[House Report 114-266]
[From the U.S. Government Publishing Office]
114th Congress } {Report
HOUSE OF REPRESENTATIVES
1st Session } {114-266
======================================================================
FEDERAL VEHICLE REPAIR COST SAVINGS ACT OF 2015
_______
September 24, 2015.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Chaffetz, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 1613]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 1613) 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, report favorably thereon
without amendment and recommend that the bill do pass.
CONTENTS
Page
Committee Statement and Views.................................... 1
Section-by-Section............................................... 3
Explanation of Amendments........................................ 4
Committee Consideration.......................................... 4
Roll Call Votes.................................................. 4
Application of Law to the Legislative Branch..................... 4
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 4
Statement of General Performance Goals and Objectives............ 4
Duplication of Federal Programs.................................. 5
Disclosure of Directed Rule Makings.............................. 5
Federal Advisory Committee Act................................... 5
Unfunded Mandate Statement....................................... 5
Earmark Identification........................................... 5
Committee Estimate............................................... 5
Budget Authority and Congressional Budget Office Cost Estimate... 5
Committee Statement and Views
PURPOSE AND SUMMARY
H.R. 1613, the Federal Vehicle Repair Cost Savings Act of
2015, is designed to reduce maintenance costs for the federal
vehicle fleet. The legislation seeks to reduce these costs by
encouraging federal civilian agencies to use often less
expensive remanufactured vehicle components (such as engines,
starters, alternators, steering racks, and clutches). H.R. 1613
requires the heads of agencies to encourage the use of
remanufactured components to maintain federal vehicles, if
using such components reduces the cost of maintaining these
vehicles while maintaining quality.
BACKGROUND AND NEED FOR LEGISLATION
According to the Government Accountability Office (GAO),
federal civilian agencies spent about $975 million in
maintenance and repair costs for about 588,000 vehicles owned
by federal civilian agencies in fiscal year 2011.\1\
Remanufactured components present an effective mechanism to
reduce these vehicle maintenance costs while maintaining
quality. In March 2013, GAO said, ``remanufactured vehicle
parts tend to be less expensive than comparable new parts.''\2\
In a 2012 study, the Motor & Equipment Manufacturers
Association (MEMA) also found that using remanufactured
components can result in savings of 85 percent of the energy
and material used to manufacture equivalent new parts.\3\
Further, the same study found that remanufactured components
are on average 20 to 50 percent less expensive.\4\
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\1\Gov't Accountability Office, Use of Remanufactured Parts in the
Federal Vehicle Fleet is Based on a Variety of Factors (March 2013)
(GAO-13-316R).
\2\Ibid.
\3\U.S. Intern'l Trade Commission, Remanufactured Goods: An
Overview of the U.S. and Global Industries, Markets, and Trade, (Oct.
2012) (USITC Pub. 4356), at 97.
\4\Ibid, at D-7.
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In order to determine the current use of remanufactured
components in federal vehicles, GAO reviewed the maintenance
practices for selected agencies.\5\ GAO found that vehicle
maintenance decisions were decentralized and often made at the
field office level. There is also no prohibition or mandate in
current law regarding the use of remanufactured components in
federal civilian vehicles. GAO did find that some agencies do
currently use remanufactured components, including the U.S.
Postal Service and the Department of Interior. However, GAO
indicated it was difficult to quantify the use of
remanufactured components in federal vehicles across agencies
because decisions on whether to use remanufactured components
are made on a case-by-case basis and agencies did not keep data
on the use of these components.\6\ H.R. 1613 provides a
mechanism to make civilian repair and maintenance service
providers more aware of the benefits of using remanufactured
components by requiring the agency heads to encourage the use
of such components.
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\5\Gov't Accountability Office, Use of Remanufactured Parts in the
Federal Vehicle Fleet is Based on a Variety of Factors (March 2013)
(GAO-13-316R).
\6\The 2013 GAO report did note that GSA is the exception to this
statement because GSA does keep data on remanufactured components, but
GSA indicated their data likely under counts the use of these
components.
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LEGISLATIVE HISTORY
H.R. 1613, the Federal Vehicle Repair Cost Savings Act of
2015, was introduced by Congressman Bill Huizenga (R-MI) on
March 25, 2015 and was referred to the Committee on Oversight
and Government Reform. On July 22, 2015, the Committee on
Oversight and Government Reform ordered H.R. 1613 favorably
reported, without amendment.
