PSC Guidelines and Recommendations for Implementing Executive Order 13514 “Federal Leadership in Environmental, Energy, and Economic Performance” of October 5, 2009 January 27, 2010

About PSC The Professional Services Council (PSC) is the national trade association of the government professional and technical services industry. PSC’s more than 330 member companies represent small, medium, and large businesses that provide federal agencies with services of all kinds, including information technology, engineering, logistics, facilities management, operations and maintenance, consulting, international development, scientific, social, environmental services, and more. PSC is widely recognized as the industry voice and leader on legislative and regulatory policy issues related to government procurement.

Six Principles for Implementation The Federal Acquisition Regulations (FAR) should contain all of the government-wide acquisition policies and clauses relating to implementation of the EO, while agencies should be required to apply those policies and clauses to their individual procurements. Where federal acquisition policy or procedures already exist, they should be reaffirmed and relied on in the implementation of this EO. Where existing accounting and reporting of GHG emissions are being used—based on either government-established or industry-established standards—they should be reaffirmed and used in fulfilling the reporting requirements under the EO. The goal should be one contractor GHG emissions reporting standard or protocol.

Six Principles for Implementation (cont.) To ensure transparency, accountability and consistency in implementation, it is essential that there be one set of government-established business rules governing the reporting of GHG emissions and related actions. There must be a reasonable phase-in period for the implementation of any FAR requirements on GHG reporting and reduction—preferably before agencies begin using them on future procurements—and after the business rules are developed before industry reporting is initiated. The government’s approach to EO implementation must be focused on incentives and not viewed solely as a matter of contractor compliance. Offering incentives to contractors for reducing GHG emissions is the best way to achieve the desired goals, as has been demonstrated in other contexts.

Feasibility of Four Approaches “Requiring vendors and contractors to register with a voluntary registry or organization for reporting” GHG emissions. Voluntary GHG reporting should be incorporated as part of the EO implementation to the extent possible. “Requiring contractors to make available through the government’s existing Central Contractor Registration (CCR) or other tracking system their greenhouse gas inventories and descriptions of efforts to mitigate greenhouse gas emissions.” It must be considered whether the CCR or another system is the appropriate mechanism for capturing this information, and if so, what information will be made publicly available.

Feasibility of Four Approaches (cont.) “Using federal government purchasing preferences or other incentives for products manufactures using processes that minimize greenhouse gas emissions.” Clarity is needed about how agencies and contracting officers are to prioritize among existing purchasing preferences and those created under the EO. “Other options for encouraging sustainable practices and reducing GHG emissions.” Existing procedures for value engineering in the FAR, while historically underutilized by contractors and agencies due to limited technical expertise or funding, could be considered as a foundation for additional steps to reduce GHG emissions.

Issues and Concerns Greenhouse Gas Emissions Accounting and Reporting The EO does not indicate what the baseline for reporting GHG reductions is or how it has been calculated. Numerous standards exist in current reporting requirements. Clarity is needed about what standards are to be applied to contractors and what is to be measured. Federal Procurement Concerns The EO should have prospective application only to allow ample time for development and phase-in of the rules. Voluntary compliance with standards should take place immediately as they are developed. Reasonable accommodation should be made for small businesses to minimize adverse impacts. Acquisition workforce and purchasing preference considerations must be taken into account to effectively implement the EO.

Issues and Concerns (cont.) Implementation of EO Section 13 It is essential that working relationships, both formal and informal, be established, strengthened, and maintained between the Council on Environmental Quality (CEQ) established by the EO and federal agencies. Recommendations must address potential impacts on the procurement process and federal vendor community, particularly small businesses and socioeconomic procurement programs, as directed in the EO.

Questions? Alan Chvotkin Executive Vice President & Counsel 703-875-8059 or chvotkin@pscouncil.org www.pscouncil.org