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During the month of April, the Biden administration has continued to leverage federal procurement in pursuit of ambitious environmental sustainability policy goals.  The most recent round of new regulations and initiatives finds the administration seeking to strengthen purchasing mandates of sustainable goods and services, as well as laying the groundwork for significant restrictions on the federal procurement of products containing per- and polyfluoroalkyl substances (PFAS). 

Sustainable Products and Services – On April 22, 2024, the Department of Defense, General Services Administration, and National Aeronautics and Space Administration, released a final rule instructing federal agencies “to procure sustainable products and services to the maximum extent practicable.”  The rule defines “sustainable products and services” as products containing recovered materials, bio-based products, energy- and energy-efficient products, or items included on the Environmental Protection Agency Recommendations of Specifications, Standards, and Ecolabels list.      

The final rule creates a presumption that procurement of sustainable goods and services is practicable unless an agency justifies that it cannot acquire products or services “(i) within a reasonable performance schedule; (ii) that meet reasonable performance requirements; or (iii) at a reasonable price.”  Additionally, limited exceptions exist for certain defense procurements and contracts performed outside the United States, and heads of agencies are authorized to issue an exemption in the interest of national security and other limited circumstances.  Moving forward, the final rule mandates the inclusion of a new omnibus clause implementing these sustainability requirements in all solicitations and contracts (subject to the exceptions and exemptions identified above), including ones at or below the simplified acquisition threshold (SAT) and for commercial products, including commercially available off-the-shelf (COTS) items, and services.  

This final rule is effective May 22, 2024.

Reducing PFAS in Federal Procurement – On April 16, 2024, GSA published a Request for Information seeking public comment on reducing or even eliminating procurement of products with PFAS through GSA contract solutions.  Acting in furtherance of Executive Order 14057 and the Office of Management and Budget Memo M-22-06, which directed federal agencies to prioritize procurement of non-PFAS products, GSA is seeking public input on a range of questions, including:

  • What product areas should GSA exclude at this time and why?
  • What is the potential impact on domestic manufacturing if GSA establishes PFAS reduction requirements that reduce or prohibit PFAS, or eliminate them entirely?
  • How long should GSA give contractors to reduce PFAS?
  • What type of exception process should GSA consider?
  • Would it be more impactful for GSA to target a specific product type or chemical signature in products to meet the goal of reducing or eliminating PFAS?
  • How would a reduction or elimination of PFAS containing products impact your company’s ability to compete?

This follows a GSA announcement on April 8, 2024, requiring government contractors to only purchase and use non-PFAS cleaning products in all federal buildings within GSA’s property portfolio.

The government contracting community should pay close attention to these mounting actions that will directly impact the way manufacturers and service providers do business with the federal government moving forward.

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Photo of Paul Freeman Paul Freeman

Paul Freeman is a partner in Crowell & Moring’s New York office and a member of the firm’s Environment & Natural Resources and Government Contracts groups. He brings two decades of diverse experience advising clients in the energy, maritime, and aerospace and defense…

Paul Freeman is a partner in Crowell & Moring’s New York office and a member of the firm’s Environment & Natural Resources and Government Contracts groups. He brings two decades of diverse experience advising clients in the energy, maritime, and aerospace and defense industries on a range of issues, with a primary emphasis on matters involving enforcement defense, litigation, and risk management.

Paul routinely advises clients in response to investigations by, or inquiries from, a range of regulators, primarily the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ), and also including the U.S. Securities and Exchange Commission, the Internal Revenue Service, the U.S. Department of Defense Inspector General, the Federal Bureau of Investigation, the U.S. Commodity Futures Trading Commission, and state attorneys general.

Photo of Ellie Dawson Ellie Dawson

Elizabeth (Ellie) B. Dawson is a counsel in the Environment & Natural Resources Group in Crowell & Moring’s Washington, D.C. office and a leader of the firm’s global ESG Advisory Team. She advocates for her clients’ interests in everything from agency rulemaking petitions…

Elizabeth (Ellie) B. Dawson is a counsel in the Environment & Natural Resources Group in Crowell & Moring’s Washington, D.C. office and a leader of the firm’s global ESG Advisory Team. She advocates for her clients’ interests in everything from agency rulemaking petitions under the Clean Air Act to Superfund liability and allocation disputes, everywhere from the U.S. Court of Appeals for the D.C. Circuit to the Western District of Washington.

Photo of Issac Schabes Issac Schabes

Issac D. Schabes is an associate in the firm’s Washington, D.C. office, where he is a member of the Government Contracts Group.

Prior to joining the firm, Issac clerked for the Honorable Matthew H. Solomson on the U.S. Court of Federal Claims and…

Issac D. Schabes is an associate in the firm’s Washington, D.C. office, where he is a member of the Government Contracts Group.

Prior to joining the firm, Issac clerked for the Honorable Matthew H. Solomson on the U.S. Court of Federal Claims and the Honorable Robert N. McDonald on the Maryland Court of Appeals. Issac received his J.D., magna cum laude, from the University of Maryland Carey School of Law, where he graduated Order of the Coif and served as an executive editor for the Maryland Law Review. He received numerous awards, including the Judge Simon E. Sobeloff Prize for Excellence in Constitutional Law. During law school, Issac was a member of a low-income taxpayer clinic team that successfully appealed an IRS assessment resulting in a substantial tax liability reduction, and also interned for the Honorable Beryl A. Howell, Chief Judge, on the U.S. District Court for the District of Columbia and the Honorable Marvin J. Garbis on the U.S. District Court for the District of Maryland.