Michigan State University
OP-11: Sustainable Procurement

Procurement and Purchasing policies and procedures are published in the Manual of Business Procedures.  The purchasing process at MSU is governed by the Manual of Business Procedures  as well as local, state and federal laws and regulations. The MBP is coordinated by the Office of the Controller.  Purchasing Policy Objectives:270.2       POLICY OBJECTIVES 270.6 SOURCING CONSIDERATIONS AND OPTIONS 270.6.1 SOURCING CONSIDERATIONS A. Domestic/Michigan Purchases - Every effort should be made to purchase domestically produced goods and services from domestically based sources. This policy is particularly important when spending funds appropriated by the State of Michigan under MCL 388.1839: “Funds appropriated shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods and services, or both, are available. Preference should be given to goods or services, or both, manufactured or provided by Michigan businesses if they are competitively priced and of comparable value.” B. Sustainability - MSU is committed to engaging in activities that are sustainable and consider the university’s impact environmentally, economically, and societally. In support of these efforts, the following considerations are to be given when working with suppliers: Total cost of ownership, including impacts such as energy use and end of life disposition, when acquiring broadly used items or engaging in high dollar purchases with long range implications. Take-back programs for packaging material and/or end-of-life cycle product. Purchasing products with an Eco label certification or that meet the standards of the industry associated Eco label and certification program. Providing business opportunities to suppliers who meet product standards while using pre-consumer and post-consumer waste in their products. Buying locally or from suppliers within the State of Michigan when doing so a) saves money or is cost neutral and b) results in equal or improved product or service quality. Supporting a diverse supplier base to ensure appropriate access to the goods and services required for institutional operations and delivery of service. The Purchasing Department can provide guidance and assistance in identifying opportunities and in applying these considerations. For further information on campus sustainability or environmental stewardship at MSU, visit the MSU Sustainability or Be Spartan Green websites. 270.2.1      To ensure that the purchase of equipment, materials, supplies and services are executed in a consistent, open, and competitive manner; 270.2.2      To aid the university community by investigating new or improved materials, equipment, or services; researching sourcing options; or via other means, such as process improvements, to enhance the efficiency of the university; 270.2.3      To create and maintain effective and appropriate business relationships with suppliers, the university community, and the general public; 270.2.4      To ensure that all transactions are devoid of conflicts of interest; 270.2.5      To obtain quality products at the best possible price under the most advantageous terms and conditions; 270.2.6      To ensure procurement compliance with university procurement policies and procedures, as well as federal, state, and local laws and regulations; 270.2.7      To identify and recommend environmentally responsible purchasing practices; 270.2.8      To implement best practices for cost containment; 270.2.9      To maintain a diverse supplier base;  "270.6.2 BUSINESS INCLUSION PROGRAM The Michigan State University Purchasing Department is actively involved in shaping and expanding the global supplier diversity landscape and promoting its Business Inclusion Program. This program offers minority-owned business enterprises (MBE), woman-owned business enterprises (WBE), Small Business Administration (SBA) defined small and/or other disadvantaged businesses the opportunity to develop sound business relationships with MSU. Outreach activities are sponsored to introduce suppliers to the university community and to foster the growth of supplier contracts inclusive of a diverse supplier database. MBE and WBE companies are legally defined as, “a privately or publicly owned corporation, joint venture or any other type of business organization that is at least fifty one percent beneficially owned and controlled by one or more minority persons or women.” The MSU Business Inclusion Program Coordinator provides support to assist campus departments to be proactive when working with Federal grant proposals and creating subcontracting plans. Sustainable Procurement Guidelines include: Sustainable Procurement University Services supports MSU's sustainability goals as identified by Campus Sustainability by providing responsible procurement and supply chain guidelines and practices. Environmental considerations are a factor when Purchasing negotiates strategic contracts. Since these contracts provide the best value to the university, please visit Spartan Marketplace prior to using other buying methods. All things being equal—price, quality, shipping, terms and conditions—a sustainable product should be selected for purchase. Green Purchasing Guidelines Though not exhaustive, the following are guidelines for sustainable procurement decisions. Certifications and rankings Look for environmentally certified products, i.e. Energy Star, Forest Stewardship Council, etc. See list of common certifications Manufacturing and Production Look for products that are recycled, remanufactured, or have re-used content Use companies that implement environmentally preferable manufacturing techniques Buy locally produced or grown products to reduce transportation costs and support local communities Packaging and Distribution If possible, consolidate shipments to reduce environmental impact as well as cost to MSU Ask if modifications can be made to packaging to reduce material used and downstream waste Consider alternative service delivery options, such as remote diagnostics Use and Maintenance When buying equipment and supplies, consider all aspects of use including cost and operating expenses—electricity, steam, water, and supplies used over the life of the product. Purchasing can assist with this analysis. Use teleconference options as compared to face-to-face meetings requiring travel Avoid waste—buy in bulk when appropriate Look for items with warranties, so they can be fixed instead of replaced MSU Surplus Store: Repurpose previously used items Disposal Consider supplier take-back, resale, recyclability, and repurposing options at the end of product life BUYING LOCALLY /purchasing/sustainable/buy-locally Purchasing encourages buying goods and services from local suppliers whenever possible. OUR EFFORTS Our Efforts University Services is committed to enacting sustainable practices, both internally and as part of the purchasing and distribution processes. SUPPLY CHAIN METRICS Supply Chain Metrics Studies of MSU's top suppliers help us understand the environmental impact of our supply chain.

