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Contract Agency Vehicle Registration and Titling Services Are Cost Efficient, but Contracts Need Performance Terms (April 2012)

Summary

The General Assembly directed the Program Evaluation Division to determine the cost-effectiveness of using license plate agency (LPA) contractors to provide vehicle registration and titling services and to evaluate the oversight of these contractors by the Division of Motor Vehicles (DMV). Contractors are a cost-efficient way for the State to provide registration and titling services. However, DMV's oversight of contractors is hindered by lack of coordination, poor communication, and lack of a standardized, performance-based contract. The General Assembly should direct DMV to implement a standardized, performance-based contract; improve oversight and communications; and outsource registration and titling services provided at the two state offices.

Final Report

Executive Summary

Presentation

Handout

Relevant Legislation:

     

Agency Actions:

  • The Joint Legislative Program Evaluation Oversight Committee (JLPEOC) appointed a subcommittee to hear from DMV and an advisory group representative of LPA contractors on issues raised by the report and other issues related to providing vehicle registration and titling services. JLPEOC moved to continue the suspension of the Commissioner of Motor Vehicles’ ability to cancel or amend any commission contracts for any reason other than malfeasance, misfeasance, or nonfeasance until final recommendations have been acted upon by JLPEOC. DMV has longterm plans to establish an extranet site for LPAs.

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