Your Work Makes a Difference: BioPreferred Training for Contracting Officers   Marie Wheat and Vernell Thompson USDA BioPreferred Program Crandall Watson USDA Procurement Policy July 7, 2016 Good morning and thank you for being here with us. Today we have three audiences: 1) our live audience here on the Whitten Patio in Washington, D.C., 2) participants joining us through a live audio broadcast via the web, and 3) those who are accessing the archived video of this training on the USDA Learning System, AgLearn. Welcome to all of you!

Agenda Biobased Products Defined An Overview of the USDA BioPreferred Program Federal Requirements for the Purchase and Use of Biobased Products Biobased in Contracts Direct Purchasing of Biobased Products Contracting Officer and Contractor Reporting Your Work Makes a Difference! The Economic Impact of Biobased Product Purchasing

Definition of a Biobased Product A product composed of recent biological components - agricultural, forestry, and marine materials Legislative definition for BioPreferred does not include food, feed, or fuel. Now includes forest products that meet biobased content requirements, notwithstanding the market share, the age of the product, or whether the market for the product is new or emerging. Soy backed carpet Skillcraft Biobased Cleaner The definition of a biobased product is a product composed of recent biological components - agricultural, forestry, and marine materials Legislative definition for BioPreferred does NOT include food, feed, or fuel. Since the 2014 Farm Bill, innovative forestry products are included. Some examples of biobased products include: Soy backed carpet, Disposable plates and cutlery made of corn, biobased linoleum made from linseed oil, pine rosins, and wood flour, a sorbent made form cellulose, and here’s a good one, Power Green cleaner which is an AbilityOne Skillcraft product. Biobased linoleum made from linseed oil, pine rosins, wood flour  Disposable plates and cutlery made from corn Sorbent made from cellulose

Biobased Products Are Found Across Many Purchasing Categories Zion National Park uses soy-based graffiti remover USDA ARS Site in El Reno using biobased antifreeze in their firetrucks and agricultural sprayers USDA ARS site in Stuttgart, Arkansas uses biobased motor oil and biobased diesel fuel conditioner Now that we’ve talked about what a biobased product really is, I want you to learn about the diversity of biobased products being offered, AND, that Federal agencies are buying and using products as shown on this slide. For Example, USDA ARS Site in El Reno using biobased antifreeze in their firetrucks and agricultural sprayers Fort Belvoir used soy-based spray foam insulation in constructing a new building USDA ARS site in Stuttgart, Arkansas uses biobased motor oil and biobased diesel fuel conditioner Zion National Park uses soy-based graffiti remover Kennedy Space Center uses biobased toner cartridges Fort Belvoir used soy-based spray foam insulation in constructing a new building Kennedy Space Center uses biobased toner cartridges 4

The BioPreferred® Program Managed by USDA Established by the 2002 Farm Bill Expanded in the 2008 and 2014 Farm Bills Identifies and seeks new markets for biobased products Two major program elements Mandatory Federal Purchasing Voluntary Labeling Program TSA Bins made from corn resins Now a little bit about the BioPreferred Program. The program was first established by the 2002 Farm Bill and expanded in the 2008 and 2014 Farm Bills. Over the years, there has been continued bipartisan support for the Program. The Program is managed by USDA and *Identifies and seeks new markets for biobased products * There are two major program elements Mandatory Federal Purchasing Voluntary Labeling Program Here we have two more examples to the right on this slide – ** The TSA bins that a lot of you have used at the airport – bioplastic ** And a sink made of a composite of plant based resins Sink made from plant based resins

The USDA Certified Biobased Label Vendors and manufacturers may apply for certification and ability to display the USDA Certified Biobased Label on product Independent third party certification partnership with ASTM International to verify biobased content of product FP on label indicates product qualifies for federal purchasing We currently have over 2,700 biobased products where the manufacturer chose to have the product 3rd party tested. You will see on this example on the slide that the label shows the actual biobased content of the product. The FP indicates the product qualifies for mandatory federal purchasing TIDE Purclean recently received the USDA Certified Biobased Product label. You will see on the Tide Purclean label that the product is 65% biobased and qualifies for mandatory federal purchasing.

The Mandatory Federal Purchasing Requirements Federal agencies and contractors must purchase biobased products in “designated categories” Currently includes 97 designated, diverse categories including nearly 15,000 products Required by law for federal agencies and included throughout the FAR There is a process by which USDA looks at product categories and determines that there are a significant number of biobased products available for purchase. We then “designate” those “product categories” for mandatory federal purchase. Currently, there are 97 product categories representing nearly 15,000 products. Biobased purchasing by federal agencies is required by law and also is included throughout the Federal Acquisition Regulation.

