Environmentally Preferable Purchasing Program
endin
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At the Department of Defense
Using Environmentally Preferable Purchasing
Procedures to Maintain the Pentagon and Other
DOD Facilities
f~^ Printed on paper that contains at least BO percent postcbnsumef fiber.
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Environmentally Preferable
Purchasing Program
Environmentally preferable purchasing ensures that
environmental considerations are included in purchasing
decisions, along with traditional factors such as product
price and performance. The EPP program provides guid-
ance for federal agencies to facilitate purchases of goods
and services that pose fewer burdens on the environment.
We want to hear from you! Please tell us about your environmentally preferable pur-
chasing activities and efforts. We are collecting and sharing information, tools, and hints
about what works and what doesn't as environmentally preferable purchasing evolves
and expands. Please contact the EPP program by regular mail, e-mail, or fax:
Eun-Sook Goidel
Environmentally Preferable Purchasing Program
U.S. Environmental Protection Agency
401 M Street, SW. (7409)
Washington, DC 20460
E-mail: goidel.eunsook@epamail.epa.gov
Fax:202260-0178
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The federal government purchases more than $200 billion worth of goods and
services each year. Recognizing that purchasing decisions can have environmen-
tal consequences, the federal government is incorporating environmental consid-
erations into its purchasing practices. As mandated in Executive Order 13101, Greening
the Government Through Waste Prevention, Recycling, and Federal Acquisition, the U.S.
Environmental Protection Agency (EPA) finalized draft guidance to help federal agen-
cies consider environmental concerns when making purchasing decisions. The guid-
ance establishes principles to help identify products and services that have a reduced
effect on human health and the environment.
EPAs guidance recognizes that environmentally preferable purchasing is a dynamic
concept that, depending on the product category, will not necessarily be implemented
in the same manner from agency to agency or even within a specific agency. To demon-
strate some of the ways environmentally preferable purchasing principles are currently
being applied, EPA is documenting pilot procurement projects undertaken by execu-
tive agencies, state and local governments, and the private sector.
This case study documents one of these projects. It describes efforts by the U.S.
Department of Defense (DOD), with the help of EPAs Environmentally Preferable
Purchasing (EPP) Program, to introduce environmentally preferable purchasing into
routine renovations of the Pentagon—DOD's headquarters in Arlington, Virginia—
and several other DOD facilities. The case study focuses on the development, award,
and implementation of a 5-year, $10 million-per-year indefinite delivery/indefinite
quantity (ID/IQ) construction, renovation, and repair contract. The project demon-
strates the feasibility of including environmentally preferable purchasing principles into
federal contracts. We hope the lessons and insights documented in this case study will
help you and your organization as you incorporate environmental concerns into your
purchasing decisions.
is document provides an overview of recent environmentally
preferable purchasing initiatives and includes references to specific
products and companies. These references are included to provide
additional detail and do not constitute endorsement or recommenda-
tion for use by the U.S. Environmental Protection Agency.
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BfeaJJ"
Introduction 1
Project Background 3
Saving Money and Improving Environmental Performance 4
Incorporating Environmental Purchasing Into the Contract 5
Product Research 7
Federal Programs 7
Environmental Certification Programs 8
Independent Product Research 10
Developing the Request for Proposal 11
Additional Environmental Concerns 12
Selecting the Contractor „ 13
Work Begins 13
Educating the Contractor 13
Preparing Submittals 14
Educating Suppliers 15
Verifying Environmental Attributes 16
Selecting Products 17
Product Availability 18
Revising Specifications 18
Using the Products 18
Lessons Learned 20
Environmental Products Are Available 20
Environmentally Preferable Purchasing Can Be Incorporated Into
the Traditional Purchasing Process 20
Environmental Products Can Meet Traditional Performance Requirements 20
Environmental Purchasing Does Not Increase Government Costs 20
Product Research Is a Good Investment 21
Contractors Can Help Increase Awareness of Environmental
Purchasing Principles 21
Environmental Attribute Information Should Be Verified in Writing 21
Comprehensive, User-Friendly Environmental Information Is Critical 21
Appendix A: Pentagon Renovation 22
Afterword „ 23
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The Pentagon has been a showcase for American pride, strength, and ingenuity for
almost six decades. People around the world can identify it as the headquarters
for the U.S. Department of Defense (DOD). Although the Pentagon provides
office space for approximately 26,000 employees, is twice the size of the Chicago Mer-
chandise Mart, and has three times the floor space of New York's Empire State build-
ing, it is not the only DOD office facility within the Washington, DC, metropolitan
area. DOD's Washington Headquarters Services division also maintains offices sup-
porting an additional 9,500 DOD employees who work nearby at the U.S. Court of
Appeals for the Armed Forces, the Federal Office Building Number Two (known as the
Navy Annex), and the Hybla Valley Federal Building.
The size of its work force and nature of its work require that DOD routinely reno-
vate, repair, and reconfigure office space. DOD's Federal Facilities Division coordi-
nates and supervises these routine activities. The 5-year indefinite delivery/indefinite
quantity (ID/IQ) contract DOD awarded in 1997 to perform this type of work is the
subject of this case study.
The contract is nearly identical to similar ID/IQ construction contracts awarded by
DOD throughout the last sk decades with one notable exception—its inclusion of lan-
guage requiring the contractor to use environmentally preferable construction materi-
als and practices. This case study documents DOD's reasons for incorporating
environmental concerns into the contract, its methods for doing so, and its successes
and lessons learned.
DOD's 5-year
ID/IQ contract
requires the use of
environmentally
preferable materials
and practices.
•nmentally preferable products are "products and services [that] have a
war or reduced effect on human health and the environment when compared to
Products a*"1 services that serve the same purpose." This comparison may
terwls acquisition, production, manufacturing, packaging, distribu-
, reuse, operation, maintenance, or disposal of the product or service.
