23.103 Policy
Source: FAR 23.103 on acquisition.gov
Federal agencies and contractors must prioritize the procurement and provision of sustainable products and services, considering life-cycle costs and statutory requirements, unless specific exceptions apply.
Overview
FAR 23.103 establishes the federal policy requiring agencies to procure sustainable products and services to the maximum extent practicable. It defines when procuring sustainable products is considered practicable and outlines exceptions based on competition, performance, and price. The regulation emphasizes life-cycle cost analysis, particularly for energy-efficient products, and requires agencies to comply with statutory purchasing programs and prioritize products with multiple sustainability attributes. Contractors must provide sustainable products when delivering to the government, furnishing for government use, incorporating into construction, or when such products are a direct cost to the contract. This policy integrates sustainability into all relevant procurement actions, impacting both agencies and contractors.
Key Rules
- Sustainable Procurement Requirement
- Agencies must procure sustainable products and services whenever practicable, with limited exceptions for competition, performance, or price.
- Life-Cycle Cost Consideration
- Agencies should evaluate the cost-effectiveness of sustainable products over their entire life cycle, especially for ENERGY STAR® and FEMP-designated products.
- Statutory Compliance and Prioritization
- Agencies must comply with statutory purchasing requirements and prioritize products/services with multiple sustainability attributes.
- Contractor Obligations
- Contractors must provide sustainable products in specified contract scenarios, including delivery, use, construction, or direct cost procurement.
Responsibilities
- Contracting Officers: Ensure solicitations and contracts require sustainable products/services where practicable, evaluate life-cycle costs, and enforce compliance with statutory and prioritization requirements.
- Contractors: Provide sustainable products/services as required by contract, especially when delivering, furnishing, or incorporating products, or when products are a direct contract cost.
- Agencies: Oversee compliance with sustainability mandates, statutory programs, and prioritization of multi-attribute products/services.
Practical Implications
- This policy drives the integration of sustainability into federal procurement, requiring both agencies and contractors to consider environmental and life-cycle impacts.
- Contractors must be prepared to source and document sustainable products/services and understand when exceptions apply.
- Common pitfalls include failing to account for life-cycle costs, overlooking statutory requirements, or not prioritizing multi-attribute sustainable products.
(a) Agencies shall procure sustainable products and services (as defined in 2.101) to the maximum extent practicable.
(1) Procuring sustainable products and services is considered practicable, unless the agency cannot acquire products or services—
(i) Competitively within a reasonable performance schedule;
(ii) That meet reasonable performance requirements; or
(iii) At a reasonable price (see 23.103(a)(2)).
(2) When considering whether the price of a sustainable product is reasonable, agencies should consider whether the product is cost-effective over the life of the product. For ENERGY STAR® or Federal Energy Management Program (FEMP)-designated products, a price is reasonable if it is cost-effective over the life of the product taking energy cost savings into account (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section8259&num=0&edition=prelim" target="_blank">42 U.S.C. 8259b(b)(2)). Life-cycle cost savings tools for energy-efficient products are available at https://www.energystar.gov/buildings/save_energy_commercial_buildings/ways_save/energy_efficient_products" target="_blank">https://www.energystar.gov/buildings/save_energy_commercial_buildings/ways_save/energy_efficient_products and https://www.nrel.gov/analysis/tech-lcoe.html" target="_blank">https://www.nrel.gov/analysis/tech-lcoe.html.
(b) When procuring sustainable products and services, agencies shall—
(1) Ensure compliance with applicable statutory purchasing program requirements (see 23.107); and
(2) Prioritize multi-attribute sustainable products and services (see 23.104(c)(2)).
(c) Regarding products under contract actions for services or construction, the contractor is required to provide products that meet the definition of sustainable products and services at 2.101, if the products are—
(1) Delivered to the Government;
(2) Furnished by the contractor for use by the Government;
(3) Incorporated into the construction of a public building or public work; or
(4) Acquired by the contractor for use in performing services under a Government contract where the cost of the products is a direct cost to a Government contract (versus costs which are normally applied to a contractor's general and administrative expenses or indirect costs).