WASHINGTON, DC - Recent developments have thrust federal and state agencies, as well as government contractors, to the forefront of the "green" movement. Proposed policy changes will soon place significant new obligations on government contractors and agencies. However, since all bidders must meet these criteria, those who adapt more quickly to these green standards may have a competitive advantage. In recent years, federal, state and local governments encouraged the private sector to adopt more environmentally friendly (or sustainable) technologies and processes, even where there is no enforceable requirement.
In late 2007, the Office of Federal Procurement Policy proposed the Acquisition of Green Products and Services Policy. The policy requires federal agencies to give preference to green products and services, including alternative fuels; bio-based products; non-ozone depleting substances; recycled content and/or remanufactured products; and renewable energy.
The scope of this policy is broad. As long as it is life-cycle cost-effective to do so, the proposed policy requires agencies to first consider mandatory and preferred sources to obtain green products and services before approaching other sources. Exemptions from these purchase requirements require written justifications that such items are not reasonably available within the time required, the items are only available at an unreasonable price (based on life-cycle cost), the items are not available from a sufficient number of sources to maintain a satisfactory level of competition, or the items are not reasonably available to meet the functional requirement of the agency.
Buildings account nationwide for 30 percent of the raw materials used, 30 percent of the waste output, and 12 percent of the potable water consumption. At least 12 federal agencies specifically require new construction of federal buildings and other federal-funded construction to meet LEED certification. The Department of Energy now requires, at the design stage, new federal commercial and multifamily buildings achieve at least 30 percent greater energy efficiency over prevailing building codes, if not unduly costly. Over the next 10 years, these DOE regulations are estimated to save taxpayers $776 million and more than 40 trillion British Thermal Units (BTUs) of energy, while reducing about 2 million metric tons of carbon dioxide.
Similarly, at least 15 states and 90 local governments specifically require new state or local buildings or buildings constructed with state or local funding meet LEED certification buildings. In 2010, the California Building Code will require all new buildings to use at least 15 percent less energy. As this guidance changes over time and a federal climate change bill is enacted, government contractors will face more stringent requirements.
Individual government contractors or pre-existing/ad hoc groups of government contractors can take several proactive steps. Initially, contractors can comment on proposals, particularly the proposed green products and services acquisition policy. Some key issues likely to arise during the commenting period include the meaning of terms such as the definition of environmentally preferable, the level of risk that requires use of products not containing so called toxic chemicals, the meanings of the "maximum extent practicable" and "not reasonably available to meet the functional requirement." Comments should seek to clarify the meaning of these terms.
If this guidance is adopted, contractors should implement an environmental audit to determine what, if any, additional environmental measures or documentation is needed to comply with the green products and services acquisition policy. Government contractors with other divisions also need to decide whether to have one company-wide green policy or to adopt a separate policy for its government contracting group. As a practical matter, it may be more cost-effective to have one policy. Finally, other companies also should consider employing these "green criteria," because this guidance is likely to become de facto voluntary standards for all of the private sector, not just federal contractors.
Source: MassHighTech.com