1. Policies: What policies and practices should DAS use to establish sustainable supply sources in the five product areas? What broader recommendations for state purchasing polices and practices will lead to sustainable considerations when state agencies buy products?
2. Targets: What should DAS use as measurable targets for quantities and or content within the five product categories?
3. Benchmarks: Once targets are identified, what ideas does the Council have that will help DAS establish an effective benchmarking strategy?
4. Barriers: What barriers will impede progress towards buying sustainable products and what can be done to resolve them?
5. Other products of opportunity: What other products, not addressed in the Governor’s Executive Order, present opportunities for sustainable sources of supplies in the future?
   

1. Automotive
2. Building Materials
3. Cleaning and Coating
4. Paper
5. Office Furniture

1. Sustainable Purchasing Policy
2. Targets
3. Benchmarks
4. Barriers, and
5. Other Opportunities

• Environmental: In our purchasing activities we value products that are not harmful to the environment.
• Economic: In our purchasing activities we value products and services that benefit our regional economy.
• Community: In our purchasing activities we value products and services that benefit our communities.

• Report progress on recommendations an annual basis to the SSC
• Use a sustainability assessment in purchasing decisions
• Include sustainability award criteria for Invitations to Bid and Requests for Proposals
• Use Life Cycle Cost (LCC) solicitation evaluation techniques
• Use Requests for Proposals over Invitations to Bid when appropriate
• Develop a Sustainable Purchasing Training Program
• Establish a Sustainable Sourcing Coordinator
• Develop a Web-based sustainable product list
• Explore the possibility of a fee structure that collects administrative fees from sustainable contract purchases sufficient to fund these recommendations
• Consider sustainability in Department of Justice legal sufficiency review
• DAS should take a leadership role in sustainable sourcing
• Develop means to measure progress
• Purchase locally when feasible

• Lack of information and expertise
• Lack standards and definitions
• Additional Human Resources
• Additional Time Needed to use sustainable sourcing techniques
• Lack of Central Purchasing Resources
• Current Procurement Practices
• Limited Buying Power
• Resistance To Change

• Office Systems Furniture
• Ergonomic Office Chairs
• Office Tables
• Carpet
• Lighting
• Paper Products (Cut sized office paper, uncoated printing paper, coated paper, and janitorial paper)

• City of Santa Monica
• State of Minnesota
• Commonwealth of Massachusetts
• State of Washington

• Finding an alternative to buying a new product
• Selecting products that have the least toxins
• Using or applying the product in the way it was intended
• Proper maintenance of the product over the life of the product
• Refurbishment and reuse of the products
• Recycling of depleted products

• Environmental: in our purchasing activities we value products that are not harmful to the environment.
• Economic: in our purchasing activities we value products and services that benefit our regional economy.
• Community: in our purchasing activities we value products and services that benefit our communities.

• Sustainable products have lower life cycle cost instead of lowest first cost.
• Sustainable products are reused before disposal (surplus cross agency).
• Sustainable products strike a balance between environmental, economic and equity parts of sustainability without significantly harming one of the other parts.
• Sustainable products come from enterprises that have incorporated sustainability concepts into their organizations.
• Sustainable products and services come from enterprises that have better environmental performance.
• Sustainable products have more post consumer recycled content than other products.
• Sustainable products have more reusability/refurbishability/reparability content (not down cycling).
• Sustainable products (such as adhesives and solvents) utilize water-based chemicals during manufacturing.
• Sustainable products emit or off-gas the less (TVOC, formaldehyde, total aldehydes, vehicle exhaust).
• Sustainable products are contain less, and are manufactured with less ozone depleting substances (CFC/HCFC).
• Sustainable products have longer warranties.
• Sustainable products are packaged in materials that are recyclable and reusable by the product user.
• Sustainable products generate the least hazardous waste by weight during manufacturing.
• Sustainable products contain the least hazardous materials (such as mercury).
• Sustainable products are those that have been refurbished over new provided the refurbished/remanufactured product meets the same product and sustainability specifications as a new sustainable product.
• Sustainable products and services lead to increased sustainability knowledge. Investing in state employees and contractors education on sustainable is beneficial.
• Sustainable products are sold by businesses that address social equity.
• Sustainable wood products are grown in a sustainable manner (maintaining biodiversity).
• Sustainable products are made from materials that are non-toxic or organic materials and are biodegradable.
• Sustainable products produce the least toxins during life cycle.
• Sustainable products are more durable.
• Sustainable products require the less maintenance. Maintain equipment properly and use as directed and safely.
• Sustainable activities and use of more sustainable products can be encouraged through personal economic incentive or disincentives.
• Sustainable products provide the right result and use less energy.
• Sustainable products are certified by creditable existing certification programs if certification is available.
• Sustainable products and service enable increased operational efficiency.
• Sustainable products reflect actual costs and place cost with users.
• Sustainable products provide the greatest recyclables.
• Sustainable products use less natural capital (irreplaceable natural resources) to produce.
• Sustainable products or services are manufactured and sold by manufactures and businesses using sustainable processes.
• Sustainable products and services purchased locally contribute to local economic stability.