Order 13101, Greening the Government Tlirough Waste Prevention,
, and Federal Acquisition, September 16,1998.
;J
Introduction.
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Introduction
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saffltel?-:
In early 1993, President Clinton began issuing a series of Executive Orders mandat-
ing that executive agencies take actions to improve their environmental performance.
The Executive Orders promote energy efficiency, water conservation, reduced toxic
emissions, waste prevention and recycling, and environmentally preferable purchasing.
Three years before the first of these Executive Orders was issued, Congress authorized
$1.1 billion for the first major renovation of the Pentagon in 50 years. Responding to
this new call from the President to reduce environmental impacts of government activi-
ties, DOD decided to use that planned renovation to make the Pentagon an environ-
mental showcase, demonstrating and promoting energy-efficient and environmental
technologies. While this major renovation is unrelated to the routine office renovation
and reconfiguration work supervised by DOD's Federal Facilities Division, its history
provides important context for the work described in this case study.1
Environmental Executive Orders
Fse— • I
ilL,Tiie Executive Orders listed below provided additional incentives for DOD's
^-'--[corporation of environmentally preferable purchasing language in its ID/IQ
i_Jlisaruction contract. To obtain copies of the Executive Orders, please visit
:.
xecutive Order 13123, Greening the Government Through Efficient Energy
^Management, June 8, 1999: This order strengthened and replaced several
"_ Executive Orders in place during the early phases of DOD's ID/IQ construc-
ttion contraqt planning, including Executive Order 12902, Energy Efficiency
jand Water Conservafign at Federal Facilities, and Executive Order 12845,
=r Requiring Agencies to Purchase Energy Efficient Office Equipment. Executive
^ Order 129,02 rgandated .energy and water conservation in federal buildings
^and directed agencies to make profitable investments in energy efficiency to
i benefit the environment and the economy. It also directed agencies to desig-
""- nate a "showcase" facility incorporating these measures. Executive Order
11^2845 mandated that federal agencies purchase personal computers, moni-
"~ tors, and printers that meet EPA Energy Star requirements for energy effi-
y^and "sleep" when they are inactive to conserve additional energy.
Executive Order 13101, Greening the Government Through Waste Prevention,
-^Recycling, and Federal Acquisition, September 14, 1998: This order strength-
is, ened and replaced an earlier order, Executive Order 12873, Federal Acquisi-
|T tion, Recycling and Waste Prevention. Executive Order 12873 required Federal
=^ agencies to purchase recycled-content products designated by EPA and to
^buy other environmentally preferable products according to guidance devel-
f~ oped by EPA'sEPP Program.
£ai_ »' ' ' ''& V»* *'
y~ Executive Order 12856, Federal Compliance with Right-To-Know Laws and
- Pollution Prevention Requirements, August 3, 1993: This order directs agencies
to cut toxic emissions 50 percent to improve indoor and outdoor air quality.
Executive agencies
must increase
energy efficiency,
water conservation,
and environmentally
preferable
purchasing and
reduce toxic
emissions.
'For more information on the overall Pentagon renovation effort, please see page 22.
Project Background
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DOD assembled
30 leading
environmental and
energy design
experts to explore
options for the
renovation project.
The Rocky Mountain Institute (RMI), an independent, nonprofit research and edu-
cational foundation, provided consulting support on how to incorporate environmental
and energy technologies into the Pentagon. RMI, together with the Pentagon Renova-
tion and Planning Office, assembled 30 of the country's leading environmental and
energy design experts for an intensive 3-day workshop to explore energy saving and
environmental options for the overall Pentagon renovation project. The team identi-
fied numerous measures to help decrease energy use, improve overall environmental
performance, and enhance human health and productivity.
The resulting report, Energy Efficient/Environmentally Sensitive DOD Showcase
Facility: The Pentagon, A National Historic Landmark, contains a series of recommenda-
tions made by the workshop participants. The report is organized into five sections—
energy; building ecology; water, landscaping, and grounds; materials, waste, and
resource management; and cultural and behavioral change—but stresses the impor-
tance of an integrated approach to the overall environmental features of the building.
ij
Saving Money and Improving Environmental
Performance
In addition to identifying ways to improve the Pentagon's environmental features,
the RMI report also noted that the improved environmental performance could pro-
duce significant cost savings. RMTs results suggested the following possibilities:
• Investing in energy-efficient technologies would allow DOD to reduce the
Pentagon's energy consumption by 55 to 60 percent.
• Improving indoor air quality (IAQ) by eliminating the use of construction
materials with adverse IAQ impacts could increase worker productivity and
save money by reducing absenteeism and decreasing medical and liability
costs.
• Maintaining a comfortable working environment by upgrading the building's
HVAC system and improving IAQ are expected to increase worker productiv-
ity by 6 percent, which represents a $72 million annual savings.
• Installing water-efficient sinks, toilets, water fountains, and showers could
reduce the Pentagon's water consumption, currently 125 million gallons a
year, by as much as 25 percent—a savings of more dian 31 million gallons
a year.
• Making recycling easier for employees by creating room for additional collec-
tion bins and relocating collection stations will allow the Pentagon to double
its current recycling rate from 25 percent to 50 percent. Doubling the recy-
cling rate will allow DOD to double the money generated by the Pentagon
recycling program.
Project Background
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Incorporating Environmental Purchasing Into the
Contract
Although the RMI report was prepared originally for the overall Pentagon renova-
tion effort and not specifically for the routine ID/IQ construction contracts, DOD's
Federal Facilities Division (FFD) recognized that some of the suggestions could be
incorporated mto its next contract. Based on its experience with a previous environ-
mentally preferable purchasing project—the repair and maintenance of the Pentagon
parking lots (see box on page 6)-FFD had a good understanding of what was needed
to successfully incorporate its environmental criteria into the contract. It needed to:
• Understand the environmental impacts of the construction materials used in
the contract.
