DAOD 3015-1, Management of Green Procurement


1. Introduction

Date of Issue: 2007-11-02

Date of Last Modification: 2020-02-28

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 Armed Forces (CAF members).

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

Enquiries:

  • Director General Materiel Systems and Supply Chain (DGMSSC) (for materiel systems and supply chain)
  • Director Materiel Policy and Procedures (DMPP) (for materiel policy and procedures)

2. Definitions

environmental considerations (facteurs environnementaux)

Include, among other things: the reduction of greenhouse gas emissions and air contaminants; improved energy and water efficiency; reduced waste and support reuse and recycling; the use of renewable resources; reduced hazardous waste; reduced toxic and hazardous substances; and biodiversity. (Section 5 of the Policy on Green Procurement, Treasury Board)

environmentally preferable goods and services (biens et services à privilégier du point de vue environnemental)

Are those that have a lesser or reduced impact on the environment over the life cycle of the good or service, when compared with competing goods or services serving the same purpose. (Section 5 of the Policy on Green Procurement, Treasury Board)

green procurement (achats écologiques)

The integration of environmental considerations in the materiel acquisition and support process, including requirement identification and definition, planning, procurement, operation and maintenance, disposal of goods and realty infrastructure, and closure activities in respect of acquired services and facilities. (Defence Terminology Bank record number 41499)

greening (écologisation)

The integration of environmental considerations in a process, project or purchase. (Defence Terminology Bank record number 43088)


3. Overview

Context

3.1 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.

3.2 Green procurement is set within the context of:

  1. smart procurement in terms of increasing durability, quality and efficiencies; and
  2. saving money during acquisition, operation, maintenance, disposal of goods and closure activities of acquired services.

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

  1. green procurement in the DND and the CAF; and
  2. integrating environmental considerations in DND and CAF materiel acquisition and support (MA&S) activities.

3.4 See the Treasury Board (TB) Greening government website for information relating to:

  1. the federal government policy on green procurement;
  2. supporting tools and guidelines; and
  3. greening government operations.

Purpose

3.5 The purpose of this DAOD is to:

  1. explain how the green procurement policy is to be implemented; and
  2. define the roles and responsibilities in respect of the management of green procurement in the DND and the CAF.

Purchases

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

  1. standard goods and services; and
  2. equipment specific to the DND and the CAF.

Standard Goods and Services

3.7 Standard goods and services are the same for every federal government department and are addressed through The Way Forward strategy of Public Services and Procurement Canada (PSPC), which includes the:

  1. commodity management process; and
  2. development and use of mandatory standing offers.

Note In this DAOD, “commodity” refers to a commonly used good or service managed by PSPC. See the PSPC Supply Manual for information on the commodity management process.

3.8 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 CAF

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

  1. assessment of environmental considerations;
  2. life cycle analysis;
  3. environmental officers; and
  4. various tools and websites.

4. Operating Principles

Process

4.1 Green procurement must be integrated throughout the MA&S process. This contributes towards the success of other DND and CAF programs and activities, including those in respect of:

  1. air and water quality;
  2. waste management;
  3. energy use in buildings;
  4. vehicle and fuel selection and use;
  5. land management;
  6. disposal, sales, artefacts and loans; and
  7. occupational health and safety.

4.2 The DMPP must provide the following in support of this DAOD:

  1. an implementation plan;
  2. training; and
  3. performance reporting mechanisms.

Working Group

4.3 Level one advisors (L1s) must nominate a DND employee or a CAF member as a member of the working group in respect of the green procurement program under DGMSSC.

MA&S Activities

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

  1. identification and options analysis (planning);
  2. definition and implementation (procurement);
  3. in-service (operation and maintenance); and
  4. disposal of goods and realty infrastructure or closure activities of acquired services and facilities.

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

Commodity Management Process

4.6 The commodity management process must be carried out in accordance with The Way Forward strategy to:

  1. develop strategic sourcing plans per commodity; and
  2. put in place new procurement instruments, including mandatory standing offers.

