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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    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|  | **Pilot Project Approach on Use of Non-Governmental Entities     to Implement Section 503 of Executive Order 12873 on     Federal Acquisition, Recycling and Waste Prevention**Background:**Section 503(a) of Executive Order 12873 directs EPA to "issue guidance that    recommends principles that Executive agencies should use in making determinations for the    preference and purchase of environmentally preferable products." Section 503 (b)    states that Executive agencies shall use EPA's guidance to "identify and purchase    environmentally preferable products" and to "modify their procurement programs    by reviewing and revising specifications, solicitation procedures, and policies as    appropriate."**On September 28, 1995, EPA issued a proposed *Guidance on the Acquisition of    Environmentally Preferable Products and Services* which includes a series of    principles that are intended to guide Federal purchasers as they consider environmental    preferability in their acquisition decisions. This proposed *Guidance* was the    culmination of numerous discussions EPA had with staff from key purchasing agencies and    departments as well as representatives from industry and environmental and other    interested organizations.    In EPA's proposed *Guidance* (Supplementary Information - Section III (E)), EPA    acknowledged the existence of non-governmental entities -- including, but not limited to,    environmental standard setting organizations, third party certification programs,    environmental labeling or environmental "report card" programs and other    environmental consulting organizations -- to which Executive agencies, in appropriate    circumstances, may refer for technical assistance(1) in meeting the Executive Order goals.****In this paper, EPA suggests a pilot project    approach to test the utility of various means of using non-governmental entities to    achieve environmentally preferable purchasing goals. This pilot project approach will be    publicized through a *Notice of Availability* in the *Federal Register*.    Ultimately the findings from the pilot project approach will provide practical information    to EPA in the development of its final *Guidance.***Spectrum of Approaches**First, it must be emphasized that Executive    agencies may choose to implement EPA's proposed *Guidance*without technical    assistance from non-governmental entities. A number of on-going environmentally preferable    purchasing (EPP) pilot projects are relying successfully on the in-house environmental and    procurement expertise of EPA and the partnering Executive agency (e.g., General Services    Administration and the Department of Defense). Therefore, this**paper should in no    way be interpreted as an EPA endorsement of a specific non-governmental entity,    organization or program, nor should agencies feel obligated in any way to utilize the    technical assistance of such entities.**However, to the extent that the Agencies are    interested in tapping the expertise that resides outside the Government, EPA concludes    that Agencies, in carrying out existing mandates for environmentally preferable purchasing    may use non-governmental entities in accordance with appropriate operating guidelines.    Executive agencies should note that they must avoid favoring, without reasonable    justification, one non-governmental entity over another. Executive agencies should also    inform their personnel about the Federal Trade Commission's *Guides for the Use of    Environmental Marketing Claims* which govern environmental claims made by anyone,    including manufacturers or environmental labeling or "report card" programs.Thus far, EPA has identified a number of    different potential approaches for how Executive agencies could use the technical    expertise of non-governmental entities in furthering their environmentally preferable    purchasing goals. All of the potential approaches described below require that the    Executive agencies involved critically examine all information from non-governmental    entities. The Executive agencies involved, and not the non-governmental entities, must    make all final determinations regarding environmental preferability.This list of approaches is not comprehensive.    Agencies are encouraged to bring to EPA's attention other potential approaches for using    non-governmental entities. In utilizing an approach, agencies have considerable discretion    in incorporating environmental preferability into procurement decisions. For example,    environmental considerations that result in limiting competition or in the payment of a    price premium for goods or services may be reasonably related to an agency's definition of    its "minimum needs" and therefore permissible.***Approach 1: Use of Existing Information Developed by    Non-governmental Entities***Executive agencies' personnel could use existing    information developed by non-governmental entities regarding environmental preferability    of products and services, along with other available information    (such as product performance and price) in defining the requirements for procurements and    making more informed procurement and acquisition decisions. For    example, Agencies might consider undertaking pilot projects to test the utility of    non-governmental entities in the following instances:a) Executive agencies could examine and evaluate already existing    environmental criteria or standards developed by non-governmental entities for products or    product categories (as well as for services or service categories), along with other    available information, to identify a range of environmental attributes which can inform    the agencies' own determinations of environmental preferability. Those determinations of    environmental preferability could then translate into agency requirements, or at the very    least, important criteria in the evaluation and selection of competing vendors or    manufacturers.b) In buying commercial items off-the-shelf, Executive agencies could    inform their personnel to take into consideration environmental information (e.g.,    environmental claims, product profiles, "report cards", or environmental seals    along with accompanying explanation, etc.,) either displayed on the products or provided    through product literature or other materials (e.g., newsletters) in making purchasing    decisions. This environmental information could be provided by vendors or manufacturers or    by non-governmental entities. Executive agency personnel should be cautioned to avoid    making their purchasing decisions on broad claims of environmental superiority.