University of South Florida
OP-11: Sustainable Procurement

SUSTAINABILITY
Best Practices for Sustainable Purchasing

Want to know more how you can help USF become more sustainable through purchasing practice? Take a look at our suggestions.

Patel College of Global Sustainability

The Patel College of Global Sustainability (PCGS) is the newest degree-granting college at the University of South Florida and is unique in its mission and its approach. The mission of PCGS is achieving sustainable development, both locally and globally, by fostering social, economic and environmental sustainability; we accomplish this through teaching, research, mentoring students and community outreach, as well as by generating practical knowledge and developing innovative technologies, skills and policies.

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Focus on Sustainability

USF researchers will use a NSF grant to lead an international team looking at revolutionary ways to turn waste water into usable products.

Facilities Management LEED & Sustainability

USF is dedicated to sustainability both on campus and around the world. Facilities Management works closely with various partners on sustainable projects around campus.

Housing & Residential Education Sustainability

Recycling is a fundamental process in the efforts of the University of South Florida to create a sustainable campus environment. Though recycling is just one small facet of the larger scope of environmental responsibility, it is an extremely visible and vital step in achieving this strategic goal.

https://www.usf.edu/business-finance/purchasing/sustain/

https://www.flrules.org/gateway/RuleNo.asp?ID=60D-4.006
60D-4.006 Life-Cycle Cost Analysis Requirements.
A life-cycle cost analysis shall be performed for all new facilities constructed for the use of a state agency and for renovations to existing state-owned facilities where required in Rule 60D-4.004, F.A.C. The analysis shall compare the reasonably-expected life-cycle costs of alternative designs developed in accordance with Rule 60D-4.004, F.A.C., during the design development phase of the project. Life-cycle cost analyses shall comply with all of the following requirements:
(1) Preparation requirements:
(a) The life-cycle cost analysis shall be performed by one of the following:
1. An architect licensed in Florida;
2. An engineer licensed in Florida;
3. A “guaranteed energy, water, and wastewater performance savings contractor” as defined in Section 489.145, F.S.
(b) The life-cycle cost analysis shall be performed by the same person or firm that performed the computer-based energy simulations required in Rule 60D-4.004, F.A.C.
(2) Methodology: The life-cycle cost analysis shall determine the expected total present-value cost to own, operate, maintain, and replace the energy-consuming equipment for each alternative design throughout the analysis period as described in this rule.
(3) Analysis period:
(a) The analysis period shall be 25 years for each alternative design under consideration in a project unless directed otherwise in this section.
(b) The analysis period for “guaranteed energy, water, and wastewater performance savings projects” as defined in Section 489.145, F.S., shall be equal to the expected term of the “guaranteed energy, water, and wastewater performance savings contract”.
(4) Analysis approach: For each alternative design, the total life-cycle cost shall be determined as described here:
(a) Life-cycle ownership cost:
1. All ownership costs utilized in the analysis shall include all related material, labor, and installation costs.
2. The total ownership cost utilized in the analysis shall consist of all of the following that are to be installed new or replaced in the project:
a. Building envelope components and windows:
(I) New construction and additions per subsection 60D-4.004(1), F.A.C.: The incremental cost of the energy-related modifications may be utilized in the analysis, in which case the incremental cost for the least expensive alternative design shall be zero. Otherwise, the total cost for the scope of work shall be utilized.
(II) Renovations: The total cost for the scope of work shall be utilized.
b. HVAC: The total cost for the scope of work shall be utilized.
c. Lighting: The total cost for the scope of work shall be utilized.
d. Service water heating: The total cost for the scope of work shall be utilized.
e. Power distribution: The total cost for the scope of work shall be utilized.
f. Other measures: Analyses for “guaranteed energy, water, and wastewater performance savings projects” as defined in Section 489.145, F.S., shall include the costs for all energy conservation measures proposed in the project.
3. For projects that are not financed by the agency, the life-cycle ownership cost utilized in the analysis shall be assumed to occur in the initial year of the analysis period and require no conversion to present value dollars.
4. For “guaranteed energy, water, and wastewater performance savings projects” as defined in Section 489.145, F.S., the total ownership cost utilized in the analysis shall be determined as follows:
a. The expected construction costs, investment grade energy audit costs, measurement and verification costs, and financing costs shall be annualized.
b. The DOE real discount rate shall be used to convert all future annual ownership costs to present value dollars. The DOE real discount rate is available in the Annual Supplement to NIST 135, which is incorporated by reference in Rule 60D-4.008, F.A.C.
c. Grants, rebates, and capital funding used to buy down the cost of the “guaranteed energy, water, and wastewater performance savings contract” shall not be included in the life-cycle cost analysis per Section 489.145(4)(j), F.S.
d. The life-cycle ownership cost shall be calculated as the sum of all present-value annual ownership costs that are expected to occur during the analysis period.
e. Exclusion: The analysis for the baseline energy model described in subparagraph 60D-4.004(4)(g)2., F.A.C., shall not include any life-cycle ownership costs.
(b) Life-cycle operating cost:
1. The annual energy usage utilized in the analysis shall be determined by the computer-based energy simulation requirements of Rule 60D-4.004, F.A.C.
2. The actual energy prices available from the local utility provider shall be used to convert the annual energy usage to the annual operating cost for the initial year.
3. The DOE energy price escalation forecasts, not including the effects of general price inflation, shall be used to predict future annual energy costs. These forecasts are available in the Annual Supplement to NIST 135, which is incorporated by reference in Rule 60D-4.008, F.A.C.
4. All water costs associated with the alternative design shall be incorporated into the the life-cycle operating cost.
