Overview
FAR 23.103 establishes a mandatory requirement for federal agencies to procure sustainable products and services to the maximum extent practicable. It defines the specific conditions under which an agency may deviate from this requirement and provides criteria for evaluating cost-effectiveness and contractor compliance.
Key Rules
- Mandatory Procurement: Agencies must purchase sustainable products and services unless they cannot be acquired competitively, within a reasonable schedule, meeting performance requirements, or at a reasonable price.
- Life-Cycle Costing: A "reasonable price" is determined by life-cycle cost-effectiveness rather than just the initial purchase price, particularly for ENERGY STAR® and FEMP-designated products.
- Prioritization: Agencies are required to prioritize "multi-attribute" sustainable products and services and ensure compliance with statutory purchasing programs.
- Service and Construction Scope: Sustainability requirements extend to products provided under service or construction contracts if they are delivered to the government, incorporated into public works, or charged as a direct cost to the contract.
Practical Implications
- Contracting Officers must justify the omission of sustainable requirements by documenting that such a purchase is not "practicable" based on specific price, performance, or availability exceptions.
- Prime contractors in construction and service sectors must verify that all materials charged as direct costs meet FAR sustainability standards, as these requirements flow down to the specific products used in contract performance.