For each Mandatory Purchasing Category - Minimum Biobased Content Standards are Established Janitorial For each Mandatory Purchasing Category, minimum biobased content standards are established. For example, on this chart you will see some of the product categories that are applicable to janitorial and custodial service contracts. And, I just want to point out here you will see Floor Strippers must be 78% biobased to qualify for mandatory federal purchasing. The BioPreferred website has a catalog of biobased products. searchable by functional area and product category. BioPreferred website has a listing of product categories by buying area – check out: www.biopreferred.gov

For each Mandatory Purchasing Category - Minimum Biobased Content Standards are Established Here are some other examples of biobased product categories in Operations and Maintenance. For example, here on this chart you will see that designated Multipurpose Lubricants must have a minimum biobased content of 88%. Again, as mentioned earlier, there is a great diversity of biobased products in many categories that the federal government uses every day. ******* Now to tell you more about the specific responsibilities of Contracting Officers related to making biobased purchases is my colleague, Vernell Thompson. ******** Operations and Maintenance

Mandatory Purchasing Requirements Thank you Marie. I am going to talk about the FAR and mandatory purchasing of biobased products.

Federal Acquisition Regulation Regarding Mandatory Purchasing of Biobased Products FAR Parts Pertaining to Biobased Products 2 - Definition 7 - Acquisition Planning 11 - Specifications, Product Descriptions and Standards, Source Selection Evaluation Factors 13 - Micro-Purchase Threshold 23 - Policy 42 - Contract Administration 52 - Clauses As contracting officers, we know the FAR is our major procurement regulation. Most of you probably have it memorized.  Biobased purchasing is throughout many Parts of the FAR. Wherever you in the FAR, the purchasing of biobased products is visible and relevant.  Part 2 contains the definition. Part 7 requires that when you develop your acquisition plan that you include the use of biobased products.  Part 11 requires agencies to use biobased products when developing, reviewing or revising specifications. Part 11 also discusses source selection factors and using biobased products. We have some very good contracts where biobased purchasing is used as a technical factor in evaluating offerors.  Part 13 requires that purchasers buy biobased products at or below the micro-purchase threshold.  Part 23 states the main policy that you must procure biobased products to the maximum extent practicable.  Part 42 requires the Government to monitor contractor compliance with specifications or other contractual requirements on the delivery or use of biobased products.  Part 52 contains clauses that will be discussed later.  

Mandatory Purchasing Requirements Solicitations and Contracts Examples:  Performance Work Statements Descriptions Specifications Instructions to Offerors Evaluation Factors for Awards Direct Purchases Examples: Supply Catalogs Purchase Cards Slide 12 – Mandatory Purchasing Requirements The Federal government purchases approximately $450 billion in products and services every year through contracts and direct purchases.   Contracts Performance Work Statements- Insert language for procurement and use of biobased products. Discuss Section C.  Specifications – Look at present specifications and remove barriers to biobased. Insert biobased into new specifications. For example, in the past, specifications related to bedding did not include use of biobased. Now, biobased is included and biobased bedding is used in some military inns and lodging.  Instructions to Offerors and Evaluation Factors for Awards – Alert offerors that you will be using biobased as an evaluation factor and that you expect the contractor to purchase and use biobased products. USDA does a good job of using biobased evaluation factors as part of their solicitation. Direct Purchases Electronic catalogs – GSA Advantage and DOD EMALL contain biobased products and you can purchase them. Here are examples: Purchase Card – When you go to a store, Home Depot, Lowes, you must use your purchase card to buy biobased products. For example at Fort Lee Virginia, personnel use their purchase card to buy biobased graffiti remover. It is cost effective and performs well.

Incorporating Biobased Product Requirements in Solicitations Include Biobased language in the solicitation, where appropriate Include the Biobased provision 52.223-2 and or clause 52.223-1 in the solicitation, as prescribed in the FAR. Include Biobased product purchasing reporting as a deliverable in the Deliverables Schedule. In the Federal Business Opportunities, incorporate the statement: “This procurement requires the use of biobased products to the extent that such products are reasonably available, meet agency or relevant performance standards, and are reasonably priced. The products should first be acquired from categories designated by USDA.” In the automated contract writing system (like IAS at USDA), enter “YES” in the field “Are any Biobased Included?” and YES in the field “Are Biobased Clauses 52.223-1 or 52.223-2 included?” Incorporating Biobased Product Requirements Go over 52.223-2 and 52.223-1 briefly. Biobased Product Purchasing reporting must be a deliverable. Crandall will discuss in more detail. At USDA, we incorporate the following statement in FedBizopps to alert the vendors about biobased products being in our solicitations. USDA also has an automated contract writing system (IAS) as you probably do. We have fields in IAS “Are any biobased included “and: Are Biobased Clauses Included?”