• Modify traditional product contract specifications to incorporate environmen-
tal requirements.
• Select a contractor willing to commit to DOD's environmental objectives.
n tract Time Line
he following time line identifies key dates in the development and imple-
mentation of the ID/IQ construction contract.
• DOD begins developing contract
•, DeLima Associates researches.
environmental products
-• , Request for Proposal (RFP) released
• Contract awarded to HITT
contracting firm
• HITT begins submittals research
z- *_HITT starts construction project
January 1997
February/March 1997
April 1997
December 1997
January 1998
March 1998
,^J
Project Background •*• 5
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Project Background
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With the help of EP&s EPP Program, DOD began searching for environmen-
tal attributes to include in the ID/TQ construction contract along with
traditional performance requirements. To help identify these attributes,
DOD examined the efforts of EPA and other federal agency programs and
nongovernmental environmental certification programs, and hired an independent
research organization.
Federal Programs
In addition to the EPP program, which focuses on multiple attributes, DOD con-
sulted several single-attribute environmental purchasing programs including EPA5s
Comprehensive Procurement Guidelines (CPG), Energy Star, and Green Lights pro-
grams; and the U.S. Department of Energy's (DOE's) Federal Energy Management
Program (FEMP). DOD also consulted the National Park Service's Sustainable Design
Database, which includes some multiple-attribute information. These programs pro-
vided environmental attribute information on a variety of products used in the ID/IQ
construction contract. DOD used the information to develop its product specifications
for the REP. A brief description of each program follows:
• As required by Executive Order 13101 and Section 6002 of the Resource
Conservation and Recovery Act (RCRA), EPA5s CPG program designates
products available containing recovered materials. The program recommends
recycled-content percentages and identifies potential suppliers. When pur-
chasing designated products, federal agencies are required to purchase them
containing the highest percentage of recycled content if the product meets
agency needs.To date, the CPG program has designated and recommended
recycled-content percentages for 55 products in eight categories, including
products in the construction category. The construction products include
building insulation products; carpet; cement and concrete containing coal fly
ash or ground granulated blast furnace slag; consolidated and reprocessed latex
paint; floor tiles; laminated paperboard; patio blocks; shower and restroom
dividers/partitions; and structural fiber board. For additional information
about the CPG program, please visit .
• The EPA/DOE Energy Star program identifies ways to conserve energy,
which saves money and helps protect the environment. In addition to numer-
ous other product categories, the Energy Star program offers product infor-
mation on a number of building products including utility distribution
transformers, exit signs, heating and cooling systems, windows, doors, and
skylights. For additional information, please visit .
• EPAfc Green Lights program focuses on the energy savings that can be
obtained by installing highly energy-efficient lighting in homes and offices.
Like the Energy Star program, it provides product information and identifies
•die potential cost savings of specific technologies. For additional information,
visit .
• DOE's FEMP program provides energy and water efficiency recommenda-
tions for 29 products in 11 categories. Each recommendation includes a chart
DOD gained
insight from other
federal government
environmental
purchasing
programs.
Product Research
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identifying the expected cost and energy or water savings. For additional
information, visit .
• The National Park Service's Sustainable Design and Construction database
contains environmental attribute information on more than 1,300 products
from more than 550 manufacturers. It lists more than 7,000 construction
debris recyclers and contains an extensive listing of books, periodicals, organi-
zations, and online sources of sustainable design information. For additional
information, please visit .
Environmental Certification Programs
'!!
DOD reviewed DOD also reviewed environmental attribute information from governmental and
information from private environmental certification programs around the world such as the German
third-party government's Blue Angel program, the Canadian government's Environmental Choice
certification groups, program, and Green Seal, an independent, nonprofit organization in the United States.
While DOD project managers found that most of these programs focus on office and
household products and appliances rather than construction materials, they did discov-
er that several certification programs have examined paint products. Green Seal, for
example, maintains 24 paint products in its database that have met its environmental
standards. DOD referred to Green Seal's paint standards, including volatile organic
compound (VOC) content levels and lists of prohibited organic and inorganic com-
pounds in developing its paint specifications for the RFP (see page 9).
Paints used as part of the renovation
were screened for environmental
preferability.
8
Product Research
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OD Paint Specifications
formation from third-party certification organizations and fed-
tenvironmental programs, DOD developed specifications for paint used in
TMQ. construction contract. It is important to note, however, that these
Specifications had to be modified when the contractor was unable to find a paint
iting all of them. The original environmental requirements included:
jsrv^.,? ,The, contractor must provide certification stating that paints proposed
for use contain no mercurial mildewcide or insecticide.
compounds having ineffective physiological properties, such as
Mr irritation levels, shall not be used unless approved by the con-
tracting officer.
• Paints containing lead in excess of 0.06 percent by weight of the
,. tota^nonvolatile content (calculated as lead metal) shall not be used.
Paint cans and their components cannot be fabricated with lead.
'-
containing zinc chromate or strontium chromate pigments shall
Inot be used.
Paint shall not exceed VOC concentrations (in grams/liter), using EPAs
test method 24 to determine concentration, higher than the following:
- interior coatings - nonflat; 150 g/1; flat: 50 g/1
- exterior coatings - nonflat: 200 g/1; flat: 100 g/1
- solvent-based paints - 3 80 g/1
- high-performance water-based acrylic coatings: 250 g/1
- catalyzed epoxy coatings: 250 g/1
All latex paints shall contain at least 50 percent recovered material.
(NOTE: DOD eventually removed this requirement. See page 18 for
additional information.)
