The Federal Acquisition Regulation (FAR) sustainability rules underwent major updates in 2024, with changes impacting nearly all federal contracts. These updates, effective May 22, 2024, aim to align procurement with environmental goals by requiring agencies to prioritize sustainable products and services. Key highlights include:
- New Clause (FAR 52.223-23): Consolidates sustainability requirements into a single standard, simplifying compliance for vendors.
- Expanded Scope: Rules now cover micro-purchases (under $15,000) and commercially available off-the-shelf (COTS) items.
- Life-Cycle Cost Analysis: Agencies must evaluate long-term costs, including energy savings, when determining price reasonableness.
- Vendor Obligations: Contractors must ensure products meet EPA standards and comply with reporting requirements, including greenhouse gas disclosures.
These changes emphasize accountability across the procurement process, from prime contractors to subcontractors. Vendors who align with these rules gain access to broader federal opportunities, while non-compliance risks penalties.
The next major milestone is the August 7, 2025, implementation of mandatory sustainability clauses in all contracts. Additionally, new updates, such as the Revolutionary FAR Overhaul (expected by October 2025), may bring further adjustments. Staying informed and prepared is key for vendors navigating this evolving landscape.
Sustainable Procurement A Closer Look at the New Federal Acquisition Regulation FAR
Main Changes in the 2024 FAR Sustainability Amendments
The 2024 amendments bring the most extensive updates to federal sustainable procurement in over a decade, introducing broader definitions, stricter contractual obligations, and updated rules for smaller acquisitions. Here’s an overview of the key changes, including expanded definitions, mandatory provisions, and new rules for low-value purchases.
Broader Definition of Sustainable Products and Services
The amendments redefine "sustainable products and services" under FAR 2.101 and introduce the omnibus clause FAR 52.223-23. This updated definition organizes sustainable products and services into two main categories:
- Statutory Purchasing Programs: This includes products with recovered materials as outlined in the EPA’s Comprehensive Procurement Guidelines, ENERGY STAR®-certified or FEMP-designated energy- and water-efficient products, USDA BioPreferred® biobased products, and items or processes listed under the EPA’s Significant New Alternatives Policy.
- Required EPA Purchasing Programs: This group covers WaterSense® labeled products and services for water efficiency, Safer Choice–certified products with safer chemical ingredients, and items meeting EPA Recommendations of Specifications, Standards, and Ecolabels as of October 2023. By setting this October 2023 baseline, the amendments provide a consistent reference point for industry planning.
These changes make it clear that products don’t need to meet all program requirements simultaneously but must align with the relevant statutory standards.
Required Sustainability Provisions in All Contracts
The amendments also establish mandatory sustainability clauses in federal contracts. The new omnibus clause FAR 52.223-23, titled "Sustainable Products and Services", will take effect on August 7, 2025. Contracting officers must include this clause in solicitations and contracts unless specific exceptions or written justifications are provided.
Key points under this clause include:
- Contractors are required to deliver sustainable products and services for all directly charged contract costs.
- Prime contractors are responsible for ensuring that subcontractors comply with sustainability requirements.
- Contracting officers must specify the sustainable products and services required for each acquisition.
This ensures sustainability is embedded in all stages of procurement, from prime contractors to subcontractors.
New Rules for Micro-Purchases and COTS Products
The amendments eliminate previous exemptions and expand sustainability requirements to cover smaller acquisitions. These changes include:
- Micro-Purchase Threshold: Sustainability requirements now apply to acquisitions at or below the micro-purchase threshold, which will increase from $10,000 to $15,000 starting October 1, 2025.
- Part 12 Acquisitions: Contracts using Part 12 procedures for acquiring commercial products now explicitly include commercially available off-the-shelf (COTS) items and commercial services.
"Even more notable, the Rule applies to most contracts, including those using part 12 procedures for the acquisition of commercial products, including commercially available off-the-shelf (COTS) items and commercial services and acquisitions valued at or below the micro-purchase threshold." – PilieroMazza
These updates mean that even small-scale transactions must adhere to environmental standards. Additionally, for service contracts where products are supplied, those products must meet the established sustainability criteria. This ensures that sustainability remains a priority, regardless of the size or type of acquisition.
How the Changes Affect Federal Procurement
The 2024 FAR sustainability amendments introduce significant updates to federal procurement practices, aiming to simplify processes and ensure accountability. These changes affect contracts across the board, from small-scale micro-purchases under $15,000 to large-scale agreements worth millions.
