Business Management. Flashcards
Questions
Answers
4.1.1 What is one of the most important support functions in an emergency? (p.155)
Transportation
4.2.1 What does FEMA stand for? (p.158)
Federal Emergency Management Agency
4.2.2 How does FEMA define an Incident Command System? (p.159)
Standardized, on-scene, all-hazards incident
management approach that:
• Allows for the integration of facilities, equipment, personnel, procedures, and communications operating within a common organizational structure.
• Enables a coordinated response among various jurisdictions and functional agencies, both public and private.
• Establishes common processes for planning and managing resources.
4.2.3 What is JEPP? What is its function? (p.160)
Joint Emergency Preparedness Program: ensure that all levels of government across Canada are equally prepared to respond to emergencies.
4.2.4 What should emergency planning for the private sector take into account? (p.160)
- If an emergency impacts the physical location of the fleet organization,
- If an emergency impacts a group of drivers in a particular geographic region away from the physical location of the fleet organization, and
- If an emergency occurs at a supplier, thus disrupting service to the fleet organization.
4.2.5 What are the essential elements that need to be considered for a mutual aid agreement 161
• Defined purpose
• Voluntary
• Reciprocal
• Spatial dispersion
• Shared operations plan
• Indemnification
4.3.1 What are the important points to keep in mind when developing an Emergency Response Plan? p.165-172)
- Develop response plans for most likely events
- Keep the plan flexible
- Use three principles to guide the plan…Survivability, Adaptability, and Sustainability
- Write an Emergency Operations Plan
- Train staff
- Develop staffing plans for 24/7 operations
- Safeguard your lines of supply
- Conduct security planning
4.3.2 What should you consider when calling in personnel during an emergency? (p.
Many of your employees could be personally affected by the disaster and may need to attend to their family needs before returning to work.
4.3.3 What are the three principles that guide an Emergency Response Plan? (p.166-
Survivability - Adaptability - Sustainablility
4.3.4 How much fuel should your fleet have stored for an emergency? (p.171)
Storage tank capacity should be large enough to fuel the fleet under emergency conditions for at least 72 hours
4.3.5 What are important maintenance activity issues during an emergency? (p.171-
Preventive maintenance becomes even more important to maximize vehicle uptime - To the highest degree possible, guarantee that your vehicles will receive priority service. Develop alternate or backup service providers if feasible
4.4.1 What is one of the first actions that need to be taken during an emergency?
Communication
4.4.2 Why is a steady, sustained response more effective than an overabundance of resources 175
Avoid the temptation to over-commit your resources or act in haste.
4.5.1 Why is it important to have an event debrief? (p.177)
Identify Lessons learned and make changes for the future
4.5.2 What is the main thing an After Action Report (AAR) will identify? (p.177)
strengths and weaknesses of the response, areas of improvement, and follow up actions.
4.5.3 What post-event activities should follow an emergency event? (p. 177)
Debriefing & AAR
5.1.1 What are two constraints that are common in many companies?
- the inability to make changes fast enough to meet changing market conditions
- inability to align their organizations to execute quickly.
5.1.2 Why has partnering become a key to survival? (p.232)
takes the tops off jars for these enterprises, broadening the perspective they need in order to close capability gaps, create a sustainable advantage, and achieve their strategic goals
5.1.4 What does partnering allow an organization to do? (p.232-233)
• Respond to change in timely fashion
• Decisively seize short-term opportunities
• Adapt to evolving market trends with greater flexibility233
• Acquire needed new products, skills or areas of competence withminimal disruption
• Expand the organization’s market share
• Cut back the number of customer defections
• Access new markets or compete in new industries
• Improve fleet operation and driver productivity
• Shore up internal weaknesses
5.1.5 How can a partnership with a Fleet management company help lower TCO
• Lowering costs of vehicle acquisition, operation and disposal
• Improving efficiency, compliance and driver performance
• Expanding the ability to finance, acquire and deploy fleet-related technology more quickly
• Creating mutual opportunities to co-develop and innovate
• Enhancing customer responsiveness and the organization’s reputation
5.1.6 What is the “trust Hierarchy”? (p.233)
• Level 1: Total Trust. Each side operates in the best interest of the other side, with unconditional positive regard.