5. The price escalation factor utilized for water costs shall be derived from historical water costs for the building(s).
6. The effects of general price inflation shall be excluded from the analysis.
7. The DOE real discount rate shall be used to convert all future annual operating costs to present value dollars. The DOE real discount rate is available in the Annual Supplement to NIST 135, which is incorporated by reference in Rule 60D-4.008, F.A.C.
8. The life-cycle operating cost shall be calculated as the sum of all present-value annual operating costs that are expected to occur during the analysis period.
(c) Life-cycle maintenance cost:
1. The expected annual maintenance costs utilized in the analysis shall be derived for all new energy-consuming equipment based on estimates or direct quotes from the equipment manufacturer or vendors that represent the equipment manufacturer. For existing energy-consuming equipment, the annual maintenance costs utilized in the analysis shall be based on actual maintenance costs.
2. The scope of maintenance services utilized to develop the expected annual maintenance costs for new energy-consuming equipment shall:
a. Be based on the equipment manufacturer’s recommendations, and
b. Include regularly scheduled maintenance items such as planned overhauls, but not attempt to include coincidental repairs.
3. The DOE real discount rate shall be used to convert all future annual maintenance costs to present value dollars. The DOE real discount rate is available in the Annual Supplement to NIST 135, which is incorporated by reference in Rule 60D-4.008, F.A.C.
4. The effects of general price inflation shall be excluded from the analysis.
5. The life-cycle maintenance cost shall be calculated as the sum of all present-value annual maintenance costs that are expected to occur during the analysis period.
(d) Life-cycle replacement cost:
1. The analysis shall include the replacement cost for new energy-consuming equipment that has an expected service life that is shorter than the analysis period.
2. Expected service life:
a. The expected service life utilized in the analysis for energy-consuming equipment shall be based on the 2007 ASHRAE Handbook – HVAC Applications (Chapter 36, Table 4), which is incorporated by reference in Rule 60D-4.008, F.A.C., but may be modified to account for the following circumstances:
(I) The agency’s experience with similar equipment;
(II) Harsh environments such as coastal, marine, industrial, and urban areas that can effectively shorten equipment service life.
b. For equipment not included in the 2007 ASHRAE Handbook – HVAC Applications (Chapter 36, Table 4) per paragraph (a) of this section, the expected service shall be estimated based on one or both of the following criteria:
(I) The equipment manufacturer’s recommendation;
(II) The judgement of a licensed architect, engineer, or contractor
3. Replacement costs shall be derived from the initial ownership costs.
4. The DOE real discount rate shall be used to convert all future replacement costs to present value dollars. The DOE real discount rate is available in the Annual Supplement to NIST 135, which is incorporated by reference in Rule 60D-4.008, F.A.C.
5. The effects of general price inflation shall be excluded from the analysis.
6. The life-cycle replacement cost shall be calculated as the sum of all present-value replacement costs that are expected to occur during the analysis period.
(e) Residual value:
1. The analysis shall include residual value for energy-consuming equipment that is expected to be replaced during the analysis period and therefore has an expected service life that extends beyond the analysis period.
2. The residual value shall be derived by linearly prorating the replacement cost based on the ratio of remaining service life to total expected service life, assuming a salvage value of zero.
3. The DOE real discount rate shall be used to convert all residual values to present value dollars. The DOE real discount rate is available in the Annual Supplement to NIST 135, which is incorporated by reference in Rule 60D-4.008, F.A.C.
4. The effects of general price inflation shall be excluded from the analysis.
(f) Total life-cycle cost: The total life-cycle cost shall be calculated as follows:
1. The life-cycle ownership cost, plus;
2. The life-cycle operating cost, plus;
3. The life-cycle maintenance cost, plus;
4. The life-cycle replacement cost (when applicable), less;
5. The residual value (when applicable).
(g) Sensitivity analysis:
1. The agency shall perform a sensitivity analysis as described in this section to account for uncertainty in the discount rate and future energy prices in an attempt to ascertain which variable(s) are most critical to the financial performance of the project.
2. The sensitivity analysis shall be structured to determine the total life-cycle cost result as a result of incrementally modifying the discount rate and energy price projections one at a time, and then both simultaneously.
3. Limits:
a. The discount rate utilized in the sensitivity analysis shall be raised no higher than twice that of the DOE real discount rate.
b. The energy price projections utilized in the sensitivity analysis shall be raised no higher than current prices projected forward at twice the average DOE price escalation rate.
(5) Submission requirements:
(a) The life-cycle cost analysis shall be submitted to the agency during the design development phase of the project.
(b) The life-cycle cost analysis shall be submitted to the department in addition to the agency for projects that pertain to subsections 60D-4.004(1) and (4), F.A.C., during the design development phase of the project, pursuant to Sections 255.254(1) and 489.145(6), F.S.
(c) Required forms:
1. A bound copy and an electronic version in Microsoft Excel® format of the Florida Life-Cycle Cost Analysis Program (Form #AE16) is required for all submissions.
2. A printout of the input and output sheets of the computer-based simulation program for each alternative design.
(d) The Florida Life-Cycle Cost Analysis Program (Form #AE16) is hereby incorporated by reference.
(e) The Florida Life-Cycle Cost Analysis Program (Form #AE16) is available from the Department of Management Services at:
DMS Building Construction
4050 Esplanade Way, Suite 335
Tallahassee, Florida 32399-0950
(850) 488-1817
http://dms.myflorida.com/business_operations/real_estate_development_management/building_construction/forms_and_documents
(f) Delivery: The life-cycle cost analysis shall be delivered to the department at:
DMS FLCCA Review
4050 Esplanade Way, Suite 335
Tallahassee, Florida 32399-0950
(850) 488-1817
Rulemaking Authority 255.255, 255.256 FS. Law Implemented 255.254, 255.255 FS. History–New 5-26-76, Formerly 13D-10.06, 13D-10.006, Amended 3-17-10.

