Procurement Services Socially Responsible Procurement Guidelines

Description

The Socially Responsible Procurement Guidelines serve as a framework for promoting social responsibility by taking into account the social and ethical aspects of products and services. These guidelines are designed to support the overarching objective of cultivating a culture centered on socially responsible procurement, encompassing aspects such as environmental impact, business diversity, and community investment. They provide detailed parameters into how a supplier, product, or service can be qualified as a sustainable, diverse business, and/or local buying option.

Table of Contents

  1. Overview 
  2. Objectives
  3. Applicability
  4. Responsibility
    1. Procurement Services
    2. Office of Campus Sustainability
    3. Office of Diversity, Equity, and Inclusion
    4. Colleges and Departments
  5. Business Diversity Guidelines
  6. Product Category Guidelines
    1. Appliances
    2. Cleaning Chemicals
    3. Food
    4. Furniture
    5. IT Hardware
    6. Lighting
    7. Office Supplies
  7. Local Supply Guidelines
  8. Appendix A: Glossary of Terms
  9. Appendix B: Business Diversity Certification Organization
  10. Appendix C: Sustainable Certification Organizations
  11. Appendix D: Change Log

 

Socially Responsible Procurement Guidelines    

  1. Overview
    1. The University of Michigan (“University”, “U-M” or “UM”) defines socially responsible procurement as the conducting of business in a manner that meets or exceeds the ethical, legal, commercial, and public expectations that society has of business operation.
    2. The Socially Responsible Procurement Guidelines (these “Guidelines”) support the ultimate goal of establishing and fostering a culture of socially responsible procurement. This includes the areas of environmental impact, business diversity, and community investment.
    3. U-M recognizes the importance of socially responsible procurement and its environmental and economic impact to the surrounding community. These Guidelines support the following initiatives: Greenhouse Gas reduction, Zero Waste, Carbon Neutrality, Sustainable Food, Energy Efficiency, reduction in harmful chemicals, reduction in scope 3 emissions, and fostering an inclusive and equitable community at U-M and impacted communities. 
  2. Objectives
    1. Promote social responsibility by considering the social and ethical aspects of products, services, and suppliers through efforts to promote diversity and inclusion, supporting local business, and remaining environmentally conscientious.
    2. Encourage fiscal responsibility by offering comprehensive guidelines on the procurement of products and services.
    3. Minimize U-M’s environmental impact by providing and procuring products and services that are environmentally responsible or sustainable throughout their life cycle.
    4. Minimize waste generation and promote recycling and waste reduction practices.
  3. Applicability
    1. These Guidelines apply to all units, students, faculty, and staff across U-M academic and medical campuses. This includes, but is not limited to, UM-Ann Arbor, UM-Dearborn, UM-Flint, UM-Medical Centers, UM-Primary Care Centers, and UM-Specialty Care Centers.
    2. The application of these Guidelines should align with and are subject to the budgetary limitations and research constraints specific to each department and/or project.
    3. Suppliers that are able to self-certify that their business meets the federally supported diverse supplier certifications can be identified as a “Diverse-Owned Business” on U-M supplier search pages and any hosted and/or punch-out catalog. The U-M recognized certifications are found in Section V Business Diversity Guidelines.
    4. Suppliers that are able to self-certify products in the Exhibit A of their contract using U-M recognized certifications can have their products be identified as “Sustainable Purchasing” on U-M supplier search pages and any hosted and/or punch-out catalog. The U-M recognized certifications are found in Section VI Product Category Guidelines.
    5. Suppliers identified as a “Diverse-Owned Business” or products identified as “Sustainable Purchasing” may be requested to report their tier 1 and tier 2 spend by the U-M Procurement Services. The reports should include, but are not limited to, the following criteria:
      1. Excel compatible report
      2. PO#
      3. Order Date
      4. Dept Ref #
      5. Catalog Item Number
      6. Product Name
      7. Unit Price
      8. Qty/UOM
      9. Extended Price
      10. Shipping charges if applicable
      11. UNSPSC Product Code
      12. Sustainable and/or Diverse Certification
    6. Clearly display Environmentally Preferable as an evaluation criteria during requests for proposal, requests for quotation, and/or requests for information.
  4. Responsibility. Individuals in each of the following units are encouraged to perform the following acts in furtherance of the Objectives:
    1. Procurement Services
      1. Incorporate socially responsible language into supplier agreements as applicable. 
      2. Negotiate with suppliers that can provide university-wide sustainable product and service offerings for the campus community.