(2)c) At the request of vendors or manufacturers, an    Executive agency could include in its catalogs or schedules symbols from non-governmental    entities denoting certain environmental characteristics, provided that (1) these symbols    are accompanied by additional information that specify the reasons why a product has been    "tagged" with a symbol; (2) the catalogs or schedules clearly emphasize that    Executive agency personnel are not required to purchase products or services that are    tagged; and (3) procurement officials should not rely on the symbols to make purchasing    decisions, but instead, are required to take into account the environmental information    underlying the symbol for relevance to the procurement.(3)    Agencies including such symbols in their schedules or catalogs should ensure that their    employees receive appropriate guidance in utilizing this approach. Vendors or    manufacturers who choose not to obtain a seal or other symbols denoting certain    environmental characteristics from non-governmental entities may nevertheless also request    that environmental information about their products be included in the agency's catalogs    or schedules. This option will be piloted on a limited basis so that it    can be closely monitored to determine its effectiveness.d) On its own initiative, an Executive agency could tag    products or services in its catalogs or schedules with its own symbol which denotes    environmental characteristics that the Executive agency, through its own determination,    deems preferable. This symbol could be based on existing information (e.g., environmental    claims, product profiles, "report cards", or environmental seals along with    accompanying explanation, etc.) available from non-governmental entities or from vendors    or manufacturers themselves. This symbol should be accompanied by specific information    explaining the basis for "tagging" a product as well as the source of the    information. Catalogs or schedules should emphasize that Executive agency personnel would    not be required to purchase products or services which are tagged, but are requested to    take into account the environmental information underlying the symbol for relevance to the    procurement.***Approach 2: Use of Non-governmental Entities    as Certifiers of Specific Claims***Executive agencies could require vendors or manufacturers    to have specific, measurable and verifiable claims certified by qualified non-governmental    entities. A product's percentage content of volatile organic compounds (VOCs), for    example, would be considered measurable and verifiable. The rationale behind this approach    is that credible certification by non-governmental entities (or actual evidence from    vendors or manufacturers themselves) could increase the credibility of claims that may be    displayed on products. Such certification, or a vendor's or a manufacturer's ability    otherwise to prove particular claims of environmental preferability, could be a    prerequisite for competitive consideration.This approach assumes that (1) no particular    non-governmental entity is favored (without reasonable justification) over any other    non-governmental entity; and (2) vendors or manufacturers who choose not to be certified    by non-governmental entities are provided the opportunity to present credible evidence    that their products or services conform to established standards.***Approach 3: Use of Non-government Entities as    "Consultants" under Advisory and Assistance Contracts***Pursuant to the competitive contracting process as set    forth in the Federal Acquisition Regulation (FAR), non-governmental entities could provide    consulting services to Executive agencies. Non-governmental entities may provide advice    and recommendations about environmentally preferable purchasing, for example, through the    identification of key environmental characteristics of product categories. Under this    approach, Executive agencies would define environmental preferability with the assistance    of a non-governmental entity on a procurement-by-procurement basis. As per FAR Subpart    9.5, Executive agencies must fully consider the potential for conflict of interest    concerns where a non-governmental entity may be unable to render impartial advice or    assistance because of private business or financial interests. Also, Executive agencies    should make every effort to maximize competition in awarding these advisory and assistance    contracts to avoid any exclusive or preferential relationship with any particular    non-governmental entity. Finally, the environmental preferability standards developed    under this approach could be used as a basis for defining the agency's "minimum    needs" in particular procurements and for developing criteria for evaluating    competing vendors.