5/6/2022: uploaded in response to reviewer's comment.
Cross-sector:
Environmental Choice at http://www.ecologo.org/en/
Green Seal at http://www.greenseal.org/
Scientific Certification Systems at http://www.scsglobalservices.com/
Low Volatile Organic Compounds (VOCs) Products
Green Guard at http://www.greenguard.org/en/index.aspx

Contract documents require green certified products:
The University of South Florida is an environmentally “Green” Institution and all custodial products used should be environmentally safe, and produced using sustainable/recyclable materials.

5/6/2022: uploaded in response to reviewer's comment.
Procure commodities that are certified to meet sustainability standards.
Paper and Forest Products
Forest Stewardship Council at https://us.fsc.org/
Office Depot offers FSC certified paper products. Register online to access USF business account pricing. Instructions to register are on Purchasing’s website at
http://usfweb2.usf.edu/purchasing/OFFICE%20DEPOT%20ANNOUNCEMENT.pdf once registered, access USF office Depot business account at https://business.officedepot.com/
Chlorine Free Products Association http://www.chlorinefreeproducts.org/
Electronics and Appliances:
Energy Star at http://www.energystar.gov/
Electronic Product Environmental Assessment Tool (EPEAT) - http://www.epeat.net/
Cross-sector:
Environmental Choice at http://www.ecologo.org/en/
Green Seal at http://www.greenseal.org/
Scientific Certification Systems at http://www.scsglobalservices.com/
Green Purchasing Best Practices is a guide for departments to select environmentally preferred products.

