Performance metrics are critical for businesses managing GSA contracts. They help measure efficiency, ensure compliance, and improve competitiveness, especially for small businesses involved in federal contracting. Key metrics include greenhouse gas (GHG) emissions tracking, energy efficiency, renewable energy use, waste reduction, and water conservation. These benchmarks align with federal sustainability policies, such as Executive Order 14057 and FAR regulations, which emphasize emissions reduction, resource efficiency, and the use of eco-friendly materials. Tools like the Kahua app and GHG Protocol standards streamline data collection and reporting, ensuring contractors meet federal requirements.

Key Takeaways:

• GHG Emissions: Track Scope 1, 2, and 3 emissions to align with GSA standards.
• Energy Efficiency: Focus on reducing energy use per square foot and improving building performance.
• Renewable Energy: Increase renewable energy usage through RECs or on-site systems.
• Waste Management: Aim for higher waste diversion rates and reduced waste generation.
• Water Conservation: Implement strategies like low-flow fixtures and smart irrigation systems.

By addressing these metrics, businesses can improve their performance, reduce costs, and secure federal contracts. For additional support, experts like GSA Focus can guide contractors through compliance and reporting requirements.

How to effectively measure and manage your sustainability performance

Main Performance Metrics for Sustainable GSA Contracts

Getting a handle on the key metrics that the General Services Administration (GSA) uses to evaluate sustainability can give small businesses a competitive edge. By aligning their operations with these federal standards, businesses can better position themselves to win contracts. GSA’s sustainability requirements are designed to target both cost savings and environmental benefits.

With sustainability clauses now appearing in over 20% of federal contracts – a figure that’s only expected to rise – keeping track of these metrics is no longer optional. These benchmarks directly link environmental performance to success in federal contracting.

Greenhouse Gas (GHG) Emissions Tracking

GSA’s approach to greenhouse gas tracking centers on Scope 1, 2, and 3 emissions. Through an annual survey and analysis, GSA evaluates how federal contractors are working to lower their emissions and measures the impact of these efforts. For example, GSA actively tracks emission reduction clauses across multiple FAS Alliant 2 GWAC contracts.

• Scope 1 emissions: These are direct emissions from sources you own or control, such as company vehicles or on-site fuel use.
• Scope 2 emissions: These include indirect emissions tied to purchased electricity, heating, cooling, or steam.
• Scope 3 emissions: These cover all other indirect emissions, such as those from business travel, employee commuting, and supply chain activities.

For small businesses, cutting Scope 2 emissions can often be as simple as switching to renewable electricity. This is one of the most cost-effective ways to make an immediate impact. GSA also partners with CDP Supply Chain, an invitation-only disclosure system, to enhance its tracking efforts. Participation is voluntary unless specifically required by contract.

Energy Efficiency Metrics

Energy efficiency is another major focus for GSA, with metrics that assess energy use per square foot and overall building performance. These metrics align with GSA’s broader goal of reducing greenhouse gas emissions and mitigating climate risks through improved energy management.

Energy consumption is typically measured in British Thermal Units (BTUs) per square foot or kilowatt-hours (kWh) per square foot annually. Contractors working on GSA facilities are often required to show year-over-year energy performance improvements, with specific targets varying based on factors like building type and location.

Energy audits play a key role in identifying areas for improvement. Upgrades such as LED lighting, modernized HVAC systems, and improved building envelopes can deliver measurable gains in energy efficiency. Contractors are also encouraged to track and increase their use of renewable energy to meet federal sustainability goals.

Renewable Energy Use

The percentage of electricity sourced from renewables is a critical metric as GSA pushes for a transition to carbon-free energy. This metric tracks how much of a contractor’s electricity consumption comes from renewable sources like solar, wind, hydro, or geothermal power.

Contractors can boost their renewable energy metrics by purchasing Renewable Energy Certificates (RECs), installing on-site renewable systems, or partnering with utilities that offer green energy programs. The aim is to increase the share of renewable energy year after year, aligning with federal sustainability objectives.

