Project Details

Interim Report_Phase I

This interim report was prepared to assist NCDMV in meeting the requirements of S.B. 402, Sec. 34.17, which mandates that NCDOT in collaboration with NCDMV "shall evaluate current contractual models and compensation" for license plate agency (LPA) contractors. An extensive data and information collection effort was undertaken to provide content for the report. Findings from numerous interviews conducted with NCDMV staff and LPA managers, combined with research and analysis of various existing reports, establish the basis of Phase I of this study. A summary of the report's recommendations are:

1. NCDMV should enact and enforce a new standard contract for all LPA offices, replacing the two existing and different contract types. The new standard contract should be term-limited, performance-based, and assess performance utilizing a well-developed criteria so as to result in improved and continuing excellent customer service.
2. NCDMV's performance standard for transaction errors should be changed so that all LPA offices are informed in advance of the error threshold against which they will be benchmarked. This error threshold should be stable for a reasonable period of time to allow LPA offices to make necessary adjustments.
3. Continuous, proactive, and routinely updated training of LPA employees by NCDMV should be a high priority action item in the future. Such training may consist of a combination of classroom and online training activities.
4. NCDMV should substantially enhance the usage of current and modern technology in delivering services to the citizens of the state. This includes upgrading the STARS system, complete operationalization of credit/debit card transactions; and facilitating growth in online transactions by citizens. Co-location of Driver License offices and LPAs also should be investigated as a means to provide a "one stop shop" for citizens.

At present, sufficient data regarding service times and operational costs of LPAs do not exist that allow a credible judgment on the appropriateness of current LPA compensation rates. Collection and analysis of this data will be a significant focus in Phase II of this study.

Final Report_Phase II

This final report was prepared to assist NCDMV in meeting the requirements of S.B. 402, Sec. 34.17, which mandates that NCDOT in collaboration with NCDMV "shall evaluate current contractual models and compensation" for license plate agency (LPA) contractors. An interim report from Phase I of the study was submitted to NCDMV in February 2014. Phase II of the study was authorized to collect and analyze customer transaction and wait time data at a sample of LPAs across North Carolina, as well as comparative operational and transactional data from other states. A summary of the report's recommendations are:

1. NCDMV should implement a uniform, term-limited, performance-based contract for all LPA offices and follow the transition plan outlined in the Phase I report of this study.
2. Also outlined in the Phase I report, NCDMV should fully utilize and implement technology to improve customer service and customer satisfaction, and incentivize. NC citizens to perform more online transactions.
3. The largest LPAs and state-run offices should maintain extended hours on peak days and mid-month days to accommodate peak loads while maintaining reasonable wait times.
4. LPA transaction compensation rates should be increased by 2.3%, and the Vehicle Property Tax (VPT) transaction compensation rate should be increased to $1.08 per transaction, to adjust for inflation.
5. NCDMV should develop and implement a statewide system to measure wait times, performance and customer satisfaction. Standards need to be developed along with objective methods to enforce them.
6. Given the substantial number of incomplete transactions observed, a detailed and independent study should be conducted to determine both the causes and solutions to this problem.
7. Given inordinate customer service issues observed at LPA offices that serve military personnel, an independent and in-depth study should be conducted to investigate the root causes and solutions to these issues.
8. NCDMV should consider evidence-based models that examine demand data, current LPA locations, and residual capacities to derive the "optimal" number and locations of LPA offices for better utilization of resources across the state. Wherever feasible, this model should prescribe opportunities for co-location with existing DMV offices.

NCDMV should conduct a more in-depth study of the operational practices and procedures in Missouri and of additional states such as Florida and Ohio, among others, to identify additional best practices for adoption.