Policy
Contractors with $7.5 million or more in federal awards must disclose whether they publicly report greenhouse gas emissions and reduction goals, and provide the website for such disclosures.
Overview
FAR 23.501 establishes a policy requiring certain federal contractors to provide information about their greenhouse gas (GHG) emissions and related disclosures. Specifically, offerors registered in the System for Award Management (SAM) who received $7.5 million or more in federal contract awards in the previous fiscal year must represent whether they publicly disclose their GHG emissions, whether they have a quantitative GHG emissions reduction goal, and provide the website where such disclosures can be found. This policy aims to improve the government's understanding of both direct and indirect GHG emissions resulting from federal activities.
Key Rules
- Disclosure Representation Requirement
- Contractors meeting the $7.5 million threshold must state if they publicly disclose GHG emissions.
- Reduction Goal Representation
- Contractors must indicate if they publicly disclose a quantitative GHG emissions reduction goal.
- Website Disclosure
- Contractors must provide the website address where these disclosures are made, if applicable.
Responsibilities
- Contracting Officers: Ensure offerors provide the required representations and website information during the solicitation process.
- Contractors: Accurately represent their GHG emissions disclosure status, reduction goals, and provide the relevant website if disclosures are made.
- Agencies: Use the collected information to assess and understand the environmental impact of federal contracting activities.
Practical Implications
- This section exists to promote transparency and accountability regarding contractors' environmental impact.
- Contractors above the $7.5 million threshold must be prepared to answer questions about their GHG disclosures and reduction goals, potentially affecting eligibility or competitiveness.
- Common pitfalls include failing to update SAM registration, not maintaining accurate public disclosures, or omitting the required website information.