DoE Unit Moves to Set Up a Purchasing/Procurement Process
To Coordinate Multiple-Fleet Alternative Fuel Vehicle Orders
The U.S. Energy Department’s Clean Cities organization is kicking off a new program to help develop and implement a purchasing/procurement process to coordinate bulk alternative fuel and advanced technology vehicle orders.
“By developing a process for companies and organizations to consolidate their orders, it could help vehicle manufacturers achieve better economies of scale and lower prices per unit,” Clean Cities says.
“If vehicle fleets or consumers could purchase vehicles in larger quantities, or participate in aggregate purchasing initiatives, manufacturers would be able to reduce per vehicle costs resulting in lower prices,” states the formal Notice of Intent for the new Funding Opportunity Announcement.
Better Economies of Scale for AFVs
The FOA (DE-FOA-0001237) is titled Alternative Fuel and Advanced Vehicle Procurement Aggregating Initiatives. It was issued by the Vehicle Technologies Office of EERE, DoE’s Office of Energy Efficiency and Renewable Energy.
“The objective of this FOA is to develop and implement effective purchasing/procurement processes designed to coordinate and consolidate bulk alternative fuel vehicle and advanced vehicle orders and reduce per-unit prices of commercially-available vehicles,” the Notice states.
“It is anticipated that the aggregated purchasing/procurement process will enable original equipment manufacturers (OEMs) and suppliers to increase production volumes, achieve economies of scale, and reduce incremental vehicle costs specific to electric drive, natural gas, propane, hybrid, and other alternative fuel vehicle and advanced vehicle technologies.”
Clean Cities has also noted the program milestone of displacing one billion gallons of conventional petroleum fuels, in 2013 – toward the goal of 2.5 billion gallons per year by 2020.
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Source: DoE/Clean Cities with Fleets & Fuels follow-up