U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

49–010 

" ! SENATE 

114TH CONGRESS

1st Session 

REPORT

2015

114–59 

Calendar No. 101 

FEDERAL VEHICLE REPAIR COSTS SAVINGS 

ACT 

R E P O R T 

OF THE

COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

TO ACCOMPANY

S. 565 

TO REDUCE THE OPERATION AND MAINTENANCE COSTS ASSOCIATED WITH THE FEDERAL FLEET BY ENCOURAGING THE USE 

OF REMANUFACTURED PARTS, AND FOR OTHER PURPOSES. 

MAY 22, 2015.—Ordered to be printed 


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(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

RON JOHNSON, Wisconsin Chairman 

JOHN MCCAIN, Arizona 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

JAMES LANKFORD, Oklahoma 

MICHAEL B. ENZI, Wyoming 

KELLY AYOTTE, New Hampshire 

JONI ERNST, Iowa 

BEN SASSE, Nebraska 

THOMAS R. CARPER, Delaware 

CLAIRE MCCASKILL, Missouri 

JON TESTER, Montana 

TAMMY BALDWIN, Wisconsin 

HEIDI HEITKAMP, North Dakota 

CORY A. BOOKER, New Jersey 

GARY C. PETERS, Michigan 

KEITH B. ASHDOWN, Staff Director 

CHRISTOPHER R. HIXON, Chief Counsel 

PATRICK J. BAILEY, Chief Counsel for Governmental Affairs 

GABRIELLE D’ADAMO SINGER, Deputy Chief Counsel for Governmental Affairs 

GABRIELLE A. BATKIN, Minority Staff Director 

JOHN P. KILVINGTON, Minority Deputy Staff Director 

MARY BETH SCHULTZ, Minority Chief Counsel 

BRIAN F. PAPP, JR., Minority Legislative Aide 

LAURA W. KILBRIDE, Chief Clerk 


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Calendar No. 101 

114TH CONGRESS SENATE REPORT " ! 1st Session 114–59 

FEDERAL VEHICLE REPAIR COSTS SAVINGS ACT 

MAY 22, 2015.—Ordered to be printed 

Mr. JOHNSON, from the Committee on Homeland Security and 

Governmental Affairs, submitted the following 

R E P O R T 

[To accompany S. 565] 

The Committee on Homeland Security and Governmental Affairs, 

to which was referred the bill (S. 565) to reduce the operation and 

maintenance costs associated with the Federal fleet by encouraging 

the use of remanufactured parts, and for other purposes, having 

considered the same, reports favorably thereon without amendment 

and recommends that the bill do pass. 

CONTENTS 

Page 

I. Purpose and Summary .................................................................................. 1 

II. Background and Need for the Legislation ................................................... 2 

III. Legislative History ......................................................................................... 2 

IV. Section-by-Section Analysis .......................................................................... 3 

V. Evaluation of Regulatory Impact .................................................................. 3 

VI. Congressional Budget Office Cost Estimate ................................................ 4 

VII. Changes in Existing Law Made by the Bill, as Reported ........................... 4 

I. PURPOSE AND SUMMARY

S. 565, the Federal Vehicle Repair Cost Savings Act of 2015, 

seeks to reduce the operation and maintenance costs associated 

with the Federal fleet by encouraging the use of remanufactured 

parts. Under existing law, agencies generally allow vehicle operators or local fleet managers to make vehicle maintenance and repair decisions. This bill would require the heads of Federal agencies to encourage the use of remanufactured parts by field level 

staff and provides exceptions in instances where using remanufactured vehicle components does not reduce costs, lowers the quality 

of vehicle performance, or delays the return to service of a vehicle. 


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1Government Accountability Office, Transportation: Use of Remanufactured Parts in the Federal Vehicle Fleet Is Based on a Variety of Factors, GAO–13–316R (2013), available at http:// 

www.gao.gov/assets/660/652832.pdf. 2 Id. at 1. 3 Id. at 2. 4 Id. at 3. 5Motor & Equipment Manufacturers Association. Moving America Forward. 13, available at 

http://www.mema.org/Document-Vault/PDFs/2013/2013-Industry-Study.pdf, (last accessed 

May 19, 2015). 6 Id. 

