NCJ Number
66535
Journal
JOURNAL OF PURCHASING AND MATERIALS MANAGEMENT Volume: 14 Dated: (SPRING 1978) Pages: 21-25,32
Date Published
1978
Length
6 pages
Annotation
THE ENERGY POLICY AND CONSERVATION ACT OF 1975, REQUIRING COOPERATIVE STATE AND LOCAL PROCUREMENT AS A MEANS OF ENERGY CONSERVATION, DOES NOT SEEM TO RESULT IN A SIGNIFICANT AMOUNT OF ENERGY SAVINGS PER DOLLAR SPENT.
Abstract
THE MOST EFFECTIVE METHOD TO ESTABLISH CONTROL OVER STATE AND LOCAL PURCHASE PRACTICES IS THROUGH CENTRALIZED BUYING. ALTHOUGH 43 STATES HAVE SOME FORM OF COOPERATIVE BUYING, SUCH POLICIES ARE LIMITED IN SCOPE. LIFE CYCLE COSTING, VALUE INCENTIVE CLAUSES, PERFORMANCE SPECIFICATIONS, AND MULTIPLE YEAR CONTRACTS ARE PROCUREMENT APPROACHES THAT RELATE PERFORMANCE AND PRICE AND ENERGY EFFICIENCY TO THE WHOLE LIFE OF A PRODUCT AND COULD RESULT IN THE ACQUISITION OF MORE ENERGY EFFICIENT PRODUCTS. THE FEDERALLY FUNDED EXPERIMENTAL TECHNOLOGY INCENTIVES PROGRAM OF THE NATIONAL BUREAU OF STANDARDS HAS CREATED SIX TASK FORCES TO EXAMINE THE USE OF STATE PROCUREMENT POLICIES TO BRING ABOUT PRIVATE SECTOR PRODUCT INNOVATION. THE STANFORD RESEARCH INSTITUTE HAS DEVELOPED A CALCULATION FOR MEASURING ENERGY CONSUMPTION IN A STATE INVENTORY AND SUBSEQUENT CONSERVATION THROUGH PROCUREMENT POLICIES, BUT THE CALCULATION IS LIMITED BY THE LACK OF DATA FOR THE NUMBER OF BTUS (BRITISH THERMAL UNITS) PER DOLLAR EXPENDED AND FOR COMPARING ENERGY CONSUMING ITEMS IN STATE OR LOCAL INVENTORIES. AN ACCEPTABLE ALTERNATIVE APPLICABLE TO ALL STATES IS TO DEVELOP AN ENERGY-INTENSIVE RATIO OF BTUS TO DOLLARS AND HOLD THE RATIO CONSTANT IN RELATION TO PROJECTED BUDGETARY INCREASES. HOWEVER, THIS METHOD AS USED IN TEXAS DEMONSTRATED ONLY MINOR ENERGY SAVINGS. THUS, THE ACT'S EXPECTATIONS MAY BE UNREALISTIC. SINCE ONLY SMALL AMOUNTS OF ENERGY ARE CONSERVED, THE ENERGY ACT SHOULD PROVIDE A FRAMEWORK FOR ALL INTERESTED PARTIES TO EXAMINE WAYS IN WHICH ENERGY-EFFICIENT BUYING CAN CONTRIBUTE TO THE ACQUISITION OF BETTER PRODUCTS AS A LOWER LIFE CYCLE COST. FOOTNOTES, ONE TABLE, AND NINE REFERENCES ARE INCLUDED. (TAG)