Navigating the Federal Marketplace: Staying Competitive on Sustainability & GHG Emissions Management for Government Contractors
The U.S. Government is focused on driving sustainability through its procurement processes. New Federal policies have been introduced to incentivize Federal contractors to measure, manage and report on their greenhouse gas (GHG) emissions and other environmental, social, and governance (ESG) initiatives. To win more contracts and maintain their competitiveness, contract bidders must keep relevant Federal Government ESG initiatives top of mind.
In this article we detail the ways that professional services and IT firms bidding on government contracts, including engineering and consulting firms, can receive additional credits to win more contracts through disclosure of their GHG emissions for scopes 1, 2 and 3. Read on for expert insights to stay competitive in the federal marketplace.
Navigating the Federal Government’s Sustainability Initiatives
Recent Federal government sustainability initiatives include the Biden Administration’s Executive Orders (EOs), open Federal Acquisition Regulation (FAR) cases, and several recent agency requests for ESG related information.
SEC Climate-risk Disclosure Regulation
The pending SEC climate-disclosure ruling is set to be a catalyst for expanding corporate climate-related disclosures. The rule would require public companies to provide certain climate-risk related assessment and financial data, and GHG emissions measurements in public disclosure filings. As part of the issuer rule, companies would have to disclose emissions they are directly responsible for, e.g., scopes 1 and 2 emissions, as well as emissions from their supply chains and products, e.g., scope 3. To understand the implications of the SEC climate-disclosure regulations for public companies, visit our SEC ESG Readiness Resource Center.
Executive Orders on Federal Sustainability
New Federal government EOs seek to track and incentivize the reduction of climate change impacts. Notably, the Executive Order on Climate-Related Financial Risk (EO 14030) aims to:
Ensure that major Federal agency procurements minimize the risk of climate change by including the social cost of GHG emissions in government-wide acquisition contracts procurement decisions though programs like, Oasis Plus and Alliant 3;
Where appropriate and feasible, give preference to bids and proposals from suppliers with a lower social cost of GHG emissions.
EO 14030 means government contract bidders can improve their competitiveness by taking climate-related risks into account when proposing solutions and pricing for their projects. To gain these credits, bidders will need to have a clear understanding of the potential impacts of climate change on their business and demonstrate that they have taken steps to mitigate these risks.
Boost Your Chances of Winning Contracts with Effective GHG Emissions Management
Based on EO 14030, the U.S. General Services Administration (GSA) Federal Acquisition Service (FAS) is working to reduce the GHG footprint and climate-related risks in its government-wide acquisition contracts (GWACs) process. It is doing so specifically through procurement programs, like Alliant 3 and OASIS Plus, which respectively focus on providing IT services and professional services to federal agencies, such as management consulting, engineering, scientific, and logistics services.
Alliant 3 and OASIS Plus proposals both now award credits and give preference to those proposals that publicly disclose GHG emissions for scopes 1, 2 and 3.
To be awarded credits in the RFP process and given preferential bidding status, Oasis Plus and Alliant 3 stipulate that qualifying Federal contractors:
Measure Scope 1, 2 and 3 greenhouse gas emissions in accordance with the GHG Protocol Corporate Accounting and Reporting Standard, and/or provide self-attestation that the science-based reduction target was calculated in alignment with Science Based Target initiative (SBTi).
Publicly disclose greenhouse gas emissions on its own website or third-party sustainability reporting portal.
Set GHG emissions reduction targets and report on progress during contract performance, as well as to report on and address climate risks. For the Multiple Award Schedules, GSA has invited contractors with high sales to disclose their GHG emissions and climate risks to CDP (formerly the Carbon Disclosure Project).
As a post-award responsibility, OASIS+ contractors will be required to prepare sustainable practices and impact statements as a contract deliverable and prepare a post-award climate change risk management plan 12 months after the issuance of the first task order.
Preparing GHG Emissions Disclosures for Oasis Plus and Alliant 3 RFPs
Companies seeking to obtain government contracts in the OASIS Plus or Alliant 3 programs should act now to improve their standing to win Federal Government contracts by taking advantage of new greenhouse gas emissions disclosure credits. Here are a few steps to take to get ready:
Understand the requirements: Work with ESG and GHG emissions experts to understand the specific requirements related to OASIS Plus and/or Alliant 3 GWAC solicitations. This may include reporting on emissions generated by the project or by your operations related to the project.
Collect GHG emissions data: Define and collect GHG emissions data from your operations and activities related to the services you are proposing. This may include data on energy consumption, transportation, waste generation, and other activities that contribute to your company’s GHG emissions.
Calculate GHG emissions: Efficiently calculate your company’s GHG emissions using a trackable software tools that adheres to the Greenhouse Gas Protocol methodology. This will provide you with a clear picture and shareable report of your company’s carbon footprint and inform areas for improvement.
Develop a GHG emissions reduction strategy: Based on your GHG emissions data, develop a strategy with the guidance of experts to reduce your company’s emissions. This may include setting emissions reduction targets, implementing energy efficiency measures, transitioning to renewable energy sources, and reducing the amount of waste your company generates.
Include GHG emissions data in your proposal: Produce a shareable and attested GHG emissions data and reduction strategy that you can share in your proposal. This will demonstrate your commitment to sustainability and give you additional credits in the RFP process.
By taking these steps to collect, calculate, and report your GHG emissions data, and by developing a strategy to reduce your emissions, you can position your company as a leader in sustainability and increase your chances of success in the OASIS Plus & Alliant 3 GWAC RFP processes.
How Federal Contractors Can Work with Good.Lab on GHG Emissions Disclosures
Federal contractors have a unique opportunity to take a leading role in the fight against climate change by preparing their GHG emissions disclosures. With the help of Good.Lab’s GHG emissions measurement and climate assessment tools and expert guidance, businesses can gain a competitive edge in the bidding process. Good.Lab’s tools empower companies to calculate their Scopes 1, 2, and 3 emissions data quickly and accurately, and then share a comprehensive emissions footprint report on a publicly available website URL to demonstrate their commitment to sustainability.
Now is the time to implement your RFP winning strategy
Reach out to Good.Lab today to take the first step towards a more sustainable future and connect with our team of ESG experts to explore every avenue to maximize your score through sustainability related credits.
Disclaimer: Good.Lab does not provide tax, legal, or accounting advice through this website. Our goal is to provide timely, research-informed material prepared by subject-matter experts and is for informational purposes only. All external references are linked directly in the text to trusted third-party sources.
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