1. Is there an alternative product or system available that could be used or refurbished that will substitute for the purchase of this product that would be more aligned with sustainable sourcing values?
2. How does this product or can this product be made to conserve energy?
3. How does this product generate waste? Is there a product that can be used that will generate less waste?
4. How is this product packaged? Are there packaging alternatives that can be specified to reduce waste and reduce natural resources used to package the product?
5. Are these products already available within the state system that could avoid purchasing a new product?
6. What natural resources are consumed in the process of manufacturing the product? Are there products that extract fewer natural resources during their manufacture that should be considered?
7. What energy is consumed in the shipping of the product? Are there shipping alternatives that consume less energy?
8. Do these products release toxic material during their life cycle? If so what can be done to minimize the release of toxics? Are products available that do not release toxics into the environment?
9. What is the life cycle cost of the product? Would a total cost of the product to include operating costs, energy costs, training costs, durability and other costs that can be objectively quantified result in better value to the state and less cost to the state than first cost?
10. What has the supplier done to incorporate sustainable practices in their manufacturing and business operations? Are there purchasing choices we can make the will foster sustainability from suppliers?
11. Will the purchasing decision anticipated to come from this procurement have a positive impact on the community?

Continue the Sustainable Supplier Council (SSC) to assist state agencies with sustainable sourcing activities.

During the past year, the SSC effectively developed product work group recommendations that will help DAS buy sustainable supplies for public agencies. Continuing the SSC will help DAS develop sustainable sourcing practices and will provide DAS with sustainable solicitation specifications and award criteria that will result in additional contracts for more sustainable products.

Carry out purchasing recommendations and report progress on an annual basis to the SSC.

The Product Work Groups developed numerous recommendations that exceed DAS´s current capabilities of carrying out the recommendations in the near future. DAS shall assess the feasibility of the recommendations related to purchasing policy and develop a plan for implementing those recommendations that are feasible within existing resources. DAS will report to the SSC annual on its progress and the status of all purchasing recommendations. Recommendations related to operating policy will be passed on to other programs for their consideration and possible action.

Use a sustainability assessment in purchasing decisions

The value statements described in this report form the underlying basis of guiding questions that a purchaser can ask when selecting a product, equipment, or service. By considering these general questions and other more specific questions developed by the buyer on a case-by-case basis, the buyer can prepare purchasing specifications and award evaluation criteria that balance sustainable values for products and services needed by the state agency. The rigor and formality of the assessment should vary with the complexity and value of the purchase.

This is an important first step to expanding a selection process beyond one that generally favors lowest price, product availability, supplier capability, agency needs, and competition to one that must be more sophisticated in balancing these core values and the values of sustainability.

During the assessment phase of a complex purchase with sustainability implications, the purchaser should convene a team of experts that represent broader expertise in various areas related to sustainability. Procurement design teams that involve staff from other agencies with subject area knowledge such at the Department of Environmental Quality, Office of Energy, and user representatives, along with the purchaser will contribute to improved procurement outcomes. Cross talking between agencies will lead to a network of experts that are in a position to contribute to a variety of sustainable sourcing solutions.

