Pat Rippey US Army Center for Health Promotion and Preventive Medicine APG, MD Green Procurement Greening Our Contracts.

Pat Rippey US Army Center for Health Promotion

and Preventive MedicineAPG, MD

Green Procurement Greening Our Contracts

TOPICS

DOD Green Procurement Policy Federal Acquisition Regulations Implementing GP GP Tracking and Reporting

What do we mean by “Green Procurement”?

Showing preference for purchasing products that are: Made with Recycled Content Made with Biobased Products Energy and Water Efficient Alternative Fuels or Vehicles Renewable Energy Sources Sustainable Building Materials Lacking in Ozone-Depleting Substances (ODS) and

Priority Chemicals EPEAT-registered Electronic Equipment Environmentally Preferable

Why Buy Green?

• Use products that are healthier for the workforce and the environment

• Save energy and natural resources• Promote recycling programs• Create jobs• Support US agriculture • Reduce disposal costs and hazards• Save money!

How Can We “Go Green”?

Identify mission requirements and product/service contract requirements

Incorporate the procurement preferences Recycled content, biobased, environmentally

preferable, energy efficient

missionGreen

DOD Green Procurement Policy and Strategy

Formally Establishes DOD Green Procurement Program (GPP) and Metrics

Requires that green products and services be considered as first choice for all procurements

Assigns responsibility to virtually every DOD employee; notes need for GPP awareness training

Requires implementation at organizational level where initial purchasing requirements are defined

Requires documentation of objectives, targets, and actions in an installation-level plan

Uses the EMS framework for implementation

August 2004, Updated 2008

DOD Metrics Increase in the number of contracts meeting

requirements for recycled-content products in the Contract Action Report

Increase in the purchases of Federally-defined indicator items (applies to purchase card, MILSTRIP purchases)

Increase in the percentage of contracting personnel trained in Green Procurement

Increase in organizations or installations participating in the Federal Electronics Challenge

Decrease in contract audit findings indicating lack of compliance with GP requirements.

DOD GP Policy Requires: Review of proposed procurements and

acquisitions for inclusion of green procurement requirements

Consideration of environmental and energy aspects of a planned acquisition or procurement

Identification and development of specifications based on consideration of all of the green attributes identified

DOD GP Policy Responsibilities of Procurement Request

Originators and Acquisition Program Managers: Identify whether green products and services are

available and can satisfy requirements for price, performance, and availability

Ensure that relevant GP requirements are identified prior to submission to the contracting office

Consult with contractual and environmental specialists to prepare statements of work or specifications that incorporate relevant GP requirements

DOD GP Policy Responsibilities of Procurement Request

Originators and Acquisition Program Managers: Document exceptions to GP requirements Apply life-cycle cost concepts to determine

cost effectiveness of green alternatives Provide oversight of contract execution to

ensure GP requirements are addressed in accordance with the terms of the contract

DOD GP Policy Responsibilities of Procurement Offices:

Review procurement requests for green supplies and services

Provide guidance to procurement request originators

Incorporate green procurement language, provisions and FAR clauses in contracts

Ensure contract actions, through execution and close-out, meet FAR requirements for green procurement

Place written justification in contract file to explain why EPA-designated items not acquired

DOD GP Policy and Strategy

Responsibilities of Environmental Managers: Implement an awareness program to promote GP Advise the procurement request originators and

contracting officers on acquisition strategies for green products and services and provide regulatory and availability information

Provide GP consultation support to all personnel and organizations involved in the purchasing process

Provide recommendations to management personnel across all purchasing organizations on the preparation, implementation, and monitoring of the GPP

Assist procurement organizations and personnel in utilizing the FPDS data and the ERLS tool to track performance

GP Put Into Practice Air Force installations are increasing the

use of biobased and other environmentally preferable cleaning products as part of their aircraft maintenance and other programs that clean machinery, equipment, and facilities.

Leading By Example: A Report to the President on Federal Environmental and Energy Management, Oct 2007

A Second Life!Match the product on the left with the recycled/biobased product on the right

Coffee beans, banana peels, tobacco leaves

Old blue jeans U.S. currency Potato starch and limestone Automobile tires Plastic drink bottles Soybean oil Wheat straw or jute Cotton seed lint or crushed walnut shells

Paper

Park benches and clothing

Playground material

Ink

Particleboard

Spill Absorbent

Coffee cups and tableware

Food service packaging

Pencils

Why Buy Green?

