Electronic Equipment Leasing
Overview
Federal electronic equipment leasing services are quite varied and can involve the supply of many products and services, including computers (e.g. desktops and laptops), imaging equipment (e.g. copiers), and/or asset management (e.g. procurement, operation and maintenance, and disposition of the electronic equipment).
You can determine the specific sustainable requirements that apply to electronic equipment leasing by clicking on the required green products on the Left Side of this page.
You can find the federal government’s sustainable acquisition policies and procedures at Federal Acquisition Regulations (FAR) Part 23
. Federal agencies are required to procure sustainable products and services to the maximum extent practicable. Per FAR 23.103(c), this includes products under contract actions for services or construction if the products are:
- Delivered to the Government;
- Furnished by the contractor for use by the Government;
- Incorporated into the construction of a public building or public work; or
- Acquired by the contractor for use in performing services under a Government contract where the cost of the products is a direct cost to a Government contract.
Due to the materials used and energy consumed by these products, electronic equipment leasing services have the potential to have significant negative impacts on the environment and public health. The federal government has a responsibility to procure environmentally preferable electronic equipment, minimize the impacts of this equipment while we use it, and dispose of it responsibly. There are many ways for federal buyers to consider and account for green electronics practices in solicitations and contracts. Below are some tips to help get you started. This type of service typically falls under NAICS code 53420 and Product Service Codes (PSC) W070, W074 and W075.
Required Green Products
In accordance with Federal Acquisition Regulations (FAR) Part 23, federal agencies are required to procure sustainable products and services to the maximum extent practicable (see FAR 23.103, 23.105, and 23.106 for additional information, including exceptions and exemptions). In support of electronic equipment leasing, the following purchasing programs may be applicable:
Federal agencies are directed to prioritize items that are both CPG (see FAR 23.107-1) and BioPreferred (see FAR 23.107-2); however, in instances when federal agencies must choose between the two programs, and both items meet the agency's needs, federal agencies are directed to procure the CPG item.
Download a suggested list of related products covered by these federal purchasing programs:
FAR 23.104(c) provides direction to ensure that federal agencies, first and foremost, comply with statutory purchasing program requirements and prioritize multi-attribute sustainable products and services, which are those that meet all applicable statutory purchasing program requirements and one or more required U.S. Environmental Protection Agency (EPA) purchasing programs.
Considerations:
- Identify sustainable products and services in the statement of work or elsewhere in the contract, including the purchasing program and type of product or service that are applicable.
- Include FAR 52.223-23, Sustainable Products and Services, which requires contractors to ensure the sustainable products and services identified in the contract are delivered, incorporated, or furnished under the contract.
- Include FAR 52.223-2, Reporting of Biobased Products Under Service and Construction Contracts, which requires service and construction contractors to report their purchases of biobased products to the System for Award Management (SAM).
- Refer to GSA's Sustainability Policies for Leased Buildings for information on both required and recommended provisions.
Sustainability Considerations
There are many other commercial practices that will result in a more sustainable and environmentally preferable service. Consider these when defining performance requirements and developing evaluation criteria.
- Lease refurbished electronics when possible.
- Consider multi-functional devices (ex. combined printer, fax, scanner, & copier) to reduce the number of products needed to be serviced/procured.
- Work with the leasing company to choose imaging equipment with the right monthly copy volume to ensure the most efficient energy use. Calculate the number of copies/print jobs you need each month by using machine counters and working with the leasing company.
- Require imaging equipment that is capable of duplex copying/printing and ensure duplexing is set as the default option. This default should be set up when the item is delivered and should be set/re-established whenever the equipment is maintained.
- Toner and Ink Cartridge Requirements or Preferences:
- Specify returnable, recyclable, or all-in-one ink and toner cartridges that can be re-engineered.
- Specify remanufactured ink and toner cartridges, or cartridges containing recycled content.
- Require non-toxic ink and toner.
- Require contractors to take back spent toner and ink cartridges
- Require minimal and recyclable packaging and/or arrange for packaging taken back for reuse.
- Require contractors to provide Material Safety Data Sheets and other documents to substantiate their claims. These claims can be substantiated if the contractor gets certified to EPEAT, Energy Star, and/or FEMP.
- Enable the Energy Star power management features (e.g., sleep, standby or hibernate) on 100% of computers and monitors or to the maximum degree based on mission needs.
- Specify equipment that can use recycled content paper.
- Require contractors to follow agency media sanitization policies or guidelines.
- Require leased equipment to be reused, donated, sold, or recycled using environmentally sound management practices, including the use of third party certified refurbishers and recyclers. Consider the sample langauage and guidance included in the 2015 Federal Electronic Asset Take-Back Guidance, which addresses the inclusion of provisions in contracts or leases for manufacturer or reseller take-back of used electronic assets.
- If leasing, be aware that there are three general leasing options available: Lease to Ownership Program (LTOP), Lease with Option to Purchase (LWOP) and Lease. LWOP and Lease are preferred as they put the onus of equipment refurbishment, recycling, or disposal on the contractor.
- Consider longer lease terms and technology refresh rates to extend initial product life.
- Define lease terms and product life extension strategies for different types of equipment based on useful life.
- Consider optional extensions of warranty and software licenses beyond the lease term.
- Consider cost-per-copy contracts.
- Require training for users to ensure all are educated on its proper handling and environmental attributes.
Evaluation Factors
There are many opportunities to consider environmental criteria in your evaluation of offers. A Pass/Fail approach may be appropriate for establishing basic green product requirements or when market research shows that other sustainable practices are common in the commercial marketplace. For example, you might require that contractors use third-party certified electronics recyclers to recycle equipment – an offeror can either meet this requirement (pass) or it cannot (fail).
In some cases, it may be appropriate to consider environmental aspects through a Best Value Tradeoff approach in lieu of, or in addition to, pass/fail criteria. By incorporating environmental criteria into your evaluation factors, you can weigh a vendor’s ability to offer desirable sustainable practices above and beyond minimum contract requirements in relation to other factors, such as price. Several potential opportunities for incorporating environmental considerations into your evaluation factors are listed below:
- Operations and Maintenance Costs – Consider life cycle costs of products in addition to price. Require offerors to include information on life cycle costs, including estimates of energy and maintenance costs (including toner cartridge replacements, as applicable). Otherwise, these hidden costs may not be accounted for in the contract award decision, potentially raising total contract costs.
- Waste Management – Evaluate how contractors intend to minimize, manage, and dispose of equipment & waste.
- Technical Approach & Management Plan – Require contractors to develop environmental project goals and objectives, address sustainable attributes of products, detail end-of-life considerations, identify other sustainable practices, and develop a project plan that will maximize sustainability objectives.
- Past Performance – Evaluate how well the contractor performed previous projects where they have successfully performed electronic equipment leasing services, including the supply of green products.
- Previous Experience – Require contractors to demonstrate their experience and capability to provide green electronic equipment leasing services similar in size, scope, and complexity to the required work.
Your evaluation should also consider all costs over the life of the project, not just the initial cost. For instance, energy savings and disposal costs impact the total costs over the life of an electronic equipment leasing contract.
Where to Buy
Federal agencies have a variety of lease options under the GSA Multiple Award Schedules Program. Copiers and other office equipment are available for lease under GSA's Multiple Award Schedule Category 532420L, while IT products are available under Category 33411. While these contracts include basic terms and conditions, the ordering agency is responsible for inserting the appropriate green requirements and language into the solicitation. More information on ordering through GSA Multiple Award Schedules can be found here.
References