Clearer Compliance Requirements
The amendments establish standardized sustainable procurement procedures for all federal agencies. Contracting officers are now required to explicitly include sustainable product and service specifications in every solicitation. This applies to all types of contracts, including micro-purchases and commercial off-the-shelf (COTS) items.
"The rule standardizes the procedures across the Federal Government to ensure sustainable products and services are procured to the maximum extent practicable".
Administrative contracting officers are now tasked with monitoring compliance to ensure contractors deliver, use, or provide sustainable products and services as outlined in their agreements.
For contractors, the path to compliance is straightforward: they must supply sustainable products and services that meet the applicable standards at the time of their offer submission. By consolidating these requirements, the amendments reduce ambiguity and make it easier for vendors to understand the sustainability benchmarks they need to meet.
These changes not only clarify roles but also set the tone for evolving responsibilities for both procurement officers and contractors.
Updated Responsibilities for Officers and Vendors
The amendments also introduce new obligations for both federal agencies and their contractors. Contracting officers are now required to prioritize sustainable products and services unless doing so is deemed impractical. In such cases, officers must document why mission requirements cannot fully accommodate sustainable options. Prime contractors, in turn, are responsible for ensuring the delivery or incorporation of sustainable products and services, whether handled by them directly or through subcontractors.
Another key update involves disclosure requirements. Contractors registered in the System for Award Management (SAM) must now report whether they disclose their greenhouse gas emissions and reduction plans, along with providing links to these disclosures. Additionally, contracting officers are instructed to prioritize "multi-attribute" sustainable products – those meeting both statutory and Environmental Protection Agency (EPA) purchasing program standards. Noncompliance with these rules could result in serious consequences, such as being found nonresponsible, suspension or debarment, or even liability under the False Claims Act.
Life-Cycle Costs in Price Evaluation
One of the most notable updates is the emphasis on life-cycle cost analysis when determining the price reasonableness of sustainable products and services. This requirement extends beyond energy-efficient items and applies to all sustainable products and services.
"When considering whether the price of a sustainable product is reasonable, agencies should consider whether the product is cost effective over the life of the product, taking energy cost savings into account".
This means that procurement decisions now include factors like initial cost, durability, and disposal expenses. For instance, while LED lighting might have a higher upfront cost, its long-term energy savings make it a cost-effective option. Similarly, when purchasing office furniture, considerations like durability and end-of-life disposal will play a role in evaluating overall value.
Although this shift may require contracting officers to develop new skills and could lengthen procurement timelines as they gather life-cycle data, it establishes a strong foundation for sustainable purchasing. By aligning long-term cost savings with environmental goals, this approach ensures taxpayers benefit from both economic and environmental advantages over time.
How Vendors Can Meet the New Requirements
With the updated FAR requirements now in place, vendors need to ensure compliance with FAR 52.223-23 by carefully updating their contract language, documentation, and certification processes.
Updating Contract Language and Documents
The revised FAR 52.223-23 consolidates previous sustainability requirements into a single standard. Under this clause, the government specifies the sustainable products and services required in the Statement of Work (SOW) or other sections of the contract. Vendors must carefully review solicitations and contracts to identify these sustainability requirements.
When submitting offers, vendors should clearly outline how their products and services meet the specified sustainability standards. Prime contractors also bear the responsibility of ensuring that sustainable products and services are delivered – whether directly or through subcontractors. This may require updating subcontract agreements to include necessary flow-down provisions.
"The Contractor shall ensure that the sustainable products and services required by this contract are – (i) Delivered to the Government; (ii) Furnished for use by the Government; (iii) Incorporated into the construction of a public building or public work; and (iv) Furnished for use in performing services under this contract, where the cost of the products is a direct cost to this contract." (FAR 52.223-23)
Additionally, vendors need to align their internal policies and documentation with the updated clause, ensuring their definitions of sustainable products and services match the new standards.
Finding and Certifying Sustainable Products
A critical step in compliance is identifying which products qualify as sustainable under the new definitions. Vendors can consult resources like the Green Procurement Compilation (https://sftool.gov/greenprocurement) for guidance on eligible products.
Each product category has specific certification requirements. For example:
- Recovered materials: May require preaward certification (FAR 52.223-4) and potentially a final certification or estimate at contract completion (FAR 52.223-9).
- Biobased products: Typically require preaward certification (FAR 52.223-1) and ongoing reporting (FAR 52.223-2).
"Sustainable products and services must meet the applicable standards, specifications, or other program requirements at time of quote or offer submission; and Sustainable products and services must meet the EPA Recommendations of Specifications, Standards, and Ecolabels in effect as of October 2023." (FAR 52.223-23)
Vendors should also review Class Deviation CD 2025-05, effective February 15, 2025, which temporarily waives certain requirements for WaterSense, Safer Choice, and EPA Recommendations of Specifications, Standards, and Ecolabels. Understanding this deviation is key for adapting product offerings accordingly.