Products shall no,t contain the following materials:
- Halomethanes: metiiylene chloride
- Chlorinated ethanes: 1,1,1-trichloroethane
- Aromatic solvents: benzene, toluene (rnethylbenzene), ethylbenzene
- Chlorinated ethylenes: 1,2-dichlorobenzene
- Polynuclear aromatics: naphthalene
- Chlorobenzenes: 1,2-dichlorobenzene
- Phthalate esters: di (2-ethylexyl) phthalate, butyl benzyl phthalate,
di-n-octyl phthalate, diethyl phthalate
- Miscellaneous volatile organics: acrolein, acrylonitrile
Product Research.
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A market survey
helped DOD
determine which
environmental
attributes to include
in its specifications.
Independent Product Research
With funding provided by the EPP Program, DOD hired an independent product
researcher, DeLima Associates, for a 60-day research effort to supplement die informa-
tion gathered from federal sources and environmental certification organizations. The
contractor's primary goal was to identify environmentally preferable products that met
DOD's performance standards.
Using building magazines, catalogs, directories, and Internet sites that emphasize
environmental issues, the contractor identified at least three suppliers offering products
with enhanced environmental features for each product on DOD's initial list of 178
conventional building products. It then broke down DOD's initial product list into 44
product categories and developed a market survey to garner environmental information
for each category. These surveys were mailed to more than 200 suppliers.
The surveys were designed to help DOD determine which environmental attributes
to include for each product that would be described in the construction specifications.
They included general questions about material acquisition, manufacturing and fabri-
cation, construction, product use, maintenance, recyclability and disposal, packaging,
and transportation issues. Additional product-specific questions elicited detailed infor-
mation on each product category. Questions regarding forestry management practices,
for example, were included in the surveys sent to wood product manufacturers. Sealant
manufacturers received different environmentally oriented questions about VOC and
toxic material content.
The researcher's effort produced ten, 3-inch-diick binders of product information,
including Material Safety Data Sheets, product literature, and survey answers. DOD
used the information to help develop the product specifications it included in the RFP.
10
Product Research
-------
After completing the product research, DOD incorporated its findings into the
product specifications section of the RFP used to solicit potential contractors.
Traditionally, DOD inserts existing product specifications from previous RFPs
when preparing a new one. Though the traditional approach saves time and helps
ensure consistent performance, it limits the opportunity to introduce innovative prod-
ucts and processes, including products and services with improved environmental per-
formance. For the ID/IQ construction RFP, DOD modified 75 percent of the more
than 400 product specifications to include specific environmental features, according
to Bob Cox, DOD project director for the ID/IQ construction contract.
"We improved every one we had information to improve," explained Cox. "Unfor-
tunately, we didn't have environmental information for every product. We felt that
some didn't require any improvements in environmental performance." Recognizing
that it would take a contractor extra time to locate suppliers on nontraditional prod-
ucts, DOD concentrated on incorporating environmental requirements where they
were not already standard business practice. Cox explained that electric wires, for
example, already routinely contain recovered copper so DOD felt no reason to specify
that electric wires contain recovered copper in the RFP.
The following examples highlight a few of the beneficial environmental attributes
introduced into the product specifications:
9 Packaging of Materials: To the extent possible, all packaging, labeling, and
instruction materials shall be made from recovered or biodegradable materials
with the highest percentage of postconsumer materials possible. Contractor
shall give preference to those manufacturers that minimize packaging.
0 Plumbing Fixtures: All fixtures shall be water conserving, in accordance with
the National Standard Plumbing Code.
0 Masonry: Reinforcing steel rods and bars shall contain a minimum recycled
steel content of 60 percent. Concrete masonry units shall contain a minimum
recycled materials content of 50 percent.
0 Building Insulation: Extruded polystyrene insulation shall not be manufac-
tured with ozone depleting blowing agents and shall maximize use of recycled
material.
ic Product Requirements
^ I T t i * 3- *
grt*Although DOD added environmental attributes to its specifications, it did not
Sfipdifyits traditional performance requirements. All of the specified products are
Hequtred to meet DOD's traditional criteria, including that they:
• Meet consumer performance requirements.
• Meet industry standards, local codes, and all pertinent regulations.
r f " "- i. i i ,
• Areprice competitive in the marketplace.
DOD modified
more than 300
specifications to
include specific
environmental
features.
Developing the Request for Proposal
11
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DOD requires the
contractor to
recycle or properly
dispose of
construction and
demolition debris.
Additional Environmental Concerns
In addition to incorporating environmental attributes into the product specifica-
tions, DOD included evaluation criteria in the RFP designed to measure each bidders'
commitment to the environmental goals of the ID/IQ construction project. These cri-
teria included language in the RFP requesting bidders to list the resources they would
use to identify, evaluate, and obtain products meeting the environmental specifications.
With this language, DOD could ensure that bidders were aware of the importance
being placed on the RFP's environmental product requirements.
DOD's environmental commitment was not limited to the products to be used in
the project—die RFP also emphasized that the contractor would be required to collect,
segregate, and recycle or properly dispose of all construction and demolition (C&D)
debris. As a result, bidders were asked to submit proposals for preparing a waste man-
agement plan that minimized construction waste and maximized C&D recycling.
DOD felt one way to ensure bidders were committed to and would promote its
environmental goals was to identify companies that could demonstrate an existing
environmental commitment. As a result, the RFP also required all bidders to discuss
dieir current "operational practices [demonstrating] environmental stewardship." The
RFP defined environmental stewardship as practices that protect and enhance the
environment or limit negative environmental impacts, such as company recycling
initiatives, energy conservation measures, or a subsidized public transportation or
car pool program for company employees.
ronmenta equiremen
" .................
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could evaluate contractors on their environmental quaimca-
..... H,i,H,,n^raM^i i'j. - -...u.u.vuf. i , ......
