DAOD 3015-1, Management of Green Procurement

Identification

Date of Issue: 2007-11-02

Application: This DAOD is a directive that applies to employees of the Department of National Defence ("DND employees") and an order that applies to officers and non-commissioned members of the Canadian Forces ("CF members").

Approval Authority: Assistant Deputy Minister (Materiel) (ADM(Mat))

Enquiries:

• Director General Materiel Systems and Supply Chain (DGMSSC)

• Director Materiel Policy and Procedures (DMPP)

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Definitions

Environmental Performance Considerations (facteurs de performance environnementale)

Environmental performance considerations have the same meaning as in section 5, Definitions, of the Policy on Green Procurement of Public Works and Government Services Canada.

Environmentally Preferable Goods and Services (biens et services à privilégier du point de vue environnemental)

Environmentally preferable goods and services have the same meaning as in section 5, Definitions, of the Policy on Green Procurement of Public Works and Government Services Canada.

Green Procurement (achats écologiques)

Green procurement means the integration of environmental performance considerations in the material acquisition and support process, including requirement identification and definition, planning, procurement, operation and maintenance, disposal of goods and realty infrastructure, and closure activities of acquired services and facilities.

Greening (écologisation)

Greening means the integration of environmental performance considerations in a process, project or purchase.

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Overview

Context

Green procurement involves thinking long-term and considering the related costs throughout the life cycle of a good or service, not just the effect on the current year budget.

Green procurement is set within the context of:

• smart procurement in terms of increasing durability, quality and efficiencies; and

• saving money during acquisition, operation, maintenance, disposal of goods and closure activities of acquired services.

See DAOD 3015-0, Green Procurement for general information relating to:

• green procurement in the DND and the CF; and

• integrating environmental performance considerations in DND and CF material acquisition and support (MA&S) activities.

See the Office of Greening Government Operations (OGGO), on the website of Public Works and Government Service Canada (PWGSC), for information relating to:

• the federal government policy on green procurement;

• supporting guidelines and tools; and

• greening government operations.

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Purpose

The purpose of this DAOD is to:

• explain how the green procurement policy is to be implemented; and

• define the roles and responsibilities in respect of the management of green procurement in the DND and the CF.

Purchases

Purchases are made by or on behalf of the DND and the CF for:

• standard goods and services; and

• equipment specific to the DND and the CF.

Standard Goods and Services

Standard goods and services are the same for every federal government department and are addressed through the PWGSC Way Forward strategy, which includes the:

• commodity management process; and

• development and use of mandatory standing offers.

Greening of standard goods and services purchases is achieved through a collaborative effort among federal government departments and agencies.

Equipment Specific to the DND and the CF

Equipment specific to the DND and the CF, including equipment acquired by means of major crown projects, are dealt with differently than standard goods and services. For this equipment, environmental performance considerations can be identified and taken into account by using available internal resources such as:

• an environmental assessment;

• life cycle analysis;

• environmental officers; and

• various tools and websites.

Operating Principles

Process

Green procurement shall be integrated throughout the MA&S process. This contributes towards the success of other DND and CF programs, including:

• waste management;

• water use;

• energy use in buildings;

• vehicle and fuel selection and use;

• land management; and

• human resources management.

The DMPP shall provide the following in support of this DAOD:

• an implementation plan;

• training; and

• performance reporting mechanisms.

Working Group

Level 1 Advisors (L1s) shall nominate DND employees and CF members as members of a working group in respect of the green procurement program under DGMSSC.

MA&S Activities

Project, procurement, materiel and engineering and maintenance managers dealing with MA&S activities shall consider environmentally preferable goods and services during all phases of the MA&S process, that is, during:

• identification and options analysis (planning);

• definition and implementation (procurement);

• in-service (operation and maintenance); and

• disposal of goods and realty infrastructure or closure activities of acquired services and facilities.

Reduced packaging and alternative distribution options also need to be considered throughout these activities.

Commodity Management Process

The commodity management process shall be carried out in accordance with the PWGSC Way Forward strategy to:

• develop strategic sourcing plans per commodity; and

• put in place new procurement instruments, including mandatory standing offers.

Environmental performance considerations shall be included in commodity management process plans so that green procurement is given priority for standard goods and services wherever possible.

Use of Mandatory Standing Offers

When purchasing through the use of mandatory standing offers, environmentally preferable goods and services shall be selected when available.

Communication and Promotion

Communication and promotion is an important component of the implementation of green procurement in the DND and the CF.

