Bob Williams, the state’s assistant commissioner for vehicle and asset management, told the Tennessee Advisory Commission on Intergovernmental Relations on May 30 that supply‑chain disruptions that began during the COVID‑19 shutdown persist and are a major reason government fleets face long lead times for heavy vehicles.
"If you shock the system like that, we would like to think it could just pick right back up. But we're still dealing with it," Williams said in opening remarks to the commission's rolling‑stock panel. He listed component plant fires, missing small parts, and skilled‑labor shortages as drivers of multi‑year waits and order cancellations.
Why it matters: County and municipal governments rely on ambulances, ladder trucks and school buses for public safety and daily operations. Local officials on the panel said long waits increase mileage and wear on existing vehicles, raise safety concerns and can affect insurance ratings.
Panelists and local officials described several concrete effects and possible responses. Donnie Baer, director of Dixon County Emergency Medical Services, said that even after paying more, his county waits roughly three years for ambulances and has seen unit prices rise dramatically. "Ours probably went up close to $100,000," Baer said. He described difficulties sourcing OEM parts such as radiators and brakes and the use of aftermarket parts when originals are unavailable.
Procurement and regulation: Mike Neely of the Central Procurement Office described how fleet buyers are responding to a congested market and a looming regulatory change. Neely said manufacturers and large fleet buyers were preordering units ahead of 2027 EPA heavy‑truck standards and that some industry participants expect roughly a $30,000 per‑unit price increase tied to those new standards, driving a wave of early orders that reduce available supply for public purchasers.
State and local managers offered practical procurement guidance rather than short‑term policy fixes: be brand neutral, prioritize deliverability and vendor support over lowest price, remain flexible about specific components, communicate frequently with suppliers and plan procurement much farther in advance than pre‑pandemic practice. Williams said, "Highest priority is delivery and support. Can you deliver it? Can you support it?"
On leasing versus ownership, Williams said leasing is primarily a financial tool and does not solve parts shortages: if parts aren't available, neither leased nor purchased units will be operable. He added that the statewide lease contracts include an operability requirement obligating lessors to provide replacements when leased units are not serviceable.
School buses and alternative fuels: Alex Spann, student transportation manager at the Tennessee Department of Education, told the panel that districts and private contractors, not the state, make school‑bus purchases. Tennessee requires buses to be procured from dealers with a physical presence in the state, a rule related to repair and liability. Spann said non‑electric buses generally cost in the mid‑five‑figure range per unit (about $140,000–$180,000), while electric buses can cost about $400,000 before federal subsidies and can impose additional infrastructure and staffing needs.
Local impacts and next steps: Mayors and county executives described creative local steps — regional purchasing checks, cannibalizing decommissioned vehicles for parts, and piloting rapid‑response vehicles — but panelists cautioned these approaches only partially mitigate a national supply problem. Commissioners and panelists identified planning procurement earlier, expanding the dealer base where feasible, and maintaining stronger vendor relationships as immediate steps local governments can take while broader industry and regulatory forces play out.
The commission took no votes on policy at the May 30 meeting. The rolling stock study will produce a draft for winter 2025 and a final report targeted for spring 2025.