Peters’ Cost-Saving Bill Advances in Senate

Legislation Encourages Federal Agencies to Use Remanufactured Parts for Federal Vehicle Repair

WASHINGTON, DC – A bipartisan, cost-saving bill introduced by U.S. Senator Gary Peters (MI) advanced in the Senate when it was unanimously approved in the Senate Homeland Security and Governmental Affairs Committee today. The Federal Vehicle Repair Cost Savings Act, , which Peters introduced last week with Republican Senator James Lankford (OK), helps save taxpayer dollars on repair of government vehicles by encouraging the use of remanufactured automotive parts when doing so lowers costs, maintains quality and performance and does not compromise safety.

“When it comes to saving taxpayer money, every dollar counts. Repairing federal vehicles costs nearly $1 billion a year, and using remanufactured parts can save hundreds of dollars on individual repairs while maintaining safety and quality,” said Senator Peters. “I’m pleased the first bill I introduced in the Senate has already been approved unanimously on the committee level, and I will be working with my colleagues to secure passage by the full Senate. This commonsense measure will make sure federal agencies are using tax dollars efficiently and support the growing remanufacturing industry in United States.”

Remanufactured parts are often less expensive than similar new parts and have been returned to same-as-new condition using a standardized industrial process. This legislation provides the necessary oversight to ensure that federal agencies are considering remanufactured parts to reduce their vehicle repair and maintenance costs. Using remanufactured parts such as engines, transmissions, alternators and starters helps reduce taxpayer burden, promotes conservation and supports the U.S auto supply industry.

The United States is the world’s largest producer, consumer and exporter of remanufactured goods. Remanufacturing of motor vehicle parts creates 30,653 full-time U.S. jobs, while remanufacturing of off-road equipment creates an additional 20,870 jobs. The bill is supported by the Motor and Equipment Manufacturers Association (MEMA).

Peters and Lankford previously introduced this measure in the House of Representatives after a Government Accountability Office (GAO) study they requested confirmed that the measure provided an opportunity to reduce the $1 billion in annual vehicle repair and maintenance expenses of approximately 588,000 government vehicles. 

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