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Use of Vendor/Contractor Greenhouse Gas (GHG) Considerations in Federal Procurements

Use of Vendor/Contractor Greenhouse Gas (GHG) Considerations in Federal Procurements. Jed S. Ela Federal Supply Chain GHG Emissions PMO Federal Acquisition Service. May 17, 2012. Course Outline: GHG in Procurement. Why is GSA Taking the Lead? How is GSA Taking the Lead ?.

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Use of Vendor/Contractor Greenhouse Gas (GHG) Considerations in Federal Procurements

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  1. Use of Vendor/Contractor Greenhouse Gas (GHG) Considerations in Federal Procurements Jed S. ElaFederal Supply Chain GHG Emissions PMOFederal Acquisition Service May 17, 2012

  2. Course Outline:GHG in Procurement • Why is GSA Taking the Lead? • How is GSA Taking the Lead?

  3. Why = Executive Order 13514 • “Federal Leadership in Environmental, Energy, and Economic Performance” • Signed October, 2009 • Addresses Products, Efficiency, Buildings • Expanding on other EOs • Requires GHG inventories • 28% government-wide reduction goal by 2020 • GHG considerations in procurement…

  4. What Are GHGs? Consequences: • Warming (average) • Extreme weather • Rising sea level

  5. Section 13: GHG in Procurement • “work[] with the Federal vendor and contractor community to provide information that will assist Federal agencies in tracking and reducing scope 3 greenhouse gas emissions related to the supply of products and services to the Government.”

  6. Section 13 Implementation • Federal Supply Chain GHG Emissions PMO • Two Section 13-related Tasks: • Policy (GSA leadership, OMB, CEQ) • Enterprise-Wide Implementation (Vendors, Customers, Workforce) • Incentive, not requirement

  7. Leveraging Procurement to Reduce GHGs and Save Agencies Money

  8. GHG Reductions = Savings in the Supply Chain

  9. Energy Efficiency = $$$

  10. Supply Disruptions (Risk = $$$)

  11. Management = Performance = $$$ S&P 500 & GRI 2001 to 2011 MSCI World & GRI 2002 to 2012

  12. Ability to Track and Reduce GHG is Part of the Best Value Equation.

  13. 2. How is GSA Taking the Lead? GSA is using vendor and contractor sustainability considerations, including GHG management, in our procurements. • Started in FY11 • Improvements based on lessons learned • FY12 = expanding across business lines & procurement vehicles

  14. Lessons Learned • NOT “One Size Fits All” but Market Sector Approach • Sensitive to Small Business Impact • Education & Training Essential • Additional Opportunities

  15. Types of GHG Questions • Overall GHG management practices • Product/Service specific practices • Actual Emissions (quantitative)

  16. Emissions Questions: Four Types • Corporate-level • How many GHGs are produced by the entire company? • Most common data, but doesn’t work to compare • Good “Management Practice” • Product-level • How many GHGs are produced to deliver each unit of this product? • Allows direct comparisons • Allows additive accounting • More data, standardization needed • Contract-level • How many GHGs are produced by the entire requirement? • Allows reductions through custom design • Performance-based contracting • Requires large procurements, GSA control of specs, lots of expertise • Usage data • How many GHGs are produced by the orders against this BPA? • Combination of Product-level and Contract-level

  17. FY12 Pilots • Additional Program Areas • Additional Questions • Maximize Responsiveness • Will result in GSA Guidance

  18. Sustainable Supply ChainCommunity of Practice • GSA launching new community on data.gov • Participation from industry, government, nonprofits, and academia • Sharing and discussion around sustainable supply chains— supplier engagement tools, surveys, trainings, opportunity for industry-specific codes of conduct • Six market sectors • It / Electronics • Furniture • Prof. Services (Consulting) • Food Services • Waste Mgt. (esp. e-waste) • Buildings/renovation

  19. Contact: Jed Ela Federal Supply Chain Emissions PMO Jed.Ela@gsa.gov 703-605-2870

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