..... as ..... traditional .quaifications, the RF requested bidders to
low they would identify and purchase products with positive environ-
3ow mev wpjild mimmze constiTictio^
r current operating practices demonstrate'environmental
12
Developing die Request for Proposal
-------
DOD released the RFP in April 1997 and began evaluating proposals the follow-
ing July. The bids were evaluated along traditional factors, including each
contractor's past experience, previous job performance, references, quality con-
trol management plan, and cost estimates. In addition, DOD evaluated the proposals
along environmental criteria identified in the RFP, including the contractor's proposal
for identifying, evaluating, and obtaining environmentally preferable products; its plan
to maximize C&D debris recycling; and the company's demonstrated environmental
stewardship.
Although DOD was concerned the environmental features of the RFP would
increase the bidders' proposed cost estimates, bids were well within the traditional
price ranges for ID/IQ construction contracts of similar size and scope.
After evaluating all of the proposals, DOD determined several bids could meet its
traditional price and performance requirements. One of the defining differences
among the proposals was the winning contractor's strategy for identifying environmen-
tal products and its demonstrated environmental stewardship. On December 30, 1997,
HITT Contracting, Inc. was awarded the ID/IQ construction contract, which incor-
porated all of the environmental features originally identified in the RFP.
Work Begins
After winning the contract, HITT had 60 days to prepare for project work. The
contractor spent that time applying for security clearances and access badges for the
Pentagon, setting up trailer space in the area allotted to contractors, and, most impor-
tantly, preparing the product information submittals as specified in the contract. As
with any construction contract, before beginning work, die contractor is required to
identify the products it will use to complete the job and obtain approval of the con-
struction manager to use them. With the DOD contract, the contractor had to locate
products meeting not only the performance specifications, but also the environmental
specifications identified in the contract.
Educating the Contractor
Although HITT was selected in part on the quality of its strategy for selecting envi-
ronmental products, DOD spent significant time with the contractor ensuring that it
fully understood DOD's commitment to environmental purchasing. Bob Cox, the
DOD project director, suggested several improvements to HITT's product selection
process, including proposing specific questions to ask of manufacturers and suppliers
and recommending additional sources of information HITT did not include in its
original strategy. DOD also shared the results of the DeLima Associates research pro-
ject as a source of potential manufacturers and suppliers providing products with die
environmental features DOD specified.
Throughout the submittal process, DOD emphasized to the contractor that it was
carefully reviewing the contractor's implementation of the environmentally preferable
purchasing plan. DOD wanted to ensure HITT and its subcontractors took the envi-
ronmental specifications as seriously as DOD took diem.
Contractor bids
were well within
traditional price
ranges even with
environmental
criteria included.
Selecting the Contractor
-------
jSwl^
: contractor had a good environmentally preferable purchasing strategy in
rpropo'sal/but because of 'our St(eJnsive"'pr6cluct research, we Could identify
'for Improvement. We worked closely with HITT to ensure they had
iiii«i ^^j^ ...... — ..... g^^g joj-j wej^ -^ £act) |-j;iXT had numer-
explain the origins and importance .
certam"1 environmental "attributes 5t one point, 1 was fielding as many as 20
iiililllllllH in iiiiiiiiiiiiiiiiiiii mi rn nnirn i « liiimitisHw IUKHII [mew HMMM m mmumumm M NI
i| j" I
Li.. i i Hi j i
Preparing Submittals
HITT implemented its plan for locating environmental products, incorporating the
additional strategies suggested by DOD, as soon as the contract was awarded. Though
a part of every contract, the submittal process for the ID/IQ construction contract was
the most extensive the contractor had encountered. The contractor began its research
by asking all of the company's construction managers for any information on products
that met the contract's environmental product requirements. The request did not pro-
duce many promising leads, but did identify the name of a green building construction
expert with which the company had previously worked. The consultant was able to
suggest a few products, but ultimately did not have the type of information that would
help HITT identify and locate the needed products within its limited time frame.
Consequently, HITT began researching product information through available
green building resources, including magazines and Internet sites. Although this effort
produced lots of promising leads, the contractor found that the information was fre-
quently not specific enough to ensure that the products would meet both DOD's per-
formance and environmental requirements. To supplement the information, HITT
began calling its regular manufacturers and vendors to determine what information
they had available.
Many suppliers were extremely helpful and had environmental information available
or were able to recommend other suppliers and products. Other suppliers, however,
were surprised to learn that the products they had been selling to HITT for years
could not automatically be used for DOD's ID/IQ construction contract. "Surprisingly,
one of the hardest things we had to do was get our suppliers to realize that this was a
different contract with new environmental requirements," reported Lee Davies,
HTTT's Senior Project Manager. "They kept saying, 'We've been submitting these
[nonenvironmental] products for years and they've always been accepted.' Once we
explained DOD's need for environmental products, things got a little easier."
Since contractors traditionally use the same manufacturers, suppliers, and products
for each contract, a contractor typically only has to make one or two phone calls per
product to identify the products it will use for a particular contract. To locate the prod-
ucts used for the ID/IQ construction contract, however, HITT relied on a team of
eight full-time employees who worked for 2 months calling manufacturers and ven-
dors. Each of the 400 products took an average of 15 to 20 calls to locate a product
meeting DOD's specifications. As a result, HITT made between 6,000 and 8,000
phone calls as part of the submittal process.
14
Selecting the Contractor
-------
To help manage the large volumes of product information it was gathering, the con-
tractor developed a submittal package for potential vendors. After identifying a poten-
tial product, it sent the vendor an
overview of the project and a list of the |^T —„_ ^^
performance and environmental specifi- «p-n ~7T**~ »* i n c *.
cations required for the product in ques- MakeS Perfect
tion. The vendor could simply follow HITT was researching and
the enclosed instructions to provide the . K^ecting the environmental products
contractor with the necessary infbrma- for fa DOD project; ^ con-
tion. A few forms came back incomplete decided to test some of the
pFoducts itself. The contractor setup
Trailer_at the Pentagon using envi-
l products. "Everything in
is environmentally preferable,"
avies explained as he pointed at the
painted with low VOC paint; the
fcled-content carpet with minimal
§Q{QC_emissions from the adhesive;
energy-efficient lights; recycled-
ceiling tiles; and sustainably
^harvested-wood furniture. "We fig-
if we're going to be a part of this
|gp§|rpnmsatal building project, we'll
be^a real part of it."
and required additional phone calls, but,
overall, the process worked well.
