Charging Forward: Public sector EVs pose both challenges and opportunities for state agencies and their partners

Across the country, state and local procurement teams are taking up the call to expand electric vehicle (EV) infrastructure. For forward-thinking governments and government leaders, EV infrastructure is something of a no-brainer—it lays the groundwork for a fully electric future that matches contemporary sustainability goals and eventual cost savings. However, this transition comes with its own set of challenges and opportunities

Sustainability and long-term savings
More than ever, governments are prioritizing sustainable practices, including those that reduce greenhouse gas emissions. EVs represent a critical component of their strategy.

The environmental benefits of EV adoption are clear—lower emissions mean cleaner air, which in turn leads to better public health outcomes and a reduction in health-care costs associated with pollution-related illnesses. NRDC puts the health-care cost of cardiovascular disease and respiratory illness triggered by air pollution at $820 billion per year. EVs can start to put a dent in that cost.

Additionally, fewer emissions should yield less environmental degradation. This could help to proactively nip more costly environmental crisis mitigation needs in the bud.

Moreover, as EV tech improves and becomes more widely adopted, the costs associated with electric vehicles are expected to decrease—reducing total cost of ownership (TCO) compared to a gas-powered fleet.

Meeting the inherent challenges of EV procurement
Despite the clear benefits, procuring and deploying EV infrastructure is not without its challenges. State agencies must navigate a complex landscape that includes everything from securing funding to coordinating with multiple stakeholders. The high upfront costs such as charging stations can be a significant barrier. Additionally, the rapid pace of technological advancements in the EV sector can make it difficult for procurement teams to keep up, leading to concerns about the long-term viability of their investments.

Furthermore, ensuring that EV infrastructure is accessible and equitable is a critical concern. In many areas, particularly in rural or underserved communities, the availability of charging stations is limited. This lack of infrastructure can hinder the widespread adoption of EVs, particularly among low-income populations who may not have easy access to charging facilities. Addressing these disparities requires careful planning and coordination among state agencies, local governments and private-sector partners.

The role of public-private partnerships
Procurement teams wear many hats. On Monday, they may be attacking the challenge of statewide EV tech implementation, but by Tuesday they are running the bid opening for a construction plan or scoping out a forthcoming IT project. Procurement professionals become the ultimate jacks of all trades. With a rapidly shifting field like EV technology, the experts are very often the vendors themselves. As such, agencies are increasingly turning to partnerships with experienced EV vendors. Companies like ChargePoint, Blink Charging and EVgo are playing a pivotal role in helping governments build the necessary infrastructure to support the transition to electric vehicles. These vendors bring a wealth of expertise and innovative solutions to the table, from developing fast-charging technology to creating scalable, modular charging stations that can be easily deployed in a variety of settings.

For example, ChargePoint has worked with several state governments to deploy its network of charging stations, focusing on creating a seamless experience for users while also ensuring that the infrastructure is future proofed to accommodate advances in EV technology. Similarly, Blink Charging has collaborated with local and state agencies to install charging stations in strategic locations, such as government buildings, public parking lots and transportation hubs, making EV charging more accessible to a broader population.

These partnerships can be powerful tools for increasing implementation speeds and meeting aggressive sustainability goals. That said, the best procurement teams are great at finding the balance between leveraging vendor expertise while staying impartial in their decision making.

A note on Tesla
However, not all vendor partnerships are without challenges. Tesla, a major player in the EV market, has been both a boon and a hurdle for public sector EV infrastructure projects. Tesla’s Supercharger network is renowned for its efficiency and speed, but its proprietary technology poses a challenge for broader implementation and interoperability with other EVs. This insistence on using proprietary charging technology limits the ability of state agencies to create a unified, cohesive EV infrastructure that serves all electric vehicles, not just Teslas.

To mitigate this, some state agencies have had to negotiate with Tesla to open their Supercharger network to non-Tesla vehicles or to develop hybrid stations that can accommodate different types of EVs. While these negotiations are ongoing, they highlight the complexities that procurement teams face when working with vendors who prioritize their proprietary technology over broader accessibility and compatibility.

Our electric future
By engaging in the complex effort to build EV infrastructure, state agencies position themselves as innovators and are doing their part to create a more sustainable future. The eventual savings in terms of both cost and societal health are likely to be significant, as the benefits of lower emissions and the public health boost far outweigh the initial investments.

Moreover, as more states and municipalities invest in EV infrastructure, the market for these technologies will continue to grow, leading to increased competition and innovation among vendors—driving down costs and improving the quality of the tech, making it easier for more governments to join the movement toward electrification.

As we move forward, the efforts of procurement professionals, working diligently behind the scenes, will be crucial to ensuring that these projects succeed. By partnering with experienced vendors and leveraging innovative solutions, state agencies can overcome challenges and lead the way in building the EV infrastructure of the future.

Steve Isaac is the director of marketing for Procurated, helping government procurement professionals to leverage the power of peer insights in their procurement processes. He has spent a decade working with tech startups across the fields of procurement, spatial data science, and nonprofit fundraising and communications. Isaac lives in the Capitol Hill neighborhood of Washington, D.C., with his wife, Lorna, and his daughter, Quinn.

Editor’s Note: This article originally appeared in the Sept. 2024 issue of Government Procurement.