ResourceConservationAnd Recovery Actof 1976

FederalAcquisitionRegulations

Executive Orders 13423 and 13514

2002 Farm Bill

Energy Policy Act 2005

WHO HAS TO COMPLY?

Section 6002 of RCRA required procuring agencies to have procurement preference programs for recycled-content products

“Procuring Agencies” include: Any Federal Agency (e.g., DOD) Any state or local agency using

appropriated Federal funds for a procurement

Persons contracting with such agencies

RCRA

RCRA 6002 (d)All Federal Agencies having

responsibility for drafting or reviewing specifications for procurement items shall: Eliminate any exclusion of

recovered materials Eliminate requirements for the use

of virgin materials Assure that specifications require

the use of recovered material to the maximum extent possible

Designated Products –Mandatory Preference Programs

EPA’s “Buy Recycled” Program Products designated since 1995 Currently 62 designated products

USDA’s “BioPreferred” Program Products designated since 2006 Currently 42 designated items

Typical Post-consumer materials

Post-Consumer Materials are recovered materials specifically generated in the consumer sector (homes, businesses, etc). These make up the largest portion of the overall waste stream – so it is important to look for post-consumer material content in the products we purchase

EPA’s Buy Recycled Program: Comprehensive Procurement Guidelines (CPGs) and Recovered

Materials Advisory Notices (RMANs) CPGs designate the products that must contain

recovered material RMANs provide recommended recycled-content

percentages and guidance on buying recycled-content products

CPG:

What

Products

To Buy

RMAN:

Recycled

Content

Levels

Example:Recycled paper

Example:30% postconsumer

Exceptions According to RCRA, procuring agencies must

show procurement preferences for designated products unless the product:

Is available only at an unreasonable price

Will not meet reasonable performance standards

Is unavailable within a reasonable timeframe or at a sufficient level of competition

Price

Performance

Availability

How Do I Use An Exception? If you purchase a noncompliant product for reasons of

price, performance, or availability, AND the purchase was above the micropurchase threshold, you must document the reasons for not purchasing the compliant (e.g. recycled or biobased) product

Called a written

determination or

justification

EPA-Designated Products under the Buy Recycled Program

Construction Landscaping Non-paper Office Products Paper and Paper Products Parks and Recreation Transportation Vehicular Miscellaneous

Product Categories:

CONSTRUCTION PRODUCTSDESIGNATED CPG ITEMS: Building insulation Carpet Cement and concrete Consolidated and reprocessed

latex paint Floor tiles Laminated paperboard Patio blocks Shower and restroom dividers

Structural fiberboard Carpet cushion Flowable fill Railroad grade

crossings/surfaces Modular Threshold

Ramps Nonpressure Pipe Roofing Materials

RMANsRecommended Material Advisory Notices

Provide content recommendations and guidance on buying recycled-content products

Developed by EPA using industry standards and current technology

Represent products that: Are commercially available Are cost competitive Adhere to quality standards

Buy all your rubber floor tiles with of 90-100% postconsumer

content!

RMAN

PRODUCT CATEGORY

% POSTCONSUME

R FIBER CONTENT

% RECOVERED

FIBER

Polyester Carpet 25-100% PET 25-100% PET

Reprocessed latex paint - white, off-white, pastel colors

20% minimum

Nonpressure Pipe – PVC

5-15% 25-100%

Construction Products

Example of RMANsRMAN

Key Points Which of the following is NOT an acceptable justification

for purchasing a designated product without recycled or biobased content?

a. The price is unreasonableb. The product will not meet performance standardsc. The product will be shipped overseasd. The product is not available within a reasonable

time frame

USDA’s BioPreferred Program Biobased products are commercial or industrial products

(other than food or feed) that utilize biological products or renewable domestic agricultural (plant, animal, and marine) or forestry materials

The Farm Bill (May 2002) made Federal agency purchase of biobased products mandatory

One year from item designation, Federal agencies must incorporate preference for the biobased item into their purchasing programs

Benefits of Biobased Products Provide renewable raw materials for a

broad range of nonfood and nonfeed products

Provide new and expanded markets for agricultural feedstocks

Reduce U.S. dependence on petroleum and other imports

Introduce products that are friendlier to the environment than their petroleum-based counterparts

Foster rural and sustainable development

Soybean powered Agricultural Research Service tour bus

• On 16 March 06, the first Biobased Items were designated

mobile equipment hydraulic fluidsurethane roof coatingswater tank coatingsdiesel fuel additives penetrating lubricantsbedding, linens, and towels

• There are now 42 designated items!