How GSA Focus Helps with Compliance
For many small businesses, navigating these updated sustainability requirements can feel overwhelming. That’s where GSA Focus steps in, offering tailored compliance support to simplify the process.
Their services include preparing technical proposals and pricing narratives that meet FAR 52.223-23 standards. They also assist in identifying sustainable products and services relevant to a vendor’s offerings and gathering the necessary certifications for contract submissions.
Beyond documentation, GSA Focus provides compliance management services to help contractors keep track of sustainability programs and maintain current certifications. For prime contractors, their support extends to ensuring subcontractors meet sustainability provisions. Their contract maintenance services also handle modifications and reporting requirements, reducing the administrative burden.
With a 98% success rate and a refund guarantee, GSA Focus offers the expertise vendors need to navigate the complexities of the updated FAR sustainability requirements. Their secure online platform simplifies document uploads and compliance tracking, allowing businesses to focus on their core operations without dedicating excessive internal resources.
Expected Future Changes and Guidance
As federal sustainability rules continue to reshape procurement practices, vendors need to keep up with both current and upcoming regulatory changes. The framework for federal sustainability procurement is evolving rapidly, with key updates expected through 2025.
Expected New Rules and Clarifications
A major update on the horizon is the Revolutionary FAR Overhaul (RFO), initiated by Executive Order 14275 on April 15, 2025. This overhaul aims to simplify the Federal Acquisition Regulation (FAR) by removing non-statutory provisions and focusing on statutory requirements alongside national security priorities. The initial overhaul process is set to finish by mid-October 2025, with formal rulemaking to follow shortly after.
Adding to this, a new "sunset requirement" under FAR 1.109 will require all non-statutory provisions of FAR to expire after four years unless specifically renewed by the FAR Council. This could lead to significant changes, particularly for sustainability rules not grounded in specific statutes.
Some changes are already taking effect. For instance, on March 7, 2025, the Office of the Under Secretary of Defense issued Class Deviation 2025-O0004, implementing Executive Order 14148. This executive order repealed EO 14057 and its associated procurement mandates. As a result, certain clauses like FAR 52.223-19 (Environmental Management Systems) and 52.223-22 (Public Disclosure of Greenhouse Gas Emissions and Reduction Goals Representation) are no longer permissible in new Department of Defense (DoD) solicitations and contracts. However, statutory programs, such as those governing biobased and ENERGY STAR/FEMP-designated products, remain in effect.
A more specific proposed rule targets paper straws. Posted on July 21, 2025, with comments closing on September 19, 2025, this rule (FAR Case 2025-006) seeks to prohibit the procurement of paper straws under Executive Order 14208. The rule proposes amending FAR subpart 11.3 to require straws with the strength and durability of plastic. It highlights that paper straws lose 70–90% of their compressive strength within 30 minutes, failing to meet the Government’s performance standards.
"Paper straws are dangerous choking hazards because they become weak and disintegrate during the course of normal use." – The Netherlands Food and Consumer Product Safety Authority (NVWA)
These changes underscore the need for vendors to stay ahead of regulatory shifts and adopt proactive compliance measures.
How to Stay Updated on Changes
Keeping up with these regulatory updates is no small task, especially with the pace of change expected through 2025. Vendors should establish systems to monitor new rules and ensure compliance. The FAR Councils (DoD, GSA, NASA), in collaboration with the Office of Federal Procurement Policy (OFPP), the General Services Administration (GSA), the Environmental Protection Agency (EPA), and the Small Business Administration (SBA), will provide additional training and outreach materials to help agencies and contractors transition smoothly.
"The Councils agree that additional training and outreach will be necessary to ensure a smooth transition to the new requirements. The Councils will work with the Office of Federal Procurement Policy (OFPP), the General Services Administration (GSA), and the Environmental Protection Agency (EPA) to develop and disseminate additional training and outreach materials. The Councils will also work with the Small Business Administration (SBA) to ensure that small businesses are aware of the new requirements and have access to the resources they need to comply." – Department of Defense, General Services Administration, and National Aeronautics and Space Administration
For vendors, resources like the Green Procurement Compilation (GPC) are invaluable. The GPC offers detailed lists of sustainable products, services, and procurement guidance. Additionally, reviewing the affirmative procurement programs of contracting agencies can provide agency-specific insights into sustainable purchasing.
