Federal Manager's Daily Report

The federal stimulus package includes $300,000,000 for the acquisition of motor vehicles for the federal fleet. According to a report by House-Senate conferees, the funds are intended to stimulate the market for high-efficiency motor vehicles while increasing the fuel efficiency and cutting carbon emissions of the federal motor vehicle fleet.

Vehicles are to be replaced on a one-for-one basis, with each new purchase having at least a 10 percent greater fuel economy.

Congress said it hoped domestically produced plug-in hybrid-electric vehicles would be commercially available in sufficient numbers before September 30, 2010.

Hybrid sales in the United States broke 200,000 in 2005. For $300,000,000 the government could purchase about 11,000 hybrids costing about $28,000 each. Producers are racing to step up supply as they get global supplier networks up to speed. If they don’t and production remains low, the government’s green light on purchasing these automobiles could exacerbate a situation seen last summer when dealers started waitlists for hybrids in the face of soaring gas prices.