Policy
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.