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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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------

                          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.

                                  [all]