Designated Biobased Items

Examples of Designated Items under the BioPreferred Program

Lip care products Biodegradable films Hydraulic fluids Biodegradable cutlery Glass cleaners Greases Dust suppressants Carpets Carpet and upholstery

cleaners Multipurpose cleaners

Adhesive and mastic removers Hand cleaners/sanitizers Biodegradable containers Fertilizers Sorbents Graffiti and grease removers Laundry products Bathroom and spa cleaners De-icers Films

Army Research Laboratory used soy-based composite materials for the hood of the M35A3 truck

Biobased soy hydraulicFluids are used in the elevators of The Statue of Liberty

“Biowalls” made of soybeanoil, compost, woodchips, andlimestone are used by theNavy to treat contaminatedgroundwater

“Federal agencies are using or testing nearly three dozen types of biobased products, including lubricants, personal and institutional cleaning products, construction products, fleet maintenance products, solvents, and landscaping products”

- Leading By Example: A Report to the President on Federal Environmental and Energy Management, Oct 2007

Who’s Using Biobased Products?

Do you know?

Which of these is an example of a biobased product?

a. Soy-based roof coatingb. Non-ozone-depleting aerosolc. 35% post-consumer recycled paperd. Chlorine-free industrial wipes

Executive Order 13423 – Strengthening Federal Environmental, Energy, and

Transportation Management Signed 24 January 2007 Consolidated and strengthened 5 EOs and 2 Memoranda Summary – Federal purchasers must show preference for

environmentally preferable products and take actions to conserve resources (fossil fuels, water, and energy)

EO 13423

Green Procurement Energy & water efficiency in facility design, construction, & operation Reduction of toxic chemical use Maintenance of waste reduction & recycling programs (DOD goal

of 35%) Design and construction of sustainable buildings Increase in alternative fuel use by 10% per year & reduction of

petroleum use by 2% per year Procurement of EPEAT-registered electronics & management

through end of life Enabling of Energy Star features on computers & monitors

Key Requirements:

Executive Order 13514 – Federal Leadership in Environmental, Energy, and Economic Performance

Requires federal agencies to “advance sustainable acquisition to ensure that 95 percent of new contract actions including task and delivery orders, for products and services with the exception of acquisition of weapon systems, are energy efficient, water efficient, biobased, environmentally preferable, non-ozone depleting, contain recycled content, or are non-toxic or less toxic alternatives, where such products and services meet agency performance requirements”

Other Aspects of Green Procurement• Environmentally Preferable• Energy and Water Efficient• Alternative Fuels or Vehicles • Renewable Energy Sources• Sustainable Building Materials • Lacking in Ozone-Depleting

Substances (ODS) and Priority Chemicals

• EPEAT-registered Electronic Equipment

Environmentally Preferable Purchasing EPP is the procurement of products or services

having a lesser effect on human health and the environment when compared with competing products or services Examples: products that are less toxic, contain

reduced VOCs, are durable or repairable, contain less packaging

Ozone-Depleting Substances

EO 13148 requires agencies to phase out the procurement of Class I ODSs by 31 Dec 2010. Facilities must: Switch to safe, approved alternatives Evaluate present and future uses of

ODSs in equipment and systems Turn in all excess ODSs from out-of-

service equipment to DoD

Class I ODSsCFCsHalonsCarbon tetrachlorideMethyl chloroform

Electronics EO 13423 requires that:

95% of electronic equipment purchased be registered using the Electronic Product Environmental Assessment Tool (EPEAT)

Computers and monitors have energy-saving features enabled

Electronics be managed over the life cycle

Review Which of the following is NOT an element

of Green Procurement? Environmentally Preferable Biobased Recovered Materials Sustainable Work Practices Energy Efficient

THE FEDERAL ACQUISITION REGULATION (FAR)

How does it support Green Procurement?

Responsibilities

“Technical or requirements personnel and procurement personnel are responsible for the preparation, implementation, and monitoring of affirmative procurement programs.” FAR 23.404(a)

Where is Green Procurement in the FAR?

