Friday, June 3, 2011

How Green is Thy Company?

After May 31, government contractors may have to show their green before they get a contract. Don’t worry, I’m not talking about money. The green on display is environmental in nature.

Under an interim rule published May 31, and made effective that day, 95 percent of government purchases must be “energy-efficient (Energy Star or Federal Energy Management Program (FEMP)-designated), water-efficient, biobased, environmentally preferable (e.g., Electronic Product Environmental Assessment Tool (EPEAT)-registered), non-ozone depleting, contain recycled content, or are non-toxic or less toxic alternatives, where such products and services meet agency performance requirements.” National security, law enforcement and intelligence purchases exempted, of course.

And this doesn’t just apply to post-award performance. Bids not submitted electronically have to be “printed or copied double-sided on paper containing at least 30 percent postconsumer fiber, whenever practicable.” This applies to all paper-based forms of communication, including paper trails.

Additionally, contractors who either operate or maintain a government facility must comply with the same green rules agencies follow, such as establishing a cost-effective waste-reduction program, complying with the agency’s Environmental Management Systems and providing environmental performance measurements to help the agency reach its green goals.

However, the effort would have been more effective if the government first published a proposed rule. Choosing to make the rule effective immediately, prior to receiving feedback from the public and before federal agencies are ready to implement this rule, could delay government getting the benefits of greening because the standards for some of the requirements remain undefined. Without clear definitions, how does a company know what is, say, water efficient? Further, since agencies set their own performance standards to meet their own goals, there is a risk that disparate standards will evolve, making it difficult for companies to work across agency lines.

With some tweaking and governmentwide guidelines, agencies and industry will work together to save our planet…and save that other green too (now I am talking money). And that, of course, is smart contracting.