Last week we talked about the importance of "best value" in federal contracting. We emphasized the fact that best value factors are subjective, providing the contracting officer a fair bit of discretion in selecting a winning vendor.
One of those factors is "environmental and energy efficiency." FAR 8.404(b)(2).
Selling environmental and energy-efficient products can give you an edge in winning government business, even if your prices aren't the lowest. Perhaps more to the point: if the buyer knows you and trusts you, environmental and energy efficiency can provide adequate best value justification in his or her decision to purchase your products.
Let's take a closer look.
The Mandate
The acquisition of environmental and energy-efficient products has become a priority in government. The FAR says that agencies MUST implement "cost- effective contracting preference programs promoting energy-efficiency, water conservation, and the acquisition of environmentally preferable products and services."
Further, they MUST employ acquisition strategies that affirmatively implement the following environmental and energy-efficiency objectives:
(1) Maximize the utilization of environmentally preferable products and services (based on EPA-issued guidance).
(2) Promote energy-efficiency and water conservation.
(3) Eliminate or reduce the generation of hazardous waste and the need for special material processing (including special handling, storage, treatment, and disposal).
(4) Promote the use of nonhazardous and recovered materials.
(5) Realize life-cycle cost savings.
(6) Promote cost-effective waste reduction when creating plans, drawings, specifications, standards, and other product descriptions authorizing material substitutions, extensions of shelf-life, and process improvements.
(7) Consider the use of biobased products.
Objective 2 -- in the particular its "energy-efficiency" component -- affects many companies that sell products. Virtually all information technology items, for example, involve the use of energy.
Energy Star
When buying products that use energy (assuming they're "life-cycle cost- effective and available"), federal contracting officers must purchase ENERGY STAR products designated as such by the Department of Energy's Federal Energy Management Program (FEMP). Where no such product exists, contracting officers are directed to buy products that are designated by FEMP to be in the upper 25% of energy efficiency in their class.
Also, when buying services that will include the use of products that use energy, federal contracting officers must require that the contractor provide ENERGY STAR or other energy-efficient products.
So what is ENERGY STAR?
The Environmental Protection Agency (EPA) introduced ENERGY STAR in 1992 as a voluntary labeling program designed to promote energy-efficient products. EPA partnered with DOE in 1996 to further promote the ENERGY STAR label. The program has expanded to residential heating and cooling equipment, major appliances, office equipment, lighting, consumer electronics, and other product areas.
Over 11,000 product models in over 30 product categories bear the ENERGY STAR label. To find out exactly which products, go to the following URL: http://www.epa.gov/nrgystar/purchasing/2d_products.html. Computers, for example, must meet the following criteria (to qualify under what is called "Guideline A"):
- Enter a sleep mode within 30 minutes of inactivity; and
- If shipped with network capability, sleep on networks and respond to wake events.
The criteria for various products are quite specific. Another example:
ENERGY STAR labeled answering machines and cordless telephones must consume not more than 3.3 watts when inactive. Models with spread spectrum technology may qualify at 3.6 watts or less. ENERGY STAR labeled combination cordless telephones/answering machines must consume not more than 4 watts when inactive. Models with spread spectrum technology may qualify at 5.1 watts or less.
The GSA Advantage site, http://www.gsaadvantage.gov, makes it easy for buyers to purchase ENERGY STAR products by distinguishing them from others.
Let Buyers Know
So what's the lesson in all of this? If you sell environmental and energy- efficient products, spread the word far and wide and be specific about it.
One company that does a fine job in this regard is MicronPC. At its Web site the company lists, in bullet point fashion, all the reasons why its computers make the grade. In fact, on that same page, the company lists all of the FAR 8.404(b)(2) best value factors and, for each one, lists supporting facts, point by point. The page is quite well done. See for yourself here:
http://mgcs.micronpc.com/supporting_documents/best_value_statement.html
MicronPC gets to the heart of the matter, making life easier for a buyer interested in purchasing its products. It's almost as if the company is saying, "You need some best value justification to buy our stuff? Well, here it is, everything we can think of."
Lesson learned: make a buyer's purchasing decision an easy one.
State Programs
Many states and municipalities give preference to environmental and energy-efficient products, as well.
For example, in Vermont, Executive Order 06-94 requires consideration of a number of environmental factors when purchasing material or undertaking construction projects. Vermont law allows a 5% price preference for items with recycled content.
The State of Maryland requires that all energy-using products purchased bear the ENERGY STAR label or be in the top 25% of energy efficiency.
King County, Washington buyers are directed to purchase "environmentally preferable" materials "whenever practicable."
Conclusion
Does your company sell environmental and energy-efficient products? If not, consider doing so. It's not just about altruism; the business reasons are more and more compelling. And if you do sell such products, don't be shy.
Shout from rooftops.
More Information
ENERGY STAR Purchasing Tool Kit
http://www.epa.gov/nrgystar/purchasing/2d_products.html
Federal Emergency Management Program, Federal Procurement Challenge
http://www.eren.doe.gov/femp/procurement/challenge.html
Executive Order 13123, Greening the Government Through Efficient Energy Management
http://www.eren.doe.gov/femp/resources/exec13123.html
Subpart 23.2 - Energy and Water Efficiency and Renewable Energy
http://www.arnet.gov/far/current/html/Subpart_23_2.html
Vermont Clean State Initiative
hhttp://www.anr.state.vt.us/dec/ead/csc/envpurch.htm
Maryland Green Buildings Council Home Page
http://www.dgs.state.md.us/GreenBuildings/default.htm
King County Environmental Purchasing Program
http://www.metrokc.gov/procure/green/program.htm