      3. Incorporate socially responsible questions and criteria into request for proposal, request for quotation, and/or request for information.
      4. Ensure sustainable symbols/icons/certifications are displayed on all eProcurement platforms including Procurement Contracting Application (PCA), Procurement Sourcing Application (PSA), M-Marketsite, and the U-M Procurement Services website.
      5. Publicize and promote the available contracted sustainable and diverse product and service offerings on the U-M Procurement Services webpage and M-Marketsite.
      6. Provide an annual report on sustainable and diverse product and service offerings and utilization from University-Wide contracted suppliers.
    2. Office of Campus Sustainability
      1. Offer advice and guidance into commodities and services that have significant impact on U-M goals to create a more sustainable environment.
      2. Assist U-M Procurement Services in verifying and validating sustainability claims when contracting with new and current suppliers, as needed.
      3. Advise on high-impact metrics and University-Wide reporting for products and services.
    3. Office of Diversity, Equity, and Inclusion
      1. Offer advice and guidance into products and/or services that have significant impact on the university goals to create a more equitable and inclusive environment.
      2. Offer advice and guidance to U-M stakeholders when contracting with new and existing suppliers to review and confirm business diversity claims, as appropriate.
      3. Provide input and consultation in providing equity-focused metrics for University-Wide products and services.
    4. Colleges and Departments
      1. Comply with the U-M Socially Responsible Procurement Guidelines.
      2. Prioritize environmentally-preferable products and services when possible.
  5. Business Diversity Guidelines
    1. In accordance with Constitution of Michigan of 1963 Article 1 Section 26 Affirmative action programs  (URL:  www.legislature.mi.gov/(S(5pholcmussp3oorwkhdemb04))/mileg.aspx?page=GetObject&objectname=mcl-Article-I-26#:~:text=(2)%20The%20state%20shall%20not,public%20education%2C%20or%20public%20contracting.), the University of Michigan shall not discriminate against, or grant preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, or public contracting.
    2. U-M recognizes self-certification as a “Diverse-Owned Business” by suppliers that are at least 51 percent owned, operated, and controlled by a person of diverse background.
    3. U-M recognizes the following attributes in designating suppliers as diverse: Historically Black College/University, Historically Underutilized Business, Minority Business Enterprise, Small Disadvantaged Business, Service-Disabled Veteran Owned, Small Business, Veteran-Owned, Women-Owned. It’s possible for a business to fall into multiple categories .For an expanded list of recognized business classifications for Diverse-Owned Businesses,  refer to Appendix B. 
    4. A “Small Business Concern” means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on government contracts, and qualifies as a small business under the criteria and size standards in 13 CFR 121 (see FAR 19.1)  www.legislature.mi.gov/(S(5pholcmussp3oorwkhdemb04))/mileg.aspx?page=GetObject&objectname=mcl-Article-I-26#:~:text=(2)%20The%20state%20shall%20not,public%20education%2C%20or%20public%20contracting. The size of subcontractors and suppliers is determined by the NAICS code of their subcontract.
    5. The Small Business Subcontracting Plan (SBSP) is a purchasing plan for federally sponsored contracts that equal or exceed $750,000 over the course of the contract unless otherwise specified within the contract itself. Meeting the goals of the SBSP by the end of the contract period is critical.
  6. Product Category Guidelines. When procuring certain products falling into the listed categories below, consider the following factors, certifications, and/or preferences below. For an additional list of recognized certifications to consider when procuring such products, please refer to Appendix C.:
    1. Appliances
      1. Appliances include refrigerators, freezers, dishwashers, heating/cooling appliances, ovens, fume hoods, and other miscellaneous products as defined by ENERGY STAR and EPEAT organizations.
      2. U-M acknowledges the following certifications: ENERGY STAR® and EPEAT.
      3. Preference for the procurement of ENERGY STAR®, EPEAT, or equivalent certified products.
      4. Preference for suppliers for take-back or recycling programs offered by the supplier or through third-party recycling service partnerships.
      5. Preference for energy- and water-efficient products.
    2. Cleaning Chemicals
      1. Cleaning products include general-purpose bathroom, glass, and carpet cleaners, degreasing agents, biologically-active cleaning products (enzymatic and microbial products), floor-care products (e.g., floor finish and floor finish strippers), hand soaps and hand sanitizers, and metal polish and other specialty cleaning products.
      2. U-M acknowledges the following certifications: Cradle to Cradle Bronze level or higher, EPA Safer Choice, Green Seal, and UL Ecologo.
      3. Preference for the use of green cleaning services and third-party certified products.
      4. Preference for suppliers who offer products that do not contain Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS).