Part 4 Part 7 Part 10

Part 11

Part 12Part 1

3

Part 15

Part 23

Part 36

Part 42 Part 52

FAR Part 7Acquisition Planning

FAR Part 7 contains language that emphasizes procurement of recycled-content and environmentally preferable products and services.Part 7.103 Agency heads must ensure that agency planners comply with the policy regarding procurement of products containing recovered materials, and environmentally preferable and energy-efficient products and services.Part 7.105(b)(16) requires written acquisition plans to: “discuss all applicable environmental and energy conservation objectives associated with the acquisition…”

FAR Part 11Describing Agency Needs

The FAR requires agencies to consider use of recovered materials, environmentally preferable purchasing criteria developed by EPA, and environmental objectives when developing specifications and standards describing government requirements and developing source selection factors.

FAR PART 23 – ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE

ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE

Subpart 23.2 – Energy and Water Efficiency and Renewable Energy

Subpart 23.4 – Use of Recovered Materials and Biobased Products

Subpart 23.7 – Contracting for Environmentally Preferable and Energy-Efficient Products and Services

Subpart 23.8 – Ozone-Depleting Substances

Section 23.405 – Procedures (a) (1) Contracting officers should refer to EPA’s

list of EPA’s designated items when purchasing supplies that contain recovered material or services that could include the use of products that contain recovered material.

(a)(2) Contracting officers should refer to USDA’s list of USDA’s designated items when purchasing supplies that contain biobased material or services that could include supplies that contain biobased material.

FAR PROVISION 52.223-1, Biobased Product Certification

“As required by the Farm Security and Rural Investment Act of 2002 and the Energy Policy Act of 2005….the offeror certifies, by signing this offer, that biobased products to be used or delivered in the performance of the contract…will comply with the applicable specifications or other contractual requirements”

FAR PROVISION 52.223-4, Recovered Material Certification Must be included in solicitations for, or that

specify the use of, recovered materials Reads: “As required by the Resource

Conservation and Recovery Act of 1976 (42 U.S.C. 6962(c)(3)(A)(i)), the offeror certifies, by signing this offer, that the percentage of recovered materials to be used in the performance of the contract will be at least the amount required by the applicable contract specifications.”

Standard Contract Terms and Conditions (example)

“Except as specifically waived in writing, for reasons of price, performance, or availability, any products provided as part of the performance of the contract must meet minimum percentage levels for recycled content as specified in exhibit A-1 to these standard contract terms and conditions.”

Exhibit A-1 (example)Paper and Paper Products

% Postconsumer fiber

% Recovered Fiber

Paperboard 70% 100%

Bond paper 30% 30%

Corrugated containers

50% 50%

Who’s Using Recycled Products?

• US Army TACOM developed retread tire specifications and qualifications list

• NAVFAC incorporated sustainability and green products into construction specifications

• Unified Facility Guide Specifications incorporated recovered materials and environmental considerations

• Crane Army Ammunition Activity reused MJU decoy flares

Subpart 23.2 Energy and Water Efficiency and Renewable Energy

23.202 Policy. The Government's policy is to acquire

supplies and services that promote energy and water efficiency, advance the use of renewable energy products, and help foster markets for emerging technologies. This policy extends to all acquisitions, including those below the simplified acquisition threshold.

Energy-Using Products 23.203 Energy Efficient Products

Agencies shall purchase ENERGY STAR® or other energy-efficient items listed on the Department of Energy's Federal Energy Management Program (FEMP) list; and

Agencies shall meet standby wattage recommendations on FEMP's Standby Power Devices product listing, or purchase products using no more than one watt in standby mode, or purchase with lowest practical standby wattage

(If life cycle cost effective and available)

Contracting for Energy Efficient Products and Services

23.203 Energy Efficient Products When contracting for services that

will include the provision of energy-using products, including contracts for design, construction, renovation, or maintenance of a public building, agencies will follow same guidelines as for purchasing products (energy efficiency and standby wattage)

GP Examples - DOD• Performance-based contracting used successfully to

incorporate green elements into the post 9/11 Pentagon renovations

• 7.5 tons of steel recovered from the World Trade Center used to construct bow of USS New York

• VIRGINIA Class Submarine Program designed using greener materials (adhesives, coatings, lubricants, cleaners)

• All Government diesel-powered vehicles at Robins Air Force Base are now required to be fueled with B20 ultra low sulfur biodiesel, which contains 20 percent soy biodiesel

Subpart 23.8 – Ozone-Depleting Substances

23.803 Policy. Implement cost-effective programs to

minimize the procurement of materials and substances that contribute to the depletion of stratospheric ozone; and

Give preference to the procurement of alternative chemicals, products, and manufacturing processes that reduce overall risks to human health and the environment by lessening the depletion of ozone in the upper atmosphere.

