Sustainability Makes Dollars and Sense: Sustainable Purchasing 101 April 8, 2015

Sustainability Makes Dollars and Sense:Sustainable Purchasing 101

April 8, 2015

Agenda

1. Presenter Introductions

2. Quick Audience Poll

3. Overview: Understanding Sustainable Purchasing and Its Impact

4. Overview: Guidance for Leadership in Sustainable Purchasing v1.0 

5. Case Study: District of Columbia Office of Contracting and Procurement

6. Q&A

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Presenters

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Christina MackenSustainable Purchasing Leadership Council

Jonathan RifkinDistrict of ColumbiaOffice of Contracting and Procurement

Patty RoseSmarter DC Challenge

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Time for a Quick Poll!

Are you participating in the Smarter DC Challenge?

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6Analysis by TRUTHstudio based on US Bureau of Economic Analysis 2011 Summary Use Annual I-O Table

Opportunity: Institutional purchasing shapes markets.

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Opportunity: Institutional purchasers shapes markets.

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“ Our acquisition of goods and services creates a carbon footprint nine times that of our buildings and fleet, put together.”

Dan TangherliniAdministratorUS General Services Administration

DEFORESTATION

SWEATSHOPS

DISCRIMINATION

OVERFISHING

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Challenge: Lack of coordination.

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Root Challenge

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The lack of standardization in

how sustainable purchasing

is defined, guided, measured,

and rewarded.

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Could we collaborate tolaunch a shared program for guiding, measuring, and recognizing leadership in sustainable purchasing?

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: purchasing : : : construction

Create a common…

• Definition of leadership in sustainable purchasing

• Language for sharing across sectors and regions

• Guidance and training program

• Framework for differentiating credible standards/labels

• Self-assessment and benchmarking tool

• Leadership recognition program

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: purchasing : : : construction

Create a common…

Definition of leadership in sustainable purchasing

Language for sharing across sectors and regions

Guidance and training program

Framework for differentiating credible standards/labels

Self-assessment and benchmarking tool

Leadership recognition program

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Chapter 2. Create the Program

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Sample Page

Note that separation of instruction, examples and guidance eases skim reading.

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Sample Page

Note high-level instructions accompanied by situational tips.

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Chapter 3. Run the Program

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Run a Sustainable Purchasing Program

Strategy Cycles provide a flexible process for a group of key stakeholders collaborate to:

• understand opportunities for improvement;

• prioritize strategies for addressing them;

• commit to specific strategic actions;

• implement those actions; and

• measure the results over time.

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Strategy Cycle Phases

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Strategy Cycle Phases

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Strategy Cycle Phases

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Strategy Cycle Phases

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Strategy Cycle Phases

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Strategy Cycle Phases

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Chapter 4. Category Guidance

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Time for a Quick Poll!

What purchasing categories are important to you when it comes to sustainability?

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Purchasing Categories

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Approach to Purchasing Guidance

The Purchasing Category Guidance provides the following:

• clusters of significant environmental, social, and economic

impacts;

• best available actions to address the identified impacts;

• external and organizational benefits

• anticipated challenges

• metrics and indicators that teams can use

to track progress

• policy and specification language

and resources to assist in implementing

the proposed actions, and

• undecided issues

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Approach to Purchasing Guidance

Why use the Purchasing Category Guidance?

• Provides reliable information consistent with how a cross-functional team operates within the context of this guide.

• Can expedite the Strategy Planning process outlined in Chapter 3

Guidance v1.0 Pilot Program

Why participate?

• contribute and offer improvements to program• early access to education• collaboration with other participants• obtain assistance from SPLC• public acknowledgement

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Pilot Program Online Community

www.sustainablepurchasing.org/pilot

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Interested?

www.sustainablepurchasing.org/summit41

Summit workshops will feature Guidance-based training, case study

presentations, and peer-to-peer dialogue.

DCSustainable Purchasing

The DC Story…• Jurisdiction meets Earth.• Jurisdiction falls in love with Earth.• Jurisdiction wants to make a commitment to Earth.

Challenges to Integrating Sustainability

Challenges:1. Lack of consistency defining what

makes a product sustainable.2. Policies, e-procurement systems, and

standard operating procedures do not require consideration of sustainable factors.

3. High-level shortcomings described in items 1 & 2, make training and tracking exceptionally difficult.

We’ve been busy…OCP received grant from Mayor’s office to address these challenges.• New Policy• Improved PASS Tracking

Capabilities.• Consulted Vendor

Community• Worked with Programs• Reviewed Best Practices• Hired Consultant• New Sustainable Webpage• Developed Sustainable

Specifications in key product and service areas.

New Sustainable Specification Guidance

• Imaging Equipment• Janitorial Services• Landscaping Services• Office Supplies• Paper• Printing Services• Toner

• Appliances• Automotive Fleet• Automotive Products• Cleaning Supplies• Computers & Monitors• Food Services• Furniture

Sustainable specifications available for 100 unique products and services across 14 categories.