    3. Food 
      1. Preference for local food, which U-M defines as being grown in the state of Michigan, with special consideration to food grown within 250 miles of the Ann Arbor campus. Processed foods are considered to be locally sourced if the processing facility is located within a 250 mile radius of Ann Arbor and where at least 50% of the ingredients (measured in annual dollar expenditures) are also sourced from within a 250 mile radius of the processing.
      2. Preference for sustainable food services, which U-M defines as practices that: 
      3. Protect, conserve, and enhance soil, water, wildlife habitat, and biodiversity
      4. Conserve energy, reduce and recycle waste
      5. Reduce the use of pesticides and other toxic or hazardous materials
      6. Maintain transparent and traceable supply chains
      7. Support safe and fair working conditions as well as living wages
      8. Ensure humane animal treatment
      9. Ensure continual improvement of practices
      10. Demonstrate commitment to the University’s goal for decarbonization (show the attempt to reduce carbon emissions from transport, packaging, and service of foods)
      11. Reduces or eliminates single-use plastics
      12. U-M acknowledges the following certifications as part of their commitment to sustainable purchasing considerations Certified Humane Raised and Handled, Fair Trade Certified, Food Alliance Certified, Marine Stewardship Council (MSC) Certified, Protected Harvest Certified, Rainforest Alliance Certified, Smithsonian Migratory Bird Center (SMBC), and USDA Certified Organic.
    4. Furniture
      1. Furniture consists of all freestanding furniture including, but not limited to (seating, tables, case goods, systems, and accessories). Scope does not cover panel systems requiring electricity and/or are anchored to walls or floors.
      2. U-M acknowledges the following certifications: BIFMA Level 1 or higher, Cradle to Cradle Bronze or higher, GreenGuard, and LEED.
      3. Preference is to eliminate the use of formaldehyde, perfluorinated compounds, polyvinyl chloride (PVC), antimicrobials, and all flame retardants (see healthier furniture technical specifications or Healthier Hospitals manufacturer guidance).
      4. Preference for furnishings that are low-VOC or free of flame retardants when not a question of code compliance.
    5. IT Hardware
      1. IT hardware includes Computers (desktop computers, notebook computers, tablets/slates, small-scale servers, thin clients, and workstations), displays (monitors and signage displays), imaging equipment (copiers, digital duplicators, facsimile machines, mailing machines, multifunction devices, printers, and scanners), data centers, cloud services, televisions, mobile phones, and some medical equipment as defined by the AASHE and EPEAT organizations.
      2. U-M acknowledges the following certifications: Blue Angel, ENERGY STAR®, EPEAT Bronze or higher, e-Stewards, Green Seal, and TCO certified.
      3. Preference for Blue Angel, ENERGY STAR, EPEAT, e-Stewards, Green Seal, TCO Certified, or equivalent certified products.
      4. Preference for companies that have chosen to utilize e-Stewards or Responsible Recycling (R2) for the disposal of electronics.
    6. Lighting
      1. Lighting includes all light bulbs and lamps.
      2. U-M acknowledges the following certifications ENERGY STAR®, EPEAT, bronze or higher, or RoHS (Restriction of Hazardous Substances).
      3. Use only LED bulbs that are ENERGY STAR-rated and/or RoHS compliant.
      4. Per the U-M Architectural, Engineering and Construction department, lighting should be set at the appropriate lumens. 
    7. Office Supplies
      1. Office supplies include batteries, lamps, paper, calendars, envelopes, folders, notepads, printers, and toner cartridges as defined by AASHE.
      2. When available, preference for the procurement of ENERGY STAR, EPEAT, e-Stewards, Green Seal, Forest Stewardship Council (FSC), Responsible Recycling (R2), Sustainable Green Printing Partnership, TCO Certified, UL Ecologo, WaterSense, or equivalent certified products.
      3. Preference for office paper products that contain at least 90 percent post-consumer recycled and/or agricultural content.
      4. Preference for office paper products that can either be identified as post-consumer recycled material or certified by the Forest Stewardship Council (FSC) or Sustainable Forestry Initiative (SFI).
  7. Local Supply Guidelines
    1. U-M considers local supply to be any purchase from a supplier with the majority of their business operations in the state of Michigan.
    2. In accordance with Michigan Legislature Section 18.1261 Act 431 (URL:  www.legislature.mi.gov/(S(5pholcmussp3oorwkhdemb04))/mileg.aspx?page=GetObject&objectname=mcl-Article-I-26#:~:text=(2)%20The%20state%20shall%20not,public%20education%2C%20or%20public%20contracting.), in all purchases made by the department, all other things being equal, preference shall be given to products manufactured or services offered by Michigan-based firms or by facilities with respect to which the operator is designated as a clean corporate citizen under part 14 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.1401 to 324.1429, or to biobased products whose content is sourced in this state.