5/6/2022: uploaded in response to reviewer's comment.
H. Procure remanufactured goods and use refurbishing services.
It can be less expensive to buy remanufactured goods such as remanufactured toner cartridges, or to use refurbishing services for computer upgrades, carpet repair, and furniture reupholster, than to buy new items. "Recharged" toner cartridges typically save departments 30 to 50 percent per sheet of paper. Remanufactured items should require no sacrifice in performance. Toner cartridges can be recycled through individual vendors (i.e., HP ink jet and toner) or Office Depot (see Sustainability website http://psgs.usf.edu/usf-office-of-sustainability/initiatives/ for specific information).

Green Purchasing Best Practices is a guide for departments to select environmentally preferred products.

USF LEED projects reference standards for materials selection and EPDs

5/6/2022: uploaded in response to reviewer's comment.
Electronics and Appliances:
Energy Star at http://www.energystar.gov/
Electronic Product Environmental Assessment Tool (EPEAT) - http://www.epeat.net/

Green Purchasing Best Practices is a guide for departments to select environmentally preferred products.

Aramark's sustainable purchasing standards

https://www.usf.edu/business-finance/supplier-diversity/

SIGNATURE PROGRAMS
Supplier diversity initiatives
FIND A VENDOR
Find a diverse vendor
SPEND REPORTING
Report diverse business spend
FAQS

5/6/2022: uploaded in response to reviewer's comment.

1." A stated preference for post-consumer recycled or bio-based content or to otherwise minimize the negative environmental impacts of products and services."
References:
https://www.usf.edu/business-finance/purchasing/sustain/sustainable-best-practices.pdf
https://www.usf.edu/business-finance/purchasing/sustain/

2. "A stated intent to support disadvantaged businesses, social enterprises and/or local small and medium-sized enterprises (SMEs) or otherwise support positive social and economic impacts and minimize negative impacts."
references:
https://www.usf.edu/business-finance/supplier-diversity/
https://www.usf.edu/business-finance/purchasing/doing-business-with-usf/index.aspx

3. "An institution earns 1 point for Part 2 of this credit for employing Life Cycle Cost Analysis (LCCA) as a matter of policy and standard practice when evaluating all energy­ and water­ using products and systems."
references:
USF Professional Services Guide:
3.16 Central Campus Chilled Water and Hot Water Systems:
3.16.1 All projects considered for the USF Tampa Campus shall utilize the central campus chilled
water (CW) and heating hot water (HW) systems for building cooling and heating (and when practicable, domestic hot water).
3.16.2 When requesting a deviation from the above requirement, the Design Professional shall perform, at no cost to the Owner, a Life Cycle Cost Analysis (LCCA) comparing at least three (3) distinctly different cooling and heating system options. Proposed options to be compared require Owner approval. The USF-PM will coordinate the review and provide written approval.

4. LCCA is a State of Florida requirment; Section 489.145, Florida Statutes
1.2.A. Overview
In accordance with Rule 60D-4.003(1), FAC, the selection of major energy-consuming equipment and architectural components for new and existing state facilities must be made on the basis of a life-cycle cost analysis of alternative designs. The life-cycle cost analysis of alternative designs is required to be performed in accordance with Rule 60D-4.006, FAC.
The FLCCA Requirements & Instructions (this document) delineates how the life-cycle cost analysis shall be performed for the alternative designs that have been developed for the agency’s consideration. Refer to Section 2 of this document for life-cycle cost analysis instructions and submission requirements.
1.2.B. Applicability
In accordance with Rule 60D-4.004, FAC, the FLCCA Program applies to state agencies for all of the following projects: new facilities constructed for the use of a state agency
additions to existing state-owned facilities
renovations to existing state-owned buildings that include the replacement or new installation of any one item of major energy-consuming equipment (see section 1.6 of this document for the definition of major energy-consuming equipment)
“guaranteed energy, water, and wastewater performance savings projects” as defined in Section 489.145, Florida Statutes

List of uploaded files:

60D-4.006
OP11 60D-4.006 _ Life-Cycle Cost Analysis Requirements - Florida Administrative Rules, Law, Code, Register - FAC, FAR, eRulemaking
sustainable-best-practices (7)