Sustainable Procurement University Services supports MSU's sustainability goals as identified by Campus Sustainability by providing responsible procurement and supply chain guidelines and practices. Environmental considerations are a factor when Purchasing negotiates strategic contracts. Since these contracts provide the best value to the university, please visit Spartan Marketplace prior to using other buying methods. All things being equal—price, quality, shipping, terms and conditions—a sustainable product should be selected for purchase.Use and Maintenance When buying equipment and supplies, consider all aspects of use including cost and operating expenses—electricity, steam, water, and supplies used over the life of the product. Purchasing can assist with this analysis. The TOC (total cost of ownership) template is utilized at the procurement stage. However, programmatically, the life cycle costs of purchasing electricity, steam, and water is also utilized to evaluate solutions for optimizing our energy assets. " A. Product factors such as recycled, remanufactured or re-used content in products. B. When procuring equipment considering all aspects of the use of the equipment including the cost of the equipment, the operating expenses including electricity, steam, water, supplies factored over the useful life of the equipment. C. Procuring environmentally certified products such as Energy Star, Forest Stewardship Council certified, etc. D. Disposal costs of goods and equipment or waste produced through utilization. E. Alternative service delivery options such as remote diagnostics. F. Modifications to packaging to reduce downstream waste. G. Consideration of the reduction of multiple product use when replaced by a single product and the cost implications of such a decision. H. Teleconference options as compared to face to face meetings requiring air and/or vehicle travel. I. Locally produced/locally grown reducing transportation costs and impacts. J. Shipment consolidation to reduce environmental impact and cost to the university community.

MSU Custodial practices the (OS1) Cleaning system. Responsible Cleaning Products The (OS1) program focuses on both the health of the building occupants and the cleaning staff. Environmentally preferable cleaning strategies, procedures, training, and purchasing guidelines for consumables, tools and equipment are all part of responsible cleaning. All of the daily-use cleaning chemicals in the (OS1) Program have earned the Green Seal Certification or are EPA registered disinfectants. GS-37 Designation o PortionPac’s MopPac Lite 1802 o PortionPac’s ScrubPac 102 EPA Registered Disinfectant o PortionPac’s Germicidal Detergent 264N & 201N The Carpet and Rug Institute (CRI) Seal of Approval o PortionPac’s Germicidal Detergent 264N & 201N "

MSU construction standards requires constructs to LEED-certified levels. Construction Procurement must comply with those standards.http://ipf.msu.edu/green/practices/leed-certification.html. http://ipf.msu.edu/news/features/MSU-construction-standards-go-green.html. Furnishings must also be purchased to purport with LEED-certified levels. Certifications utilized include: Cradle to Grave; Sustainable Forestry Intiative; Green Seal; SCS Global Services. http://usd.msu.edu/common/documents/sustainable-buying-tips.pdf. In addition, the following are also elements in the evaluation and purchasing process: • Consider used from MSU Surplus Store • Forest Stewardship Council (FSC) certified lumber • Recycled material: Look for post-consumer recycled content • Purchase items with warranties • Buy furniture that is easy to disassemble and recycle • Look for items manufactured with Low VOCs"

MSU's purchasing unit provides guidelines for Sustainable purchasing including EPEAT, Energy Star, Green Seal, and Water Sense. http://usd.msu.edu/common/documents/sustainable-buying-tips.pdf.

