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Does Being a "Green" Business Bring in More "Green" from Government Agencies?

Austin, TX
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Green Money

Every state and local government agency has green buying goals, while federal agencies are required to “buy greener” per a number of laws, Presidential Executive Orders and procurement regulations. And, while we’ve seen the market for “Environmentally Preferred” products explode in recent years, companies that produce green goods or embrace sustainable business practices remain in great demand by the public sector.

Translation: Vendors that can meet or exceed “Green Government” standards at a reasonable price and within the public sector’s strict quality and performance standards will likely gain greater favor when competing for contracts in nearly every category – and generate more revenue.

If you want to be competitive for contracts with sustainability stipulations or gain an advantageous “preferred vendor” status with green government agencies that have enacted more extensive “Environmentally Preferred Purchasing” or Environmentally Preferable Products” (EPP)” programs:

Be Clear on Each Government Agency's Green Standards and Definitions

Per NASPO: Environmentally Preferable Purchasing (EPP) or Green Purchasing is generally defined as purchasing a product that has a lesser or reduced negative effect or increased positive effect on human health and the environment, when compared with competing products that serve the same purpose.” As such, “sustainable procurement considers both suppliers and their products.” That being said, some agencies place a greater emphasis on one of the following:

  • Vendors’ own social, sustainability or environmentally-friendly business practices
  • Products produced using recycled content; energy efficient products; or green cleaning products
  • Green technology innovation
  • Environmentally friendly services, such as landscaping, maintenance, construction, etc.

Understand Which Agencies Require Environmentally Preferred or Sustainable Stipulations All Contracts, Which Ones are Statutorily Obligated to "Go Green" in Certain Categories, and Which Ones Simply Aim to Use Green Vendors as Often as Possible

As you can see on this map, nearly every state has a green purchasing program, with half already enacting a statutorily enacted “green” procurement standard. Some are full blown EPP programs, such as the ones implemented by the Commonwealths of Massachusetts and Pennsylvania, that leverage set-asides or buy from green vendors only on certain contracts. Others are more focused on standardizing their purchase of recycled paper and goods or evaluating the environmental impact of goods and services during the contract life-cycle. Regardless of the level of sustainability they require from their suppliers, every government agency is going to favor Environmentally Preferable Products when feasible.

That is why you must study each agency’s green goals or EPP directives to know whether or not you even qualify as a vendor for certain contracts. Thoroughly review each RFP and scope of work to see if they include green specifications; most will either deem green/EPP/sustainability criteria as either “desirable” or “mandatory” depending on the mass market availability and acceptability of green products in that category.  For example, government buyers within the Commonwealth of Pennsylvania are told that:

“Green options should be used whenever a material or service is comparable in quality, availability and price as determined by the Purchasing Agency. The Commonwealth of Pennsylvania will procure EPP’s and services in accordance with the Procurement Handbook, Part 1 Chapter 22 - Green Procurement.”

That is because a certain expectation is set up-front: 

“When an Environmentally Preferable Product (EPP) is comparable, statement of work or specifications are restricted to the EPP option. Commonwealth Agencies are expected to use their buying power to buy Environmentally Preferable Products and services in order to advance the protection of the environment and support sustainability. Through these practices Pennsylvania encourages the production and sale of affordable, environmentally-friendly and health conscious products.”

 Understanding their goals will also inform your marketing efforts and help you communicate your green strengths in every proposal response. 

Takeaway: Government contract solicitations can include evaluation criteria that favor suppliers who demonstrate experience with certified environmental standards. When so required, procurement personnel rely upon third-party determinations, such as those made by the EPA or the Department of Agriculture, about what products are eligible, rather than rendering independent determinations.

Be Certain That Your Business and/or Products Have the Right Certifications

As NASPO notes, going green can enable government suppliers “to achieve an enhanced market position.” However, companies that market themselves as green or sustainable are going to endure intense scrutiny by agencies that must adhere to very strict standards per their varying EPP mandates. They will trust, but verify, that your business maintains the green certifications you’re using to gain a competitive advantage. Some, such as the Commonwealth of Massachusetts or GSA, will even encourage you to pre-qualify as a green vendor in their agency’s registration system – or secure your position on a competitively solicited open/co-op contract such as the ones that U.S. Communities maintains through its “Go Green” Program for local governments.

If you don’t want to be accused of “green washing” or fraud, take the time to have your products and/or business certified by accredited third-party agencies such as the ones in this NASPO Resource Guide, the GSA Green Procurement Compilation and the EPA list of recommendations for standards and ecolabeling. Doing so will enable you to easily prove your commitment as a supplier to helping customers meet “green government” goals. These designations will also elevate your competitive position for contracts with green mandates and ensure you remain compliant with EPP/green performance standards during contract administration. 

Takeaway: Procurement personnel can assess the past environmental performance of vendors before awarding a contract; as well, they can monitor vendors after contract award to assess whether vendors are remaining environmentally compliant during the administration phase of the contract.

Final Note: Though your green accreditations may encourage government agencies with EPP priorities to give your proposal greater consideration, price and performance still matter very much to their final contract award decision. 

In fact, price and performance are often scrutinized even more when it comes to EPP awards given the reputation that many green products had for being overpriced and of subpar quality in the early days of the environmentally-friendly movement. Government remains very conscious of their spending as waste runs counter to the very purpose of EPP initiatives.

Knowing that some agencies may still see these three evaluation factors as conflicting, it is important that you take extra care to offer a competitive price, prove performance, and demonstrate the quality and benefits of your green/environmentally preferred solution. In other words, show that your product or service provides the best value which, bottom line, is what government agencies care about the most. 

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