DND employees and CF members shall communicate and promote the following:

• responsibilities towards green procurement;

• integration of green procurement throughout the work of the DND and the CF; and

• awareness of DND and CF suppliers that:

  • environmental performance is a selection criteria;

  • supplier innovation is expected; and

  • compliance with environmental law, program and policies of the DND and the CF is required.

Training

The necessary training to support the objectives of the green procurement policy shall be provided to:

• management;

• technical staff; and

• persons in procurement services delivery and oversight positions.

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Costing

Value for Money

Value for money is the basis for all procurement decisions, having regard to sound stewardship, including green considerations.

Environmental performance shall be evaluated along side cost, general performance, availability and quality.

Life Cycle Costing

Life cycle costing involves taking a broad and longer-term view by recognizing all costs, as practicable, that are associated with meeting a requirement.

The consideration of life cycle costs of goods and services is:

• a key part of achieving value for money; and

• an ideal opportunity to take a broad range of environmental factors into consideration.

For more information on life cycle costing, see the following on the OGGO website:

• Environmental Awareness Tool Kit; and

• Guideline for Integration of Environmental Performance Considerations in Federal Government Procurement.

Higher Costs for Environmentally Preferable Goods and Services

The purchase of environmentally preferable goods and services with higher costs requires authorization and budgeting. For spending authorizations, see the Authority Table of DAOD 3015-0.

Such purchases may be authorized if the:

• cost of the environmentally preferable good or service is equal to or less than the cost of the normal good or service over its life cycle, i.e., it is acceptable to pay a higher cost up front when it is less expensive to use, maintain or dispose of the normal good or service; or

• purchase of the environmentally preferable good or service is a preventive measure as described in the Preventive Measures block.

Life cycle costing tools are available to support the green procurement policy.

Preventive Measures

Preventive measures include:

• prevention of pollution, contamination of sites and other hazards to human health; and

• elimination of the use of hazardous materiels.

Justification for a preventive measure includes:

• the avoidance of a possible severe environmental or human health impact;

• cost avoidance; or

• cost savings.

Integration of Environmental Performance Considerations

Identification of Environmental Performance Considerations

Environmental performance considerations differ from one commodity to the next.

For examples of environmental performance considerations which may be applicable, as well as recognized standards, labels and designations, see the following on the OGGO website:

• Environmental Awareness Tool Kit; and

• Guideline for Integration of Environmental Performance Considerations in Federal Government Procurement.

Recognized standards, labels (or demonstrable equivalences) and designations for environmentally preferable goods and services may be used and considered.

The acceptance of environmentally preferable goods and services for a large project may depend on a life cycle analysis to determine which good or service has the least environmental impact in relation to the financial costs.

Conducting environmental assessments for due diligence purposes provides an opportunity to identify where environmental impacts may be reduced through the MA&S process.

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Justification for Exceptions

During the identification and options analysis phases, environmental performance considerations shall always be addressed.

At the definition and implementation phases, project, procurement, materiel and engineering and maintenance managers dealing with MA&S activities shall include environmental performance considerations in statements of work, clauses, conditions and evaluation criteria unless one of the following applies:

• the environmentally preferable good or service does not meet all the technical requirements;

• environmental performance considerations hinder the capability of a unit, formation or ship, weapon system or other equipment to perform the missions or functions for which it is organized or designed;

• the cost of the environmentally preferable good or service over its life cycle is significantly above that for the normal good or service; or

• less than two suppliers are capable of meeting the evaluation criteria with respect to environmental performance considerations.

Monitoring and Reporting

Commitments

DND and CF commitments for green procurement shall be:

• tailored to reflect mandates and departmental buying patterns, as well as the nature and risks associated with the goods and services used to support the achievement of program objectives;

• set within the Sustainable Development Strategy (SDS);

• set by each L1, appropriate to their activities, in conjunction with their Environmental Management System (EMS) or other appropriate mechanism; and

• met through a combination of ways, including:

  • the PWGSC Way Forward strategy;

  • the government-wide commodity management process;

  • the services of PWGSC in a more general role as a common service organization; and

  • contracting under the authority of the DND and the CF.

Selection of Commodities

The selection of commodities for targeting green procurement shall be based on the:

• environmental impacts of the commodity;

• dollar value;

• availability of environmentally preferable goods and services; and

• feasibility in terms of operational requirements.

Performance Monitoring and Reporting

Monitoring and reporting green procurement performance shall be done through the annual:

• Report on Plans and Priorities; and

• Departmental Performance Report, including the Sustainable Development section, if applicable.

Initiatives of each L1 shall be reported through the EMS or other mechanism deemed appropriate.