Appendix

  1. Appendix A: Glossary of Terms
    1. AASHE: Association for the Advancement of Sustainability in Higher Education - a registered 501 organization whose primary objective involves enhancing sustainable practices within higher education through advocating for innovative sustainability initiatives.
    2. Biobased product: a product granted the United States Department of Agriculture certified biobased product label.
    3. Business Diversity: refers to the representation of individuals from various demographic backgrounds within an organization or business. Also known as Supplier Diversity.
    4. Category scope: a list of all products covered under each section.
    5. Environmentally Preferable: considers the environmental impact of a product from sourcing, production, use, and end-of-life phases. This includes carbon neutrality, resource conservation, waste reduction, energy efficiency, sustainable production methods, and certifiable production measures/processes.
    6. eProcurement: a method of conducting purchasing activities via an online platform.
    7. Recognized certification: reputable third-party certification minimum requirements for identifying sustainable products in each product category.
    8. Socially responsible procurement: conducting the U-M's business in a manner that meets or exceeds the ethical, legal, commercial, and public expectations that society has of business operation.
    9. Request for proposal (RFP): the formal Procurement Services process for obtaining pricing and proposals from a supplier for goods or services.
    10. Request for quotation (RFQ): the formal Procurement Services process for soliciting pricing and delivery information on goods or services.
    11. Request for information (RFI): the formal Procurement Services process for solicitation of information or presentation of ideas from suppliers.
    12. Certification: provides reputable, independent third-party confirmation the products and services being offered by the supplier adhere to specific environmental and social sustainability criteria.
  2. Appendix B: Business Diversity Certification Organizations

Code

Business Classification

Article

Certifying Organization

Description

HBC

Historically Black College/​​​​​​/University

DFARS 252.219-7003 

 

Institutions determined by the Secretary of Education to meet the requirements of 34 CFR Section 608.2. The term also means any nonprofit research institution that was an integral part of such a college or university before November 14, 1986.