• Level 2: Social Contract. Each side agrees to follow the social expectations documented in a charter created during a partner meeting or workshop.
• Level 3: Quid Pro Quo. Each side’s actions are reciprocal, based on taking turns (“I’ll do X, if you’ll do Y”).
• Level 4: Deception. Each side meets obligations, but in some cases takes advantage of the other while disguising true intent.
• Level 5: Revenge. Each side operates to take advantage of the other, or to impose punishment on the other for previous failure.
5.2.1 Who should handle an outsourced relationship to ensure that it lasts the wear-and-tear of time? 235
Leadership
5.2.2 How should the management team optimize the value derived from the relationship 235
• Formalizing the management framework.
• Forming day-to-day
• Program and project planning and governance.
• Creating relationship strategies.
• Facts and data base-lining. • Ensuring supplier engagement and mobilization.
• Developing links between partners. E
• IT system deployment.
5.3.1 Where does partnership begin? (p.238)
Identify specific needs
5.3.2 What is the difference between a strategic partner and a Tactical relationship?
Tactical: Short Term Strategic: Long Term
5.3.3 What is a Tactical relationship? (p.238)
typically deploys resources to repair or improve specific activities or processes as problems occur
5.3.4 What is a Strategic Partner? (p.238)
forward-looking organizations are typically opting for the long-term stability of strategic relationships with companies anywhere along the supply chain
5.3.5 What are the three partnering strategies? (p.239)
Window: New Technologogies / Best Practices
Positioning: Join forces to create Best in class
Options: create options by joining
5.4.1 What are the positive qualities that successful partnerships are based on?
• Common interests, common goals and common outcomes
• A voluntary relationship
• Shared competencies and resources, with both partners leveraging joint skillsets and assets, including financing flexibilities
• Mutual dependency arising from sharing risks, responsibilities and resources
• Regular team-building sessions to share mutual, interpersonal feedback
• Synergy (total greater than the sum of individual parts)
• Explicit commitment on the part of participants
• Working together at all levels and stages, from the design and governance of the initiative through implementation and evaluation
• Agreed-upon methods for running meetings and conducting business
• Established policies and procedures for conflict resolution and appeal
• Tight agreements regarding confidentiality (which information is to be shared, which is to be held in confidence)
• Complementary support
• Respect and trust
• Open, positive communication
• A checklist to identify the signs of a deteriorating relationship
5.4.2 What are some reasons that partnerships fail? (p.251)
• Wrong initial choice of a partner
• Breakdown in trust
• Change in strategy
• Lack of communication
• Company cultures that did not mesh
• Running separate systems that were not integrated
5.4.3 What are the signs that a partnership may be failing? (p.252)
• People stop participating in meetings
• Deadlines are missed, without prior explanation
• Individuals start doing an end-run around a person, going directly to their boss
• Individuals fail to follow through on promises
• People avoid talking person-to-person and often hide behind their emails
• Conversations take on a “blame” connotation
• Non-verbal signs of discontent emerge during meetings
• People give one-word answers to questions
• Issues quickly escalate into crises
• Issues are resolved at the wrong level
5.4.4 What is the ADAIR process of conflict resolution? (p.252
- Assess Situation
- Define Problem
- Analyze Options
- Implement Change
- Re-establish Relationship
1.1.1 What are the three types of contracts classified by formation? (p. 22)
- Express: Formed by Language ( oral or written)
- Implied: (Formed by Conduct)
- Quasi: Not actually contract (i.e.. accidental payment)
1.1.2 What are the two types of contracts classified by acceptance? (p. 22)
- Bilateral: Traditional exchange of promises
- Unilateral: Promise made by one to another. ( Due upon completion of performance)
1.1.4 What are void, voidable, and unenforceable contracts? (p. 23)
- Void: Illegal ( commit a crime)
- Voidable: one that one or both parties may elect to avoid or ratify (e.g., contracts of minors or mentally ill persons)
- Unenforceble: not enforceable due to various defenses extraneous to contract formation. (The Statute of Limitations)
1.1.5 What is mutual assent? (p. 23)
“Meeting of the minds”
1.1.6 Contract formation requires three elements, explain these elements. (p. 23)
- Offer: creates the power of acceptance in the offeree and a corresponding liability on the part of the offeror
- Acceptance: Acceptance must be communicated to the offeror.