**EPA's Suggested Next Steps**One of the key tenets of EPA's proposed *Guidance*    is to have Executive agencies undertake a series of pilot projects that can demonstrate    the applicability and workability of the guiding principles as contained in EPA's proposed    *Guidance*. The success of our efforts depends on learning from these pilot    projects and sharing the results widely among the different Executive agencies. It is    in this spirit that EPA strongly encourages Executive agencies to enter into pilot    projects that test the potential approaches for using non-governmental entities as    described above. Moving forward with this non-governmental entities pilot    approach is desirable for a number of reasons: 1) EPA can capture the lessons from the    pilots and share them among the Executive agencies so that there is no duplication of    effort; 2) we can determine where the use of expertise outside of the government is    appropriate and useful and where it is not; and 3) the net effect of creating a market for    such EPP services may encourage increased competition among existing and new organizations    or programs that can support Federal procurement of environmentally preferable products    and services. Ultimately, the results from this and other pilot project approaches will    help Executive agencies identify the most effective and practical ways to achieve the    goals of environmentally preferable purchasing. EPA recognizes that any pilot project involving a    non-governmental entity will initially raise practical questions such as which    non-governmental entities are legitimate and are credible and which are not; is there a    need to certify a certifier? While EPA is not currently able to offer an    "approved" list of non-governmental programs best suited to assist the agencies,    it is prepared to provide assistance to Executive agencies on an individual    procurement-by-procurement basis. As an initial step, Agencies are directed to the list of    questions for evaluating non-governmental entities contained in Section III, [E] Third    Party Certification Programs of EPA's proposed *Guidance on the Acquisition of    Environmentally Preferable Products and Services*. The list of questions is included    as Appendix 1 of this letter.Specifically, within the context of this non-governmental    entity pilot project approach, EPA's Environmentally Preferable Purchasing Program in the    Office of Pollution Prevention and Toxics, is prepared to:1) assist Executive agencies in structuring a pilot    project involving non-governmental entities, including providing support to assess the    utility of non-governmental entities on an individual procurement-by-procurement basis;2) seek out and identify non-governmental entities who    have expertise in the area of environmentally preferable purchasing through a variety of    means, such as, but not limited to, Federal Register notices or announcements in the    Commerce Business Daily (CBD). To make such a task manageable, EPA will identify, with    help and guidance from the agencies, a few product or service categories upon which to    focus at first. If successful, further federal register notices or CBD announcements could    be issued focusing on additional product or service categories;3) assemble a list of product categories for which    eco-labeling criteria and standards have been established, both domestically and    internationally for agencies to consider in developing their own criteria for    environmental preferability. If appropriate, EPA will assist in such evaluations; and4) assist Executive agencies in structuring an    environmentally preferable purchasing pilot project that does not involve non-governmental    entities.In turn, Executive agencies should consult with EPA when    undertaking pilots which may raise environmental issues beyond their expertise (e.g.,    where a pilot involves consideration of the way a product is made).Furthermore, Executive agencies who choose to undertake    pilots under option 1(c ) should consult with EPA in developing a written process or    procedure for the role seals or symbols and the associated information would play in their    pilots. For example, agencies should provide clear guidance which specifies the importance    of considering the underlying criteria, not the seal or the symbol. As EPA and Executive agencies embark on these activities,    EPA will continue to explore a number of different ways that it can address issues which    are raised within the pilot project context more definitively. Executive agencies will be    kept informed of developments on these issues. Agencies should inform EPA of their efforts    in environmentally preferable purchasing, whether such efforts involve non-governmental    entities or not in order to share lessons learned among other agencies and to aid in the    evaluation of the pilot projects. In this way, EPA can make EPP concepts more practical    for use within the Federal acquisition context. To facilitate this, Agencies are requested    to send the attached FAX BACK form. Pilot projects involving non-governmental entities    will be evaluated over a period of the next three years. EPA will use the findings from    that evaluation to inform the development of its final *Guidance*.For further information and to inform EPA of pilot project    efforts, please contact:Eun-Sook Goidel, Program Manager, Environmentally    Preferable Purchasing Program, Pollution Prevention Division, Office of Pollution    Prevention and Toxics (202)260-3296; (202)260-0178 FAX; e-mail:    [email protected]For legal issues associated with use of non-governmental    entities in environmentally preferable purchasing, please contact:Tali Zemel, Esq., Office of General Counsel (202)564-4708;    e-mail: [email protected]**Appendix 1. List of Questions for Evaluating    Non-governmental Entities(4)**Executive agencies should consider the following list of    questions in evaluating non-governmental entities should agencies choose to use the    expertise of these programs to pilot different approaches to achieve the goals