Federal Procurement Rule Demands Greater Sustainability

Published: 15 July 2011

3 pages

EXECUTIVE SUMMARY

This report provides an independent analysis of the impact of the new procurement regulations for firms wishing to sell goods or services to US federal agencies. Annual spend on goods and services by these agencies totals $500 billion and is governed by a rigid set of rules and regulations known as the Federal Acquisition Regulation (FAR). The introduction of an interim rule into the FAR in May 2011 requires US federal agencies to ensure 95% of goods and services purchased meet a range of sustainability criteria. The interim rule remains open to public consultation until August 1, 2011. While the overall direction of the rule is clear, it lacks detail in certain areas including whether agencies should opt for one type of sustainable product or service over another, as well as how the government plans to train agency staff to implement the rule effectively. These changes in procurement regulations allow sustainability leaders to demonstrate the business value of sustainability and to elevate its significance within the more than 150,000 US federal agency contractors.

TABLE OF CONTENTS

FEDERAL PROCUREMENT RULE DEMANDS GREATER SUSTAINABILITY
Government Agencies Must Adopt Procurement Criteria
Regulation Provides Direction But Lacks Definition
Corporate Sustainability Leaders Will Benefit                  

ORGANIZATIONS MENTIONED

Boeing, CB Richard Ellis, CH2M Hill, Central Intelligence Agency, CSC, Cushman & Wakefield, Honeywell, IBM, Jones Lang LaSalle, Lockheed Martin, National Aeronautics and Space Administration, US Department of Defense, US General Services Administration, US Postal Service