- Consideration: Consideration is what separates a contract from being a gift or other unenforceable agreemen
1.1.7 What three questions will a Court use to judge whether an offer was made? (p.23-24
- Was there a Promise?
- Was there Certainty and Definiteness?
- Was there communication?
1.1.8 How can an offer be terminated? (p. 24)
Communicating revocation of the offer prior to acceptance, by direct communication to the offeree
1.1.9 How can an offeree accept a contract? (p. 24)
Acceptance by mail (or email or other electronic transmission) is effective
1.1.10 What are the two elements of consideration? (p. 25)
- There must be a bargained-for exchange between the parties;
- That which is bargained for must be considered of legal value
1.1.11 What is promissory estoppel? (p. 25)
Substitute for the requirement to have legal consideration
1.1.12 What are 4 categories of reasons that prevent contracts from being formed? (p.
- Absence of mutual assent;
- Absence of consideration;
- Public policy considerations; and
- Lack of capacity.
1.1.13 What is the statute of frauds? (p. 26)
Certain agreements, by statute, must be in writing
1. marriage
2.interests in land
3. performance cannot be completed in one year, and sale of goods > $1,000
1.1.14 What is unconscionability? (p. 27)
Contracts that contain terms that are especially onerous for one party - the clauses are so one-sided as to be unconscionable under the circumstances existing at the time
1.1.15 What is misrepresentation? (p. 27)
- Fraud
- Misrepresentation is a false statement of fact made by one party to another with the intent to induce the other party to enter into a contract.
1.1.16 What is fraud in fact and fraud in the inducement? (p. 27)
- Fraud in Fact: Legal defense to contract formation where the misrepresentation causes one to enter into a transaction without realizing the risks, duties or obligations incurred.
- Fraud in the Inducement: Lies about the product
1.1.17 Can a contract be put aside due to mistake by one party? (p. 28)
Only if, If one or more of the parties to a contract are mistaken about a material contract term or condition, or the contract subject matter, the contract may be invalidated by the courts as there was not a meeting of the minds.
1.1.18 What three questions do courts ask in order to determine if a party is a third party beneficiary
- manifests assent to the promise in the manner specified in the contract;
- brings suit to enforce the promise
- materially changes position in reliance on the promise
1.1.19 What contracts cannot be assigned? (p. 28)
- personal services contracts where the service being contracted for is unique;
- requirements and output contracts (although good faith assignments may be permitted);
- when the promisor’s risk would be substantially altered by the assignment;
- assignments prohibited by law
- when the contract contains an express provision barring assignment
1.1.20 Describe when contractual duties cannot be assigned to a third party? (p. 29)
(i) duties involving personal judgment and skill;
(ii) special trust in delegator;
(iii) if delegation would materially change the obligee’s expectations; and
(iv) if the contract expressly restricts delegation
1.1.21 What are the common rules of contract construction? (p. 29)
(i) the contract is construed as a whole;
(ii) courts will construe words according to their “ordinary” meaning;
(iii) custom and usage in particular business will be applied
(iv) ambiguities will be construed against preparer.
1.1.22 What is the Parole evidence rule? (p. 29)
holds that in a written contract, where the parties express their intent that it embody their complete agreement, no other prior or contemporaneous agreements or expressions will be permitted to modify the language of the ritten contract.
1.1.23 What is the difference between a condition and a promise? (p. 30)
Promise: Commitment to do or refrain from doing something.