Although the number of calls and
logistics involved seem excessive, HITT
recognizes that over the life of the 5-
year contract, which is worth as much as
$25 million to the company, the costs
involved were minimal. In addition, the
contractor views the cost as an invest-
ment towards future federal contracts.
"For future contracts," suggests Davies,
"we will not need to conduct as much
research. We can return to one or two
calls per product just to keep our prod-
uct information current. In addition, we
now know more about environmental
construction products and can use that knowledge to try and win future contracts."
Educating Suppliers
In order to ensure it was identifying products meeting DOD's environmental speci-
fications, HITT discovered that it needed to first educate potential suppliers about
environmentally preferable purchasing and then get the product information in writ-
ing. Many of the suppliers contacted by the contractor were unfamiliar with the envi-
ronmental attributes of the products they were manufacturing or selling. As a result,
HITT spent considerable time explaining DOD's motivations for environmental pur-
chasing. HITT also referred many of its potential suppliers to DOD when it could not
answer specific questions about the environmental attributes.
One of the most challenging environmental specifications for HITT to explain was
its search for wood products obtained from trees harvested from a sustainable forest.
There is not currently any consensus among industry and environmental groups on
the definition of "sustainable forestry." Although the contract allowed the contractor
to use products manufactured with timber grown in accordance with any one of several
certification or forest management programs, most suppliers were not familiar with
them. Many potential suppliers incorrectly assumed that because trees are a renewable
resources, all forests are sustainable.2
2 According to EPA's Interim Final Guidance on Environmentally Preferable Purchasing, natural resources generally
are not considered renewable unless they are naturally renewable in less than 200 years. Natural resources such
as trees can be harvested in such a way that they are nonrenewable or nonsustainable.
Selecting tke Contractor
15
-------
Requiring
environmental
attribute
information in
writing helped
ensure that
products met
DOD's
specifications.
According to the Forest Stewardship Council (FSC), an independent, nonprofit,
nongovernmental organization founded in 1993 by a diverse group of representatives
from environmental and conservation groups, the timber industry, the forestry profes-
sion, indigenous peoples' organizations, community forest groups, and forest product
certification organizations from 25 countries, a forest is sustainable if it is managed in
an ecologically sound, socially responsible, and economically viable manner. The FSC
defines a sustainable forest as a place where timber growth equals or exceeds harvesting
rates in both quantity and quality while protecting rivers and streams from degradation
due to erosion, decreasing the damage caused by harvesting, promoting biodiversity,
and fairly compensating workers and local populations.
The American Forest and Paper Association (AF&PA), the national trade association
of the forest, paper, and wood products industry, defines sustainable forestry as that
which meets the needs of the present without compromising the ability of future gen-
erations to meet their own needs. Through its Sustainable Forestry Initiative, AF&PA
members practice a land stewardship ethic that integrates the reforestation, managing,
growing, nurturing, and harvesting of trees for useful products while conserving soil,
air and water quality, wildlife and fish habitat, and aesthetics.
Sustainable forestry was a new concept for many of HITT's traditional vendors and
required quite a bit of additional explanation and verification to ensure the products
would meet DOD's environmental requirements. Part of the challenge was that with
certain products like wood doors, the door manufacturer frequently did not know the
origin of the wood it was using. To complicate the matter, HITT found that even the
wood suppliers are not always sure of the origins of their wood.
"I talked to the vendor, the manufacturer, the mill manager, and the forest manager,"
said Ruth Bodnar, HITT Project Manager. "I did everything but talk to the tree
before feeling satisfied that the products met contract specifications." Ultimately, the
contractor only found a single company claiming to manufacture products in
accordance with DOD.'s sustainable forestry specification that was willing to put the
certification in writing.
Verifying Environmental Attributes
Another important lesson HITT learned while conducting its product submittal
research is the importance of obtaining environmental attribute information in writing.
The contractor encountered several instances in which overzealous sales people mis-
stated the environmental benefits of their products. According to Davies, "Some sup-
pliers will tell you what you want to hear to get you to buy their product."
The sales representative for a recycled-content gypsum wall board manufacturer, for
example, assured the contractor that the product contained 60 percent postconsumer
content as specified in the DOD contract requirements. When HITT requested that
the sales representative verify the information in writing, the representative refused to
guarantee anything greater than 30 percent recycled content. Unable to locate any
vendor with a product meeting DOD's specification, the contractor concluded that
DOD's contract specifications were based on misinformation obtained during DOD's
original product research. As a result, DOD revisited the specification and altered it to
reflect the environmental information collected by HITT.
Other supplier and product experiences were much more positive. One manufactur-
er of a low VOC paint, for example, was convinced its paint exceeded DOD's
16
Selecting the Contractor
-------
requirement that paint contain less than 50 grams per liter of VOCs. Unfortunately,
the manufacturer did not have written documentation supporting its contention. Due
to the volume of paint HITT was likely to purchase throughout the life of its Pentagon
contract, the manufacturer paid several thousand dollars to have its product tested.
Upon receiving the results proving that the product contained zero VOCs, the manu-
facturer shared them with HITT. The contractor subsequently included the product
on its official product submittal list. The paint manufacturer is hoping the positive
results will help it win other customers too.
