New federal legislation signed into law this week could significantly reduce the cost of maintaining U.S. government agencies’ vehicle fleets by requiring those groups to encourage the procurement of remanufactured parts for repairs instead of new components.
Proponents of the Federal Vehicle Repair Cost Savings Act, introduced in February by Sen. Gary Peters, D-Mich., say the new legislation could both spur job growth in the remanufacturing industry as well as help reduce the cost of federal vehicle maintenance for taxpayers.
“On the one hand, you get this validation of the use of remanufactured parts and the government recognition that they are good quality parts,” Tom Lehner, vice president of policy for the Motor & Equipment Manufacturers Association (MEMA). “On the other hand, you’re expanding the remanufacturing market by 588,000 vehicles, so it’s a win win for everyone.”
High-wear parts such as alternators, starters and brake components are the mostly likely to be replaced using remanufactured components, Lehner said.
Currently, the government maintains a fleet of approximately 588,000 vehicles and spends nearly $1 billion in maintenance annually, according to a 2013 study by the Government Accountability Office.
By using more remanufactured parts, the government could cut individual parts costs up to 50 percent for its fleet, according to a previous MiBiz report. Remanufactured components also require approximately 90 percent less energy to produce than new parts.