Sustainable Federal Facilities A Guide to Integrating Value Engineering, Life-Cycle Costing, and Sustainable Development (2001) / Chapter Skim
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1. Introduction
1. Introduction
Pages 5-16
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As a major consumer that spends $200 billion annually on products and services, the Federal Government can promote energy efficiency, water conservation, and the use of renewable energy products, and help foster markets for emerging technologies. Executive Order 13123 establishes goals for greenhouse gases reduction, energy efficiency improvement, industrial and laboratory facilities, renewable energy, petroleum, source energy, and water conservation.
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. Executive Order 13101 states that "consistent with the demands of efficiency and cost effectiveness, the head of each agency shall incorporate waste prevention and recycling in the agency's daily operations and work to increase and expand markets for recovered materials through greater Federal Government preference demand for such products." Environmentally preferable is defined to mean products or services that have a lesser or reduced effect on human health and the environment when compared with competing products or services that serve the same purpose.
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determined on the basis of a systematic evaluation and comparison of alternative building systems, except that in the case of leased buildings, the life-cycle costs shall be calculated over the effective remaining term of the lease." Since 1993' federal agencies and departments have been required to use value engineering "as a management tool' where appropriate, to ensure realistic budgets, On - O ~ - ~ I- $- l- 7 ~ 7 , Identity and remove nonessential capital and operating costs, and Improve and maintain optimum quality of program and acquisition functions." Value engineering is defined as an organized effort directed at analyzing the functions of systems, equipment, facilities, services, and supplies for the purpose of achieving the essential functions at the lowest life-cycle cost consistent with required performance, quality, reliability and safety. In the late 1990s, several sponsoring agencies of the Federal Facilities Council3 (FFC)
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This commission, more commonly known as the Brundtland Commission, defined sustainable development as a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development, and institutional change are all in harmony and enhance both current and fixture potential to meet human needs and aspirations. In the commission's words, "Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs." Nearly a decade later, the President's Council on Sustainable Developmen contributed a national vision for sustainable development in a report entitled Sustainable America: A New Consensus for Prosperity, Opportunity and a Healthy Environment for
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. conserve energy and natural resources and protect air and water quality by minimizing the consumption of land, the use of other nonrenewable resources, and the production of waste, toxic emissions, and pollution; · make cost-effective use of existing and renewable resources such as infrastructure systems, underused sites, and historic neighborhoods and structures; · contribute to community identity, livability, social interaction, and sense of place; · widen access to jobs, affordable housing, transportation choices, and recreational facilities, and expand diversity, synergism, and use of renewable resources in the operation and output of the local economy".
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states in its preamble that "consistent with the demands of efficiency and cost effectiveness, the head of each executive agency shall incorporate waste prevention and recycling in the agency's daily operations and work to increase and expand markets for recovered materials through greater Federal Government preference and demand for such products". Final guidance on environmentally preferable purchasing for executive agencies was published in the Federal Register on August 20, 1999 (Volume 64, Number 161~.
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: Siting: Optimize Site Potential Energy: Minimize Nonrenewable Energy Consumption Materials: Use Environmentally Preferable Products Water: Protect and Conserve Water Indoor Environmental Quality: Enhance Indoor Environmental Quality Operations and Maintenance: Optimize Operations and Maintenance Practices Executive Order 13148, "Greening The Government Through Leadership In Environmental Management," (April 22, 2000) , as set forth in Appendix C, establishes goals for environmental management, environmental compliance; right-to-know and pollution prevention; release reduction for toxic chemicals; use reduction for toxic chemicals, hazardous substances and other pollutants; reductions in ozone-depleting substances; and environmentally and economically beneficial landscaping.
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Value engineering can also contribute to overall management objectives of "streamlining operations, improving quality, reducing costs, and can result in the increased use of environmentally sound and energy-efficient practices and materials." The circular provides agencies with the authority to define opportunity criteria to apply value management; these opportunities exist in programs, projects, systems, products, and services Public Law 104-106, Section 4306, Value Engineering for Federal Agencies, states that each agency shall establish and maintain cost-effective value engineering procedures and processes. The value engineering methodology emphasizes the return-on-investment aspect of decision making in terms of life-cycle costs to maintain or improve on desired levels of capability and performance during planning, acquisition, execution, and procurements.
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Life-cycle costing examines the associated ownership costs of competing alternatives by discounting both the positive and negative cash flows throughout the facility's service life. Executive Order 13123 defines life-cycle costs as "the sum of the present values of investment costs, capital costs, installation costs, energy costs, operating costs, maintenance costs, and disposal costs, over the lifetime of the project, product, or measure." Section 401 states that "agencies shall use life-cycle cost analysis in making decisions about their investments in products, services, construction, and other projects to lower the Federal Government's costs and to reduce energy and water consumption.
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In Greening Federal Facilities: An Energy, Environmental, and Economic Resource Guide for Federal Facility Managers. "Online]
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In Meeting Executive Order 13 123; Sustainable Design and Development for Federal Agencies "Online]
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