Include sustainability award criteria for Invitations to Bid and Requests for Proposals

To the extent permissible under ORS 279 and Oregon Administrative Rule, state agencies should incorporate sustainability criteria into solicitation specifications and award evaluation criteria. When state agencies develop Invitations to Bid and Requests for Proposals appropriate sustainability criteria based on the sustainable values described in the Governor´s Executive Order and this report should be considered and included when appropriate. The supplier community should be advised of the stat´s goals for sustainability and kept informed of the states interest in sustainable products. Suppliers should be given advanced notice of the states plans to evaluate products using sustainable sourcing techniques sufficiently in advance of standard solicitation notice requirements, to give suppliers an opportunity realign their marketing approaches and product offerings.

Use Life Cycle Cost (LCC) solicitation evaluation techniques

Oregon Administrative Rule sanctions the use of Life Cycle Cost award methods for both Requests for Proposals and Invitations to Bid. Use of this technique involves developing an evaluation methodology that assess a cost or price value for those factors that have a cost over the life of a product or service. Typically using a LCC bid involves quantifying the delivered product cost and internal costs that can be quantified.

The LCC solicitation process is different from the Life Cycle Assessment (LCA), which not only looks at the cost of the product, but also considers the full cost to produce the product. It is a more cradle to grave approach that includes external costs. Under a LCA approach manufacturing costs, natural resource extraction costs, and environmental costs associated with the manufacture and production of a product are also considered. LCA offers an opportunity to evaluate the full cost of varying products against each other. While LCA offers promise, at this time extensive use of the LCA process for state purchases is not recommended due to the costs, time and complexities involved.

The use of LCC solicitations can be a useful tool to buy products and equipment that have different energy, maintenance and operating costs over their life rather than simply looking at the initial acquisition costs. LCC Invitations to Bid are a first step to developing a more comprehensive sustainable sourcing strategy. After state agencies develop a successful pattern of use, this method can be broadened to include more quantifiable external costs when appropriate.

LCC solicitations are more complex than single cost invitations to bid and typically require trained staff and more staff to manage to successful a successful outcome. Valid and verifiable assumptions and cost information are essential to the success of a LLC solicitation.

Use Requests for Proposals over Invitations to Bid when appropriate

Invitations to Bid are often the most effective and efficient public procurement method when purchasing products and services that can be clearly specified and when price is the best basis for award decisions. A sustainable purchase may need to consider criteria other than just cost. When attempting to include criteria that include environmentally safe products, natural resource impacts, and community related equity issues, a Request for Proposal can be an effective acquisition tool to incorporate other acquisition criteria that cannot be clearly specified or evaluated with objective costs. Typically Invitations to Bid take less training and less staff time to manage to successful outcomes. Requests for Proposal are more complex procurement methods and typically take more training, and staff time to manage to a successful outcomes. In situations where specification cannot clearly state the requirement, or where factors other than cost must be considered, a Request for Proposal should be used.

Develop a sustainable purchasing training program

DAS has training programs, which provide project management training and procurement training to state agency personnel. DAS should develop a training course to provide agency purchasing staff with sustainable purchasing training. The course should include a primer on sustainability and guidance on how to incorporate sustainability into purchasing decisions. The course should provide effective guidance to public agency staff that create solicitations and specifications for public agency procurements. DAS should include sustainable sourcing training in existing purchasing curriculum. When public agencies receive procurement it should also include sustainable sourcing as a basic part of the curriculum.

DAS´s approach to training should also be in the role of a facilitator and broker. DAS should seek opportunities to connect experts in the field to agency staff that need training. By acting as both a facilitator and when feasible a broker, DAS can leverage its resources while bringing about increased knowledge and expertise within state and public agencies about sustainable sourcing.