GSA Focus also offers ongoing compliance support, which is particularly useful during periods of regulatory transition. Their services include tracking regulatory changes and assisting vendors in updating their documentation and processes to align with new requirements. With the complexities of the Revolutionary FAR Overhaul and the sunset provision for non-statutory FAR sections, expert support can help vendors navigate these shifts without overburdening internal teams.
While transitioning to meet new standards, such as phasing out paper straws, may lead to short-term costs, vendors could see long-term savings. The regulatory environment is expected to remain dynamic beyond 2025, making proactive compliance management a key strategy for staying competitive in federal contracting.
Key Points for Vendors
The 2024 amendments to the Federal Acquisition Regulation (FAR) on sustainability, effective May 22, 2024, bring sweeping changes for vendors. These updated rules expand federal requirements for purchasing sustainable products and services, applying them to nearly all contracts – including micro-purchases and commercially available off-the-shelf (COTS) items. In short, compliance with sustainability standards is now a universal requirement.
Here’s what vendors need to know:
- Supplying Sustainable Products: Vendors must ensure the products they provide meet statutory and Environmental Protection Agency (EPA) program standards. This applies whether the products are for government use, construction projects, or direct contract costs.
- Prime Contractors’ Role: Prime contractors are tasked with enforcing sustainability compliance throughout their supply chains, ensuring that subcontractors meet the same standards.
- Life-Cycle Cost Evaluations: Pricing assessments now consider life-cycle costs for all sustainable products and services, not just energy-consuming items. Vendors should be ready to present detailed long-term cost analyses, as agencies are encouraged to prioritize long-term value over initial costs.
- Verifying Sustainability Claims: Vendors promoting their sustainability credentials must back their claims with trusted resources, such as the Green Procurement Compilation, available at https://sftool.gov/greenprocurement.
- Compliance Support: With regulations evolving, GSA Focus offers ongoing assistance to help vendors stay compliant by tracking changes and updating necessary documentation.
"The rule itself is substantially more direct in its requirements and broader in its application than prior rules relating to environmental aspects of procurement. For instance, the new rule requires federal agencies to ‘procure sustainable products and services to the maximum extent practicable.’"
– PilieroMazza, Law Firm, Government Contracts Group
Failing to comply with these updated requirements can lead to contract disputes, lost business opportunities, and even potential liability under the False Claims Act. On the other hand, vendors who adapt successfully can access a growing market for sustainable products and services. They’ll also benefit from competitive advantages and long-term savings through improved energy efficiency and waste reduction.
Success in this new landscape requires vendors to prepare proactively, fully understand the updated requirements, and leverage expert guidance to navigate these changes effectively.
FAQs
What are the key updates in the 2024 FAR sustainability amendments, and how will they affect federal contractors?
The 2024 FAR sustainability amendments bring noteworthy updates to federal procurement practices, focusing on environmentally responsible approaches. These revisions broaden the sustainability requirements, mandating that contractors incorporate or utilize eco-friendly products and services throughout the duration of their contracts.
Additionally, FAR Part 23 has been reorganized to place greater emphasis on environmental and sustainability standards. This shift encourages contractors to implement strategies that minimize their environmental footprint. These updates aim to align federal contracts with sustainability objectives, potentially prompting contractors to adapt their procurement methods and operational practices to meet the revised standards.
What steps can vendors take to comply with the updated sustainability rules in FAR 52.223-23?
To align with the updated FAR 52.223-23 rules, vendors need to establish clear processes to ensure their products and services meet federal environmental standards. This means conducting regular supply chain audits, verifying claims about sustainability, and keeping detailed records to prove compliance.
It’s also crucial to invest in training for both internal teams and suppliers. Staying up to date on the latest requirements helps everyone involved understand what’s needed. By ensuring all deliveries meet the updated standards and addressing potential compliance issues early, vendors can confidently meet federal expectations.
What could happen if contractors don’t follow the updated FAR sustainability rules, and how can they avoid these risks?
Failing to meet the 2025 updates to FAR sustainability rules can bring serious challenges. These include fines that could reach up to 5% of your revenue, the potential loss of valuable contracts, legal battles, and reputational harm that might jeopardize future opportunities. On top of that, non-compliance could draw increased attention from federal agencies, making operations even more difficult.
To steer clear of these pitfalls, contractors should focus on aligning their processes with sustainable procurement policies. This includes integrating environmental, social, and governance (ESG) goals into day-to-day operations and staying up-to-date with regulatory changes, particularly those in FAR Part 23. Taking a proactive approach to these updates not only ensures compliance but also helps maintain a competitive position in the federal contracting arena.
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