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114th Congress} 					      {Report
 1st Session  }                   SENATE                      {114-59
                                                               
_______________________________________________________________________
                                                        
 
                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 ASSOCI-
    ATED WITH THE FEDERAL FLEET BY ENCOURAGING THE USE 
    OF REMANUFACTURED PARTS, AND FOR OTHER PURPOSES.


[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


                  May 22, 2015.--Ordered to be printed
                  
                  
                                ___________
                  
                    U.S. GOVERNMENT PUBLISHING OFFICE
                         WASHINGTON: 2015
                         
                         
                         
                         
                  
                  
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                    RON JOHNSON, Wisconsin Chairman
JOHN McCAIN, Arizona                 THOMAS R. CARPER, Delaware
ROB PORTMAN, Ohio                    CLAIRE McCASKILL, Missouri
RAND PAUL, Kentucky                  JON TESTER, Montana
JAMES LANKFORD, Oklahoma             TAMMY BALDWIN, Wisconsin
MICHAEL B. ENZI, Wyoming             HEIDI HEITKAMP, North Dakota
KELLY AYOTTE, New Hampshire          CORY A. BOOKER, New Jersey
JONI ERNST, Iowa                     GARY C. PETERS, Michigan
BEN SASSE, Nebraska

                    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
                     
                                                       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.

              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\
---------------------------------------------------------------------------
    \1\Government 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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \3\Id. at 2.
    \4\Id. at 3.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \5\Motor & 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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \8\Id.
---------------------------------------------------------------------------

                        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.
    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.

             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.

                                  [all]