The most effective knowledge development is through organizations that learn and promote growth behavior from within. DAS can act as a catalyst for organizational learning by leveraging the training it provides, providing sustainable sourcing tools, high lighting best practices and setting a management tone.

Training is critical, not just to agencies under DAS´s purchasing authority, but also to DAS staff. Generally, the Central Purchasing Analysts at DAS do not possess in depth public purchasing skills. A high percentage of staff are relatively new to public purchasing at the Central Purchasing level. DAS needs to strengthen its own internal staff skills in public purchasing techniques and sustainable sourcing.

Establish a sustainable sourcing coordinator

DAS should dedicate a portion of a position within Transportation, Purchasing and Print Services to coordinate sustainable source selection methods and research. A knowledgeable person can help staff from Central Purchasing and other state agencies obtain product information, specifications and evaluation methodologies that can assist in developing procurements of sustainable products from sustainable sources. This person can also assist in tracking progress, preparing reports and training. This will constitute a real challenge to DAS to boot strap its own training in this emerging area.

Develop a web-based sustainable product list

To the extent resources and agency work demands permit, DAS should develop an online list of sustainable sources for use by state and public agencies. This list should include products that have been evaluated using an appropriate methodology to determine that products listed:

• Lessen adverse impacts on the environment
• Increases economic viability of Oregon communities, and
• Increase the efficiency with which energy, water, material resources and lands are used

The list should be accessible to state and public agencies as an on-line ordering site. Procurement rules for state agencies purchasing products under $75,000 should be built into the site permitting state agencies to comply with competitive requirements of statute and rule when ordering products from the site.

Create a sustainably preferable product research site

DAS should seek a partner with a state university to develop and maintain and up to date web site containing sustainable product information and sustainable sourcing information. The site should be readily accessible and known to other state and public agencies. An effective up to date site with useful information will enable purchasers to obtain information about sustainable products and sources. This site could be used to identify subject matter experts to encourage networking for sustainable sourcing solutions and expertise between agencies. Suppliers and other interested parties should be invited to post on the site.

Explore the possibility of a fee structure that collects administrative fees from sustainable contract purchases sufficient to fund these recommendations.

DAS should explore the feasibility of implementing a fee structure that collects a transaction fee from suppliers to fund costs to implement recommendations within current budget limitations. Additional fees to fund staff dedicated to sustainability efforts could be recovered through vendor collected sustainable product administrative fees, or through a transaction fee on Web-based sites. The fee could be set on non-sustainable products to as an incentive to encourage sustainable product purchases. Another source of funding could be through a fee changed to suppliers in return for training on how to effectively participate in the state procurement process.

Consider sustainability in Department of Justice legal sufficiency reviews

Solicitations for trade service products and services exceeding $100,000 must be reviewed for legal sufficiency by the Department of Justice. The Department of Justice review of these bids should develop ways to review sustainability criteria and assist agencies in developing legally sufficient solicitations and contracts that provide for sourcing decisions that incorporate sustainability criteria.

DAS should take a leadership role in sustainable sourcing

Through collaborative efforts with other state and local agencies DAS can take a leadership role in sustainable sourcing. DAS can raise awareness about sustainability, not just with state agencies, but also with cities, counties and other public agencies. There is a tremendous opportunity for DAS to show leadership by collaborating with cities, counties, Oregon University System (OUS) and other public jurisdictions that are pursuing similar objectives in sustainability. Some opportunities for collaborative leadership include:

• Facilitate training and knowledge of sustainability 
• Develop joint multi-agency sustainable purchasing teams 
• Establish sustainable product contracts that may be accessed by political subdivisions and OUS
• Invite participation in development of sustainable product contracts from political subdivisions and OUS
• Utilize the Partners and Public Purchasing Conference held annually by DAS as a forum for sustainability education and product marketing
  

Develop means to measure progress

The Product Work Group reports include targets and discuss benchmarks to measure against. DAS needs to develop more sophisticated methods of measuring progress towards sustainability targets. Like most public purchasing organizations, DAS lacks a data system that captures this information on a system wide basis. As a result DAS has no choice but to rely on the traditional vendor report. These reports have typically been unreliable, difficult to obtain and slow to use in developing meaningful information. DAS must work with suppliers for specific products to develop the reporting DAS needs to reliably report on progress in this area. The maxim you can´t manage what your can´t measure applies here. If DAS is to gauge progress in this area it must be able to measure it.