Incorporating Biobased Requirements in the Contract Include Biobased language in the contract, where appropriate Include the Biobased provision 52.223-2 in the contract, as prescribed in the FAR. Include Biobased product purchase reporting as a deliverable. Model contract language available on BioPreferred website. Incorporating Biobased Requirements Model contract language and model Sections L and M are available on BioPreferred website for custodial/janitorial; vehicle maintenance; food services/cafeteria; operations and maintenance; and construction.  

BioPreferred Website Resources: Biobased Quick Reference for Contracting Officers USDA has developed a quick reference guide for Contracting Officers. It is a checklist from A to Z on how to include biobased in your solicitations and contracts. You can use it also. Don’t reinvent the wheel.

BioPreferred Website Resources: Model Contract Language The following are examples of products that may be used in this contract for which biobased products are available. This is not all inclusive…. Hydraulic fluids Penetrating Lubricants Diesel fuel additives Greases 2 cycle engine oil Degreasers Cleaners Multipurpose Lubricants Lube chain lubricants Chain bar lubricants Here is model contract language that we pulled out for facilities and operation/facilities maintenance. We are updating all of our contract templates. As you can see, these biobased products are readily available.  

Resources for Direct Purchasing Now I am going to discuss some good resources for conducting market research and for buying biobased products.  

BioPreferred Catalog The FAR directs us to conduct market research. A great tool for doing this is the BioPreferred Catalog founds on our website.   For example, if you search for multi-purpose cleaners, you will get a list. The FP to the left indicates that the manufacturer self-certifies that the product meets the minimum biobased content requirements.

BioPreferred Catalog – Example of Product Information Select a specific product, disinfectant cleaner. You will see a description, the company’s website, product description and sometimes unique features of the product that the vendor wants to communicate.  

Other Resources for Direct Purchasing You have conducted market research. Now, where are some of the sources that you can buy biobased products?   AbilityOne Catalog. This is a win win situation since AbilityOne is a mandatory source, you can buy 2 mandatory products with 1 purchase. AbilityOne being National Industries for the Blind and SourceAmerica. The yellow icon represents biobased in the AbilityOne catalog. Hundreds of biobased AbilityOne products – biobased laundry detergent; biobased multi-purpose cleaners;and biobased degreasers. GSA Advantage and GSA Global Supply. Include biobased products and they are listed using the symbol on the USDA certified Product label. Some biobased products are : biobased hand sanitizers; biobased floor cleaners; biobased greases; biobased multipurpose lubricants; and biobased metalworking fluids. All cheaper than non-biobased counterparts. DOD EMALL also has biobased products for sale. This electronic catalog is used by DOD, the military services and Department of Homeland Security. It uses a green leaf to indicate “green products” such as biobased.

Contracting Officer and Contractor Reporting of Biobased Product Purchases The 2008 Farm Bill enhanced by the 2014 Farm Bill requires reporting by types of products, and dollar value of all US Department of Agriculture (USDA) designated biobased products purchased. Federal agencies are required to demonstrate compliance with Executive Order 13693 entitled Planning for Federal Sustainability in the Next Decade. This Order sets sustainable acquisition goals when procuring biobased products and/or services. Each agency’s success in meeting these sustainable acquisition requirements is measured in part by the biobased information entered into the Federal Procurement Data System (FPDS). The entry of accurate information into FPDS is critical to assess the federal government’s progress in meeting BioPreferred goals.

Biobased FAR Clause All Contracting Officers must ensure that the FAR clause 52.223-2 (as shown on your screen) is inserted into each contract that includes biobased products. It is mandatory that FAR Clause 52.223-2 be inserted in contracts where biobased products may be used, including but not limited to contracts in the areas of: construction; custodial or janitorial; food services or cafeteria; operations and maintenance, maintenance and repair; and vehicle maintenance.