of    environmentally preferable purchasing such programs. Does the program have:an open, public process that involves key stakeholders    (businesses, environmental and consumer groups, states etc.) in developing its criteria or    standards?award criteria, assumptions, methods and data used to evaluate    the product or product categories that are transparent (i.e., they are publicly available,    easily accessed and understandable to the lay person)?a system of data verification and data quality? a peer review process (with representation of all stakeholders)    for developing the standards or criteria?criteria which are developed based on a "systems" or    life cycle approach (i.e., "cradle to grave")?an outreach program to educate the consumer, which includes clear    communications to consumers that provide key information concerning environmental impacts    associated with the product?an established goal of updating standards or criteria as    technology and scientific knowledge advance?authority to inspect the facility whose product is certified to    ensure compliance with the standards or criteria?testing protocols for the products that are certified which    ensure testing is conducted by a credible institution?access to obtaining the seal by small and medium sized companies    (e.g., the cost of the seal is not so high as to prevent access by companies)? andcompliance with the Federal Trade Commission's (FTC) Guides for    the Use of Environmental Marketing Claims?     **FAX BACK FORM**font FACE="Helvetica">**Please Inform EPA about Your Pilot    Project Involving the Use of Non-governmental Entities in****Environmentally Preferable    Purchasing!!**     **Name:****Department/Agency:****Address:****Address:****Phone:****FAX****e-mail:****Type of Acquisition/Procurement:**(e.g., small purchase, credit card purchase, competitive bid, etc.)    **Product/Service Category:****Name of Non-Governmental Entity:****Type of Non-Governmental Entity** (check all that apply):    ___ environmental standard setting organizations    ___ third party environmental certification programs    ___ environmental labeling organizations    ___ environmental report card organization    ___ environmental consultants    ___ other (please specify: ________________________________________)    **Type of Information/Assistance Sought from Non-Governmental Entity:**___ general environmental information about a product/service category;___ analyze life cycle and multiple environmental    attributes;___ analyze basic environmental performance    characteristics for specific categories of products/services;___ identify environmentally preferable product/service    criteria for a given product category based on agencies' core environmental values;___ identify products/services in a given category which    meet agencies' predetermined set of environmental performance criteria; and ___ other (please specify:_____________________________________)    **Please FAX to:** Eun-Sook Goidel    Program Manager    Environmentally Preferable Purchasing Program    U.S. Environmental Protection Agency    (202)260-0178 fax    (202)260-3296 phone         Endnotes    1. For example, Executive agencies    might seek technical assistance from non-governmental entities to help Executive agencies:(a) analyze life cycle and multiple environmental    attributes;(b) analyze basic environmental performance    characteristics for specific categories of products/services;(c ) identify environmentally preferable product/service    criteria for a given product category based on agencies' core environmental values; and(d) identify products/services in a given category which    meet agencies' predetermined set of environmental performance criteria.Executive agencies are reminded that they must    critically examine all information from non-governmental entities. The Executive agencies    involved, and not the non-governmental entities, must make all final determinations    regarding environmental preferability.     2. The following excerpt from FTC's ***Guides for the Use    of Environmental Marketing Claims***illustrates this point:    *A product is advertised as "environmentally preferable." This claim is    likely to convey to consumers that this product is environmentally superior to other    products. If the manufacturer cannot substantiate this broad claim, the claim would be    deceptive. The claim would not be deceptive if it were accompanied by clear and prominent    qualifying**language limiting the environmental superiority representation to the    particular product attribute or attributes for which it could be substantiated, provided    that no other deceptive implications were created by the context.*(From FTC's ***Guides***,    (a) General Environmental Benefit Claims, Example 6)3. The following excerpt from FTC's ***Guides for the Use    of Environmental Marketing Claims*** provides an    example of this point: *A product label contains an environmental    seal, either in the form of a globe icon, or a globe icon with only the text "Earth    Smart" around it. Either label is likely to convey to consumers that the product is    environmentally superior to other products. If the manufacturer cannot substantiate this    broad claim, the claim would be deceptive. The claims would not be deceptive if they were    accompanied by clear and prominent qualifying language limiting the environmental    superiority representation to the particular product attribute or attributes for which    they could be substantiated, provided that no other deceptive implications were created by    the context.* (From FTC's ***Guides***, (a) General Environmental    Benefit Claims, Example 5)     4. Excerpted from EPA's proposed *Guidance on the Acquisition of    Environmentally Preferable Products and Services*. footer>**Contacting EPP | EPP HomeOPPT Home | EPA Home | Search | Comments
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