GSA Incentivizes FSS Contractors To Reduce Single-Use Plastic But Rejects Banning Plastic In Federal Procurement

What You Need to Know

• Key takeaway #1
  FSS contractors should review the use of SUP in their supply chains to take advantage of GSA's new incentive system.
• Key takeaway #2
  Even non-FSS contractors should begin thinking about how these concepts may impact their offerings to federal customers should federal agencies start implementing similar measures or preferences for their solicitations and contracts.
• Key takeaway #3
  Although the final rule implements a self-certification regime, contractors should be mindful that the federal government has a number of enforcement tools, including the False Claims Act, that can be used to uncover and punish fraud in federal procurement.

On June 6, 2024, the General Services Administration (GSA) issued a final rule seeking to minimize the use of single-use plastic (SUP) packaging materials in goods procured through the Federal Supply Schedules (FSS). Rather than instituting an outright ban on SUP packaging, GSA opted to incentivize FSS contractors to offer SUP-free products through providing a special icon in GSA Advantage for FSS contractors self-certifying that their products are SUP-free. The final rule explains that the SUP-free icon is intended to act "as an important discriminator when buyers are making purchasing decisions" so that FSS contractors that adopt this voluntary measure will become more marketable in the federal procurement space. While application of the final rule is limited to purchases from the FSS, GSA believes that the final rule will "also create positive spillovers as non-FSS contracting firms adopt similar policies to compete with FSS contractors in non-FSS markets." GSA also explained that the final rule is an "initial step" in providing more sustainable packaging and that the goal is to encourage other federal agencies to eventually adopt these practices into other government contracts. Importantly, GSA will rely on self-certification that identified products are SUP-free and will not require any third-party verification, as the increased regulatory burden could discourage participation of small businesses. The final rule is effective starting July 8, 2024.