New Sustainable Procurement Regulation for Federal Contractors

Starting May 2024, federal agencies are required to integrate 'sustainable products and services' into contracts, setting a new standard in government procurement practices.

On Apr. 22, the Federal Acquisition Regulation (FAR) Council published a new rule requiring federal agencies to procure “sustainable products and services” to the maximum extent practicable effective May 22, 2024.

This rule now directs agencies to specify in the statement of work, or in the contract, which sustainable products and services are applicable to the acquisition.

Additionally, a new omnibus contract clause has been introduced, obligating federal contractors to ensure the sustainable products and services identified in the contract are delivered, incorporated, or furnished as part of the contract. This requirement, however, does not extend to contracts performed outside of the United States.

Among the additional changes as a result for this new rule are: 

  • Adds a definition of “sustainable products and services” in FAR 2.101. 
  • Consolidates and updates statutory and other environmental purchasing program requirements in FAR subpart 23.1, Sustainable Products and Services. 
  • Updates agency requirements for construction and architect-engineer contracts at FAR 36.104(b)(1) to align with the CEQ's Guiding Principles for Sustainable Federal Buildings and Associated instructions. 

Contact Jordan Howard for more information.  

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