During Full Committee consideration of H.R. 1613,
Congressman Buddy Carter (R-GA) expressed his support for H.R.
1613 and suggested reviewing additional opportunities for
reducing federal vehicle maintenance costs. Specifically,
Congressman Carter suggested studying the opportunity for cost
savings if the federal government were to shift civilian
vehicle repair and maintenance services to a private sector
bidding model. Congressman Carter said the U.S. Postal Service
(USPS) currently conducts maintenance on over 200,000 vehicles
at 322 facilities and suggested that by shifting this function
to the private sector the USPS could realize significant cost
savings. Given the USPS' current financial condition, it is
important to consider all potential opportunities for cost
savings, including in the area of vehicle repair and
maintenance services.
The Committee agrees that it should review current civilian
federal vehicle repair and maintenance practices in order to
identify whether more cost savings opportunities exist.
Therefore, the Committee directs the U.S. General
Accountability Office to conduct a study to evaluate if cost
savings could be realized by shifting civilian federal vehicle
repair and maintenance services provided by the federal
government to private sector vendors, who could provide these
vehicle repair and maintenance services through a full and open
competitive procurement process. This study should evaluate
potential cost savings and, if found, the practicality of a
multi-year phase out to private sector vendors.
The companion bill, S. 565 was introduced by Senator Gary
Peters (D-MI) on February 25, 2015 and referred to the Senate
Committee on Homeland Security and Governmental Affairs. On
March 4, 2015, the Committee on Homeland Security and
Governmental Affairs ordered S. 565 favorably reported, without
amendment, by voice vote. On June 15, 2015, S. 565 was agreed
to in the Senate without amendment by unanimous consent. The
bill was then referred to the House Committee on Oversight and
Government Reform on June 16, 2015.
Section-by-Section
Section 1. Short title
Designates the short title of the bill as the ``Federal
Vehicle Repair Cost Savings Act of 2015.''
Designates the short title of the bill as 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
civilian federal fleet;
(2) Federal agencies spent approximately $975,000,000
on repair and maintenance of the federal fleet;
(3) Remanufactured vehicle components, such as
engines, starters, alternators, steering racks, and
clutches, tend to be less expensive than comparable new
replacement parts; and
(4) the United States Postal Service and the
Department of the Interior both informed the GAO that
the respective agencies rely on the use of
remanufactured vehicle components to reduce costs.
Section 3. Definitions
This section defines ``Federal agency'' and
``remanufactured vehicle component.''
Section 4. Requirement to use remanufactured vehicle components
Requires the head of each federal agency to encourage the
use of remanufactured vehicle components if doing so reduces
costs, while maintaining quality. This is to include the safety
of the vehicle. Provides exceptions for using such components--
when doing so does not reduce costs, lower the quality of
vehicle performance, or delay the return to services of a
vehicle.
Explanation of Amendments
No amendments were offered during Full Committee
consideration of the bill.
Committee Consideration
On July 22, 2015, the Committee met in open session and
ordered reported favorably the bill, H.R. 1613, by voice vote,
a quorum being present.
Roll Call Votes
No recorded votes were taken during Full Committee
consideration of the bill.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill reduces the operation and maintenance costs
associated with the federal vehicle fleet by encouraging the
use of remanufactured parts. As such this bill does not relate
to employment or access to public services and accommodations.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goal or objective of the bill is to reduce the operation and
maintenance costs associated with the Federal fleet by
encouraging the use of remanufactured parts.
Duplication of Federal Programs
No provision of this bill establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The Committee estimates that enacting this bill does not
direct the completion of any specific rule makings within the
meaning of 5 U.S.C. 551.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandate Reform Act, P.L. 104-4) requires a statement as to
whether the provisions of the reported include unfunded
mandates. In compliance with this requirement the Committee has
received a letter from the Congressional Budget Office included
herein.
Earmark Identification
This bill does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Committee Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
this bill. However, clause 3(d)(2)(B) of that Rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for this bill from the Director of
Congressional Budget Office:
H.R. 1613--Federal Vehicle Repair Cost Savings Act of 2015
H.R. 1613 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.
H.R. 1613 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.
On March 16, 2015, CBO transmitted a cost estimate for S.
565, the Federal Vehicle Repair Cost Savings Act of 2015, as
ordered reported by the Senate Committee on Homeland Security
and Governmental Affairs on March 4, 2015. The two pieces of
legislation are similar, and the CBO cost estimates are the
same.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was approved by Theresa Gullo, Assistant
Director for Budget Analysis.
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