4.7 Environmental considerations must 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

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

Communication and Promotion

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

4.10 DND employees and CAF members must communicate and promote the following:

  1. responsibilities for green procurement;
  2. integration of green procurement in DND and CAF activities; and
  3. awareness by DND and CAF suppliers that:
    1. green procurement is a selection criteria;
    2. supplier innovation is expected; and
    3. compliance is required with environmental law, and DND and CAF green procurement programs and policies.

Training

4.11 Necessary training to support the objectives of the green procurement policy must be provided to:

  1. management;
  2. technical staff; and
  3. persons in procurement services delivery and oversight positions.

Note  ̶  See the CANFORGENs in the References section for mandatory green procurement training.

5. Costing

Value for Money

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

5.2 Environmental performance must be evaluated alongside cost, general performance, availability and quality.

Life Cycle Costing

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

5.4 The consideration of life cycle costs of standard goods and services and equipment specific to the DND and the CAF is:

  1. a key part of achieving value for money; and
  2. an ideal opportunity to take a broad range of environmental factors into consideration.

5.5 For additional information on life cycle costing, see the TB Greening Government Strategy.

Higher Costs for Environmentally Preferable Goods and Services

5.6 The purchase of environmentally preferable goods and services with higher costs requires authorization and budgeting. For spending authorizations, see the Authority Table in paragraph 5.1 of DAOD 3015-0.

5.7 Such purchases may be authorized if the:

  1. 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 than to use, maintain or dispose of the normal good or service; or
  2. purchase of the environmentally preferable good or service is a preventive measure as described in paragraphs 5.9 and 5.10.

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

Preventive Measures

5.9 Preventive measures include:

  1. prevention of pollution, contamination of sites and other hazards to human health; and
  2. elimination of the use of hazardous materials.

5.10 Justification for a preventive measure includes:

  1. the avoidance of a possible severe environmental or human health impact;
  2. cost avoidance; or
  3. cost savings.

6. Integration of Environmental Considerations

Identification of Environmental Considerations

6.1 Environmental considerations differ from one commodity to the next.

6.2 For examples of environmental considerations which may be applicable, as well as recognized standards, labels and designations, see the Greening Government Strategy.

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

6.4 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.

6.5 Conducting an assessment of environmental considerations for due diligence purposes provides an opportunity to identify if environmental impacts may be reduced through the MA&S process.

Justification for Exceptions

6.6 During the identification and options analysis phases, environmental considerations must always be taken into account.

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

  1. the environmentally preferable good or service would not meet all the technical requirements;
  2. environmental considerations hinder the capability of a unit, formation, ship, weapon system or other equipment to perform the missions or functions for which it is organized or designed;
  3. the cost of the environmentally preferable good or service over its full life cycle is significantly above that for the normal good or service; or
  4. less than two suppliers are capable of meeting the evaluation criteria with respect to environmental considerations.

7. Monitoring and Reporting

Commitments

7.1 DND and CAF commitments for green procurement must be:

  1. tailored to reflect mandates and DND buying patterns, as well as the nature and risks associated with the goods and services used to support the achievement of program objectives;
  2. set out in the Green Procurement section of the Defence Energy and Environment Strategy;
  3. set by each L1, appropriate to their activities, in conjunction with their environmental management system (EMS) or other appropriate mechanism; and
  4. met through a combination of ways, including:
    1. The Way Forward strategy;
    2. the government-wide commodity management process;
    3. the services of PSPC in a more general role as a common service organization; and
    4. contracting under the authority of the DND and the CAF.

Selection of Commodities

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

  1. environmental impacts of the commodities;
  2. dollar value;
  3. availability of environmentally preferable goods and services; and
  4. feasibility in terms of operational requirements.

Performance Monitoring and Reporting

7.3 Monitoring and reporting green procurement performance must be done through the annual Departmental Results Report.

7.4 Initiatives of each L1 must be reported through their EMS or other mechanism as appropriate.

7.5 Contribution and support for the green procurement policy objectives must 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.