HUB

Historically Underutilized Business

FAR 52.219-8, 13 CFR 126 

SBA as a HUBZone Small Business

A concern that has been certified by SBA as a HUBZone Small Business. If a concern self-certifies with you that it has received SBA’s HUBZone certification, you must verify this in the Central Contractor Registration at www.ccr.gov

MBE

Minority Business Enterprise

 

NMSDC, Self- Certification

Minority group members are United States citizens who are Asian, Black, Hispanic and Native American. Ownership by minority individuals means the business is at least 51% owned by such individuals or, in the case of a publicly-owned business, at least 51% of the stock is owned by one or more such individuals i.e. the management and daily operations are controlled by those minority group members.

SDB

Small Disadvantaged Business

FAR 52.219-8, 13 CFR 124 

Self- Certification

A firm may represent that it qualifies as an SDB for any Federal subcontracting program if it believes in good faith that it is owned and controlled by one or more socially and economically disadvantaged individuals.

SDV

Service-Disabled Veteran Owned

FAR 52.219-8, 38 USC 101(16) 

Self- Certification

A small business concern that is at least 51% owned by one or more service disabled veterans (as defined in 38 USC 101(16)), or, in the case of any publicly owned business, at least 51% of the stock is owned by one or more service disabled veterans. In addition, the management and daily business operations must be controlled by one or more service disabled veterans. In the case of a permanent or severe disability, the spouse or caregiver of such a service-disabled veteran may control the management and daily operations.

SMB

Small Business

FAR 52.219-8, 13 CFR Part 121, 13 CFR 121.410 

Self- Certification

A small business concern as defined pursuant to Section 3 of the Small Business Act and relevant regulations promulgated pursuant thereto. A “Small Business Concern” means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on government contracts, and qualifies as a small business under the criteria and size standards in 13 CFR 121 (see FAR 19.1). The size of your subcontractors and suppliers is determined by the NAICS code of their subcontract. Refer to the Code of Federal Regulations (CFR), Title 13, subparts 121.410 and 121.411, for guidance on size standards and procedures regarding the Subcontracting Program.

VBE

Veteran-Owned

FAR 52.219-9, 38 USC 101(2) 

Self- Certification

A amall business concern that is at least 51% owned by one or more veterans (as defined in 38 USC 101(2)), or, in the case of any publicly owned business, at least 51% of the stock is owned by one or more veterans. In addition, one or more veterans must control the management and daily business operations.

WBE

Women-Owned

FAR 52.219-8 

WBENC, ​​​​​​​WOSB, or Self-​​​​​​​ Certification​​​​​​​

A small business concern that is at least 51% owned by one or more women, or, in the case of any publicly owned business, at least 51% of the stock is owned by one or more women. In addition, one or more women must control the management and daily business operations.

Note: If a product or service has a business diversity certification not included in these Guidelines, please consult Procurement Services to inquire about its validity.

  1. Appendix C: Sustainable Certification Organizations 

Certification

Logo

Description

BIMA

The BIFMA Level certification gauges a product's lifecycle sustainability, covering material sourcing, energy use, manufacturing, performance, and disposal. It has three levels: 1, 2, and 3, with 3 being the most sustainable.

Blue Angel

Blue Angel certification is awarded to products and services that meet certain environmental standards regarding resource conservation, energy efficiency, emissions reduction, and the use of environmentally friendly materials.

Certified Humane Raised and Handled

Certified Humane Raised and Handled certifies farms that raise animals without antibiotics or added hormones and allow them to engage in natural behaviors with sufficient space, shelter and appropriate handling.

Cradle to Cradle

The Cradle to Cradle Certified program evaluates products based on their material health, recyclability, renewable energy use, water stewardship, and social fairness. 