Selecting Products
After identifying products meeting DOD's performance and environmental require-
ments, HITT determined which of the products it should submit for use on the pro-
ject. When the contractor located only one product meeting DOD's specifications, it
was the product submitted. In instances when more than one product was identified,
HITT compared the price, environmental attributes, and product availability before
selecting the product. The contractor attempted to maximize the number of positive
environmental attributes and minimize cost. Product availability, however, was also an
important factor because many of the ID/IQ construction projects require quick turn-
around.
Comparing Environmental Attributes
», - -^Situations arose during the course of this contract that made it difficult to
Klfrtermine which was the environmentally preferable solution. For example,
pwhen HITT was,researching two-foot by four-foot, recycled-content,
Ijpppended ceiling tiles, it located a manufacturer making both a recycled-
pSontent and a virgin material product. While typically there is no performance
gdjfference between recycled-content and virgin products, HITT questioned
^Ithe durability of the recycled-content product in this case. "It's unusual
jOTjunanufacturer to make two competing products," explained Davies, "so we
wefeworrted the manufacturer was not confident in the recycled-content
product's performance."
« . > ,, t
to the vendor, its recycled-content product contains impurities
make it less durable than its virgin material product. The vendor explained
^thajt its recycled-content product was subject to sagging after 15 years of use,
Swhich was not true of the virgin product. Since HTTT was selecting the prod-
•""uctfbr a space that would typically be used for only 5 to 10 years, the reported
erformance difference was not an issue. After consulting with the DOD pro-
ggt manager, HTTT decided to use the manufacturer's recycled-content prod-
"""' Sti this project.
Selecting the Contractor
-------
Proper training and
communication
ensured successful
installation and
performance of
environmentally
preferable products.
Product Availability
HITT discovered a few environmental products that it wanted to use but could not
obtain easily. Suppliers frequently do not keep products in stock diat are not in high
demand. Rather, they manufacture them only when an order has been placed. As a
result, diese products can take weeks to become available. This was the case with some
of die environmental products that HITT staff wanted to use but they needed access to
products quickly because of die rapid five-day turnaround on many of the DOD jobs.
They do not have time to wait for mem to be manufactured and delivered.
The contractor worked closely with several vendors to resolve die availability issue.
One manufacturer agreed to produce larger quantities of its products, anticipating mat
HITT would be using them frequendy. For anodier product, HITT decided it was
cost-effective to order a large quantity and store diem off site.
Revising Specifications
The contractor was unable to locate a paint meeting all of DOD's paint specifica-
tions. When developing die paint specification, DOD incorporated many of Green
Seal's paint standards, which do not include a recycled-content requirement, along widi
a recycled-content requirement promoted by EPAs CPG program. Unfortunately, as
HITT discovered, recycled-content paint is not yet available meeting all of die envi-
ronmental standards adopted by DOD. Consequendy, DOD was forced to decide
whedier die recycled-content requirement or die odier environmental attributes were
more important. After confirming diat recycled-content paints meeting its standards
were not available, DOD decided diat protecting indoor air quality by minimizing
VOCs and eliminating other constituents it determined to be hazardous was die more
important environmental consideration. As a result, DOD removed die recycled-
content requirement. HITT was dien able to locate several products meeting DOD's
revised specification.
Using the Products
After submitting its product submittals and receiving DOD approval, HITT was
ready to begin using die products. While most environmental products perform die
same as traditional products, some require slighdy different handling procedures in
order to guarantee maximum performance. One of HITT's painting subcontractors,
for example, reported diat a certain VOC-free paint was not coating as well as tradi-
tional paints with higher VOC contents. The paint tended to pool at the point of
application. The contractor reported the problem to the manufacturer and die manu-
facturer suggested a small change to the traditional application process, which dramati-
cally improved the paint's performance.
For odier products, manufacturers trained die contractor and subcontractors before
work began to ensure that dieir environmental products were installed properly. One
vendor, for example, manufactures a fire proofing material diat DOD and HITT
determined to be environmentally preferable. The company demonstrated the proper
installation techniques and certified that HITT and its subcontractors were properly
trained. The contractor has been so impressed widi the product, it is using it on other
jobs even when diey do not require the use of environmental products.
18
Selecting die Contractor
-------
Unlike many traditional institutional floor covering materials, another vendor's floor
covering does not require wet adhesives and is installed slightly differently than tradi-
tional products. This vendor also provided HITT and its subcontractor with training
to properly install its product.
As of May 1999, HITT had completed more than 150 jobs, all of which use prod-
ucts meeting DOD's environmental and performance criteria. DOD is happy with the
quality of the work and very pleased with the cost and the environmental performance
of the products being used to complete the work. The success of this effort clearly
demonstrates that environmental products can be incorporated into federal construc-
tion contracts without decreasing quality or increasing costs.
Selecting the Contractor
19
-------
T
he size and scope of the DOD contract provided many valuable lessons about the
environmental attributes for numerous construction materials. A few of these are
described below.
Incorporating
environmentally
preferable
purchasing concerns
into the traditional
DOD contracting
process was not
difficult.
Environmental Products Are Available
Manufacturers do not always advertise the environmental features of their products
even when they are impressive. The secret to finding them, according to those involved
with this project, is to know what questions to ask. "Don't ask for environmental prod-
ucts," suggested Bob Cox, DOD project director, "ask for products containing specific
environmental attributes. It can be difficult for manufacturers to know if their product
meets your definition of'environmentally preferable.' If you give them a list of attrib-
utes, the question is easier to answer."
Environmentally Preferable Purchasing Can Be Incorporated Into
the Traditional Purchasing Process
As DOD discovered, incorporating environmentally preferable purchasing concerns
into the traditional contracting process was not difficult. The same process was used
that DOD uses with "traditional" ID/IQ contracts. The only important difference was
the time DOD spent revising its product specifications. "Product specifications are
periodically revised anyway," explained Bob Cox, DOD project director, "We simply
reviewed them earlier than normal and incorporated environmental concerns during
the revision process."
