Peters, Lankford Bipartisan Remanufacturing Bill Passes Senate

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


WASHINGTON, DC –U.S. Senators Gary Peters (D-MI) and James Lankford (R-OK) today applauded the passage in the U.S. Senate of S. 565, the Federal Vehicle Repair Cost Savings Act. Peters and Lankford introduced the measure in February, which requires federal agencies to encourage the use of remanufactured parts when doing so lowers costs, maintains quality and performance and does not compromise safety. The legislation passed the Senate last night and now heads to the House of Representatives for consideration.

“I’ve been proud to work with Senator Lankford to pass this legislation in the Senate, and I urge the House to quickly take up this commonsense measure to reduce wasteful spending, ensure tax dollars are being used efficiently and support the growing remanufacturing industry in Michigan and across the country,” said Senator Peters. “It is estimated that every year the federal government spends nearly $1 billion just to maintain federal vehicles, and utilizing remanufactured parts can save hundreds of taxpayer dollars on individual repairs while still maintaining safety and quality,”

“When we fix federal vehicles, let’s also fix our federal budget,” said Senator Lankford. “The Federal Vehicle Repair Cost Saving Act is a commonsense solution to conserve American taxpayer dollars while using good-as-new auto parts remanufactured in the US. I’m glad to see this bill passed by unanimous consent today, and I am grateful to have co-sponsored with Senator Peters this bipartisan cost saving legislation.”

The legislation provides the necessary oversight to ensure that federal agencies are considering remanufactured parts to reduce their vehicle repair and maintenance costs. Remanufactured parts are often less expensive than similar new parts and have been returned to same-as-new condition using a standardized industrial process. 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.

Peters and Lankford previously introduced this measure in the House of Representatives after a Government Accountability Office (GAO) study they requested confirmed that remanufactured parts tend to be less expensive than comparable new parts. The federal government maintains a fleet of approximately 588,000 vehicles at an annual cost of nearly $1 billion.