Condition: Event, other than passage of time, which will create the extinguish of the duty of the contracted party to perform.
1.1.24 Differentiate between conditions precedent, concurrent and subsequent.(p. 30)
Precedent: must occur before an absolute duty of immediate performance arises
Concurrent:those that occur at the same time and if both do not occur, there is no contract and no breach
Subsequent: occurs after an existing dutyof performance becomes absolute which then terminates that duty
1.1.25 How can a contract be discharged? (p. 30)
Performance
Ocurrence of a Condition Subsequent
Deemed Illegal
Mutual rescission
1.1.26 What is a minor contract breach? (p. 30)
the breach does not substantially affect the promisee’s benefit of the bargain)
1.1.27 What is a material contract breach? (p. 30)
the promisee does not receive the substantial benefit of the bargain as a result of the failure of the promisor to perform to the terms of the contract)
1.1.28 What is a force majeure clause? (p.3 7)
Neither party is liable due to forces beyond their control. I.e. flood, fire, stike
1.2.1 What is a tort? (p.39)
A Civil Wrong
1.2.2 What is negligence? (p.39)
Most common tort type.
1.2.3 What four elements must a plaintiff prove to prove negligence? (p.40)
- Duty to perform
- Breach of that duty
- Breach was Actual and Proximate and caused by defendant
- Damage was caused
1.2.4 What is a duty of care? (p.40)
Negligence is based upon the premise that a duty of care is owed by each person in all acts
1.2.5 What is a breach of duty? (p.41)
(1) it must be shown what in fact happened; and
(2) it must be shown from these facts that the defendant acted unreasonably.
1.2.6 What is the difference between Actual Cause and Proximate Cause? (p.41)
Actual: “But For” & Substantial factor Test
Proximate: the defendant will be liable for all injury resulting from the normal incidents of and within the increased risk created by the defendant’s acts.
1.2.7 What must a plaintiff suffer in order for the defendant to be liable? (p.42)
Actual harm or injury
1.2.8 What is contributory negligence? (p.42)
The plaintiff’s negligence contributed to the injury. if a plaintiff was 10 percent negligent and the defendant was 90 percent negligent, the plaintiff would still not recover
1.2.9 What is comparative negligence? (p.42-43)
allows a plaintiff whose negligence contributes to the injury to collect from a negligent defendant based upon a percentage of their comparative negligence
1.2.10 When can punitive damages be awarded (p. 42)
if acts were wanton or willful
1.2.11 What is an Intentional Tort? (p.43-44)
Civil equivalent of crimes
- Act by Defendant
- Intent to harm
- Caused (the act the caused harm)
1.2.12 What are torts to economic and personal interests? (p. 44-45)
- Defamation
2 .Invasion of Privacy - Misrepresentation
- Wrongful institution of legal proceedings
- Interference with Business Relations
1.2.13 What is product liability? (p. 46-47)
Liablity of a Supplier of a product to one injured by the product
1.2.14 What is nuisance? (p.48)
Invation of Private Property rights or public property rights by tortious conduct.
1.2.15 Who is immune from Torts? (p.49)
- Fed Govt. 2. State Govt, 3. Municipalities 4. Charity
1.3.1 What is the difference between express and implied agency? 52
Implied example: Employer / Employee Expressed: POA
1.3.2 What are the four types of authority and how can a contract be ratified? (p.52)
Actual: Acts with authority that has legal consequences for the principal
Apparent: “clerk at the register”
Implied: employee sent to retrieve a vehicle can bind the employer to pay for the cost of the tow
Ratification: Affirmation of a prior act done by another.