Contracting Officer Role Related to Federal Reporting of Biobased Product Purchases Ensure FAR Clause 52.223-2 is in your contracts.  Notify winning Contractor that the Contractor must report their BioPreferred product purchases - product types and dollar value of any USDA designated Biobased product purchased by the Contractor to input the data to the SAM.  Ensure that you as the Contracting Officer receives a copy of the reporting data from the Contractor as required in FAR Clause.  Periodically remind Contractor of this reporting requirement.  Enter proper data coding information in the Federal Procurement Data System (FPDS). Notify the winning Contractor that they must report their BioPreferred product purchases- product types and dollar value of any USDA designated biobased product purchased by the Contractor to input the data to the System for Award Management (SAM). Ensure that you, the Contracting Officer, receive a copy of the reporting data from the Contractor as required in the FAR Clause. Periodically remind the Contractor of this reporting requirement. If you have For Official Use Only or FOUO access in SAM, you should view the reporting information entered by the Federal Contractor. You can search records by Legal Business Name, DUNS number or CAGE code. This is helpful in monitoring contracts and ensuring that the BioPreferred reporting has been completed.

Contracting Officer Role Related to Biobased Product Purchase Reporting The Federal Procurement Data System (FPDS)-NG is a central repository of information on federal contracting. The “trigger” for Contractor reporting of biobased product purchases in the System is for the Contracting Officer to correctly enter Section 8L on the FPDS. All Contracting Officers must complete the Federal Procurement Data System (FPDS) Data Element 8L for Recovered Materials/Sustainability. This field indicates whether COs included the clauses in the contract for biobased products. FPDS Data Element 8L is applicable to all Contracts, Delivery Orders against a single award, Basic Ordering Agreements, Multiple Award Schedules, Government-wide Acquisition Contracts, BPAs, IDIQ Contracts and all other awards.

FPDS Screen Showing Data Element Slide shows Recovered Materials/Sustainability Data Element 8L. This must be completed to ensure accurate biobased product purchase reporting. No data can be placed in the SAM by the Contractor if this 8L data element is not filled out correctly by the Contracting Officer.

When completing FPDS Data Element 8L, select the appropriate data element from the drop down menu as it relates to the requirement for biobased product purchases. Use the code for biobased, biobased only or biobased and energy efficient or any of those codes containing biobased. Option C-No Clause Included and No Sustainability are not appropriate responses for the majority of contracts. This Data Element 8L must be filled out

Contractor Reporting Requirement Reporting of biobased product purchases will be completed by contractors through a portal in the System for Award Management or SAM. Contractors will report the product type and dollar value of any USDA designated biobased products purchased by the Contractor. Reporting must be completed by the end of October for the previous entire fiscal year (October 1 - September 30). The successful Contractor must report purchases by product type and dollar value of any USDA qualified biobased product purchased by the Contractor. The Contractor must input the data through a portal in the System for Award Management (SAM) at http://www.sam.gov). Reporting must be completed by the end of October for the previous fiscal year (October 1-September 30). There are instructions in the SAM for Contractors on how to report the data, questions and answers on biobased reporting, and a help desk for questions. Contractors must be sure to provide Contracting Officers a copy of the data reported as required in FAR Clause 52.223-2. USDA sent a letter to all Vendors informing them of their reporting responsibilities. It is on the website. Please use it for your agency.

What’s New?, Success Stories, and How your work makes a Difference

What’s New? Emphasis on Biobased-Only Contracts Section 9002 of the Farm Security and Rural Investment Act requires each federal agency to establish a targeted biobased-only procurement requirement under which your agency must issue a certain number of biobased only contracts. The final rule implementing the statute was published in the Federal Register on June 15, 2015.   Similarly, section 3(i)(iv) of Executive Order 13693, Planning for Federal Sustainability in the Next Decade (E.O.), requires each agency to establish a target for the number of contracts to be awarded with BioPreferred and biobased criteria in their annual Strategic Sustainability Performance Plans. The 2014 Farm Bill requires each federal agency to establish a targeted biobased-only procurement requirement under which your agency must issue a certain number of biobased only contracts. The Final Rule implementing the statute was published in the Federal Register on June 15, 2015. Also,  Executive Order 13693, Planning for Federal Sustainability in the Next Decade (E.O.), requires each agency to establish a target for the number of contracts to be awarded with BioPreferred and biobased criteria in their annual Strategic Sustainability Performance Plans. The EO Implementing Instructions established a White House Workgroup, the Sustainable Acquisition and Materials Management Practices Workgroup. This group submitted a report on March 25, 2016 to all agencies on biobased-only contracts. It sets forth options and methodologies that agencies can use to set annual targets for biobased-only contracts.  It is time to establish your biobased-only contracts!

