How to Make a Contract Sustainable

Size: px
Start display at page:

Download "How to Make a Contract Sustainable"

Transcription

1 How to Make a Contract Sustainable Sarah Church, Alameda County General Services Agency Why Sustainable Purchasing 2 1

2 Air & Water Quality 3 Reduce Health Impact 4 2

3 Reduce Cost & Create Efficiencies 5 Alameda County s Environmentally Preferable Purchasing 6 3

4 Alameda County Serving 1.5M people over 739 sq miles 14 cities 9,500 employees 22 agencies/ departments 156 buildings, 6M sq. ft 7 Relevant Policies 75% Waste Diversion Resolution (2008) Green Building Ordinances (2003 & 2009) Climate Action Plan (2010) Environmentally-Preferable Purchasing Policy (2011) Water Conservation Resolution (2015) 8 4

5 Implementing Sustainable Purchasing 9 Steps to Make Contracts Sustainable Set Goals & Prioritize Determine Specifications Select Bid Strategy Award Promote Track and Report 10 5

6 Step 1: Set Goals & Prioritize Sustainability goals may come from Policy & mandates Existing goals (Reducing cost, creating efficiency, etc.) Avoiding risk in purchasing (Pollution prevention, etc.) Best Practice: Account for goals at all levels of your organization 11 Step 1: Set Goals & Prioritize Prioritize using tools - Responsible Purchasing Network (RPN) Sustainable Purchasing Leadership Council (SPLC) 12 6

7 Step 1: Set Goals & Prioritize Consider prioritizing Greatest environmental impact High spend Decide Win/wins (cost savings, sustainability, health ) Quick wins (already have buy-in) Big wins (show impact) 13 Step 2: Determine Specifications Start with Market Research Environmental issues Define green alternatives Waste (Durability) Plastics, PVC OPTIONS Refurbishment/ Salvage Limit use Off-gassing (formaldehyde, VOCs, flame retardants) Forestry 14 7

8 Step 2: Determine Specifications Start with Market Research Environmental issues Define green alternatives OPTIONS Waste (Durability) Plastics, PVC } Off-gassing (formaldehyde, VOCs, flame retardants) Forestry 15 A Word on Certifications Example Certifications: EPA-affiliated (EnergyStar, SaferChoice, WaterSense) Independent, third-party standards (single & multi-attribute) One place to start EPA Recommendations

9 Step 2: Determine Specifications Look for Standards Used by other jurisdictions (States of MA, NY, King County WA, Portland OR, City/County of SF, Alameda) Used by purchasing organizations (National Association of State Procurement Officials NASPO, U.S. Communities, etc.) Best Practice: Borrow from others! Most high-impact categories are well-researched 17 Example: Office Supplies Key environmental issues: Use of virgin fiber, disposable/single use items in waste stream, delivery pollution & packaging Green alternatives: Widely available from major vendors Recycled-content standards set by EPA Comprehensive Procurement Guidelines (CPG) Reusable (rechargeable batteries) Consolidated ordering 18 9

10 Example: Office Supplies Bid Excerpt Appendix 19 Step 3: Select Bid Strategy HOW you buy impacts your price for green products and services Key strategy #1: Use a Cooperative Contract or Piggybacking Already negotiated may save you from the full bid process Already specified find contracts that have done the homework to define green Likely low price due to bigger pool of buyers 20 10

11 If You Use an Already Sustainable Contract Set Goals & Prioritize Determine Specifications Select Bid Strategy EASIER Award Promote Track and Report EASIER EASIER FAVORABLE PRICING LIKELY 21 Example: Vehicles Key environmental issues: Greenhouse gas emissions Green alternatives: Electric Vehicles Hybrid Vehicles Offered on State of California contract 22 11

12 Step 3: Select Bid Strategy Key strategy #2: Specify That All Products/ Full Service Must Be Green Vendors will know their evaluation will depend on price for green items Internal buyers don t have to know to ask for green Easy to track green purchases and impact! 23 Example: Copy Paper Key environmental issues: Use of virgin fiber Green alternatives: 30% post-consumer recycled, or 100% Performance indistinguishable We specified only 100% PCR, no virgin paper 24 12

13 4/18/2017 Example: Copy Paper Strategy: only bid for 100% PCR 85% of contract value is 8.5 x 11 copy paper Savings of $3.80/case $120,000 net savings in We Are Making a Difference In 2016, we saved about 7500 trees by buying 100% recycled paper. That s 114 football fields of forest! Source: Environmental Paper Network Calculator Version ( using 2016 purchasing data 26 13

14 Step 3: Select Bid Strategy Key strategy #3: Give points for greener offerings Allow for award based on a variety of criteria Clearly define offerings that will earn points for vendors Use a Green Questionnaire vendors provide answers to targeted questions 27 Example: Janitorial Papers Key environmental issues: Use of virgin fiber, chlorine Green alternatives: EPA s Comprehensive Procurement Guidelines (e.g. Paper Towels with 40-60% PCR) Green Seal & EcoLogo certification 28 14

15 Step 4: Award As usual - Verify vendor s claims including sustainable claims Verify certifications/standards for products offered Evaluate bid, according to your process (points, pricing, etc.) 29 Step 5: Promote Educate users Integrate green features into award announcement Announce/promote to relevant buyers (e.g., present to Purchasing Committee) 30 15

16 Example: Print Services Key environmental issues: Use of virgin fiber, ink/toner use, business use of energy & resources Green alternatives: Recycled content offerings Green Business Program certified businesses 31 Example: Print Services 32 16

17 Step 5: Promote Educate users, continued Train & familiarize key staff Identify green options in online catalogs Post prompts, such as posters Allow feedback from users 33 Example: Janitorial Cleaners Key environmental issues: Health impacts of chemicals, water quality Green alternatives: Green Seal, EcoLogo, and SaferChoice certified 34 17

18 Example: Janitorial Cleaners Esther Ovalle, Lead Janitor, Juvenile Justice Center: We use just one product for all our cleaning... at different strengths of dilution depending on the need. It's not harsh on our skin, and it's nice to know it's better for our health." 35 Step 6: Track and Report Require vendor to provide data, if possible Segment reporting according to agency or department Accountability Competition Integrate green spend reports into other annual reports, for visibility Calculate cumulative environmental impact 36 18

19 Example: Copy Paper # of Cases Virgin (no recycled content) 30% recycled 100% recycled 37 Cost Savings: Less Paper, Better Paper Avoided Cost >$120,000 20% 2014 Actual Cost 38 19

20 REVIEW: Steps to Make Contracts Sustainable Set Goals & Prioritize Determine Specifications Select Bid Strategy Award Promote Track and Report 39 How-To Resources Alameda County Sustainability Sustainable Purchasing Leadership Council Responsible Purchasing Network National Association of State Procurement Officials (NASPO) Green Purchasing Guide US Communities Go Green Program EPA Greener Products and Services

21 More Models & Case Studies New York State City of Portland, OR King County, WA Commonwealth of MA 41 Questions? 42 21

22 Thank You! Sarah Church, Sustainability Project Manager, Alameda County 43 22