Prioritization of Product Categories

• Established a set of criteria to evaluate each product category Current spending patterns Other jurisdictions Cost-effectiveness Complexity of developing specifications Connections to Sustainable DC Plan Current DC legal landscape

Prioritization of Product Categories• Developed a matrix to assess product and

service categories against criteria• Inform prioritization of the categories for

specification development

Building the Sustainable Specification

Current DC Practices

Vendor Input

Other Jurisdictions

Programmatic Input

Sustainable SOW Development

Prioritized Product & Service Categories

Got Credibility?

BIG TENT ENSURES SUCCESS!• 30 focus group meetings with

appx. 75 program managers/contract administrators.

• 40 consultations with most prominent small and local vendors.

• 200 contracts from other jurisdictions already implementing EPPS reviewed.

• Completed ad hoc market research and price comparisons to ensure availability and get a feel for price variance.

Got Credibility?Held Inter-Agency Sustainable Purchasing Kick-Off Meeting• Director Buy-in established.• Explained goals, game plan, and

expectations.• Referenced existing framework and

authority for taking action.

Specification Guidance Document Overview

Scope Background Information

Significance to the District

Environmental Hotspots

Specification LanguageBenefits

End-User SupportMeet systems and people where they are.

Pre-Populated Solicitation Guidance

• SOW Guidance• Small Purchase Attachment• Request for Quote Templates• Contractor Reporting

Templates

End-User SupportCustomer Service Solutions

User Guide (Desk Aid) Product Focused Webinars Ongoing Consult Services Proactive Solicitation

Reviews

Institutionalize Your Program

Training -- Trainings being provided to all procurement stakeholders, and given under authority of established training structure.

Policy – New policy requiring consideration and tracking of EPPS.

E-Procurement SOPs-- Established new environmental fields in e-procurement system, that directly correlate to SPP activity.

Indicate “Yes” in the EPPS Indicator if utilizing an EPPS

specification.

Choose EPPS Office Supplies from drop

down menu and provide appropriate

category

For more information about the EPPS

program click here.

Tracking Sustainable Spend

If Program opts not to use the EPPS SOW they must indicate reason:• Cost• Performance• Unable to find EPPS• Not Applicable

Tracking Sustainable Spend

Accessing DC Resources

www.ocp.dc.gov

Click on Opportunities and Support, and link

to “Sustainable Purchasing.”

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Access sustainable purchasing

guidance and support

documents.

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Access sustainable purchasing

guidance and support

documents.

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Staying in Touch

PM - Purchasing

BeginnerIntermediat

e

ID Action Points

P-1 Conduct and maintain a purchasing inventory of services & products

x 200

P-2 Increase the % of green purchases to 25, 50, 75 or 100%

x 150

P-3 Develop a plan for improving performance on an annual basis.

x 200

P-4 Buy locally whenever possible (local businesses, 500 miles radius or less)

x 50

P-5 Use environmentally friendly, third-party certified cleaning products in the bathroom and kitchen (where available)

x 100

P-6 Use custodial service that is third-party certified as eco-friendly

  x 100

ID Action Points

P-1 Conduct and maintain a purchasing inventory of products & services

x 200

P-2Conduct or procure a green purchasing assessment to obtain a baseline and identify the most critical areas for improvement

x 200

P-3 Increase the % of green purchases to 25, 50, 75 or 100%

x 150

P-4 Develop a plan for improving performance on an annual basis.

x 200

P-5 Replace equipment with new or used ENERGY STAR qualified products when due

x 100

P-6Use eco-friendly paper products for business and facilities (FSC-certified, post-consumer recycled, chlorine-free)

x 50

P-7Provide reusable dishware and select cateresr that do the same and serve family style

x 100

P-8Purchase EPEAT (Electronic Product Environmental Assessment Tool) certified products (Silver/Gold)

x 50

P-9 Inform your suppliers about green business efforts

x 50

P-10 Purchase from suppliers that provide eco-friendly products and services

x 50

P-11Use environmentally friendly, third-party certified cleaning products in cleaning other parts of the building

x 100

P-12 Use custodial service that is third-party certified as eco-friendly

x 100

P-13Enter into a Green Lease with your property manager when renegotiating or moving into a new space

x 300

O - Purchasing

Beg

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Inte

rmed

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Contact Us

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Christina MackenSustainable Purchasing Leadership Councilchristina@sustainablepurchasing.org 202-607-2600 x301

Jonathan RifkinDistrict of ColumbiaOffice of Contracting and ProcurementJonathan.rifkin@dc.gov202-724-3676

Patty RoseSmarter DC Challengepattyrose@greenspacencr.org202-544-5336