Environmentally Preferable Purchasing In Action
Pal
An EPP Pilot Project Update
As of October 21,
1997, Federal
Acquisition
Regulations'{FAR)- .
require all federal ,
agencies to' , "\
purchase
"envfronpehtally
^referable and
, energy-efficient -
products and
services" (FAR
23.704). The BOB
parking Sot contract
allaastrates one way
of satisfyiog this FAH
After more than a year of experience with the "green" parking lot
contract, the Department of Defense (DOD) and the U.S.
Environmental Protection Agency (EPA) are sharing the most recent
results of this Environmentally Preferable Purchasing (EPP) pilot project. This
fact sheet describes the project's background and current status, highlights
recent project successes, suggests future challenges, and details the lessons
learned. It is an update to Paving the Road to Success, an EPP case study
published in November 1997 (EPA742-R-97-007). The full case study is
available via the EPP Web site or by calling
the Pollution Prevention Information Clearinghouse at 202 260-1073.
Background
In June 1997, DOD awarded D-M&S, Inc., a 5-year, $1 million per year,
fixed-price, line-item contract to maintain and repair the parking lots and
access roads at the Pentagon and three other DOD facilities. The contract
includes traditional price and performance requirements as well as incentives
to use products with multiple, positive environmental attributes.
The contract includes work sheets for 20 product categories representing
90 percent of the materials used to repair and maintain the parking lots. Each
work sheet identifies the mandatory operational requirements for a product.
Eleven work sheets also include optional environmental attributes for which
D-M&S, with DOD approval, can earn a 2-percent price differential for each
attribute it incorporates up to a ceiling of 10 percent per line item and an
overall task-order price differential of 5 percent. The contract also provides
additional opportunities for the contractor to improve environmental perfor-
mance and earn price differentials, which are subject to the same line-item and
task-order ceilings.
"^is feet sliest ji^
Existing copy of'Ityirig the,Road to^cce^, the EPP^case study dbcumenting
OOP's parMnglcrt^
i'that it was/i^or&enyjranm^
^etter/:tli^.to;prqdye£
W9 Printed on paper that contains at least 20 percent postconsumer fiber.
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Current Status
During the 15 months the contract has been in place, the contractor has used
products with positive environmental attributes to pave 227,934 square reet of
parking lots and roadways. \Vhen compared to traditional products, rhe con-
tractor's products have increased recycled- content percentages, reduced volatile
ic compound (VOC) levels, and decreased overall toxicicy.
Usje of.-jEhvironmeiitiilly'Preferable Products-.;-;. Y .- .._':\-: -\'
.farice'itfee contract-began,.the DOD contractor has'. usec!:V;'.''.'.-' - "::;:," '"'. .
. "3,328 tons .of tecycied asphalt - ''";..--"<:.":'.''- .: '-..'''''-' '''''
'. * 'T$3'l -tons^of recycled concrete ' . . .- '.-' '-. _-'. ''"--'-.'. ' -../; -, -_; :
, " *' 300 'Ciibfc yards of coi)cret6 coDiaihing recovered'taaterials/.; '.''.-';- '... :.-.':,..
;.- .*-'- 3',55B linear feetpf'-recoyerc'd glass'.for reflective.$orfacps~' y '-..'. ;- -:;.;'.";';:,
. -..- 5,20.0 linear: (cet; of an'-asphalt .se^lfcr:,contajning-rject>ver.cd crntny^bbcr:'.'-'- '-.
;eoataining;less thaii -50 gtmras per liter/ of
Project Successes
While rius pilot project has enjoyed many successes, die two most recent suc-
cess stones involve identifying new environmental attributes and promoting the
wide-spread use of environmental products,
Identifying New Emironmental Attributes
'lo prepare the contract work sheets, the DOD/KPA ream used publicly avail-
able information and conducted a limited market survey 10 identify the environ-
mental attributes. The ream believed it would be challenging for the contractor
to locate products exceeding the attributes it identiiicd.
A, few months into the contract, however, D-MScS had. already identified eight
products exceeding the environmental criteria detailed on the work sheets and
had proposed an environmental attribute for several produces for which DOI)
had not identified any criteria. The contractor conducted an extensive Internet
search and queried numerous contacts and .suppliers throughout the paving and
road construction industry looking' tor products with improved environmental
performance. "All we needed to know," according to Sam Oogiian, a cost-estimator
with D-M&S, "[was] what types of environmental information to look for.1'
Promoting the Wide-Spread Use of Environmental Products
Several of the products D-M&S identified as. einironmenmlly preferable per-
form better than traditional products in fact, the contractor is using them on
other projects, nor because of their environmental features, bur by virtue of their
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performance. As a result, the use of environmental products is spreading beyond
the scope nf the pilot project, achieving one of the goals of the DOD/EPA pilot
project team and of the EPP program, ft also demonstrates that environmental
improvements can lie made without, compromising cost or performance.
