers of the Crown
• certain eligible senior officials

Eligible senior officials are those who:

• hold a full-time position within the Government of Canada
• have a classification equivalent to the DM 2 level (GC 9-10 or GCQ 9-10) or above
• are deputy heads
• occupy the most senior position in the organization

The authorized maximum price limit for executive vehicles is established by the Comptroller General of Canada. These limits are adjusted annually (either increased or decreased) in order to:

• take into account changes in market conditions
• ensure that a selection of zero-emission vehicles is available
• ensure that a selection of vehicles is available across vehicle categories and capabilities

The Treasury Board of Canada Secretariat (TBS) will communicate maximum price limits annually to:

• the vehicle-contracting authority at Public Services and Procurement Canada (PSPC)
• the Privy Council Office

The actual total price paid for an executive vehicle must fall within the applicable limit and includes:

• the cost of all factory-installed equipment and accessories
• all preparation and delivery charges

Note: The following aftermarket equipment and accessories installed in an executive vehicle for reasons of security and efficient government business are excluded from the actual total price of a vehicle:

• telephones
• alarm or security systems
• reading lamps

Vehicle leases must be avoided unless specific operational requirements dictate that they be used. When vehicle leases are required, the purchase price of the leased vehicle must fall within the applicable authorized maximum price limit.

Subject to the exceptions set out in subsection 5.2.6 of this directive, authorized maximum price limits will be reduced by 25% for:

• any vehicle purchased to replace a vehicle that was accepted from the delivering dealer less than six years previously and after April 1, 2018, or that has not travelled more than 150,000 kilometres
• any vehicle that was accepted from the delivering dealer less than three years previously and before April 1, 2018, or that has not travelled more than 150,000 kilometres

The Treasury Board must approve exceptions to the authorized maximum price for executive vehicles.

The type, size and quality of executive vehicles purchased must be comparable, in general, to those of vehicles purchased in the private sector for similar use. Individuals purchasing such vehicles must act with probity and exercise prudence in acquiring and using government property.

Executive vehicles must provide adequate and cost-effective transportation for official purposes and meet some of the user's personal preferences and needs. These vehicles must, above all, be highly reliable, safe and secure for the users.

Executive vehicles must be zero-emission or hybrid-electric vehicles. The number of vehicles operating on alternative fuels is subject to the Alternative Fuels Act at all times.

An executive vehicle must meet executive business requirements and must fall within one of the following categories:

• intermediate or smaller four-door sedan
• station wagon
• sports utility vehicle
• minivan

The Treasury Board must approve exceptions to executive vehicle standards.

PSPC has exclusive authority for acquiring executive vehicles. Departments must conclude all transactions for executive vehicles with PSPC headquarters and must not discuss any terms of acquisition with dealers.

PSPC will:

• ascertain the eligibility of the official for whom an executive vehicle or insurance coverage is requisitioned
• verify that the vehicle conforms to the executive vehicle standards as defined in subsection 5.3 of this directive

In order to support the government's objective to green its operations, departments must take action to initiate the replacement of conventional fuel-powered vehicles six years after they were first used. Departments may opt to use life-cycle costing principles to determine when to replace hybrid and alternative fuel vehicles.

Executive vehicles must be purchased through PSPC headquarters at the best available price and in compliance with the procurement practices stipulated in:

• the Treasury Board Directive on Fleet Management Directive: Light Duty Vehicles
• the Alternative Fuels Act

Trading in executive vehicles and purchasing used vehicles are prohibited practices because they are not cost-effective for the federal government.

Executive vehicles acquired through dealer stock:

• are generally more expensive than those acquired through PSPC's departmental individual standing offers
• must be avoided whenever possible

Departments must inform the PSPC contracting authority of the acceptance date of each vehicle acquired.

When emergencies occur or delays are expected in the delivery of a new vehicle, consideration must be given first to extending the use of the vehicle being replaced and then to:

• using another departmental vehicle
• as a last resort, using a rental vehicle until the ordered vehicle is delivered by the manufacturer

Departments must consider the environmental effects of the acquisition, use and maintenance of executive vehicles. Guidelines on Fleet Management, Chapter 1: Light Duty Vehicles contains a Green Fleet Management Checklist to help departments ensure that they manage their fleet in an environmentally responsible manner.

E-10 fuel must be used when available in all executive vehicles that are equipped with engines that operate on regular gasoline.

Vehicles equipped to operate on E-85 ethanol must use this fuel when available. If E-85 ethanol is not available, these vehicles can operate on E 10 ethanol and must use it when it is available.

Departments must take measures to eliminate unnecessary idling of executive vehicles. Examples are:

• mounting an anti-idling campaign
• making optimal use of anti-idling technologies such as auxiliary power units and cab heaters

Notwithstanding the normal government practice to "self-underwrite" government vehicles, all motor vehicles provided to the following must be fully insured commercially, with coverage for official and personal use:

• ministers
• ministers of state
• secretaries of state
• deputy ministers of the Crown
• eligible senior officials

Proper insurance coverage is to be arranged through PSPC.

At a minimum, the insurance policy must include the following coverage, as determined to be appropriate by PSPC:

• public liability
• property damage
• collision
• comprehensive

Guidelines contained in Guide to Fleet Management, Chapter 2: Executive Vehicles, include recommended minimum coverage.

PSPC will:

• pay for the insurance coverage at the beginning of the coverage period
• will be reimbursed by the appropriate departments and agencies at the end of the coverage period

Departments and agencies are responsible for the cost of deductibles on the insurance policy.

Departments must:

• assign a vehicle-specific fleet credit card to each vehicle
• use this card for all fuel purchases, repairs and maintenance of the vehicle and, where possible, for vehicle charging

Executive vehicles must be disposed of in accordance with the requirements of:

• the Treasury Board Policy on Management of Materiel
• the Treasury Board Directive on Disposal of Surplus Materiel

The following may make personal use of executive vehicles provided by their departments or agencies when these vehicles are not required for official use:

• ministers
• ministers of state
• secretaries of state
• deputy ministers of the Crown
• eligible senior officials

An executive vehicle may also be made available for personal use to persons related to the authorized user, provided that:

• the vehicle is not required for official use
• it is commercially insured for official and personal use

Under the Income Tax Act^{Footnote 1}, use of an executive vehicle for anything other than official use:

• generally constitutes a taxable benefit
• must be reported as income to the Canada Revenue Agency

For more information on their obligations under this legal requirement, including a definition of "personal use," departments should refer to the Canada Revenue Agency's Interpretation Bulletin IT63R5 Benefits, Including Standby Charge for an Automobile, from the Personal Use of a Motor Vehicle Supplied by an Employer - After 1992.

Executive vehicles must not bear external identification markings such as those identified in subsection 3.1 of the Federal Identity Program Manual.