The Oregon Progress Board also offers an opportunity for DAS to engage in the development of sustainability measures related to sourcing for all agencies. The criteria established for any measurement, from supplier reports to the Oregon Progress Board should be developed in a way that it is relatively easy data to obtain and is an effective measure of a useful outcome for which knowledge it important.

Purchase locally when feasible

When feasible and when price and quality of products are equal, state agencies should purchase products from local manufactures. When state money is spent within the region on sustainable products it remains in the region supporting local economies. ORS 279 guides state contracting agencies in their public expenditures. With the exception of recycled products and printing, statute generally does not permit a price-based in-state preference for bid awards. The State of Oregon is obligate to participate in the World Trade Organization (WTO), Government Procurement Agreement (GPA). Under the GPA, DAS has an obligation to conform to the agreement and conduct open and competitive process without preferences for local bidders. In general, the monetary threshold when the GPA obligation kicks in is just over $500,000. When obtaining informal proposals or quotes under delegated authorities from DAS, state agencies should, to the greatest extent possible, seek competition from local manufacturers and suppliers.

Lack of information and expertise

State agencies rely on information that is readily available when making sourcing decisions. An agency purchaser is usually under pressure to get a product or supply right away or establish a replacement contract for supplies before the current contract expires. They depend on a current supplier base and information they can quickly access and digest in order to prepare a solicitation document. Central Purchasing typically convenes a user group to collaboratively develop specifications for a solicitation. Specification decisions are often based on readily available information, which can result in contracts for more of the same. Without access to more complete information and up to date new product information, state agencies are likely to continue existing buying patterns and continue current product and supply outcomes.

Recommendation: Other organizations (federal, state, and local governments as well as private sector entities) are engaged in similar efforts. There should be an increased effort to link to and leverage the information resources and expertise resulting from these initiatives to their full extent. For example, quite a number of tools exist that take fuller account of environmental factors into purchasing paper, cleaning products, paints as well as "green buildings." Such tools include sample contract language, standards and success stories that the State of Oregon can use.

DAS should explore the opportunity for Oregon universities and colleges to research and compile an on-line sustainable sourcing library to which the Central Purchasing Web site can connect. This will provide a linkage to on-line information for agency buyers. Consensus-based standards should be identified and linked to where possible. An online listing of subject experts within and outside of state government can be useful to facilitate collaborative sourcing teams. Existing networks for environmental purchasing can be linked and serve as another tool for DAS and state agencies.

Lack of standards and definitions

State personnel seem to support the concept of "sustainability," but it has different meanings to different people. Even the Council struggled with the meaning of various aspects of sustainability. This was particularly evident during the value dialog on economic and community elements sustainability. If the people that are generally knowledgeable about the meaning of sustainability and concepts such as the "Natural Step" have difficulty agreeing on clear meanings, it is unreasonable to expect a typical state purchaser to know how to buy in a sustainable way.

In the public purchasing, clear contractual expectations and definitions are essential. There are a variety of products purporting to be sustainable, but which may not meet accepted sustainable criteria. Suppliers will claim their product meets sustainability criteria, while other suppliers will claim that is does not. It is difficult for a buyer to know what to believe among varying claims.

Sifting through different sources of product sustainability information can take more time than a typical purchaser has available to them to prepare a solicitation and award procurement. There are a number of certification programs for various product lines, but sorting through their features, use and level of acceptance can be overwhelming to a buyer trying to purchase sustainable products. It is difficult for state purchasers to know where to draw the line on what should be considered a sustainable product and what is not a sustainable product. Lack of accepted industry standards and accepted criteria make purchasing sustainable products much more difficult than purchasing products for which there is a clear and accepted standard such as American Society for Testing and Materials (ASTM) or American National Standards Institute (ANSI) standard.