Policies and Guidelines for incorporating sustainability as a requirement for contracting vendor services including franchises, vending services, concessions, and convenience stores in RHS is governed by the Manual of Business Procedures (MBP) and the RHS Purchasing Policies Procedures Manual (RHS PM). Consistent with these requirements, policies, and guidelines MSU Food Stores supports sustainable purchasing by utilizing sustainable specification requirements within contracts, bids, and vendor selection for Retail, Concessions, and Sparty’s Stores in accordance with the University Services. A number of elements of sustainability are incorporated into the principles and guidelines for contracting vendors including sustainability principles such as total cost of ownership; packaging; certifications; and diversity of vendors. The overarching policy is: The MPB Purchasing Sourcing Policy 270.6.1B requires: B. “Sustainability - MSU is committed to engaging in activities that are sustainable and consider the university’s impact environmentally, economically, and societally. In support of these efforts, the following considerations are to be given when working with suppliers: 1. Total cost of ownership, including impacts such as energy use and end of life disposition, when acquiring broadly used items or engaging in high dollar purchases with long range implications. 2. Take-back programs for packaging material and/or end-of-life cycle product. 3. Purchasing products with an Eco label certification or that meet the standards of the industry associated Eco label and certification program. 4. Providing business opportunities to suppliers who meet product standards while using pre-consumer and post-consumer waste in their products. 5. Buying locally or from suppliers within the State of Michigan when doing so a) saves money or is cost neutral and b) results in equal or improved product or service quality. 6. Supporting a diverse supplier base to ensure appropriate access to the goods and services required for institutional operations and delivery of service. “ RHS is the authorized procurement source for food services/building facility supplies, equipment and services for the Division of RHS (per Controller Designation) and is required to have a manual and processes approved by USD that governs by the RHS Food Stores Purchasing and Policies and Procedure Manual. The RHS manual follows the USD manual. The RHS PM provides the Procurement Team Member Guidelines in Section III – Guideline 11 & 12 specifically address sustainability and diversity as a part of the vendor purchasing process. 11. Embracing sustainable practices for future generations at MSU, and 12. Support the University’s Supplier Diversity and Business Inclusion Program to assure a diverse vendor base in our pursuit of strategic partnerships. Attached to and incorporated into the RHS PM are the Principles and Standards of Ethical Supply Management Conduct with guidelines. Section 6 is Social Responsibility and Sustainability. Champion social responsibility and sustainability practices in supply management. Supply management professionals are in a position to lead and direct the development and integration of sustainability and social responsibility policies and strategies into the business and supply chain. Supply professionals are also in the position to reinforce the importance of personal commitment and how such commitment impacts sustainability and social responsibility initiatives and outcomes. While there are many key and important facets of sustainability and social responsibility, the specific areas of diversity and inclusiveness (supply base and workforce), human rights and environment are addressed below. Recommended guidelines for support of diversity and inclusiveness supply base: a. Provide socially diverse suppliers the opportunity to participate. b. Promote inclusion of diverse suppliers in the organization's supplier development and mentoring programs. c. Ensure long-term program sustainability through application of forward-thinking concepts beyond price. Recommended guidelines for support of diversity and inclusiveness workforce: a. Drive employee diversity within the organization. b. Proactively promote diverse employment practices throughout the supply chain. Recommended guidelines for support of human rights: a. Treat people with dignity and respect. b. Support and respect the protection of international human rights within the organization's sphere of influence. c. Lead the organization and its supply chain to ensure application of human and employment rights. Recommended guidelines for support of the environment: a. Encourage the organization to be proactive in examining and implementing opportunities to be environmentally responsible internally and throughout the supply chain. b. Encourage environmental responsibility across the supply base. c. Promote development and diffusion of environmentally friendly ("green") practices and products throughout the organization and the supply chain. d. Champion consumption of environmentally responsible products and services within the organization. e. Design and redesign products and services to improve environmental impact. f. Develop a complete understanding of the organization's environmental footprints and their impact on sustainability. Implement strategies to reduce and eliminate negative footprint impacts. g. Implement market intelligence capabilities to proactively monitor and plan for changes in domestic and international legislation.

SLS Garment vendors adopted the Higg Index to reduce energy, fuel, electric, work from home programs, reduce air milage, shipping containers filled to 89.7 % capacity, nautical miles saved,bunker fuel reduced.

