The procurement process begins long before the actual buying. With aggressive targets for reducing greenhouse gas emissions and sustainability, planning is crucial to meet targets for procuring electric vehicles (EVs). Many municipalities have selected 2030 as the end date for having as much as half or more of fleets electrified. That’s just a few short years away, so accelerated planning is required to meet these goals.
Procuring EVs
Procuring EVs requires several vital steps that currently should be underway.
1. Calculate costs and define goals
Conduct total cost of ownership analysis to model energy, maintenance, and lifecycle costs and set targets for the number of EVs. Understanding their total lifetime costs compared to gas-powered vehicles helps mitigate a few concerns about the higher upfront pricing. For example, a U.S. Department of Energy study estimates that EV maintenance costs are about 40% less than gas-powered vehicles.
Establish clear, measurable goals for transitioning different categories of municipal vehicles to electric over future budget cycles, and set up mechanisms for transparent tracking across departments and governmental units. Transparency and public reporting help everyone stay committed to meeting goals.
2. Run pilot projects and evaluate
Start with small pilots to test EVs in different applications and gather data on usage patterns and charging. This helps identify challenges and opportunities from real-world experience to improve further rollouts, which is crucial for usage and charging patterns.
Hands-on evaluation builds knowledge and confidence in the technology while working out issues on a small scale first. As comfort levels among drivers and maintenance teams increase, you can expand pilot programs across governmental units.
3. Develop electrification blueprints
Procuring EVs will require building out charging infrastructure. You will need to size charging needs for each site and use case to create a long-term procurement plan coordinated across agencies and partners. This includes early discussions with utility companies early in infrastructure planning to optimize costs. Many locations will require grid enhancements to handle the additional charging needs.
Your utility company will be a valuable partner in site selection, providing information about limitations or costs related to supply at any designated locations. You may also want to connect with charging network providers who work across states. Many have well-established relationships with local utilities and can help navigate the layers of bureaucracy.
You will want to build out plans to include electrical capacity and connections with future needs in mind as you expand your fleet. Having a roadmap enables smart rollouts that sync with charging infrastructure.
4. Adjust policies and streamline procurement
Review policies that may slow procuring EVs and building charging capacity. In many locations, outdated permitting, procurement, and building policies prevent rapid adoption to meet emissions targets. Engaging with state regulators may also be necessary to create a framework that suits adoption timelines.
Streamlining the regulatory environment and the procurement process can help you take advantage of current purchase incentives and grants. As we get closer to 2030, funds may be depleted, forcing municipalities to miss out on money-saving opportunities and driving up the total cost of ownership. Another concern is that with so many government entities and businesses targeting EV transitions on similar timelines, there may be a shortage of available vehicles or technicians to handle charging installations.
Sourcewell can help government entities leverage combined purchasing power for volume discounts on vehicles and charging equipment. Competitively solicited contracts meet most solicitation requirements, enabling procurement teams to make faster purchasing decisions while saving money.
5. Select EVs for orders and replacements
As vehicles come up for replacement, choose EV models that meet technical specifications for expected duties. It is a good idea to prioritize high-mileage vehicles first for maximum economic and emissions benefits. In most cases, these will be light-duty vehicles, such as sedans and SUVs, as they will have a smaller impact on budgets. When you move to procure medium-duty and heavy-duty EVs, costs will rise accordingly.
You will also want to plan for training for fleet drives and maintenance teams and include the needed maintenance tools and replacement parts in your budget.
Strategic transition to electrification
These key steps will enable municipalities to strategically transition their fleets to EVs over time. Taking a phased approach allows for adapting as the technology and markets continue advancing rapidly, but it takes careful planning and a step-by-step process to meet goals for procuring EVs. It starts with a plan and then diligent execution to meet your goals. You will need to balance budgetary constraints against your plan to ensure performance.
Leverage Sourcewell resources to learn more about making a smooth EV transition, including available contracts for EVs, charging infrastructure, accessories, telematics, and consulting services.
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.