7 Id. 

8 Id. 

II. BACKGROUND AND THE NEED FOR LEGISLATION

In March 2013, the Government Accountability Office (GAO) 

issued a report titled ‘‘Use of Remanufactured Parts in the Federal 

Vehicle Fleet is Based on a Variety of Factors.’’ 1 GAO reviewed the 

vehicle repair process for selected agencies and found that these 

processes allow field office staff to make vehicle maintenance and 

repair decisions and neither prohibit nor require the use of remanufactured parts. The GAO selected 14 agencies for review, including the General Services Administration, the U.S. Postal Service, the Departments of Agriculture, Homeland Security, Interior 

and Justice, which accounted for 95 percent of the civilian Federal 

fleet vehicles in 2011.2

Officials from the 14 agencies said that they use remanufactured 

parts when warranted, and GAO observed the presence of remanufactured parts in stock rooms during visits to repair facilities.3

GAO also noted in its study that remanufactured vehicle parts tend 

to be less expensive than comparable new parts. In fiscal year 

2011, federal civilian agencies reported about $975 million in maintenance and repair costs for approximately 588,000 vehicles that 

the agencies owned.4

Further, a Motor and Equipment Manufacturers Association 

(MEMA) study from 2012 found that remanufacturing saves 85 

percent of the energy and material used to manufacture equivalent 

new parts.5 At the same time, the study noted, remanufactured 

parts are, on average, 20 to 50 percent less expensive with an 

equivalent level of quality and competitive warranties.6 The principal remanufactured products in the motor vehicle sector are engines, transmissions, starter motors, alternators, steering racks, 

and clutches, according to the U.S. International Trade Commission.7

Decisions regarding the use of remanufactured parts depend on 

the cost, availability, and reliability of the part. According to GAO, 

these factors are considered on a case-by-case basis for each repair 

to yield the best value for the Federal government.8 This legislation 

increases awareness of the possibility of using remanufactured auto 

parts by requiring the head of Federal agencies to encourage the 

use of remanufactured vehicle components when appropriate as a 

practical cost savings measure. 

III. LEGISLATIVE HISTORY

S. 565, the Federal Vehicle Repair Cost Savings Act of 2015, was 

introduced on February 25, 2015, by Senators Peters and Lankford 

and the bill was then referred to the Committee on Homeland Security and Governmental Affairs. 


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The Committee considered the bill at a March 4, 2015 business 

meeting and ordered the bill reported favorably by voice vote. 

Members present for the vote were Senators Carper, McCaskill, 

Baldwin, Heitkamp, Peters, Johnson, Portman, Lankford, Ayotte 

and Ernst. 

IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title 

This section provides the bill’s short title, the ‘‘Federal Vehicle 

Repair Cost Savings Act of 2015.’’ 

Section 2. Findings 

This section cites a March 2013 Government Accountability Office report that found in fiscal year 2011— 

(1) There are approximately 588,000 vehicles in the owned 

civilian Federal fleet; 

(2) Federal agencies spent approximately $975 million on repair and maintenance of the Federal fleet; 

(3) Remanufactured vehicle components tend to be less expensive than comparable new replacement parts; 

(4) The U.S. Postal Service and Department of Interior informed GAO they rely on remanufactured vehicle components 

to reduce costs. 

Section 3. Definitions 

This section defines ‘‘Federal agency’’ and ‘‘remanufactured vehicle component.’’ 

Section 4. Requirements to use remanufactured vehicle components 

This section requires the head of each Federal agency to encourage the use of remanufactured vehicle components if doing so reduces costs while maintaining quality. 

This section provides exceptions in instances where using remanufactured vehicle components does not reduce costs, lowers the 

quality of vehicle performance, or delays the return to service of a 

vehicle. 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to the requirement of paragraph 11(b)(1) of rule XXVI 

of the Standing Rules of the Senate the Committee has considered 

the regulatory impact of this bill. The legislation will not result in 

additional regulation, increased economic impact, adverse impact 

on personal privacy, or additional paperwork on any individuals or 

businesses. The Congressional Budget Office confirmed that S. 565 

contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 


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VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, March 16, 2015. 

Hon. RON JOHNSON, 

Chairman, Committee on Homeland Security and Governmental Affairs, U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 565, the Federal Vehicle Repair Cost Savings Act of 2015. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

S. 565—Federal Vehicle Repair Cost Savings Act of 2015 

S. 565 would encourage federal agencies to use remanufactured 

automobile parts to maintain federally owned vehicles if doing so 

would reduce costs without delaying the return of vehicles to service, or reducing the quality of vehicle performance. A remanufactured part is a part rebuilt in a factory to original specifications. 

CBO estimates that implementing the legislation would have no 

significant effect on the federal budget. Enacting the bill would not 

affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. 

According to information from the Government Accountability 

Office, the repair of federal vehicles is decentralized and each agency manages its own fleet. Currently, there is neither a mandate nor 

a prohibition on the use of remanufactured parts and agencies already make decisions about the use of remanufactured parts based 

on several factors including cost, availability, and reliability. CBO 

estimates that the legislation would have no significant budgetary 

effect because we do not expect that it would significantly change 

existing procedures for repairing vehicles. 

S. 565 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act and would not 

affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Matthew Pickford. The 

estimate was approved by Theresa Gullo, Deputy Assistant Director for Budget Analysis. 

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

Because this legislation would not repeal or amend any provision 

of current law, it would make no changes in existing law within the 

meaning of clauses (a) and (b) of paragraph 12 of rule XXVI of the 

Standing Rules of the Senate. 

Æ 


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