GSA’s focus on renewable energy underscores its commitment to meeting broader federal environmental goals, making this metric a key factor in contract evaluations and renewals.

Waste Reduction and Management

Waste management metrics look at both waste diversion rates and total waste generated per employee or per square foot. These figures help GSA assess how well contractors are managing materials and reducing their environmental footprint.

Key measurements include recycling rates, composting volumes, and landfill diversion percentages. With Americans generating 292.4 million tons of municipal solid waste in 2018 – equivalent to 4.9 pounds per person per day – there’s plenty of room for improvement.

Effective waste management starts with accurate measurement and reporting. As recycling expert Elizabeth Balkan explains:

Real recycling requires proper calculation and measurement points. There is a need to have harmonized and granular data reporting which can be built into the requirements of municipal contracts with service providers.

Water Conservation Goals

Water conservation is another important metric, focusing on efficient usage and reduction strategies across GSA facilities. Water usage is typically measured in gallons per square foot annually or gallons per employee per day, depending on the facility and contract requirements.

Common strategies include installing low-flow fixtures, adopting smart irrigation systems, using rainwater harvesting, and implementing greywater recycling. Contractors are often required to show continuous improvement, with targets based on percentage reductions from baseline levels. Regular monitoring and reporting ensure compliance and help identify new opportunities for conservation.

Data Collection and Reporting in GSA Sustainability Metrics

Accurate data collection and clear reporting are the backbone of sustainability efforts in GSA contracts. These practices ensure compliance with regulations and help identify areas for improvement. To support these goals, the GSA provides structured frameworks and digital tools that establish standardized measurement, streamline tracking, and promote transparency.

Standard Measurement Protocols

The GHG Protocol is the primary standard for greenhouse gas accounting in federal contracting. It provides the foundation for emissions reporting that GSA requires from its contractors. The protocol’s widespread use is evident – 97% of disclosing S&P 500 companies reported to CDP using its standards in 2023. Similarly, in 2016, 92% of Fortune 500 companies responding to CDP relied on the GHG Protocol or related programs.

For GSA contractors, the Corporate Accounting and Reporting Standard within the GHG Protocol offers detailed guidance on creating a complete emissions inventory. This includes defining organizational boundaries and calculating emissions across Scopes 1, 2, and 3.

GSA also employs a market sector approach to develop contract requirements for energy and environmental management. This approach tailors sustainability expectations to the specific cost-saving opportunities and environmental impacts of each industry or service area. As GSA explains:

"We are working to adopt these industry best practices for supply chain management as an important best-value component of solutions that vendors provide to the federal government."

Additionally, the Global Reporting Initiative (GRI) supports contractors by offering a comprehensive database of sustainability reports, providing examples and best practices for energy and environmental reporting.

GSA Tools for Sustainability Tracking

GSA has integrated digital tools to simplify sustainability tracking and reporting. For example, the Kahua Sustainability app is used across the agency’s project inventory to monitor key metrics, such as reductions in greenhouse gas emissions and the diversion of construction and demolition waste from landfills. This app is the required project management software for all contractors and GSA employees working on federally owned or leased projects. By consolidating four tools into one platform, Kahua reduces administrative overhead and enhances project collaboration and outcomes.

For personal property reporting, GSA provides the Personal Property Reporting Tool (PPRT), which allows contractors to submit reports electronically. This tool supports GSA’s commitment to transparency by collecting and publishing data through the Non-Federal Recipients Report Summary.

Although the original GSA Sustainable Facilities Tool (SFtool.gov) has been retired, its functionality has been integrated into a new resource clearinghouse that includes the Kahua platform.

Third-Party Reporting and Public Disclosure

Third-party verification and public disclosure play key roles in strengthening sustainability reporting. Since 2015, GSA has participated in CDP Supply Chain, a third-party system for supply chain disclosure that complements sustainable acquisition efforts. While participation in this program is voluntary unless specified in contract terms, it provides contractors with an opportunity to demonstrate their sustainability practices.

The Federal Real Property Profile Management System serves as the primary platform for annual sustainability reporting. Federal agencies use it to document the sustainability status of their buildings, ensuring consistent data collection and reporting pathways for contractors working on federal properties.