Recommendation: DAS should utilize the Sustainable Supplier Council as an ongoing resource to recommend definitions, standards and certifications as appropriate. For example, there is a small but a growing number of consensus-based standards that take into account at least the environmental aspects of sustainability. These include ASTM standards for buildings and cleaners. In addition, there are quite a number of "green" standards that have been developed by environmental certification organizations both within the U.S. and in other countries. These standards may not provide a purchaser with direct answers to what is "sustainable" within a specific product category, but they can provide general ideas about what aspects of certain product categories pose potential environmental problems. The Federal Trade Commission guidelines can be useful to validate manufacturer claims. DAS should look to these existing standards in undertaking procurement actions related to product categories for which the Product Work Group Reports do not provide sufficient standards.

Additional Human Resources

In early implementation, the processes needed to purchase sustainable products can become more complex requiring more analysis and more time to complete. Evaluation methods such as Life Cycle Costing and weighted criteria strategies used in Requests for Proposals take more staff hours to prepare and administer. In addition, these types of activities require a different mix of staff skills that may not be readily available. Additional activities involving training, record keeping, research and reporting require additional resources or a reallocation of existing resources to accomplish. Crafting sustainable solicitation documents may initially be resource and time intensive.

Recommendation: By incorporating sustainable sourcing values, attributes and guiding questions into routine procurement decision making as agencies manage existing and on-going procurement transactions, resources can be minimized. Sustainable sourcing should not be thought of as a new project, but a way of handling the same continuing business within the context of a broader decision framework. It is important to make a first start and build on the first efforts in successive activities. Training in the use of Requests for Proposals, and Life Cycle Cost procurement methods must be provided to agency practitioners. Skill mixes maybe broadened through increased research, and by communicating success stories to build efficiencies in applying the new procurement techniques. Efficiencies and improvements realized through more sophisticated sourcing techniques are likely to yield results that go beyond sustainable benefits.

Additional Time

Sustainable sourcing decisions may take longer to complete that current sourcing methods. Longer time lines or delays in acquisition become perceived barriers. Agencies are in a hurry to get their supplies, equipment and other needs met as quickly as possible.

Recommendation: Training and education can highlight efficient and effective ways to include sustainable sourcing criteria in acquisitions decision-making. Identifying best practices and success stories that can be replicated between agencies will contribute to broader implementation of sustainability criteria in public purchasing activities throughout the state. DAS should develop on-line contracts that identify sustainable products and permit agency buyers to buy from DAS-awarded contracts. DAS should evaluate the feasibility of issuing a Request for Proposal for linkage to an on-line sustainable product exchange. The exchange would list products that have met the prescribed requirements, including price competition, set by DAS.

Lack of Central Purchasing Resources

State purchasing is under the authority of the Department of Administrative Services. Its Central Purchasing staff is responsible for establishing contracts for state agencies to buy typical products and services that state agencies need to accomplish their mission. In addition, Central Purchasing is responsible for personal service contracts, public improvement and construction solicitation and awards, and agency specific purchases that exceed $75,000. The program is funded through agency assessments and vendor collected administrative fees. Positions and funding limitation were set over 18 months ago when the 2001-2003 biennial budget was prepared. Current resources face what has historically been a challenging workload. Delays caused by excess workload demand have caused state agencies such as the Oregon Department of Transportation to request greater authority to conduct their own procurements. Implementing sustainable sourcing solutions that demand more staff time bump up against existing demands on that time.

Activities such as training and research will be difficult to complete when resources must be focused on more urgent work priorities.

Recommendation: DAS Central Purchasing does not have resources to move ahead immediately in all five product categories and other recommendations. Central Purchasing should evaluate and prioritize recommendations according to the ones that have the greatest potential for benefit for the least investment of resource. In addition, Central Purchasing should utilize product work group recommendations when appropriate for procurement within the product areas. Finally, Central Purchasing should assess future replacement contracts and upcoming procurements and, when needed, request the Sustainable Supplier Council to convene a specific Product Work Group to assist Central Purchasing in specific sourcing issues such as the development of specifications, or award evaluation methods.