statement or the principal implies ratification of the act by his subsequent acquiescence when a reasonable person would believe that such acquiescence constituted ratification
1.3.3 What is a universal agent? (p.53)
Universal agents hold all of the powers of the principal
1.3.4 What is a general agent? (p.53)
General agents hold a more limited authority to perform acts for their principals concerning a specific business (e.g.fleet management
1.3.5 What is a special agent? (p.53)
Special agents hold powers limited to specific transactions over a specified period of time
1.3.6 What are the six ways an agent can be terminated? (p.54)
Death
Loss of Principal’s capacity to act
Mutual agreement
Occurrence of circumstances on which it’s reasonable
Agent renounces manifestation to the principal
Principal revokes
1.3.7 When is a principle liable for the actions of an agent? (p.54)
(a) the agent acts with actual authority of the principal or the principal ratifies the agent’s conduct
- (i) the agent’s conduct is tortuous
- (ii) the agent’s conduct, if that of the principal, would subject the principal to tort liability
(b) the principal is negligent in selecting, supervising or otherwise controlling the agent;
(c) the principal delegates the performance of a duty to use care to protect other persons or their property to an agent who fails to perform that duty.
1.3.8 What is the doctrine of Respondent Superior? (p.54-55)
An employer is subject to liability fortorts committed by employees
1.3.9 What is Placard/Logo liability? (p.55)
The presumption is that:
(i) the vehicle is owned by the employer
(ii) the operator/driver is an employee of the employer
(iii) at time of the crash, the employee was engaged in the scope of employment and furtherance of the employer’s business.
1.3.10 What is negligent entrustment? (p.56)
The elements of negligent Entrustment are
(i) the defendant (employer) permitted the employee to use the vehicle
(ii) the vehicle was under the defendant’s control
(iii) the defendant knew or should have known that employee was likely to use the vehicle in such a manner as to create an unreasonable risk to others.
1.3.11 Under what theories of negligence law can an employer be held liable? (p.56)
(i) The employee or agent acted under actual authority
(ii) Negligent Entrustment
(iii) Negligent hiring or retention
(iv) Negligent supervision or training.
1.3.12 What are the three elements of negligent Entrustment in the context of FM
(i) the defendant (employer) permitted the employee to use the vehicle
(ii) the vehicle was under the defendant’s control
(iii) the defendant knew or should have known that employee was likely to use the vehicle in such a manner as to create an unreasonable risk to others
1.3.13 What is negligent hiring? (p.57)
Similar to negligent entrustment, but is focused solely on the employer’s acts at the time of hiring
1.3.14 What are negligent supervision and training? (p.58)
Similar to negligent retention, differing from negligent hiring because they focus on the period after the date of hire while the employee is being supervised and trained
1.3.15 What is a distracted driving liability that fleet managers should be aware of?
Unlike other distracted driving, cell phone use and texting has greater liability for the fleet organization due to the fact that the exact time of the electronic transmission can be matched to the timeline of a crash
1.4.1 What is the difference between a bailor and a bailee? (p.62)
Bailor: Giver Bailee: Reciever
1.4.2 When is bailment created? (p.62)
Delivery of Personal property from Bailor to Bailee
1.4.3 What are the four types of bailment? (p.62-63)
- Sole Benefit of Bailor (parking your car in a neighbor’s garage for free)
- Benefit of Bailee (neighbor borrows lawn mower)
- Mutual Benefit (paying for a service)
- Involuntary (Found lost property)
1.4.4 What is the Duty of Care? (p.63)
The bailee is responsible for taking reasonable steps to protect the personal property during the time the bailee has possession of it.
1.4.5 What is the Duty of Return? (p.63-64)
Bailee must return the identical property the bailee received
1.4.6 What is Bailee liability and what are the limitations of it? (p.64)
If the bailee misdelivers the personal property at the termination of the bailment, he is liable to the bailor
1.4.7 What are the duties of the Bailor? (p.65)
The bailor makes an implied warranty that the personal property has no hidden defects that would make it unsafe for use.
If the bailment is for the benefit of the bailee, then the bailor is liable for any harm or damages that result from defects in the bailed property, but only if the bailor knew about the defect and failed to inform the bailee.