GSA also conducts an annual survey and analysis to track how major federal contractors are reducing emissions and to evaluate the outcomes of these efforts. This internal process supplements third-party reporting and gives GSA direct insight into contractor performance.

Sustainability requirements for federal procurement are governed by FAR Part 23. On February 15, 2025, GSA issued a class deviation to FAR Parts 11, 18, 23, and 37, refining the way sustainability factors are managed in federal purchases.

For contractors working on federal buildings, the Guiding Principles for Sustainable Federal Buildings outline specific assessment criteria and reporting requirements. These principles include detailed checklists for various project phases, from new construction to ongoing operations. A 2018 GSA study highlighted the benefits of high-performance buildings that meet these principles, showing they use less energy and water, generate less waste, cost less to operate, and provide higher occupant satisfaction compared to standard buildings.

With these protocols and tools, GSA ensures accountability and precision in sustainability efforts across its contracts.

sbb-itb-8737801

Federal Policies That Drive Sustainability in GSA Contracts

Federal sustainability policies play a crucial role in shaping the environmental responsibilities of GSA contractors. These policies establish clear expectations, contract requirements, and performance goals, ensuring contractors align with federal sustainability objectives. Below, we’ll explore the key policies, mandates, and enforcement strategies driving these efforts.

Executive Orders and Sustainability Requirements

A cornerstone of federal sustainability efforts is Executive Order 14057, titled "Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability." This directive, along with Memorandum M-22-06, compels agencies to lower emissions and prioritize the procurement of environmentally friendly products.

One of the most impactful regulatory updates came with a final rule amending the Federal Acquisition Regulation (FAR). This rule emphasizes that agencies must "procure sustainable products and services to the maximum extent practicable". It also introduces a new omnibus clause, mandating sustainability requirements in all solicitations and contracts, even those below the simplified acquisition threshold or involving commercial off-the-shelf items.

Since 2011, FAR 23.103(a) has required federal agencies to ensure that 95% of new contract actions involve products that are energy-efficient, water-efficient, biobased, environmentally preferable, non-ozone depleting, or made with recovered materials. This long-standing rule reflects the federal government’s ongoing commitment to environmentally responsible procurement.

Additionally, GSA is taking steps to address hazardous materials by seeking public input on reducing or eliminating the procurement of products containing PFAS (per- and polyfluoroalkyl substances) through its contracting solutions.

GSA’s Net-Zero and Climate Change Goals

Federal mandates have significantly influenced GSA’s ambitious net-zero and climate change initiatives. The agency is working toward net-zero emissions in all federal buildings by 2045, with interim milestones that set immediate compliance expectations for contractors.

In August 2024, GSA introduced updated P100 Facilities Standards for the Public Buildings Service. These standards outline mandatory design and construction criteria for 300,000 federal buildings nationwide. GSA Administrator Robin Carnahan highlighted the importance of these standards, stating:

"These new standards represent GSA’s decades-long commitment to sustainable design practices and will accelerate our progress toward achieving a net-zero emissions portfolio by 2045".

Public Buildings Commissioner Elliot Doomes further emphasized their industry-wide impact:

"What I’m particularly proud of is that the P100 includes new standards that will push the industry toward using more sustainable materials and pioneering practices".

The Federal Sustainability Plan outlines key deadlines that contractors must prepare for, including:

To support these goals, GSA allocated $975 million from the Inflation Reduction Act in 2024 to upgrade federal buildings with cleaner energy solutions. The updated P100 standards require contractors to embrace advanced energy-saving strategies, eliminate on-site fossil fuel use, utilize low-carbon materials (such as salvaged or regenerative options), and optimize space utilization.

Compliance Timelines and Enforcement Methods

GSA employs a range of strategies to ensure contractors meet sustainability requirements. Each procurement is tailored with specific contract requirements for energy and environmental management, factoring in cost savings and market opportunities.