Contracting Exercise

Greening a Contract

Example: Construct Running Trail

Product/Service

Recycled Content Environmentally Preferable

Other

Example: Construct Running Trail

Product/Service

Recycled Content Environmentally Preferable

Other

Running Surface

Example: Construct Running Trail

Product/Service

Recycled Content Environmentally Preferable

Other

Running Surface

Recycled Rubber

Example: Construct Running Trail

Product/Service

Recycled Content Environmentally Preferable

Other

Running Surface

Recycled Rubber Natural soil or wood chips

Example: Construct Running Trail

Product/Service

Recycled Content Environmentally Preferable

Other

Running Surface

Recycled Rubber Natural soil or wood chips

Avoid disturbance of wetlands and habitat

Implementing Green Procurement

missionGreen

Planning

Data and Reporting

Contract Developme

nt

Quality Assuranc

e

Poor Planning Leads to….

Planning Phase In the planning/statement of work phase, the

Technical Activity/Requirements Generators must Determine whether the project or contract could involve

the use of EPA- or USDA-designated products or services Include the applicable standards (RMANs or biobased

percentages) for those products as specifications or technical exhibits

Determine if there are green alternatives to other products or services used in the performance of the contract

Identify other applicable green procurement elements (energy and water efficiency, etc)

Contract Development: GP Contracting Checklist

Incorporate the technical requirements related to GP into the statement of work or contract specifications

Require submittals by the contractor that enable reporting and confirm objectives are being met

Ensure the appropriate FAR provisions and clauses support the specifications and hold the contractor to the requirements

Incorporate environmental considerations as selection criteria

Develop and provide GP awareness training to contractors if needed

Hold pre-award and/or post-award meetings to reinforce objectives

Quality Assurance

As the contract is executed, QA should be performed to ensure that GP objectives are met: Inspect product deliverables for specified

recycled content or green attributes Maintain contract work file (justifications for

non-compliant purchases) Review contractor purchases

Reporting of Designated Product Purchases

Federal Agencies are required to report applicable purchases annually to the Offices of Federal Procurement Policy (OFPP) and Federal Environmental Executive (OFEE)

Data source is the Federal Procurement Data System (FPDS)

Reporting (FPDS)

Tracks the number of contracts that include designated items, the percentage of procurement actions containing applicable contract clauses, and the dollar amount of these contracts

Also tracks the justifications used for noncompliant purchases

FPDS data captured using: DD 350 Contract Action Report (CAR)

DFARS Final Rule

66 FR 47096

FPDS-Next Generation and CAR FPDS-NG and the Contract Action Report (CAR) has

replaced DD 350, and includes the following fields: Use of Recovered Materials

FAR 52.223-4 Included FAR 52.223-4 and FAR 52.223-9 Included No Clauses Included

Use of EPA-Designated Products Meets requirements Does not meet – Justification: Performance Does not meet – Justification: Price Does not meet – Justification: Time Not required

Tracking Training

Incorporate training into required KO training

Use training data for job series 1102 (contracting) for percent of personnel trained

Data source for DOD metric

Green Procurement on the Web…

For General GP Information Federal Facilities Environmental

Stewardship and Compliance Assistance Center (FedCenter): www.fedcenter.gov

For Sample Contract Language EPA: www.epa.gov/oppt/epp

Green Purchasing List Server https://list.denix.osd.mil/lyris

In Summary Green Procurement is showing preference

for green products when they satisfy requirements of price, performance, and availability

What Should You Do? Incorporate green preferences into

specifications and acquisition documents Include appropriate FAR provisions and

clauses in applicable contracts Use the DD 350/CAR to capture contract

purchases of recycled and (soon) biobased products

Add GP to contract training, procedures, and inspection programs

For More Information:

Contact:Pat Rippey

US Army Center for Health Promotion and Preventive Medicine (USACHPPM)

Ground Water and Solid WasteAberdeen Proving Ground, MD

DSN 584-5202Comm (410) 436-5202

[email protected]