The newly passed law, HEA 1194, is predicted to save millions of taxpayer dollars by factoring lifetime operating costs into state vehicle purchases
INDIANAPOLIS – Governor Holcomb signed into law yesterday a bill requiring the Indiana Department of Administration to apply a Total Cost of Ownership (TCO) analysis when purchasing new light-duty vehicles for their state fleet. TCO considers differences in the average cost of fueling and maintaining vehicles, allowing the state to generate significant savings over the lifespan of a vehicle compared to vehicle purchases based on sticker price alone.
Indiana joins states like Nevada and Virginia in applying this good governance measure, which a report last year from national business association Advanced Energy United found could save Indiana $62.4 million over 15 years.