Annual tracking and analysis are key enforcement tools. GSA monitors contractor performance through annual surveys and includes emissions tracking requirements in contracts, such as those under the FAS Alliant 2 GWAC program. Contracts explicitly define which sustainable products and services apply, ensuring clarity from the outset.

The Federal Building Performance Standard underpins these efforts, helping the government cut energy costs, enhance resilience, reduce emissions, and support job creation. Contractors working on federal buildings must also adhere to the Guiding Principles for Sustainable Federal Buildings, which outline detailed criteria for sustainable design, construction, and operations.

Enforcement mechanisms include third-party verification systems, regular performance monitoring, and annual reporting. These measures ensure that contractors – particularly small businesses – align with federal sustainability benchmarks. By setting clear expectations and maintaining rigorous oversight, GSA translates sustainability goals into tangible performance improvements across its contractor network.

How to Improve Your Sustainability Metrics

Improving sustainability metrics isn’t just a buzzword – it’s a practical way to boost performance and gain a competitive edge in GSA contracts. By focusing on measurable improvements, contractors can align with federal requirements, enhance their environmental impact, and position themselves as leaders in sustainable practices. A mix of technical evaluations, strategic goal setting, and expert guidance forms the foundation for success.

Energy Audits and Building Upgrades

Energy audits are like a health checkup for your buildings – they uncover inefficiencies and highlight savings opportunities. These audits can lead to energy reductions of 10%-30% annually, making them a smart investment for contractors aiming to improve their environmental footprint. Costs vary depending on the depth of the audit, with basic Level 1 audits starting at a few hundred dollars, while more detailed Level 3 audits can cost several thousand.

Once inefficiencies are identified, upgrades such as installing LED lighting, modernizing HVAC systems, and improving insulation can make a big difference. LED lights, for example, use far less energy and often last over 25,000 hours, saving both energy and maintenance costs. Other upgrades include optimizing electrical systems, switching to energy-efficient appliances, and implementing continuous monitoring to ensure long-term results.

The benefits aren’t just theoretical. GSA’s 2018 study on high-performance buildings showed that sustainable buildings deliver tangible results – lower energy costs, reduced water use, and even higher occupant satisfaction.

Setting and Tracking Emissions Reduction Targets

To make meaningful progress in reducing emissions, contractors need a complete greenhouse gas (GHG) inventory. This step is essential for setting science-based targets and aligning with federal expectations. In 2021, GSA reported that 57% of funding went to contractors who publicly disclosed their GHG reduction goals – a clear sign of where priorities lie.

The process begins by identifying emissions sources across all three scopes and using reliable software tools that follow the Greenhouse Gas Protocol methodology. Programs like Alliant 3 and OASIS Plus even reward contractors who disclose GHG data for all three scopes, giving them a leg up in the competitive bidding process.

Effective strategies for reducing emissions include setting clear reduction targets, adopting energy-efficient technologies, transitioning to renewable energy, and cutting waste. Conducting a climate risk assessment and addressing gaps in disclosure with tools like the CDP climate change questionnaire can further refine your approach. The ultimate goal? Create a comprehensive, shareable emissions reduction plan that strengthens your contract proposals.

Working with GSA Focus for Expert Support

Navigating the complexities of sustainability compliance can be overwhelming, but that’s where GSA Focus comes in. They offer a full-service solution designed to simplify the process for contractors working on GSA Schedule Contracts. From document preparation to compliance assurance, their team handles the heavy lifting, allowing businesses to focus on their core operations. With a 98% success rate and a refund guarantee, they’ve earned a reputation for delivering results.

For contractors aiming to meet the requirements of programs like Alliant 3 and OASIS Plus, GSA Focus’s expertise is invaluable. They provide clarity on ESG and GHG reporting standards, helping businesses align their sustainability efforts with federal expectations. Founder Josh Ladick brings years of experience in federal contracting, offering practical advice and tailored support to navigate the intersection of compliance and sustainability.

Their secure online platform makes it easy to manage documents, while ongoing advisory services ensure contractors stay up-to-date with changing regulations. Small businesses, in particular, benefit from GSA Focus’s ability to translate sustainability metrics into actionable strategies that improve their chances of winning federal contracts. By combining technical know-how with hands-on support, GSA Focus helps businesses not only meet but exceed environmental standards, turning sustainability into a competitive advantage.

