Environmental Preference in Procurement

Environmental preference in federal procurement refers to a cluster of statutory and regulatory requirements directing federal agencies to purchase products and services that meet designated environmental criteria - including recycled content, energy efficiency, bio-based composition, and reduced toxicity - when they are available at a reasonable price and meet performance specifications. FAR Part 23 implements these requirements, which are grounded in multiple statutes and executive orders including the Resource Conservation and Recovery Act (42 USC 6962), the Energy Policy Act (42 USC 8259), the Farm Security and Rural Investment Act bio-based purchasing mandate, and Executive Order 14057 (Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability, December 2021).

What is environmental preference in procurement?

FAR Part 23 organizes environmental purchasing requirements around several distinct programs, each backed by specific statutory authority and agency designation lists.

The EPA's Comprehensive Procurement Guidelines (CPG) program, established under 42 USC 6962, designates product categories for which agencies must purchase items containing the highest practicable percentage of recovered materials (recycled content). Designated categories include construction products, transportation products, landscaping products, paper and paper products, and numerous other categories where recovered materials can meet performance requirements.

The USDA BioPreferred Program, authorized by the Farm Security and Rural Investment Act of 2002 and expanded by subsequent farm bills, designates bio-based product categories and requires agencies to give preference to bio-based alternatives when procuring items in those categories. Contractors submitting proposals for covered services must identify bio-based materials they plan to use.

The ENERGY STAR and Federal Energy Management Program (FEMP) designated product lists require agencies to purchase energy-efficient products in specified categories including computers, monitors, appliances, and building equipment. FAR 23.203 directs contracting officers to specify ENERGY STAR or FEMP-designated efficiency levels in solicitations for these product types.

Why it matters for contractors

Environmental preference requirements create both obligations and opportunities for federal contractors. Contractors providing products in CPG, BioPreferred, or ENERGY STAR-designated categories must be prepared to certify compliance with the applicable percentage or efficiency requirement. Certification statements are typically required as representations in offeror certifications and may be subject to audit.

For construction contractors, FAR 52.223-9 (Estimate of Percentage of Recovered Material Content for EPA-Designated Items) requires contractors to estimate and certify the percentage of recovered material in designated products used in construction or renovation projects. Post-award, FAR 52.223-10 may require contractors to track and report actual recovered material percentages in delivered items.

Executive Order 14057 increased the urgency of environmental preference compliance by setting targets for federal procurement of sustainable goods and services and directing agencies to incorporate environmental performance into contract award criteria where appropriate. Contractors who can document strong environmental performance metrics across their supply chain may gain an advantage in best-value evaluations that include sustainability as an evaluation factor.

Example

A facilities management contractor receives a task order to replace office furniture and equipment in a federal building. The solicitation requires compliance with FAR Part 23 environmental preference requirements. The contractor specifies desk and chair products that meet the EPA CPG recovered-material percentage for furniture, selects ENERGY STAR-certified monitors and printers, and identifies bio-based cleaning products for routine janitorial services. The contractor submits the required certifications with the delivery invoices and includes recovered material percentages in the required post-award report.