MSU Transportation and fuels purchasing policies are subject to purchasing policy and guidelines. The sourcing considerations within the MBP requires the buyer to look at several criteria including applicable certifications. In the case of transportation, SmartWay Transport Partner, is the required certification. BMP Purchasing Section 270.6.1 : Source Considerations and Options (paraphrased): A. Domestic/Michigan Purchasing: Efforts should be made to purchase domestically and preference is given to those manufactured or provided by Michigan Businesses. B. The buyer has an obligation to consider all aspects of a procurement decision. Total Cost of Ownership analyses are to be used as an evaluation tool in measuring the total impact of a procurement decision, particularly those of high impact or high dollar volume. While not an exhaustive listing, the following are considerations for procurement decisions as determined applicable by the buyer: A. Product factors such as recycled, remanufactured or re-used content. B. When procuring equipment and supplies, consider all aspects of the use of the equipment including the cost of the equipment, the operating expenses including electricity, steam, water and supplies factored over the useful life of the equipment. C. Procuring environmentally certified products such as Energy Star, Forest Stewardship Council certified, etc. http://usd.msu.edu/purchasing/sustainable/certifications/index.html D. Disposal costs of goods and equipment or waste produced through utilization. E. Alternative service delivery options such as remote diagnostics. F. Modifications to packaging to reduce material used and/or downstream waste. G. Consideration of the reduction of multiple product use when replaced by a single product and the cost implications of such a decision. H. Teleconference options as compared to face to face meetings requiring air and/or vehicle travel. I. Locally produced/locally grown to reduce transportation costs and impacts. J. Shipment consolidation to reduce environmental impact and cost to the university. K. Supplier take back, resale, recyclability and repurposing options of goods at the end of useful life. L. Environmentally preferable manufacturing techniques and/or raw material used. This information is required as a part of the RFP process.

When purchasing paper and wood products, in addition to the standard Green Purchasing Guidelines, MSU specifically evaluates: • Maximize recycled content: 100% recycled, minimum 30% post- consumer • Chlorine-free production: Labeled Totally Chlorine Free (TCF) or Processed Chlorine Free (PCF) • Sustainably sourced fiber • No plastic coatings. MSU also looks for four different types of certification: Forest Stewardship Council (FSC) Sustainable Forestry Initiative; Green Seal; and Water Sense. http://usd.msu.edu/common/documents/sustainable-buying-tips.pdf. http://usd.msu.edu/purchasing/sustainable/index.html"

Scientific Supplies are a commodity that is purchased that has not been previously addressed in this credit. First; purchasing requirements are subject to the Manual of Business Practices Section 270.6 as previously reference so all the factors listed above in A through L would apply to scientific equipment. Given that MSU is a top tier research university with many laboratories that support STEM education and research, scientific supplies are a major purchase. To maximize the efficiency of purchasing and be able to assure the sustainable aspects are considered when purchasing scientific products - this is a product category that is included within the Spartan Marketplace. This is critical to ensure the best procurement given the volumes and variety of demand. Spartan Marketplace is an online e-procurement solution that provides the MSU community with a centralized, convenient, cost-effective way to buy items using campus wide contracts. Using a "shopping cart" experience, MSU employees can select from thousands of items by "punching out" to supplier catalogs to make departmental purchases—with no administrative markup on off-campus supplier pricing. Advantages include: one-stop order and payment portal • Robust "search" functionality • Integrates with the Finance System • Off-campus supplier catalogs reflect MSU discounted pricing—no administrative markup • Order history is easily accessible • Allows Purchasing to collect and analyze spend data to better negotiate contracts Suppliers in Spartan Marketplace have been selected through a competitive bid and negotiation process. Campus wide strategic contracts are in place that offer the best overall value to the university. The campus Strategic Contract process is governed by the MBP 270.6.3.C. The University Stores Purchasing Manual Section 21 also describes the environmental sustainability procurement guidelines for strategic contracts. Developing a sustainable source strategy is included and detailed in exhibit 20- Strategic Process for Strategic Sourcing Initiative. Fisher Scientific is a key supplier of scientific equipment. They maintain a significant sustainability program as a business. https://www.fishersci.com/us/en/programs/sustainability-program.html. They also identify those products on their website that qualify as “green” and identify the criteria of the green grass icon.