What’s New (continued) Designating biobased intermediates for mandatory federal purchasing An updated economic study indicating trends on GDP growth and job creation, as well as a new state by state breakdown of biobased industry employment. USDA is developing new training for Contractors and the contracting and technical communities (fleet managers and facilities managers). USDA has just published “A Guide to selling Biobased Products to the Federal Government” on the BioPreferred Program web site. We’re also going to be proposing a new rule to designate biobased intermediates for mandatory federal purchasing in the next few months. We’re working on an updated economic study indicating trends on GDP growth and job creation, as well as a new state by state breakdown of biobased industry employment. We’re developing new training for Contractors and the contracting and technical communities (fleet managers and facilities managers). And, USDA has just published “A Guide to selling Biobased Products to the Federal Government” on the BioPreferred Program web site. We are busy at the BioPreferred Program!

Success Story: NASA Kennedy Space Center Purchased about one million dollars worth of biobased products in 2015 Pilot projects are the first step to check performance Currently using: biobased cleaning products biobased hi-temp grease is used biobased coolant is used for metal working operations; biobased transformer fluids; biobased backed carpet biobased toner cartridges NASA’s Kennedy Space Center has been very proactive in determining if there are biobased products that meet their needs. Across the center, pilot projects are conducted to determine if the biobased alternative to their currently used non-biobased product meets their requirements. Biobased products, determined to meet performance standards and that are cost effective, are adopted. In 2015, Kennedy Space Centered purchased over 1 million dollars in biobased products, primarily through their contractors. This is living proof that there are numerous options for biobased products to be integrated into agency operations.

Success Stories: USDA ARS facility in Peoria, Illinois is using biobased floor strippers, glass cleaners, floor cleaners, trash can liners, etc. USDA headquarters is using biobased degreasers for drains, coil cleaners, industrial solvents, hydraulic fluids, cutlery and plates in the cafeteria, glass cleaners, hand cleaners, fertilizers, roof coatings, soy inks, and others. Throughout USDA, there are many success stories for biobased product adoption. The Agricultural Research Service has captured many of these stories. One example would be the ARS facility in Peoria, Illinois using biobased throughout their janitorial contracts. USDA Headquarters was an early adopter of biobased cleaning products in their janitorial contracts as got a great response from their both the janitorial and office staff about how biobased products performed well without the harsh chemicals in previous products. USDA headquarters is also using biobased products throughout their O&M functions with biobased products such as industrial solvents and hydraulic fluids. Soy ink is used in the large printing presses at USDA headquarters. Biobased roof coating to reduce energy consumption

Your Work Makes a Difference!

An Economic Impact Analysis of the U.S. Biobased Products Industry Mandated by the 2014 Farm Bill Plan to release the Report to Congress in June of 2015 First federally-sponsored economic report of its kind for biobased industry Examines and quantifies the effect of the U.S. biobased products industry from an economics and jobs perspective Primary authors: Dr. Jay Golden, Director of Duke University’s Center for Sustainability & Commerce Dr. Robert Handfield, Professor of Supply Chain Management at North Carolina State University’s Poole College of Management

Your Work Makes a Difference! Key Findings

Key Findings: Continued Minimum of 300 million gallons of petroleum replaced annually due to the use of biobased products Equivalent to taking 200,000 cars off the road each year

In Summary: You Are a Job Creator When You: Purchase biobased products Test biobased products to see if they meet your requirements Require biobased products in solicitations and contracts Challenge and delete specifications that limit biobased products Modify specifications to include biobased products Work with your contractors to educate them about buying biobased Ensure that contractors meet their annual reporting requirement Ensure biobased clauses are in service and construction contracts Buy biobased products with your purchase card Share your successes with others. Send your success stories to Marie.Wheat@dm.usda.gov.   To summarize, these are some of the things that you can do to advance the bioeconomy, create economic growth in the United States and help create jobs in your local community. Go through the list quickly.

Article: National Contract Management Association I also wanted to point out to you that the National Contract Management Association recently featured biobased product purchasing in their monthly magazine. This article is available on the BioPreferred website and we have copies for contracting officers here today at the BioPreferred exhibit booth.

BioPreferred Training Resources We have additional training resources on the BioPreferred website. Check out: www.biopreferred.gov Lastly, if you want to know more, there are additional training modules available on the USDA BioPreferred website. In addition, all the documents Vernell mentioned can also be found at www.biopreferred.gov.

www.biopreferred.gov Contact: Marie Wheat 202-239-4502 marie.wheat@dm.usda.gov Vernell Thompson 202-720-4145 vernell.thompson@dm.usda.gov Crandall Watson 202-720-7529 crandall.watson@usda.gov Again, thank you for your attention today. And, the final thing I want you to know is that we are here to help you. If you ever have any questions, feel free to contact any one of us and we will gladly help you and get you the information you are seeking. We will do everything we can to make sure that biobased is first in your thoughts as you move forward with sustainable, biobased purchases and make a difference in all that you do in your job EVERY DAY. www.biopreferred.gov