If a bailment is for mutual benefit, then the bailor has a greater obligation—the bailor must use reasonable care in inspecting the property and ensuring that it is safe to use for the purpose intended
1.5.1 In the United States what is Employee at Will? (p.67)
Employer and Employee can both Terminate at any time for any reason
1.5.2 What is the difference between an employee and an independent contractor?
if an independent contractor is deemed to be an employee, the organization can be found liable by the U.S. Internal Revenue Service for not paying employee payroll taxes
1.5.3 How is the relationship between employer and employee defined in Canada?
The relationship between employer and employee is established by a contract that gives the employer the authority to direct the work of the employee
1.5.4 What is an appropriate time period for a notice of termination in Canada? (p.68)
2 weeks
1.5.5 What are the causes that would empower an employer to terminate an employee?
Misconduct - Disobedience - Incompetences - Illness
1.5.6 What must an employee prove in order to receive workers compensation? (p.69)
must prove is that he or she was an employee, was injured and that the injury occurred on the job.
1.6.1 What are the two types of federal administrative agencies? (p.75)
Executive agencies, which are part of the Executive Branch of the U.S. government, including the Cabinet
- Examples: Internal Revenue Service, the Food & Drug Administration,
the Occupational Safety and Health Administration and the Federal
Energy Regulatory Agency),
Independent agencies, created by Congress
- Examples: Federal Trade Commission, the National Labor Relations Board, the Environmental Protection Agency and the Securities and Exchange Commission).
1.6.2 What are the three types of rules that administrative agencies create? (p.75)
Procedural - Interpretive - Legislative
1.6.3 What is the mission of the department of transportation? (p.76)
To serve the US by ensuring Fast, Safe, Efficiente, accessible and convienient Transportation
1.6.4 What agencies affect fleet operations the most? (p.76)
- FMCSA - Federal Motor Carrier Safety Administration
- NHTSA: National Hwy Traffic Safety Administration
- FHA: Federal Hwy Administration
- FTA: Federal Transit Administration
1.6.5 What is Transport Canada responsible for? (p.76)
Transportation policies and programs and it ensures that air, marine, road and rail transportation are safe, secure, efficient and environmentally responsible
1.6.6 What is the federal motor carrier safety administration responsible for? (p.76)
registering and licensing CMVs
USDOT Numbers
Operating Authority
HM Safety Permit
Cargo Truck Number
licensing and regulating commercial drivers (pre-employment screening program
commercial driver license standards
requirements and penalties
drug and alcohol testing programs
hours of service, special training requirements, safe driving of commercial motor vehicles); regulating parts and accessories for safe operation of CMVs; and regulating commercial transportation of hazardous materials.
1.6.7 What is the goal of the Canadian National Safety Code? (p. 76-77)
developed in 1987 in response to impending economic deregulation of the trucking industry. Its goal is to improve motor carrier safety in Canada through the consistent implementation of safety standards.
1.6.8 What is the National Highway Traffic Safety Administration responsible for?
- writes safety, theft-resistant, and fuel economy standards under the Corporate Average Fuel Economy (CAFÉ) system
- Licenses motor vehicle manufacturers and importers
- Administers the VIN system
1.6.9 What are the two programs under the Federal Highway Administration? (p.77)
Federal-aid Highway Program: oversees federal funds for constructing and maintaining the National Highway System
Federal Lands Highway Program: managing highway design and construction on federal lands
1.6.10 What is the mission of the Department of Energy? (p.77)
Advance the national, economic, and energy security of the United States; to promote scientific and technological innovation in support of that mission;
1.6.11 What are 5 fleet related initiatives that the DOE is involved with? (p.78)
- Vehicle Tech Program
- Alternative Fuels
- Clean Cities
- ETAct & transportation Regulatory Activities
- EIA
1.6.12 What is the Environmental protection Agency responsible for? (p.78)
Protecting Human health and safeguarding the natural enviorinment
1.6.13 What are two fleet related initiatives that the EPA is responsible for? (p.78)
- Regulatory information for the Automotive Sector
- Clean Air Act
2.2.1 What are the steps involved in developing a policy? (p. 88)
• Determining the need for a policy
• Identifying those directly affected by proposed, new or revised policies and obtaining their input early in the planning
• Writing, revising and updating the policy and/or procedures
• Walking the statements through all the steps of review, revision and approval
• Producing the final document in electronic and/or hardcopy format to align with the information needs of all relevant groups
• Communicating the policy/procedures to all groups affected
• Integrating the policy into the organization’s larger policy statement or manual
• If necessary and appropriate, creating support materials and training to make sure those affected by the policy in all functional areas have the tools available to understand and comply with it.