Current Procurement Practices

Oregon state agency procurement processes are guided by Oregon Revised Statutes Chapter 279 and administrative rules promulgated by the Department of Administrative Services and the Department of Justice. Statute and rules envision a publicly noticed and accountable competitive procurement process that uses two primary procurement tools - the Invitation to Bid and the Request for Proposal. Under these processes, state agency purchasing practitioners must be accountable, operate with integrity and accountability and treat competitors fairly. Procurement staff and other state officials often point at these proscribed processes as the reason that more effective business outcomes cannot be achieved. To the extent that sustainable sourcing outcomes are not publicly noticed, fair and competitive, the public procurement process will pose a barrier.

A more common barrier to sustainable sourcing outcomes is a lack of knowledge about what is permitted and the extent to which innovative procurement practices are available within the bounds of existing statute and rule. Oregon statute does not mandate award based only on low bid:

ORS 279.005 (2)(a) Competition exists not only in prices, but also in the technical competency of suppliers, in their ability to make timely deliveries and in the quality and performance of their products and services and that a balance must exist between performance competition and price competition.

Oregon procurement processes provide more flexibility than are commonly practiced.

Recommendation: DAS should facilitate the use of Life Cycle Cost Bids and Requests for Proposals when appropriate. Knowledge of these procurement methodologies should be made available through DAS training. DAS should use and encourage the utilization by public agencies of Life Cycle Cost Bids and Requests for Proposal to achieve best value and evaluate sustainability criteria that is not unduly restricting, when Invitations to Bid are not a practical sourcing tool for specifying, evaluating or awarding sustainable products and suppliers. When an alternative method of competitive procurement is needed, DAS and other agencies can make use of the Exemption Process set out in ORS 279.

Limited Buying Power

Oregon has a history of participating in leading-edge efforts to transform markets. In the early 1990´s, Oregon joined other western states in an effort to mandate market standards in recycled paper through the Western States Contracting Alliance (WSCA). One of the oldest continuing WSCA cooperative purchase contracts for recycled computer paper was led by Oregon. However, it is not realistic to think that Oregon State agency buying power is significant enough on its own to drive changes in markets supplied by multi-national companies. Oregon´s buying power is simply not big enough to cause major manufacturers such as the automotive industry or paper industry to make major changes in their product line. Often Oregon´s contracts are with local dealers or resellers who are unable to agree to or compel manufactures to make substantive changes in the product offering.

Recommendation: Seek leverage points where feasible. Do not expect to change the market place based on Oregon buying power alone. Develop and post Oregon sustainability goals and plans in solicitation documents and supplier marketing information. Advise market sectors of Oregon´s anticipated direction for future sustainable products and supplies before issuing solicitation documents containing sustainability requirements. Incrementally increase sustainability requirements in concert with the market. Encourage sustainable sourcing through manufacture, packaging, shipping, and product performance. Participate and utilize cooperative purchasing alliances when local businesses and manufacturing is not disadvantaged, as a demand leverage point in the market.

Resistance to change

Organizations find a comfort zone in the status quo. Using familiar practices and procedures to accomplish the expected is within the comfort zone. Sustainable sourcing requires considering new criteria in decision-making. It requires new and innovative procurement approaches that result in different outcomes. Most state agencies have an operating culture that rewards compliance and practices within the status quo. Risk taking that may be perceived, as non-compliance is not encouraged. Failed outcomes are penalized. All this contributes to a culture where agency staff is often unwilling to take risks try new approaches or innovate outside the known "comfort" zone.

Recommendation: Training and education that explain how to accomplish sustainable sourcing and highlight success stories will improve acceptance and familiarity with sustainable sources. Acknowledgement and positive reinforcement by DAS management to agencies establishing effective sustainable sourcing strategies will encourage others to follow. Agency performance reviews by the Secretary of State will encourage state agencies to develop sustainable sourcing practices, and encourage the acquisition of sustainable products.