SACRAMENTO -- The California Department of General Services has awarded a contract to Enterprise Rent-A-Car, making the rental car company the state's primary provider of rental vehicles to state employees on official business.
The three-year contract is expected to save the state up to $3 million a year, or $9 million over the span of the agreement.
This is the first time in a decade that the state has selected a single rental car company as its primary vendor.
Previously, the state had been spreading its rental car business across a number of agencies – a practice that state officials claim wasn't attracting the lowest possible contract price.
By giving the bulk of the business to one company, the state positions itself to save money and allow for a more efficient rental process.
Under the terms of the contract, state employees will be able to bypass lines and proceed directly to the parking lot to pick up their reserved vehicle.
If Enterprise is unable to provide service, then employees will be able to use the state's secondary vendor, Vanguard, which operates National and Alamo.
The new contract goes into effect Jan. 1, 2006. It includes two, optional one-year extentions for a potential five-year contract term.