5 fleet procurement strategies to comply with sustainability goals

fleet procurement strategies

Unsustainable fleet procurement has become a major obstacle in the fight for net zero. Transportation alone comprises nearly a third of U.S. emissions, with light to medium-duty vehicles accounting for 58%.

As state and local governments search for solutions, conversations about sustainable procurement have become increasingly prevalent. How do government organizations find sustainable alternatives? What options exist for future-proofing conventional procurement?

This guide can help you create sustainable procurement strategies for your city or state fleet. It also provides five practical tactics for building a sustainable future.

Sustainability requirements for city and state governments

Federal organizations have largely established their fleet procurement sustainability goals. The Federal Sustainability Plan, for example, has strict guidelines for the acquisition of fleet vehicles.

In recent years, however, state and local governments have worked diligently to establish legislation of their own. The hope is to encourage environmental stewardship and reduce their municipality’s carbon footprint.

Examples of sustainability requirements for local government bodies include:

  • LEED for Cities: This global and voluntary program is designed to accelerate sustainability for local government organizations. Participants can access certifications and points to verify their standing within the LEED framework. This includes Electric Vehicle Supply Equipment (such as installing Level 2 chargers in at least two parking spaces per parking garage) and Electric Vehicle Ready Infrastructure (such as installing electrical circuits in each parking space).
  • 279-A: This New York City law mandates the conversion of all municipal ICE vehicles to ZEVs by 2038. All light- and medium-duty fleet vehicles must be zero emission by 2035. As of 2022, NYC fleet managers have rightsized their fleets by more than 855 vehicles.
  • Advanced Clean Cars II (ACCII): The state of California passed the ACCII to ensure a zero-emission future for the next generation. The law affirms that all new light- and medium-duty vehicles sold in the Golden State must be ZEVs by 2035, including acquisitions made by public fleet managers. Other considerations include restrictions on traditional fuel and requirements around the number of ZEVs in a vehicle fleet.

Whether your organization is subject to procurement laws or not, you should incorporate sustainability into your public fleet. Doing so benefits both your organization and the people it serves, ensuring a greener, cleaner future for the next generation.

Five tactics for shaping sustainable fleet procurement strategies

The principles of operating a sustainable fleet are quite different from acquiring sustainable fleet solutions. Here are five tactics that you can use to streamline sustainable fleet procurement for your state or local municipality.

1. Select electric vehicles

As you purchase new vehicles for your public organization, be sure to consider the EVs available. You can typically select from:

  • FCEVs: Fuel cell electric vehicles powered by hydrogen
  • BEVs: Battery electric vehicles (typically without an ICE)
  • PHEVs: Plug-in hybrid electric vehicles (using electricity and traditional fuel)

Be sure to make a decision that makes the most sense for your drivers, audience, and stakeholders.

2. Rightsize your fleet

Rightsizing refers to eliminating or acquiring vehicles so you can hit a “sweet spot” of functionality for your fleet. From a sustainability perspective, this is an opportunity to upgrade; you can get rid of dated vehicles and replace them with sustainable alternatives.

If you’re ready to rightsize, you may want to start with fleet telematics.

3. Acquire telematics

Telematics can help you better time fleet purchases and repairs, which enhances the sustainability of your procurement process. The platform enables you to track fleet mileage efficiency, monitor your carbon footprint, and make informed decisions about sustainable rightsizing.

If you’re not sure where to find these fleet telematics, look for cooperative contracts through providers like Sourcewell.

4. Consider alternative fuels and power sources

Purchasing EVs for your fleet is only the first step in sustainable procurement. You must also consider alternative fuels and power sourcing, including greener alternatives to traditional energy sources.

You should speak with your local utility companies about local sources of energy and have a conversation about renewable alternatives. Popular options for municipalities include:

  • Biofuel
  • Hydrogen
  • Natural gas

5. Use cooperative contracts

Cooperative contracts streamline traditional procurement processes by cutting costs, shrinking timelines, and increasing access to equipment. Unlike the traditional RFP, they:

  • Reduce the costs of goods and services with the collective buying power of multiple organizations
  • Ensure compliance, which slashes manual errors and inefficiencies
  • Simplify the research process with hundreds of competitively sourced cooperative contracts

To put this to work for your organization, assimilate your existing fleet strategies with Sourcewell’s cooperative contracts.

Integrating fleet procurement strategies with cooperative contracts

Integrating your fleet procurement process with cooperative contracts ensures sustainable acquisition for years to come. It reduces pressure on organizational bandwidth and ensures open access to necessary equipment.

You can integrate your fleet with sustainable cooperative contracts in three steps:

  1. Register your organization with Sourcewell online (or claim it from a list of pre-established organizations).
  2. Browse hundreds of cooperative contracts for your fleet management needs.
  3. Contact your supplier(s) of choice for more information.

Switching to EVs can feel overwhelming, but you don't have to do it alone. See how cooperative purchasing can ease the transition, expedite procurement, and help you save time and money with easy-to-access solutions.