Conclusion: Building Long-Term Success in GSA Contracts

The federal contracting world is evolving, with a clear focus on sustainability. Small businesses that commit to environmentally responsible practices are better positioned to thrive in a market where federal agencies increasingly emphasize sustainability and ethical governance.

Key Takeaways for Small Businesses

Recent data shows that transparency in sustainability efforts can significantly boost federal funding opportunities. By proactively addressing sustainability metrics, small businesses can not only meet regulatory standards but also cut costs and stand out in a competitive landscape.

"A robust economy is built on expanding opportunities for small and socioeconomic small businesses. More than 50% of the country’s economic activity comes from small businesses. They create a lot of the local jobs in this country, driving innovation and supporting communities."
– Exodie C. Roe III, Associate Administrator of OSDBU

These trends provide a roadmap for actionable strategies that can enhance sustainability efforts and improve contract opportunities.

Steps to Strengthen Your Position

To stay ahead, small businesses should focus on measurable sustainability practices. Start by calculating greenhouse gas (GHG) emissions across scopes 1, 2, and 3, and consistently track and report on environmental initiatives like energy efficiency, waste reduction, and the use of eco-friendly materials. Demonstrating continuous improvement in these areas builds credibility and trust. Transparency is key – 20% of 2021 federal funding went to contractors with clear, science-based emissions reduction goals.

For those looking to go beyond compliance, seeking professional guidance can be transformative. Effectively showcasing sustainability efforts can set businesses apart and secure future contracts.

FAQs

How can small businesses measure and report greenhouse gas emissions for GSA contracts?

Small businesses engaged in General Services Administration (GSA) contracts can track and report their greenhouse gas (GHG) emissions by adhering to federal guidelines, such as those outlined in the Federal Acquisition Regulation (FAR) and the GHG Protocol. Typically, this reporting emphasizes Scope 1 emissions, which are direct emissions from sources a company owns or controls, and Scope 2 emissions, which come from the electricity a company purchases.

Federal agencies, including the GSA, are increasingly emphasizing the importance of transparency in emissions reporting. Contractors are now expected to monitor and disclose their environmental footprints. While some regulations have experienced delays, the broader push is toward heightened accountability in sustainability efforts among federal contractors. Keeping up with these evolving rules not only ensures compliance but also demonstrates a company’s commitment to being a responsible partner in federal projects.

What are the benefits of using renewable energy in GSA contracts, and how can contractors adopt it effectively?

Using renewable energy in GSA contracts isn’t just about ticking a box – it brings real advantages. By integrating renewable energy, contractors can contribute to cutting greenhouse gas emissions, enjoy reduced energy costs over time, and help build a more reliable and forward-thinking energy system. The GSA’s ambitious target of achieving 100% renewable electricity by 2025 underscores its dedication to environmental stewardship.

For contractors, there are several ways to incorporate renewable energy into their operations. They can explore energy savings performance contracts (ESPCs), evaluate their facilities for potential renewable energy projects, and take advantage of government-backed incentives like tax credits and grants. These strategies not only help meet GSA requirements but also align with broader federal sustainability goals, paving the way for long-term success and regulatory compliance.

What resources are available to help contractors meet GSA sustainability requirements?

Contractors have access to a variety of tools and resources to help them meet GSA sustainability requirements with ease. The GSA provides clear guidance on sustainable acquisition and management practices, alongside comprehensive sustainability plans. These plans highlight important metrics, such as reducing greenhouse gas emissions and improving energy efficiency.

To further support contractors, the GSA offers assistance through its high-performance building initiatives. These initiatives include technical support and practical advice on managing facilities sustainably. All of these resources aim to make compliance straightforward while helping contractors stay aligned with federal sustainability goals.

Related posts

• How to Track GSA Contract Compliance
• How to Manage GSA Contract Performance
• Ultimate Guide To GSA Contract Performance Metrics
• Energy Efficiency Standards in GSA Contracts