Overview
Subpart 23.5 outlines the requirements for federal contractors to disclose their greenhouse gas (GHG) emissions and any established reduction goals. The primary intent is to increase transparency and allow the Federal Government to better understand the direct and indirect environmental impacts of its supply chain.
Key Rules
- Applicability Threshold: These requirements apply to offerors who are registered in the System for Award Management (SAM) and received $7.5 million or more in total Federal contract awards during the prior Federal fiscal year.
- Mandatory Representations: Eligible offerors must represent:
- Whether they publicly disclose greenhouse gas emissions.
- Whether they publicly disclose a quantitative greenhouse gas emissions reduction goal.
- URL Requirement: If an offeror does disclose emissions or goals, they must provide the specific website address where these disclosures are publicly available.
- Regulatory Provision: The requirements are implemented through the solicitation provision FAR 52.223-22, "Public Disclosure of Greenhouse Gas Emissions and Reduction Goals—Representation."
Responsibilities
- Contracting Officers:
- Must include provision 52.223-22 in solicitations whenever the solicitation also includes FAR 52.204-7 (System for Award Management).
- Ensure that the "Annual Representations and Certifications" (FAR 52.204-8) are updated to reflect these environmental disclosures.
- Offerors (Contractors):
- Must accurately calculate their total contract award value from the previous fiscal year to determine if they meet the $7.5 million threshold.
- Must maintain up-to-date information in SAM regarding their environmental reporting and ensure any provided URLs remain active and accurate.
- Program Managers/Requirement Owners:
- While primarily an administrative disclosure, these stakeholders may use this data to inform market research regarding the "green" maturity of their industrial base.
Practical Implications
- Administrative Compliance: For many contractors, this is a "check-the-box" activity within SAM; however, false representation in SAM can lead to significant legal penalties or contract termination.
- Threshold Monitoring: Companies hovering near the $7.5 million award mark must be diligent in tracking their fiscal year totals to remain compliant with reporting requirements in the following year.
- Data Transparency: While the subpart does not currently mandate that a company reduce its emissions—only that it disclose whether it does—this data is publicly accessible. This transparency can influence "Responsible Contractor" determinations and may be a precursor to more stringent climate-related requirements in future FAR updates.
- Website Maintenance: Contractors must ensure that their corporate sustainability reports are not behind a paywall or login screen, as the FAR requires the disclosures to be "public."