As sustainability and environmental stewardship become more integral to federal policies, government contractors must also align with these values. Part 23 of the Federal Acquisition Regulation (FAR) establishes requirements for environmentally conscious practices in federal contracts, focusing on reducing environmental impacts, improving energy and water efficiency, and ensuring safe workplaces. This section guides contractors in meeting federal goals for environmental responsibility, renewable energy adoption, and employee safety.

Part 23: Environmental and Energy Efficiency Requirements

Part 23 of the FAR sets out the government’s policies and procedures for promoting environmental, energy, and safety standards in federal contracts. This part aims to support federal goals for sustainability, reduce waste and pollution, and ensure that contractors create safe and healthy workplaces. Compliance with these regulations is crucial for contractors working with federal agencies, as it demonstrates a commitment to environmental and occupational responsibility.

Subpart 23.1 – Sustainable Acquisition Policy

Sustainable Acquisition: Federal agencies are directed to acquire products and services that minimize environmental impact throughout their lifecycle. This sustainable acquisition policy covers areas such as energy efficiency, renewable energy, waste reduction, and the use of non-toxic materials.

Scope of the Policy: Sustainable acquisition requirements apply to all federal contracts, with a particular emphasis on the procurement of products that are energy-efficient, water-efficient, biobased, environmentally preferable, non-ozone-depleting, or contain recycled content.

Subpart 23.2 – Energy and Water Efficiency and Renewable Energy

Energy Efficiency Requirements: Contracts for products and services must meet energy efficiency standards set by the Energy Policy Act and the Energy Independence and Security Act. This includes procuring ENERGY STAR products and products listed in the Federal Energy Management Program (FEMP) as energy-efficient.

Water Efficiency: Similar to energy efficiency, contractors must use products and technologies that conserve water. This includes selecting products that are certified as water-efficient by programs such as the WaterSense label from the Environmental Protection Agency (EPA).

Renewable Energy Use: Contractors are encouraged to use renewable energy sources when possible. This can include on-site renewable energy generation, such as solar panels, or purchasing renewable energy credits (RECs) to offset traditional energy use.

Subpart 23.3 – Hazardous Material Identification and Material Safety Data

Hazardous Materials Disclosure: Contractors must identify any hazardous materials involved in the performance of the contract and submit a Material Safety Data Sheet (MSDS) for each material. This requirement is in place to protect the safety of federal employees, contractors, and the public by ensuring proper handling, storage, and disposal of hazardous substances.

Compliance with Federal Regulations: Contractors must comply with all applicable federal regulations regarding hazardous materials, including those established by the Occupational Safety and Health Administration (OSHA) and the Environmental Protection Agency (EPA).

Subpart 23.4 – Use of Recovered Materials and Biobased Products

Recovered Materials: The government prioritizes the acquisition of products made from recovered or recycled materials, reducing the need for virgin resources and minimizing waste. Contractors are expected to procure materials with the maximum feasible amount of recovered or recycled content.

Biobased Products: The Biobased Markets Program, overseen by the USDA, encourages contractors to use biobased products—materials made from renewable sources, such as plant or animal materials—whenever possible. This program supports a market for sustainable, biodegradable products, reducing reliance on petroleum-based goods.

Certification and Reporting: Contractors must certify that the recovered and biobased content of their products meets federal standards. They may also be required to submit reports detailing their use of such products.

Subpart 23.5 – Drug-Free Workplace

Drug-Free Workplace Requirements: Contractors working with the federal government are required to maintain a drug-free workplace. This includes implementing policies and procedures to prevent drug abuse, conducting drug awareness programs, and taking appropriate actions against employees who violate drug policies.

Certification of Compliance: Contractors must certify that they have established a drug-free workplace program and that they take measures to maintain compliance. This certification is necessary to ensure that the contractor’s workforce remains productive and that public safety is protected.

Subpart 23.7 – Contracting for Environmentally Preferable Products and Services

Environmentally Preferable Purchasing (EPP): The government encourages contractors to provide products and services that are environmentally preferable, meaning they have a reduced effect on human health and the environment. This can include products that are non-toxic, biodegradable, or packaged in recyclable or minimal packaging.

EPP Considerations: Contractors should consider the lifecycle impacts of their products, from manufacturing to disposal, and select options that reduce overall environmental impact. This practice not only supports federal sustainability goals but also reduces waste and pollution associated with contract performance.

Subpart 23.8 – Ozone-Depleting Substances and Greenhouse Gases

Ozone-Depleting Substances: Contractors must avoid products that contain or are manufactured using ozone-depleting substances, as these can harm the environment and contribute to global warming. When possible, contractors should select alternatives that do not deplete the ozone layer.