• Designating “experts” to whom others can turn for guidance in resolving problems
• Enforcing compliance to make sure the policy achieves the goals for which it was created
• Conducting timely reviews for updating the policy/procedures
2.2.2 What will a policy statement cover? (p. 89)
policy “deliverable”—i.e., the output or service delivered when policy is implemented.
If the effective date is different from issuing date, the policy statement should clarify when the policy applies.
2.2.3 Why is it important to have a written policy? (p. 89)
Keeping all policy and procedure statements in written format improves the chances that employees will comply with them
2.3.1 What is the importance of language used in a written policy (p. 90)
Language is the tool for telling drivers and others exactly what a policy wants them to do.
2.3.2 What is the danger to an “exception to the policy? (p. 90)
Sets Precedent
2.3.3 What do well written procedures do? (p.93)
• State what is to be done, then by whom, then how, and lastly, if necessary, explanatory material telling why
• Are specific with enough detail to make certain that an individual can complete the steps of work consistently, avoiding variation from person-to-person or shift-to-shift
• Make each statement or step understandable so that all users can follow what needs to be done
• Organize the steps in a logical step-by-step sequence
• Include a process flowchart showing the group, personnel, locations, circumstances, limitations and exceptions
• Avoid words like “should,” “may” and “try to,” and instead use “shall,” “must” or “will”
• Cite the tools, communications and skills required for successful implementation
• Eliminate unnecessarily restrictive language and, when feasible, provide the user with options
• Reflect global application, if necessary
• Describe how the procedure will be deployed
2.3.4 What are the key elements of a procedure statement? (p. 92-93)
- Title of procedure
- Overview/description of procedure.
- Areas of responsibility.
- Details of procedure.
- References
- Help Info
2.4.1 What are the guidelines to creating and reviewing effective policy? (p.95-99)
- Explore areas for Policy Development
- Win Management Approval
- Enlist Stake holders
- Decide on specific content
- Appoint a writer
- Circulate a Draft
- Obtain Approval @ all levels
- Announce Policy to organization
- Target delivery to each audience ( manuals / handbooks )
- Keep Policy updated
2.4.2 Why is it important to have management support before a policy is implemented?
No wasted time
2.5.1 What is the role of the fleet manager in policy compliance? (p. 101)
obligation to lead successful enterprise-wide policy enforcement and compliance
2.5.3 What tools are available to managers for policy compliance? (p.101-102)
Manual - Handbooks
2.5.4 Why is communication key for policy and compliance? (p.102)
When the manager effectively communicates fleet policy so that more users are following the requirements, a culture conducive to compliance begins to take hold
3.1.1 What are some benefits and pitfalls of Request for Proposals (RFPs)? (p. 116-
Benefits:
Detail exactly what you need.
Evens the playing field
Equal info
Pitfalls: “be-all and end-all” Pricing
3.2.1 How do you create sustainable value with an RFP? (p. 120)
eliminating costs, not deferring them, and improving operating efficiency for the long-term through total cost of ownership and lifecycle
costing strategies
3.2.2 What are the steps involved in identifying the need for a proposal? (p. 121)
- Involve Stake holders
- All parties need an opportunity to speak
- Separate needs from wants
3.2.4 What are the three methods of procurement used in both the public and private
Informal Competitive Bidding: RFQ - Small Fleet with clear and simple specs
Formal Competitive Sealed Bidding: ITB - Organization requests specific service of product with a clear defined outcome
Competitive Sealed Proposal - RFP: Price is only one of many important evaluation criteria