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

  1. including a record of decision for green procurement in every contract file;
  2. capturing green procurement information in the Defence Services Program Portal (DSPP); and
  3. developing and using green procurement capability in the Defence Resource Management Information System.

8. Compliance and Consequences

Compliance

8.1 DND employees and CAF members must comply with this DAOD. Should clarification of the policies or instructions set out in this DAOD be required, DND employees and CAF members may seek direction through their channel of communication or chain of command, as appropriate. Managers and military supervisors have the primary responsibility for and means of ensuring the compliance of their DND employees and CAF members with this DAOD.

Consequences of Non-Compliance

8.2 DND employees and CAF members are accountable to their respective managers and military supervisors for any failure to comply with the direction set out in this DAOD. Non‑compliance with this DAOD may have consequences for both the DND and the CAF as institutions, and for DND employees and CAF members as individuals. Suspected non‑compliance may be investigated. Managers and military supervisors must take or direct appropriate corrective measures if non-compliance with this DAOD has consequences for the DND or the CAF. The decision of an L1 or other senior official to take action or to intervene in a case of non-compliance, other than in respect of a decision under the Code of Service Discipline regarding a CAF member, will depend on the degree of risk based on the impact and likelihood of an adverse outcome resulting from the non-compliance and other circumstances of the case.

8.3 The nature and severity of the consequences resulting from non-compliance should be commensurate with the circumstances of the non-compliance and other relevant circumstances. Consequences of non-compliance may include one or more of the following:

  1. the ordering of the completion of appropriate learning, training or professional development;
  2. the entering of observations in individual performance evaluations;
  3. increased reporting and performance monitoring;
  4. the withdrawal of any authority provided under this DAOD to a DND employee or CAF member;
  5. the reporting of suspected offences to responsible law enforcement agencies;
  6. the application of specific consequences as set out in applicable laws, codes of conduct, and DND and CAF policies and instructions;
  7. other administrative action, including the imposition of disciplinary measures, for a DND employee;
  8. other administrative or disciplinary action, or both, for a CAF member; and
  9. the imposition of liability on the part of Her Majesty in right of Canada, DND employees and CAF members.

Note – In respect of the compliance of DND employees, see the TB Framework for the Management of Compliance for additional information.

9. Responsibilities

Responsibility Table

9.1 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 DND and CAF organizations to:
    • implement an effective approach to MA&S planning and requirement definition that incorporates environmental considerations;
    • establish management processes and controls relative to acquisitions to identify environmental risks, impacts and mitigation considerations, as appropriate;
    • meet green procurement targets through a combination of initiatives, including the government-wide commodity management process; and
    • monitor and report on contracts that include environmental considerations.

Assistant Deputy Minister (Infrastructure and Environment)

  •  monitoring and reporting on the performance of green building project and green procurement through the annual Departmental Results Report; and
  • developing policies, instructions, directives and guidelines to facilitate the necessary implementation of this DAOD for green building and construction services.

L1s and all directors general responsible to ADM(Mat)

  •  implementing green procurement policies, instructions and directives;
  • determining opportunities for environmental 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;
  • adding a green procurement component to all L1 EMSs; and
  • monitoring and reporting on green procurement and green building project performance through the annual Departmental Results Report.

DGMSSC and DMPP

  •  developing instructions, directives and guidelines on behalf of ADM(Mat) to facilitate the implementation of the TB Contracting Policy and this DAOD;
  • updating A-PP-005-000/AG-002, Procurement Administration Manual 1.10, Green Procurement of goods, services, real property and infrastructure, and other DND and CAF green procurement instructions, directives and guidelines;
  • 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 green procurement tracking and reporting mechanisms; and
  • developing and executing green procurement 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 considerations to bid solicitation, evaluation and contract documentation; and
  • communicating to suppliers the importance of green procurement and overall DND and CAF 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 incorporate environmental considerations in MA&S activities.

10. References

Acts, Regulations, Central Agency Policies and Policy DAOD

Other References

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