Contribution and support for the green procurement policy objectives shall be a part of the performance evaluations of project, procurement, materiel and engineering and maintenance managers dealing with MA&S activities, and their directors and directors general, as appropriate.

Project, procurement, materiel and engineering and maintenance managers dealing with MA&S activities, and their directors and directors general, shall capture green procurement performance information by:

• including a record of decision for green procurement in every contract file;

• capturing green procurement information in the Capability Investment Database; and

• developing and using a green procurement capability in the Materiel Acquisition Support Information System and Canadian Forces Supply System.

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Responsibilities

Responsibility Table

The following table identifies the responsibilities associated with this DAOD:

The...	is or are responsible for...
ADM(Mat)	selecting commodities to be targeted and setting thresholds (contract dollar value) above which a formal record of evaluation is required; and providing instructions, tools and techniques to enable organizations within the DND and the CF to: implement an effective approach to MA&S planning and requirement definition that incorporates environmental performance considerations; establish management processes and controls relative to acquisitions to identify environmental risks, impacts and mitigation considerations, as appropriate; set green procurement targets; meet green procurement targets through a combination of initiatives, including government-wide commodity management process; and monitor and report on contracts that include environmental performance considerations.
L1s and all directors general responsible to ADM(Mat)	executing the green procurement policy procedures and instructions; determining opportunities for environmental performance improvements during the life cycle of a good or service; establishing management processes and controls relative to acquisitions to identify environmental risks, impacts and mitigation considerations, as appropriate (e.g. a green procurement component shall be added to all EMS of L1s); and monitoring and reporting on green procurement and green building project performance through the Sustainable Development section of the annual Departmental Performance Report.
Director General Environment	coordinating the performance of the SDS initiatives on green procurement for the purpose of the Sustainable Development section of the annual Departmental Performance Report.
Chief Military Engineering	developing supporting guidelines, instructions and directives to facilitate the necessary implementation of this DAOD for construction services.
DGMSSC and DMPP	developing supporting guidelines, instructions and directives on behalf of ADM(Mat), as required, to facilitate the implementation of this DAOD, including updates to existing guidelines and policies such as the Procurement Administration Manual and the Contracting Policy; developing appropriate training to support the green procurement policy, including the integration of green procurement principles in training for project, procurement, materiel and engineering and maintenance managers dealing with MA&S activities, and their personnel; developing and implementing standardized tracking and reporting mechanisms; and developing and executing communication and promotional plans.
project, procurement, materiel and engineering and maintenance managers dealing with MA&S activities	incorporating environmental performance alongside cost, general performance, availability and quality within the MA&S process; applying environmental performance considerations to bid solicitation, evaluation and contract documentation; and communicating to suppliers the importance of green procurement and overall DND and CF environmental program and policies.
unit environmental officers and hazardous material officers	providing advice on environmental considerations to project, procurement, materiel and engineering and maintenance managers who need to incorporate environmental performance considerations in MA&S activities.

References

Source References

• Office of Greening Government Operations, Public Works and Government Services Canada
• Policy on Green Procurement, Public Works and Government Services Canada
• The Way Forward, Public Works and Government Services Canada
• DAOD 3015-0, Green Procurement

Related References

• Contracting Policy, Treasury Board of Canada Secretariat
• Policy Framework for the Management of Assets and Acquired Services, Treasury Board of Canada Secretariat
• Policy on Management of Materiel, Treasury Board of Canada Secretariat
• Policy on Management of Real Property, Treasury Board of Canada Secretariat
• Procurement Review Policy, Treasury Board of Canada Secretariat
• Environmental Awareness Tool Kit, Public Works and Government Services Canada
• Guideline for Integration of Environmental Performance Considerations in Federal Government Procurement, Public Works and Government Services Canada
• Supply Manual, Public Works and Government Services Canada
• DAOD 3000-0, Materiel Acquisition and Support
• DAOD 3004-1, Procedural Overview - Contracting
• DAOD 4001-0, Management of Realty Assets
• DAOD 4001-1, Realty Asset Life Cycle Management
• DAOD 4003-0, Environmental Protection and Stewardship
• DAOD 4003-1, Hazardous Materials Management
• Defence Plan On-Line
• A-LM-007-014-AG-001, Canadian Forces Supply Manual
• The National Defence Sustainable Development Strategy: 4th Iteration, Environmentally Sustainable Defence Activities
• Director General Materiel Systems and Supply Chain, Intranet site on green procurement
• Procurement Administration Manual, Department of National Defence

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