Greenhouse Gas Emissions: Contractors are encouraged to minimize their greenhouse gas emissions during contract performance, whether through energy-efficient operations, renewable energy use, or reducing waste. This supports the government’s efforts to address climate change and reduce the environmental footprint of federal contracts.

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Subpart 23.9 – Contractor Compliance with Environmental Management Systems

Environmental Management Systems (EMS): Contractors working on federal projects are encouraged to implement an Environmental Management System (EMS) to ensure they are meeting environmental goals. An EMS is a framework that allows companies to monitor, manage, and improve their environmental performance.

EMS Standards: Contractors may be required to adopt industry-standard EMS guidelines, such as those established by the International Organization for Standardization (ISO) 14001, to demonstrate their commitment to sustainable practices and regulatory compliance.

Key Principles for Environmental and Energy Efficiency Compliance

Here are some essential principles and best practices for navigating Part 23 of the FAR:

Prioritize Sustainable Products: Use ENERGY STAR-rated, WaterSense-labeled, biobased, and recycled-content products whenever possible to meet the government’s sustainability requirements.
Minimize Hazardous Materials: Identify and disclose any hazardous materials used in contract performance, and prioritize safer, non-toxic alternatives.
Promote Renewable Energy Use: Integrate renewable energy sources into your operations, either through on-site generation or by purchasing renewable energy credits.
Implement a Drug-Free Workplace Program: Establish and enforce a drug-free workplace policy to remain in compliance with FAR requirements and support a safe, productive environment.
Adopt an Environmental Management System (EMS): Consider implementing an EMS to monitor your environmental impact, manage resources effectively, and improve compliance with federal sustainability goals.

Practical Application: Case Studies

Let’s explore some hypothetical scenarios to illustrate how these principles apply in real-world situations:

Scenario 1: Meeting Energy Efficiency Requirements in Office Equipment Procurement

Your IT company is awarded a federal contract for supplying office equipment. Here’s how you ensure compliance with Part 23:

Energy-Efficient Products: You procure ENERGY STAR-rated computers, monitors, and printers that meet the government’s energy efficiency requirements.
Environmental Impact Reduction: You select devices with low power consumption and recyclable packaging to align with federal sustainability goals.

Scenario 2: Using Recycled and Biobased Products in Construction

Your construction company is contracted for a renovation project on a federal building. Here’s how you navigate Part 23:

Recovered and Recycled Materials: You use building materials with a high percentage of recycled content, such as reclaimed steel and recycled concrete, to meet the government’s requirements for recovered materials.
Biobased Products: You select biobased materials, like insulation made from plant-based materials, to comply with the government’s biobased product standards.

Scenario 3: Establishing a Drug-Free Workplace for Federal Contractors

Your consulting firm wins a contract for providing services at a federal facility. Here’s how you ensure compliance with Part 23:

Drug-Free Workplace Policy: You implement a clear, enforceable drug-free workplace policy and provide training for employees on its requirements and enforcement.
Certification of Compliance: You certify that your business complies with the drug-free workplace requirements, ensuring that your workforce meets federal safety standards.

Best Practices for Environmental and Energy Efficiency Compliance

Here are some practical tips to help your business stay compliant with Part 23 of the FAR:

Invest in Training: Educate your staff about environmental requirements and drug-free workplace policies to ensure everyone understands and adheres to these standards.
Source Sustainable Materials: Partner with suppliers who offer environmentally preferred products and renewable energy sources, and prioritize products that meet the government’s energy, water, and biobased content standards.
Document Compliance Efforts: Keep records of your environmental practices, hazardous material disclosures, and drug-free workplace policies to demonstrate compliance during audits or reviews.

Conclusion

Part 23 of the FAR reinforces the federal government’s commitment to sustainability, energy efficiency, workplace safety, and environmental stewardship. By aligning with these requirements, contractors not only contribute to federal sustainability goals but also gain a competitive advantage as environmentally responsible partners.

If you’re interested in understanding or implementing these environmental and labor requirements in your federal contracts, FedBiz Access offers guidance to help contractors navigate these complexities. Schedule a complimentary consultation with a FedBiz Specialist to learn how to meet environmental standards, improve your sustainability practices, and succeed in the government marketplace.

In our next installment, we’ll explore Part 24 of the FAR, covering Protection of Privacy and Freedom of Information in federal contracting. Stay tuned as we continue to break down the FAR into manageable, understandable sections to help you succeed in government contracting.

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Important Note: This information is accurate as of 11/12/2024. The Federal Acquisition Regulation (FAR) is updated regularly.