Environmental Products Can Meet Traditional Performance
Requirements
DOD did not modify its traditional performance requirements to incorporate envi-
ronmental products into the ID/IQ construction contract. Instead, it added environ-
mental requirements to its existing specifications. Using environmental products does
not require lowering performance standards. In fact, the DOD contractor has discov-
ered several environmental products that perform better and are less expensive than the
products it traditionally used. As a result, the contractor is using them even when the
specifications do not require the use of environmental products.
Environmental Purchasing Does Not Increase Government Costs
Although DOD was concerned initially that the environmental specifications in the
contract might increase costs, the actual bids were very consistent with similar con-
tracts without an environmental emphasis. Contractors did not charge DOD a premi-
um for using environmental products as some contracting officials feared. Instead,
according to Bob Cox, the DOD project director, "The contract allows DOD to reno-
vate or reconfigure interior office space using environmentally preferable products and
remain within traditional price and time parameters."
20
Lessons Learned
-------
Product Research Is a Good Investment
DOD's initial product research allowed it to identify the environmental attributes
available in construction products. This allowed DOD's Federal Facilities Division to
develop specifications that could be met by products currently available in the market-
place. The research effort will also make it easier to incorporate environmental specifi-
cations in future contracts.
Similarly, HITT conducted significant research to locate products meeting DOD's
specifications. Its research will allow the contractor to accurately bid the environmental
products on future contracts. HITT also feels its product research places the company
at a potential advantage for future federal work, given the mandates for environmentally
preferable purchasing.
Contractors Can Help Increase Awareness of Environmental
Purchasing Principles
The EPP Program's experience suggests environmental purchasing will become
easier and easier as more and more people become familiar with the concept. One of
the challenges has been spreading the message. Under the ID/IQ construction contract,
the DOD contractor shared the environmental purchasing message with thousands of
suppliers as part of its search for products meeting DOD's specifications. The contrac-
tor quickly recognized that as more and more manufacturers, suppliers, and vendors
understand the emphasis the federal government is placing on environmental products,
the easier the products should become to identify and locate. In fact, many suppliers are
now contacting HITT directly because they have learned of its interest in environmen-
tal products.
Environmental Attribute Information Should Be Verified In Writing
HITT and DOD quickly learned during the product submittal process that the accu-
racy of die environmental information provided by suppliers tends to increase if it is
requested in writing. It helps ensure that suppliers have time to carefully compare their
products against the selected environmental attributes. Requesting such information in
writing also helps communicate the government's emphasis on the importance and
accuracy of the information.
Comprehensive, User-Friendly Environmental Information Is Critical
To purchase the best environmental products, consumers must have access to accu-
rate information on the multiple environmental attributes of a product throughout its '
lifecycle—from raw material acquisition through manufacturing, use, and ultimate dis-
posal. Unfortunately, the DOD team for this pilot project did not have access to as
much environmental information as it would have preferred. As a result, when deter-
mining whether a product was environmentally preferable, the team relied primarily on
single environmental attributes such as energy efficiency, recycled content, or toxicity
instead of on multiple environmental attributes.
Providing comprehensive environmental data in a user-friendly format is the next
important challenge. As Bob Cox explains, "The challenge is daunting, but the federal
government must find ways to encourage industry and educational institutions to par-
ticipate in the fact-finding process. Providing the information will make environmental
purchasing easier and educate industry about the environmental impacts of its products
and, hopefully, encourage industry to further improve its environmental performance."
Product research
allowed DOD
to develop
specifications that
could be met by
products currently
available in the
marketplace.
Lessons Learned
21
-------
Built in 1942 to help meet U.S. defense needs during World War II, the
Pentagon—now a National Historic Landmark—has never undergone a major
renovation. After more than 50 years, renovation has become essential in order
to meet health, fire, and safety codes and to provide reliable electrical, air-conditioning,
and ventilating services. Absent a major renovation, the building infrastructure could
become unreliable and unable to effectively support DOD's mission. Repairs are neces-
sary not only to ensure the safety and comfort of Pentagon workers, but also to save
money and improve agency operations.
Acknowledging the need for major renovation, Congress appropriated $1.1 billion in
1990 to modernize the Pentagon. DOD immediately began prioritizing its renovation
needs and initiating the necessary design work. Renovation work is currently underway
in the first of the Pentagon's five "wedges." The entire renovation is expected to be
completed by Spring 2010.
All 7,748 windows in the Pentagon
will be removed (most of the frames
are covered with lead paint) and
replaced with double-pane thermal
insulation glass. This alone will
improve the energy efficiency of the
building by about 25 percent.
-------
Afterword
Many of the lessons learned as a result of DOD's experience with the ID/IQ
construction contract have been incorporated into the numerous contracts
supporting the overall Pentagon renovation effort. Similar environmental con-
tract language also has been incorporated into a contract to build a new
Remote Delivery Facility (RDF) to support Pentagon operations. The
200,000-square-foot RDF will allow DOD officials to safely inspect the cargos
of the more than 300 vehicles per day that deliver goods to the Pentagon. This
precaution is necessary to help prevent terrorist activity from affecting Penta-
gon operations.
The RDF contract, like the contract described in this case study and other
contracts supporting the renovation effort, includes environmentally prefer-
able purchasing goals. The offerers on this contract must show how they will
integrate sustainable design and environmental purchasing into the design and
construction of the RDF within the project constraints of cost, schedule, pro-
gram requirements, and site conditions. Examples of sustainable design criteria
include an emphasis on energy conservation, water conservation, waste man-
agement, and recycling, and protecting indoor air quality. Future Pentagon
renovation contracts will continue to include environmentally preferable pur-
chasing goals and sustainable design.
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