ENERGY STAR

ENERGY STAR is an energy efficiency program led by the United States Environmental Protection Agency (EPA) established to promote energy-efficient products, homes, and buildings, and to help reduce energy consumption and users' carbon footprint.

EPA Safer Choice

The EPA Safer Choice program focuses on evaluating the ingredients used in various consumer and commercial products, including cleaning chemicals, detergents, solvents, and more. The program assesses the potential hazards associated with these products and encourages the use of safer alternatives.

EPEAT

EPEAT (Electronic Product Environmental Assessment Tool) certification is a globally recognized program that evaluates and verifies the environmental performance of electronic products.

e-Stewards

The e-Stewards program certifies eco-friendly electronics recyclers, aiding people and organizations in finding responsible recyclers that meet top environmental and worker safety standards

Fair Trade

Fair Trade

Fair Trade Certified goods ensure better labor conditions, higher pay in agriculture, and cooperative producer groups, mainly in developing nations. Producers must aid local economies, democratic processes, and direct buyer-seller relations.

Food Alliance

Food Alliance

Food Alliance standards surpasses USDA's organic checklist, ensuring sustainable practices on farms, considering improved soil quality, reduced chemicals, diverse crops, biodiversity, water and energy conservation, waste management, fair worker conditions, and humane animal treatment.

Forest Stewardship Council (FSC)

FSC (Forest Stewardship Council) certification is a globally recognized eco-label for wood and wood-based products that come from responsibly managed forests.

Green Seal

Green Seal certifies cleaning products for eco and health impacts. Certified items meet rigorous standards for performance, safety, and labeling

GreenGuard Gold

GreenGuard Gold identifies products that meet standards for low chemical emissions.

Marine Stewardship Council (MSC) 

MSC

Marine Stewardship Council (MSC) Certified fisheries ensure food is being harvested on a sustainable basis and include health criteria in their ratings, but do not include farmed seafood

Protected Harvest 

Protected Harvest

Protected Harvest Certified verifies sustainable food with measurable environmental and social sustainability claims. It evaluates growers' water, air, soil quality, wildlife protection, and social impacts on workers/communities.

Rainforest Alliance

Rainforest Alliance

Rainforest Alliance Certified products help conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behavior.

Resriction of Hazardous Substances

The RoHS directive sets limits on the maximum allowable concentrations of specific hazardous substances in EEE.

Sustainable Forestry Initiative (SFI)

The Sustainable Forestry Initiative (SFI) certification signifies responsible, sustainable forestry that supports healthy ecosystems and communities. It ensures ethically sourced wood and forest products.

Smithsonian Migratory Bird Center (SMBC) 

Bird Friendly

Smithsonian Migratory Bird Center (SMBC) certifies coffee plantations as 100% organic, shade-grown coffee. SMBC supports bird conservation, a healthy environment, and the livelihood of many small-scale farm owners.

TCO

TCO certification recognizes environmentally friendly information technology based on sustainable info, ethical manufacturing, user safety, performance, longevity, substance reduction, and material recovery.

UL Ecologo

Ecologo certification verifies the environmental performance of various products that assess factors such as resource conservation, biodegradability, packaging, and emissions.

USDA Certified Organic

USDA organic

Certified Organic verifies that the products offer the assurance that environmental harms have been minimized through prohibitions on many pesticides, on genetically-modified food varieties, and chemical fertilizers.

WaterSense

WaterSense-labeled products and services are certified to use at least 20 percent less water, save energy, and perform as well as or better than regular models.

Note: If a product or service has an environmental certification not included in these Guidelines, please consult the U-M Office of Sustainability to inquire about its validity.

  1. Appendix D: Change Log
    1. All changes to the Socially Responsible Procurement Guidelines must be approved by Procurement Services Chief Procurement Officer, then subsequently documented within this section:

Approval Date

Summary of Changes

Created By

Section Impacted

Approver(s)

Start Date for Updated Guidelines

8/15/24 Initial Launch A. Ouendag All T. Thrasher 8/19/24

 

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