In addinon, several oraanuiiiions have eonr.ieted 1)()D and EPA regarding
die environmental language used in the parking lor repair and renovation con-
tract. SeveraJ cities, counties, and municipalities are considering incorporarintj
similar language into their contracts.
Future Challenges
Currently, DOB officials can readily determine if a proposed product
improves environmental performance because the parking lot contract clearly
identifies the environmental attributes on II of the 20 product work sheets. If j
work sheet identifies a Vl)C content uf less than 80 g/L as environmentally
desirable, for example, and the conn actor proposes a product containing
60 g/L, the new product is considered environmentally preferable.
Determining environmental preJerability will likely become more difficult as
rhe contract continues, however. 1)()D, for example, is currently evaluating two
Competing .sealants- -a traditional sealant \\irli environmental criteria defined on
an existing product work, sheer and another potentially revolutionary product
that is more durable. While durability is generally a positive environmental
attribute, it does not necessarily mean the new product is moie environmentally
preferable. It is possible, for example, that the processes used to irumif'actuic
the more durable product require more energy to produce, and transport the
product or are more toxic than those used to produce the traditional product.
These additional environnjeiK.il concerns might negate the environmental
improvements attributed to its inerea.sed durability. From an environmental lile
cycle perspective, it i.s still unclear which product is preferable.
At this point, DOI), f-'.PA, and D-A'l&S have asked the manufacturer of the
new sealant for additional environmental information about its product. The
infonmuion provided by the manufacturer will help DOI") determine: which of
the two competing sealants t« use. Until the, environmental benefits of compet-
ing products are clearly defined, traditional measures like price and performance
will remain the primary determining factors.
This situation highlights the eumple.\kics associated with comparing the
environmental -if tributes of cwo different types of products designed to perform
rhe same function. As new environmental attributes are introduced, these deci-
sions will continue to become more eomplt v. It also should lead to the develop
rneni of new environmental decision making tools.
In additioii'io the lessons cued in the full cast: study, recent contract cxperi-
eru es demonstrate that eomr.ictors can locate environmental products as part, of
ninline project performance, pncv differentials might not be necessary, and
environmentally preferable f!<><:> nor necessarily mean "more expensive."
New- eiwirohmcitttal'. ,
decteion-maldn'g tools;
continue to./ ..'', '
develop :as 'mote.
' environmental-.' '-
;atbrtb.utes'aire.^ - ;i
'. introduced to-'i
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"No. one will' get , -
.rich off i of'. the' price
differential,, but we
believe 'the . -.'
Imowle'dge: we .gains :
will-.bring 'us a lot of-.
busiiitess." . .
'' Sam .Croghan, .-
'./D-MI&S, Inc.."'r.-.-..- '. '
..' DbDPa'rkiVx} Lot-
Repair Contractor -.
Contractors Can Locate Environmental Products
D-M&S's ability to coll ret information on the environmental attributes of
the products UMid under the parking lot renovation and repair contract sug-
gests construction contractors might be in a better position than federal
purchasers u> identify the environmental attributes of construction products
because of the contractors' previous experience with the products ami their
contacts throughout the industry. After DOD identified the environmental
attributes of concern, D-M&S obtained product information that allowed
DOD to compare pmditcts based on their environmental performance. This
experience suggests the contracting mechanisms used in this innovative con-
tract might be appropriate in other situations,
Price Differentials Might Not Be /Vecessaiy
"I he DOD/KPA team included price differentials in the contract tearing
small businesses would not otherwise be able to afford to conduct: the prod-
uct research, D-M&S claims, however, the price differentials had no effect
on its decision to bid on the project. According to A'Ir. Croghan,, the
2-percent price differential is not nearly as important or as profitable as the
following:
* Keeping the customer happy.
* (raining knowledge and experience in identifying and working with
environmental products and processes,
Using the. experience working wirh environmental products -and
processes to distinguish D-A1&S from its competitor..
Environmentally Preferable Does Not Mean 'More Expensive'
Aher more, than one year of experience with the contract, the average
cost for the work completed is .significantly lower than similar work on other
DOD parking Jot repair contracts,, which do not include enviiontu<:utal fea-
tures. The price differential has increased expected contract costs by only
0.^ percent. Tn fart, even il the contractor had earned the maximum price
differentials as defined in the contract, the average costs still would be lower
than other DOD parking lot rep-air anil maintenance contracts.
Bob (".ox, the DOD program manager for the contract, attributes the
favorable contract price to DODV competitive contracting process and the
traditional evaluation factors price and performance. I'urtherniore, as a
fixed-price, linr-m-m contract, the contractor, not DOD, absorbs any cost
difference between the contractor'*; proposed line-item cost and actual costs.
The contractor might he nuking additional profits on some line items and
losing mone) on others, bur the cost to ihc government docs nut change.
"With this contract/' avconlmp to Mr. Cox. "DOD is receiving a qualitv
product with unproved environmental performance at a lower cost, which
proves you do not have to pay more to go "green/"
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