3.2.6 Who is included in a RFP team? (p. 123)
3-7 Individuals: FM, Legal, Tech, Sourcing, Financial, Drivers
3.2.7 Who usually evaluates proposals? (p. 123-124)
The Team
3.2.8 What time should be allotted for the RFP process? (p. 124-125)
1 month
3.2.9 What are “soft costs”? (p.125)
variables that can drive fleet costs up later
3.2.10 What is the myth of administrative fees? (p. 126)
They hide the costs in other categories
3.2.11 Where do the most significant fleet cost savings come from? (p.126)
Maintenance & Fuel
3.2.12 What are the four major elements that every RFP should include? (p. 127)
I. Contractual Service Terms and Conditions
II. Statement of Work
III. Proposal Submission Information
IV. Offeror Information and Representations
3.2.13 Why is it important not to be too broad or general with the RFP language?
Extremely restrictive language might discourage respondents from proposing innovative solutions.
3.2.14 Why is it important to solicit the RFP to the right companies? (p.129)
The wrong list equates to the wrong response
3.2.15 Lists that are too narrow are limiting how? (p. 129)
Limiting yourself only to “familiar” providers can ease concerns about performance because of your comfort level with them. However, that comfort might come at the risk of missing a new approach
3.2.16 Lists that are too broad are limited how? (p. 129)
Widely distributed bid requests increase the likelihood of receiving proposals that are neither responsive nor responsible, but nonetheless require additional time to evaluate.
3.2.17 What is a BAFO? (p.134)
Negotiate Best and Final Offer
3.3.1 What information is included in the Contractual Service Terms and Conditions?
This section covers all the standard boilerplate items
• General. This includes information such as:
1. Who the buyer is
2. What is to be covered in the proposal
3. The period of time the agreement covers
4. Who will administer the agreement
• Order of Precedence. This slates whose terms take precedence in case of disputes.
• Governing Law. This identifies who has jurisdiction in case of a dispute.
• Contractor’s Responsibility. States the legal role and responsibilities of both the contractor and subcontractors.
• Taxes. In government transactions, exemptions from specific taxes are often required and must be reflected in the contract terms and conditions.
• Price Adjustment Clause. This should discuss the contractual basis for any adjustments.
• Liability and Insurance Requirements. Coverage in connection with the work of the RFP.
• Indemnification Clauses. Often the organization’s legal department contributes to the writing of these protective requirements.
• Cancellation Clause. This addresses contractual circumstances that allow for unilateral or bilateral cancellation of the contract.
• Modification of Contract. When, how, and why may modification in the new terms of the agreement take place.
• Ethics Clauses. These included clauses addressing anti-discrim- ination, harassment, unfair practices, labor harmony, antitrust practices, non-collision of bidders, and other ethical practices.
• An assortment of other clauses tailored to your organizational and contractual needs can also be included. Section 3.3 rFP Format naFa’s request for Proposals (rFPs))
3.3.2 The term, “Statement of Work” is often associated with what? (p.138)
RFP - defines the problem and states the scope, standards and sometimes even the specifics of a desired solution
3.3.3 What does a “specification” usually define? (p. 138)
Commodity -
3.3.4 What are some of the common specification types? (p. 138)
Commercial / Design/ Brand Name / Performance
3.3.5 What is included in the “Proposal Submission Information” section (p. 139)
This covers evaluation and selection criteria
3.3.6 What’s included on the “Offeror Information and Representations” section? (p.
Detailed Pricing Info
Breakdown of Leasing Process, Fees, & charges
Implementation and Service
3.4.1 What are Bid Evaluation criteria? (p. 143)
Criteria to evaluate and differentiate between proposals must be developed in order to ensure the complete and fair consideration of all bids.
3.4.2 What is a mandatory minimum system? What is a pitfall of this system? (p. 144)
A simple pass/fail test to eliminate unqualified proposals as early as possible
3.4.3 What is a point system? What is its weakness? (p. 144-145)
This system recognizes and finds differences among respondents’ strengths and capabilities, awarding the contract to the respondent who scores the highest point total. Weakness:
