95 IRA Program Construction Solicitation Desk Guide 2024 10 01.pdf

Inflation Reduction Act of 2022

Construction Solicitation Desk Guide

Last Updated October 1, 2024

Internal GSA Use Only

Summary of Guidance Changes Date Description of Changes Point of Contact

12/15/2023 Release of Inflation Reduction Act Construction Solicitation Desk Guide

Daria Giannotti (OAM)

1/23-25/2024 - Added Google sheet to Sustainability Evaluation Factor to replace table, updated instructions associated with sheet. (For archived language and table please click here)

- Updated language regarding disclosure of information

Daria Giannotti (OAM)

4/3/2024 - Added deviation language to Section II.

D. Technical Evaluation Factor for Projects Requiring LEC Construction Materials

- Removed Deviations to the Sustainability Factor Proposal Submission Requirements for Projects Requiring LEC Construction Materials

Michael McCurty (OAM)

5/29/2024 - IRA D&C Submittal Form replaced with IRA Project Submittal Form

- "Data Dictionary" added to provide industry with instructions on completing the IRA Project Submittal Form

- IRA Project CIPMO Review Request Form added to CIPMO Review section

Michael McCurty (OAM)

10/1/2024 - Revised IRA submission form frequency

- COs shall designate 20% or better GWP materials when market research indicates availability

- Revised the scoring to include a supplemental 10 points on Raw Scores for each IRA-Eligible Material where the material’s submitted EPD reflects the lowest GWP value received in the competition for that material

- Update to Environmental Product Declaration (EPD) grace period for all delivery methods

- Pre-award review changes

Michael McCurty (OAM)

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Table of Contents

Summary of Guidance Changes 2 Table of Contents 3 Overview 4 Instructions for Solicitation of Construction Projects Involving IRA Funding 5 I. Pre-Solicitation Requirements for Projects Requiring LEC Construction Materials 6 II. Solicitation Requirements 7 III. Agreement Requirements 17 IV. Statement of Work and Drawing Requirements 24 V. Specification Requirements 26 VI. CIPMO Review (Pre-Solicitation and Pre-Award Requirement) 27 VII. Legal Review (Pre-Solicitation and Pre-Award Requirement) 27 VIII. Pre-Award Notifications 27 IX. Checklist 27 X. References 27 XI. Instructions for Solicitation of Design Services for IRA Program Projects 28 XII. Instructions for Solicitation of Construction Management or Commissioning Services for IRA Program Projects 28 Appendix A - IRA LEC Project Checklist 29 Appendix B - Limited Notice to Proceed Template 33 Appendix C - Design SOW, Pricing and Submittal Language 34 Appendix D - Construction manager as advisor (CMa) or Commissioning provider (CxP) SOW, Pricing and Submittal Language 38

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Overview The Inflation Reduction Act of 2022 (IRA), Pub. L. No. 117-169, was enacted in August 2022.

The IRA made the single largest investment in climate and energy in American history. The IRA will help the United States tackle the climate crisis, advance environmental justice, and secure our Nation’s position as a world leader in domestic clean energy manufacturing. This law puts the United States on a pathway to achieving the Administration’s climate goals, including a net zero operational emissions federal building portfolio by 2045, and net zero emissions procurement by 2050.

Statutory Text Public Law No. 117-169, 136 Stat. 1818 (Aug. 16, 2022)

SEC. 60502. ASSISTANCE FOR FEDERAL BUILDINGS. In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $250,000,000, to remain available until September 30, 2031, to be deposited in the Federal Buildings Fund established under section 592 of title 40, United States Code, for measures necessary to convert facilities of the Administrator of General Services to high-performance green buildings (as defined in section 401 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17061)).

SEC. 60503. USE OF LOW-CARBON MATERIALS. (a) APPROPRIATION.—In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,150,000,000, to remain available until September 30, 2026, to be deposited in the Federal Buildings Fund established under section 592 of title 40, United States Code, to acquire and install materials and products for use in the construction or alteration of buildings under the jurisdiction, custody, and control of the General Services Administration that have substantially lower levels of embodied greenhouse gas emissions associated with all relevant stages of production, use, and disposal as compared to estimated industry averages of similar materials or products, as determined by the Administrator of the Environmental Protection Agency. (b) DEFINITION OF GREENHOUSE GAS.—In this section, the term ‘‘greenhouse gas’’ means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride.

SEC. 60504. GENERAL SERVICES ADMINISTRATION EMERGING TECHNOLOGIES. In addition to amounts otherwise available, there is appropriated to the Administrator of General Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $975,000,000, to remain available until September 30, 2026, to be deposited in the Federal Buildings Fund established under section 592 of title 40, United States Code, for emerging and sustainable technologies, and related sustainability and environmental programs.

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Approach To Low Embodied Carbon Material As indicated above, IRA Section 60503 provides GSA with $2.15 billion for acquisition and installation of construction materials and products with substantially lower levels of embodied greenhouse gas emissions as compared to estimated industry averages, as determined by the Administrator of the U.S. Environmental Protection Agency (EPA). In December 2022, EPA issued an Interim Determination which provided GSA with guidance on how to identify clean building materials. Consistent with standard GSA practice and the Federal Acquisition Regulation, and taking extensive industry feedback into consideration, GSA issued IRA Low Embodied Carbon (LEC) asphalt, concrete (and cement), glass and steel materials requirements for use in acquiring compliant materials. In addition to these materials, the requirements apply to certain product assemblies if at least 80% of the assembly’s total cost or total weight comprises materials that meet the LEC Requirements.

In addition to acquiring and installing LEC materials, GSA needs to acquire and install high-performance green building measures and emerging and sustainable technologies. To accomplish this end, GSA needs to generate implementing solicitations and contract documents. This Desk Guide provides guidance instructing Contracting Officers and PBS Project Teams (i.e., Project Executives, Project Managers, Architect/Engineers, and Construction Managers) on incorporating IRA-funded work into required solicitations and agreements.1

This guidance supplements, and does not eliminate, other generally applicable procurement requirements (e.g., competition requirements and the Buy American and Trade Agreement Acts).

Questions Questions regarding this guidance can be directed to pbsoampolicy@gsa.gov. The Office of Acquisition Management’s OAM IRA Toolkit on GSA’s National Acquisition Resource Center contains the most up-to-date IRA acquisition information, guidance, and tools.

Questions regarding the overall IRA Program can be directed to IRA Program Questions Google Form, or directly to John.Dennis@gsa.gov. IRA Program Resources can also be found at:

Inflation Reduction Act Program.

Instructions for Solicitation of Construction Projects Involving IRA Funding Synopses, Solicitations, Agreements, Statements of Work and Specifications involving IRA funding must reflect a number of new elements. Specific requirements will depend on which

1 Although construction solicitations and contracts are the principal focus of the Desk Guide, design and construction management requirements are also covered below.

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IRA fund sources will be used: high performance green building funding, low embodied carbon construction material funding and/or emerging and sustainable technology funding.

● Contracting Officers and PBS Project Teams responsible for procurements involving IRA funding must tailor procurement documents, including PBS Construction Template Solicitations and Agreements, as discussed below.

Note: Contracting officers may not need all of the below language for a given project; for example, a project not involving LEC materials will not require LEC-specific evaluation factors and contract clauses, etc.

● For projects utilizing indefinite delivery/indefinite quantity (IDIQ) vehicles, the substance of the below guidance should be addressed and incorporated to the extent practicable.

● For noncompetitive projects (e.g., 8(a) sole source), the substance of the below guidance should be addressed and incorporated to the extent practicable. In lieu of a LEC evaluation factor, see “Noncompetitive Proposal Evaluation Requirements” section.

● Blue text indicates passages required for insertion into operative procurement documents. This coloring should be changed to black once transferred to procurement documents.

● Appendix A - IRA LEC Project Checklist contains a step-by-step checklist of solicitation and contract activities for LEC construction work covered by this guidance.

I. Pre-Solicitation Requirements for Projects Requiring LEC Construction Materials In publicizing a Synopsis for a Proposed LEC Project Contract Action, Contracting Officers should include prominently-displayed synopsis language as follows. (Note: This section is not applicable to projects utilizing IDIQ vehicles.)

In addition to the construction opportunity reflected herein, GSA is seeking suppliers and manufacturers that are interested in supplying low embodied carbon asphalt, concrete (and cement), glass and steel materials for the project. Suppliers and manufacturers of materials meeting GSA’s Inflation Reduction Act Low Embodied Carbon asphalt, concrete (and cement), glass and steel requirements may submit an Expression of Interest to the contact below no later than <<CO to insert date>>.

Expressions of Interest should indicate materials available and global warming potential values reflected in materials’ environmental product declarations. Submission of an expression of interest grants GSA your permission to publish your firm’s contact information and offerings for use by potential offerors on GSA construction requirements.

Supplier and manufacturer contact information will be published in an informational amendment issued by GSA and, potentially, in other fora.

By participating in the competition, offerors consent to unrestricted GSA use of supplier names and the GWP values associated with supplier materials. Such information may be

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Technical solutions, supplier pricing, and supplier-offeror terms and conditions will not be shared. Any objection shall be transmitted to the Contracting Officer by the due date for offers and shall adhere to 41 C.F.R. § 105-60.601.

As indicated by the text above, Contracting Officers shall collect, summarize, and provide contact information, available materials, and global warming potential values from Expressions of Interest as an informational amendment to the solicitation. This document shall include the following statement:

Market research resources for identifying qualifying materials may include, but are not limited to, ASTM International’s EPD Page, Building Transparency’s Embodied Carbon in Construction Calculator (EC3), ICC Evaluation Service’s EPD Directory, EPD International AB’s EPD Library, the National Asphalt Paving Association’s Emerald Eco-Label EPD Tool, the National Ready Mixed Concrete Association’s Concrete EPDs page, NSF's Search for EPDs tool, and UL’s SPOT product catalog and the Builtcold website.

Note: The information provided herein is for informational purposes only and does not indicate or imply Federal endorsement of any organization, business, material or product. The Government makes no representation or warranty concerning the quality, performance, availability or suitability of any organization, business, material or product.

II. Solicitation Requirements

A. Notification of Use of IRA Funds The Solicitation shall be amended by adding the below text to the cover page or similarly prominent location in the front of the Solicitation:

Note: The Inflation Reduction Act of 2022 (IRA), Pub. L. No. 117-169, enacted in August 2022, provided GSA with significant funding for (a) measures necessary to convert facilities to high-performance green buildings, (b) acquisition and installation of construction materials and products with substantially lower levels of embodied greenhouse gas emissions, and (c) emerging and sustainable technologies. The Contract resulting from this Solicitation will be funded in part by IRA appropriations, and it contains numerous IRA-specific requirements. Requirements include, but are not limited to, requirements regarding pricing, invoicing, submittals, materials, and construction. Offerors shall carefully review this Solicitation, the Agreement, the Statement of Work, the Specifications, and the Drawings. Offerors are responsible for accurately pricing and, if successful, fully performing all Contract requirements.

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If the contract will be funded in whole or in part with GSA’s IRA LEC appropriation and will be procured on a competitive basis, add this sentence before the final sentence of the above passage:

In addition, please note that this Solicitation contains an evaluation factor favoring certain construction materials with the lowest possible levels of embodied carbon.

B. Pricing Instructions The Solicitation’s Price Proposal instructions shall be amended by adding the below text to the Construction Solicitation Template’s (e.g., DB201A, C201, CMc201, DB201-2) Additional Proposal Requirements narrative (typically Section II.C.4):

GSA is required to track spending for each of the three appropriations it received under the Inflation Reduction Act of 2022 (IRA) -- for low-embodied carbon (LEC) materials, emerging and sustainable technologies, and high-performance green building measures -- and has established “budget activities” for each of these appropriations. A contract line item number (CLIN) for each of these budget activities has been included in the Agreement as necessary. In addition, subCLINs will be used to track spending on each of the LEC materials designated for IRA funding -- asphalt, concrete, glass, and steel.

Offerors must include separate prices for IRA work under the corresponding IRA CLINs and subCLINs.

Amounts for each IRA CLIN should reflect all expenses necessary to accomplish acquisition and installation of IRA work elements. A list of possible expenses follows below; this list is not exhaustive.

● Expenses of acquiring and transporting products and materials required for IRA-funded work to the construction site;

● Labor, general and administrative expenses, and overhead and profit reasonably attributable to installation of IRA-funded work;

● Expenses for materials, tools, riggings and equipment (including safety equipment) required to install IRA-funded work;

● Design, submittal and documentation expenses reasonably attributable to IRA-funded work;

● Demolition and disposal expenses reasonably necessary for and attributable to IRA-funded work

● Expenses necessary to return space to its condition preceding IRA-funded work;

● Environmental remediation expenses required in execution of IRA-funded work;

and

● Phasing and commissioning expenses reasonably attributable to IRA-funded work.

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Note: In consultation with assigned OGC Counsel, Contracting Officers and PBS Project Teams should consider adding additional detail on specific necessary expenses associated with the project.

C. Best Value Tradeoff The Solicitation’s Method of Award shall be amended by adding the below text to the Construction Solicitation Template’s (e.g., DB201A, C201, CMc201, DB201-2) Evaluation of Offers narrative (typically Section VI.A.2):

Non-Price Factors, when combined, are significantly more important than Total Evaluated Price.

D. Technical Evaluation Factor for Projects Requiring LEC Construction Materials GSA’s IRA LEC asphalt, concrete (and cement), glass and steel requirements establish numeric global warming potential (GWP) limits for each of the EPA-approved construction material categories: concrete (and cement), asphalt, steel, and glass (IRA-Eligible Materials). For each material, GWP limits have been established for the best performing 20% of materials in terms of embodied carbon (Top 20% Limits), the best performing 40% of materials in terms of embodied carbon (Top 40% Limits), and better than industry average (Better Than Average Limit).

When procuring construction projects requiring concrete (and cement), asphalt, steel and/or glass, Contracting Officers will utilize a technical evaluation factor that favors provision of IRA-Eligible Materials with the lowest possible GWP. Instructional language and an evaluation factor template are provided below.

For an example of how to establish the table and calculate the offeror’s score, please refer to the IRA Solicitation Sustainability Evaluation Factor Example slides.

Key Considerations:

● Contracting Officers shall work with PBS Project Teams to remove any IRA-Eligible

Material present in the below evaluation factor that is inapplicable to the project’s anticipated material needs.

● Contracting Officers shall work with PBS Project Teams to develop LEC Material Evaluation Weights for individual materials to reflect the relative approximate cost of the materials required for the project. LEC Material Evaluation Weights must add up to 100%.

● Separately, the Overall Weight of the factor relative to other factors (e.g., Past Performance, Prior Experience) shall be at least 15%.

● Contracting Officers shall utilize the IRA Sustainability Factor Table in solicitations, which provides Offeror Instructions, a table with all materials and built-in calculations, and an example of a completed table.

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● Depending on market research, certain IRA-Eligible Materials may be required to meet Top 20% Limits (see Market Research and Top 20% Materials, below).

Market Research and Top 20% Materials Where market research indicates, and the CIPMO confirms, that certain IRA-Eligible Materials with GWP values at or better than Top 20% Limits are or should be available for a project, Contracting Officers shall substitute the following language for the first paragraph under Technical Acceptability, below:

Offerors will only meet the standard for technical acceptability under this Factor if (1) they commit to furnish IRA-Eligible [INSERT CATEGORIES OF IRA-ELIGIBLE MATERIALS THAT MUST MEET TOP 20% LIMITS] with a GWP better (lower) than such materials’ Top 20% Limits; and (2) they commit to furnish all other required IRA-Eligible Materials with a GWP better (lower) than each IRA-Eligible Material’s Better Than Average Limit.

NOTE: Where potential offerors indicate that such IRA-Eligible Materials meeting Top 20% Limits are NOT available and, based on the Contracting Officer’s and CIPMO’s review, these indications appear well founded, the Contracting Officer may consider issuing a solicitation amendment relaxing the Top 20% Limit requirements for those materials, permitting submission of materials meeting Top 40% Limits or Better than Average Limits.

Evaluation Factor The Construction Solicitation Template’s (e.g., DB201A, C201, CMc201, DB201-2) Technical Proposal narrative (typically Section II.D) shall be amended by adding the below evaluation factor (Note: For two-step Design/Build procurements, this factor should be utilized in Phase 2).

Evaluation Factor # ___: Sustainability

Background and Overview This project is funded in part by Section 60503 of the Inflation Reduction Act of 2022 (IRA), which provides funding for purchase of construction materials with substantially lower levels of embodied greenhouse gas emissions.

GSA’s IRA Low Embodied Carbon asphalt, concrete (and cement), glass and steel requirements establish numeric global warming potential (GWP) limits for certain EPA-approved construction materials: concrete (and cement), asphalt, steel, and glass (IRA-Eligible Materials). For each material, GWP limits have been established for the best performing 20% of materials in terms of embodied carbon (Top 20% Limits), the best performing 40% of materials in terms of embodied carbon (Top 40% Limits), and better than industry average (Better Than Average Limit).

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This Evaluation Factor calls for Offeror commitments to furnishing IRA-Eligible Materials with the lowest possible GWP values. IRA Limit Commitments proposed under this evaluation factor will be incorporated into the successful offeror’s resultant contract.

Individual materials’ GWP values may be found on individual manufacturers’ environmental product declarations (EPDs) (see the sam.gov presolicitation notice for some publicly-available tools that may help identify potential suppliers). EPDs must meet the standards reflected in GSA’s IRA Low Embodied Carbon asphalt, concrete (and cement), glass and steel requirements (see Compliance Documentation criteria listed for each IRA-Eligible Material).

Technical Acceptability Offerors will only meet the standard for technical acceptability under this Factor if they commit to furnish all required IRA-Eligible Materials with a GWP better (lower) than each IRA-Eligible Material’s Better Than Average Limit.

Scoring Offerors meeting the standard for technical acceptability, above, will receive a number of Raw Scores, one for each IRA-Eligible Material required by the Contract:

● Offerors will receive a Raw Score of 90 for each IRA-Eligible Material commitment that is better (lower) than GSA’s Top 20% Limits.

● Offerors will receive a Raw Score of 40 for each IRA-Eligible Material commitment that is only better (lower) than GSA’s Top 40% Limits.

● Offerors will receive a Raw Score of 20 for each IRA-Eligible Material commitment that is only better (lower) than GSA’s Better Than Average Limit.

Offerors shall complete the “IRA Sustainability Factor Table” attached to this solicitation by filling out the applicable IRA Limit they commit to meet for each IRA-Eligible Material. Based upon the offeror’s selection in the “IRA Limit Commitment” column, the associated Raw Score, a Preliminary Weighted Score, and the Preliminary Total Weighted Score will be automatically calculated.

In addition, for each IRA-Eligible Material identified in the IRA Sustainability Factor Table, offerors shall submit EPDs listing that material’s GWP. Such EPDs must meet the standards reflected in GSA’s IRA Low Embodied Carbon asphalt, concrete (and cement), glass and steel requirements (see Compliance Documentation criteria listed for each IRA-Eligible Material).

Raw Score Supplement Offerors will receive a supplemental 10 points on Raw Scores for each IRA-Eligible Material where the material’s submitted EPD reflects the lowest GWP value received in the competition for that material. For instance, where two offerors propose materials meeting the Top 20% Limit for glass, and Offeror A submits a glass EPD reflecting a

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GWP value lower than that reflected in Offeror B’s glass EPD, Offeror A and B will receive raw scores of 100 and 90 for that material, respectively. During evaluations, the Government will add Raw Score Supplements, if any, to offeror’s Preliminary Weighted Scores to calculate Final Weighted Scores. In the event of a tie for lowest-GWP values for a given material, those tied offerors will all receive the Raw Score Supplement for that material.

Note 1: By submitting an offer, Offeror consents to unrestricted GSA use of supplier names and the GWP values associated with supplier materials. Such information may be disclosed publicly or used to inform other low embodied carbon procurement activities.

Technical solutions, supplier pricing and supplier-offeror terms and conditions will not be shared. Any objection shall be transmitted to the Contracting Officer by the due date for offers and shall adhere to 41 C.F.R. § 105-60.601.

Note 2: For each offeror that is unable to submit any of the compliant EPDs by the proposal due date, the offeror shall submit a statement for each such missing compliant EPD (a) certifying that it is unable to submit a compliant EPD by the proposal due date, and (b) promising to submit a compliant EPD within 120 days from the contract award ((a) and (b) collectively constituting an “EPD Pledge”). Failure by an offeror to submit either a compliant EPD or an EPD Pledge (as described in the immediately preceding sentence) for each IRA-Eligible Material listed in the IRA Sustainability Factor Table by the proposal due date shall result in the offeror’s proposal being unacceptable. Offerors submitting an EPD Pledge in lieu of a compliant EPD for a given IRA-Eligible Material will not be eligible for a Raw Score Supplement for that material, as described above.

Any awardee that submitted an EPD Pledge in lieu of a compliant EPD for a given IRA-Eligible Material will still be bound by IRA Limit Commitments made in their IRA Sustainability Factor Table. Note as well that the contract resulting from this solicitation shall have the following provision: “Within 120 days after contract award, the Contractor shall submit a compliant EPD for any IRA-Eligible Material for which the Contractor was unable to submit a compliant EPD by the proposal due date (if any). Such EPD must reflect GWP values that comply with the IRA Limit Commitments incorporated into the contract. GSA shall not issue a Notice to Proceed with construction services to the Contractor until the Contractor has submitted a compliant EPD for each IRA-Eligible Material for which the Contractor was unable to submit a compliant EPD by the proposal due date.”

The Construction Solicitation Template’s (e.g., DB201A, C201, CMc201, DB201-2) Non-Price Factors text (typically Section VI.F.) shall be amended by adding the below evaluation factor, tailored as indicated (Weight shall be at least 15%):

Evaluation Factor # ___: Sustainability Weight [INSERT (see above)]%

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(1) The Sustainability Factor will be scored as outlined in Section [INSERT], above.

(2) GSA will verify Offeror’s scoring and that IRA Limits are supported by environmental product declarations (EPDs) from proposed suppliers.

(3) GSA will verify that Offeror’s EPDs adhere to EPD standards reflected in GSA’s IRA Low Embodied Carbon asphalt, concrete (and cement), glass and steel requirements (see Compliance Documentation criteria listed for each IRA-Eligible Material).

(4) GSA will make any scoring adjustments necessary to correct patent errors.

Once GSA has verified the Offeror’s scoring and, if necessary, made any corrections, the overall weighted score will be assigned an adjectival rating, as follows:

[CO to tailor based on adjectival ratings utilized in the Source Selection Plan]

Weighted Score Adjectival Rating

100 points Exceptional

90-99 points Very Good

20-89 points Acceptable

Unacceptable Unacceptable

Note 1: Any proposal that does not meet the standard for Technical Acceptability will be rated as “Unacceptable” under this factor and will be ineligible for award.

Note 2: Any proposal that furnishes all required IRA-Eligible Material with a GWP better (lower) than GSA’s Top 20% Limits will receive a Total Weighted Score of 90 points (Exceptional), with Raw Score Supplements potentially increasing the Total Weighted Score to 100 points.

Note 3: If an EPD is not available, GSA will review the offeror’s EPD Pledge.

E. Noncompetitive Proposal Evaluation Requirements for Projects Requiring LEC Construction Materials GSA’s IRA Low Embodied Carbon asphalt, concrete (and cement), glass and steel requirements establish numeric global warming potential (GWP) limits for each of the EPA-approved construction material categories: concrete (and cement), asphalt, steel, and glass (IRA-Eligible Materials). For each material, GWP limits have been established for the best performing 20% of materials in terms of embodied carbon (Top 20% Limits), the best performing 40% of materials

Internal GSA Use Only - Page 13 in terms of embodied carbon (Top 40% Limits), and better than industry average (Better Than Average Limit).

When procuring construction projects requiring concrete (and cement), asphalt, steel and/or glass, Contracting Officers will request that the offeror provide a proposal that favors provision of IRA-Eligible Materials with the lowest possible GWP. Depending on market research, certain IRA-Eligible Materials may be required to meet Top 20% Limits (see Market Research and Top 20% Materials, below). Instructional language and proposal requirement language are provided below.

Contracting Officers shall work with PBS Project Teams to remove any IRA-Eligible Material present in the below table that is inapplicable to the project’s anticipated material needs.

Market Research and Top 20% Materials Where market research indicates, and the CIPMO confirms, that certain IRA-Eligible Materials with GWP values at or better than Top 20% Limits are available for a project or will be available by the anticipated contract award date, Contracting Officers shall substitute the following language for the fifth paragraph of the blue LEC Commitment Proposal language, below:

For IRA-Eligible [INSERT IRA-ELIGIBLE MATERIALS THAT MUST MEET TOP 20% LIMITS], materials MUST have embodied GWP values that are less than or equal to GSA’s Top 20% Limits. For all other materials, the proposal shall provide IRA-Eligible construction materials with embodied GWP values that are less than or equal to the GSA IRA Top 20% Limits reflected in GSA’s IRA LEC asphalt, concrete (and cement), glass and steel requirements. If Top 20% materials are not available, please propose materials with embodied GWP that are less than or equal to the GSA IRA Top 40% Limit for that material. If Top 40% materials are not available for those material categories, please propose materials with embodied GWP that are less than the Better Than Average Limit for that material.

NOTE: Where potential offerors indicate that IRA-Eligible Materials meeting mandatory Top 20% Limits are not available and, based on the Contracting Officer’s and CIPMO’s review, these indications appear well-founded, the Contracting Officer may consider amending the solicitation to relax the Top 20% Limit requirements for those materials, permitting submission of materials meeting Top 40% Limits or Better than Average Limits.

The Construction Solicitation Template’s (e.g., DB201A, C201 for Sole Source Procurements) Additional Proposal Requirements (typically Section II.C(2)) shall be amended by adding the below:

LEC Commitment Proposal

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This project is funded in part by Section 60503 of the Inflation Reduction Act of 2022 (IRA), which provides funding for purchase of construction materials with substantially lower levels of embodied greenhouse gas emissions.

GSA’s IRA Low Embodied Carbon asphalt, concrete (and cement), glass and steel requirements establish numeric global warming potential (GWP) limits for certain EPA-approved construction materials: concrete (and cement), asphalt, steel, and glass (IRA-Eligible Materials). For each material, GWP limits have been established for the best performing 20% of materials in terms of embodied carbon (Top 20% Limits), the best performing 40% of materials in terms of embodied carbon (Top 40% Limits), and better than industry average (Better Than Average Limit).

The Offeror is requested to provide a proposal that, to the maximum extent practicable, furnishes IRA-Eligible Materials with the lowest possible GWP values. IRA Limit commitments proposed by the Offeror will be incorporated into the resultant contract.

Individual materials’ GWP values may be found on individual manufacturers’ environmental product declarations (EPDs). EPDs must meet the standards reflected in GSA’s GSA’s IRA Low Embodied Carbon asphalt, concrete (and cement), glass and steel requirements (see Compliance Documentation criteria listed for each IRA-Eligible Material).

The proposal shall provide construction materials with embodied GWP values that are less than or equal to the GSA IRA Top 20% Limits reflected in GSA’s IRA LEC asphalt, concrete (and cement), glass and steel requirements. If Top 20% materials are not available for certain material categories, please propose materials with embodied GWP that are less than or equal to the GSA IRA Top 40% Limit for that material. If Top 40% materials are not available for certain material categories, please propose materials with embodied GWP that are less than the Better Than Average Limit for that material.

Where Top 20%, Top 40%, or Better Than Average materials are not available, please explain how you determined that to be the case, including providing details on search parameters, sources contacted, and available materials.

The Offeror shall fill out the table below with the applicable IRA Limit they commit to meet for each IRA-Eligible Material:

IRA-Eligible Material* IRA Limit Commitment (i.e., Top 20% Limit, Top 40% Limit, Better Than Average Limit)

Concrete Specified concrete strength class (compressive strength [f'c] in pounds per square inch [PSI])

≤ 2499 PSI

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3000 PSI

4000 PSI

5000 PSI

6000 PSI

≥7200 PSI

Cement**

Concrete Masonry Units

Asphalt

Steel

Fabricated Rebar

Unfabricated Rebar

Hollow Structural Sections (fabricated)

Hollow Structural Sections from Electric Arc Furnaces (unfabricated)

Hot-Rolled Sections (fabricated)

Hot-Rolled Sections (unfabricated)

Cold-Formed and Galvanized (stud, track, framing, etc.)

Structural Steel Plate from Electric Arc Furnaces (unfabricated)

Flat Glass

* Required construction product assemblies (such as window assemblies) are included in IRA-Eligible Materials categories and will be bound by IRA Limit Commitments. At least 80% of the assembly’s total cost or total weight must be composed of compliant IRA-Eligible Materials.

**Where provision of concrete that qualifies under these GSA IRA Limits is impractical, GSA’s IRA Limits for cement may be applied to the cement being used in the concrete mix.

In addition, for each IRA-Eligible Material identified in the table above, offerors shall submit compliant EPDs listing that material’s GWP. GSA will verify that Offeror’s EPDs

Internal GSA Use Only - Page 16 adhere to EPD standards reflected in GSA’s GSA’s IRA Low Embodied Carbon asphalt, concrete (and cement), glass and steel requirements (see Compliance Documentation criteria listed for each IRA-Eligible Material).

Note: By submitting an offer, Offeror consents to unrestricted GSA use of supplier names and the GWP values associated with supplier materials. This information may be disclosed publicly or used to inform other low embodied carbon procurement activities.

Technical solutions, supplier pricing and supplier-offeror terms and conditions will not be shared. Any objection shall be transmitted to the Contracting Officer by the due date for offers and shall adhere to 41 C.F.R. § 105-60.601.

F. Additional Evaluation Factor Requirements for Projects Requiring LEC Construction Materials IRA LEC projects also require additional technical evaluation factor considerations. The below link outlines the requirements for (1) All construction projects (other than two-phase design/build Design Excellence projects) and (2) All two-phase design/build Design Excellence projects.

This includes the inclusion of a Small Business participation evaluation factor, and for two-phase design/build Design Excellence projects, the adjusted weights of the Phase 2 Design Excellence evaluation factors, approved by the Office of the Chief Architect.

IRA Source Selection Evaluation Factor Weights

III. Agreement Requirements

A. Price Form and Financial Guidance The Construction Agreement Template’s (e.g., DB101, C101, CMc101) Contract Price Form (typically Section II.B) shall be amended to reflect the following CLIN and subCLIN structure in order to consistently track IRA obligations. Please review the IRA Supplemental EASi Guidance for instructions on creating a procurement request (PR), establishing CLINs, and processing invoices and receiving reports for IRA-funded projects.

Additional PBS financial guidance can be found within the GSA Office of Budget’s Inflation Reduction Act Financial Guidance. That document provides supplemental guidance regarding IRA funding-specific accounting codes, operating expenses, systems, and tracking.

CLIN & SubCLIN Price

CLIN 0001 Non IRA Project Expenditures $

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CLIN & SubCLIN Price

CLIN 0002 IRA Acquisition and installation of low embodied carbon materials

SubCLIN 0002AA Acquisition and installation of low embodied carbon steel and associated expenses

SubCLIN 0002AB Acquisition and installation of low embodied carbon asphalt and associated expenses

SubCLIN 0002AC Acquisition and installation of low embodied carbon glass and associated expenses

SubCLIN 0002AD Acquisition and installation of low embodied carbon concrete and associated expenses

CLIN 0003 IRA emerging and sustainable Technologies

CLIN 0004 IRA high-performance green building measures

Note: Additional tailoring of the Agreement’s Price Form may be warranted. For instance, as suggested by the Template Agreement’s Price Form instructions, Contracting Officers may need to add options, unit prices, bid rates, etc.

B. Statement of Work, Specifications, Drawings, Exhibits, and Other Attachments for Projects Requiring LEC Construction Materials The Construction Agreement Template’s (e.g., DB101, C101, CMc101) Statement of Work, Specifications, Drawings, Exhibits, and Other Attachments narrative (typically Section I.H) shall be amended to incorporate the below language, tailored to include:

● a list of IRA-Eligible Materials corresponding to the list set forth in the Solicitation’s Sustainability Factor or, for a sole-source award, the proposal submission instructions (See Section II.E);

● the successful offeror’s IRA Limit Commitments for each IRA-Eligible Material;and

● the GWP values from GSA’s asphalt, concrete (and cement), glass and steel requirements associated with the IRA Limit for each material.

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Alternatively, the Contracting Officer may insert the below language into the SF1442 award (e.g.

a continuation page to the SF1442 form).

GSA’s asphalt, concrete (and cement), glass and steel requirements establish numeric global warming potential (GWP) limits for each of the EPA-approved construction materials: concrete (and cement), asphalt, steel, and glass (IRA-Eligible Materials). For each IRA-Eligible Material, GWP limits have been established for the best performing 20% of materials in terms of embodied carbon, as reported in terms global warming potential (Top 20% Limits), the best performing 40% of materials in terms of embodied carbon (Top 40% Limits) and better than industry average (Better Than Average Limit).

In accordance with its proposal, Contractor shall provide all IRA-Eligible Materials required for performance of the Contract in compliance with the following IRA Limits.

IRA-Eligible Material* IRA Limit (e.g., Top 20% Limit, Top 40%, Better than Average)

GWP Value for IRA Limit

Concrete Specified concrete strength class (compressive strength [f'c] in pounds per square inch [PSI])

≤ 2499 PSI [CO to specify each limit as applicable - limits for the Top 20%, Top 40% and Better than Average prepopulated below]

228 261 277 kgCO2e/m3

3000 PSI 257 291 318 kgCO2e/m3

4000 PSI 284 326 352 kgCO2e/m3

5000 PSI 305 357 382 kgCO2e/m3

6000 PSI 319 374 407 kgCO2e/m3

≥7200 PSI 321 362 402 kgCO2e/m3

Cement** 751 819 858 kgCO2e/metric ton

Concrete Masonry Units 217 256 290 kgCO2e/m3

Asphalt 55.4 64.8 72.6 kgCO2e/metric ton

Steel

Fabricated Rebar 728 794 850 kgCO2e/metric

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Unfabricated Rebar 611 716 760 kgCO2e/metric ton

Hollow Structural Sections (fabricated)

1,778 1,854 1,898 kgCO2e/metric ton

Hollow Structural Sections from Electric Arc Furnaces (unfabricated)

1,580 1,620 1,652 kgCO2e/metric ton

Hot-Rolled Sections (fabricated)

1,022 1,128 1,163 kgCO2e/metric ton

Hot-Rolled Sections (unfabricated)

686 713 869 kgCO2e/metric ton

Cold-Formed and Galvanized (stud, track, framing, etc.)

2,228 2,324 2,408 kgCO2e/metric ton

Structural Steel Plate from Electric Arc Furnaces (unfabricated)

987 1,152 1,190 kgCO2e/metric ton

Flat Glass 1,331 1,370 1,401 kgCO2e/metric ton

* Required construction product assemblies (such as window assemblies) are included in IRA-Eligible Material categories, and are bound by IRA Limits. At least 80% of the assembly’s total cost or total weight must be composed of compliant IRA-Eligible Materials.

**Where provision of concrete that qualifies under these GSA IRA Limits is impractical, GSA’s IRA Limits for cement may be applied to the cement being used in the concrete mix.

Contractor compliance with IRA Limits will be verified by reference to provided materials’ environmental product declarations (EPDs). EPDs must meet the standards reflected in GSA’s asphalt, concrete (and cement), glass and steel requirements (see Compliance Documentation criteria listed for each IRA-Eligible Material).

The Contracting Officer shall insert the below language into the SF1442 award (e.g. a continuation page to the SF1442 form) for all procurements if awardee submitted any EPD Pledge with its proposal.

Within 120 days after contract award, the Contractor shall submit a compliant EPD for any IRA-Eligible Material for which the Contractor was unable to submit a compliant EPD by the proposal due date. Such EPD must reflect GWP values that comply with the IRA Limit Commitments incorporated into the contract. GSA shall not issue a Notice to Proceed with construction services to the Contractor until the Contractor has submitted a

Internal GSA Use Only - Page 20 compliant EPD for each IRA-Eligible Material for which the Contractor was unable to submit a compliant EPD by the proposal due date.

C. Administrative Matters The Construction Agreement Template’s (e.g., DB101, C101, CMc101) Administrative Matters, Payments narrative (typically Section III.H(2)(c) or III.K(2)(c)) shall be amended by adding the below text:

1. The Contractor shall provide an itemized invoice detailing the amounts requested under each firm-fixed price CLIN and SubCLIN set forth in the Contract Price Form.

Itemized invoices shall reflect progress on each CLIN and SubCLIN and should reflect the latest Schedule of Values. Provide updated IRA Project Submittal Form (Construction Team section) in accordance with the minimum frequency as defined by the submittals noted on the LEC, E&ST and HPGB instruction tabs on the IRA Project Submittal Form. These constitute the minimum required submittals. The Contracting Officer may determine a more frequent submission based on the nature of the project.

See Specification, Division One, Submittal Procedures, 013300 and Payment Procedures, 012900.

2. The Contractor shall submit GSA’s IRA Post Award Allocation Form, attached, within 20 days of contract award.

Contracting Officers shall attach a copy of the IRA Project Submittal Form and GSA’s IRA Post Award Allocation Form to the solicitation package. The IRA Project Submittal Form and Data Dictionary can be shared with industry to provide instructions on completing the form.

Note: If necessary for further negotiations with offerors in the competitive range, Contracting Officers can utilize the IRA Post Award Allocation Form during negotiations as a standard format to request a breakdown of price proposals.

D. Additional Terms and Conditions for Projects Requiring LEC Construction Materials The Construction Agreement Template’s (e.g., DB101, C101, CMc101) Additional Terms and Conditions narrative (typically Section III.M or III.O) shall be amended by adding the following Limited Notice to Proceed with Post-award Low Embodied Carbon Materials Research Report narrative:

Limited Notice to Proceed with Post-award Low Embodied Carbon Materials Research Report.

If any of the Contractor’s IRA Limit Commitments do not correspond to the subject material’s Top 20% Limits, notice to proceed with the project entails only a limited notice to proceed with the Low Embodied Carbon Materials CLIN.

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Specifically, Contractor shall only proceed with preparation of a Low Embodied Carbon Materials Research Report explaining why such IRA Limit Commitments did not correspond to the subject material’s Top 20% Limits. Additionally, to the extent applicable, the Contractor shall also explain why any IRA Limit Commitments did not meet the subject material’s Top 40% Limits.

For each IRA-Eligible Material not meeting Top 20% Limits, the report shall detail:

● the Contractor’s process for seeking Top 20% and Top 40% materials;

● sources contacted;

● sources of Top 20% and Top 40% materials identified (if any); and

● the reason why the Contractor did not commit to furnish Top 20% or Top 40% materials identified (if any) (e.g., insufficient supply, schedule delays, unreasonable cost).

The Low Embodied Carbon Materials Research Report is due within 5 business days of notice to proceed. Following submission of its report, Contractor shall request that the Contracting Officer issue an unrestricted notice to proceed.

Note: Contractor shall not place orders for any IRA-Eligible Materials until it has received an unrestricted notice to proceed. Contractor consents to unrestricted GSA use of supplier names and the GWP values referenced in the Low Embodied Carbon Materials Research Report. This information may be disclosed publicly or used to inform other low embodied carbon procurement activities. Technical solutions, supplier pricing and supplier-offeror terms and conditions will not be shared. Any objection shall be transmitted to the Contracting Officer with the Low Embodied Carbon Materials Research Report and shall adhere to 41 C.F.R. § 105-60.601.

The Construction Agreement Template’s (e.g., DB101, C101, CMc101) Additional Terms and Conditions narrative (typically Section III.M or III.O) shall also be amended by adding the following Market Report narrative, including the market research footnote. For projects with long performance periods, Contracting Officers may tailor the narrative to provide for additional Market Reports over the course of performance.

Market Reports. Within 10 business days following contract award, the Contractor shall provide the Contracting Officer with a current Market Report on IRA-Eligible Materials referenced in the Solicitation’s Sustainability Factor self-scoring table. The Market Report shall evaluate materials available2 in the quantities and timeframes required by

2 Market research resources for qualifying materials may include, but are not limited to, ASTM International’s EPD Page, Building Transparency’s Embodied Carbon in Construction Calculator (EC3), ICC Evaluation Service’s EPD Directory, EPD International AB’s EPD Library, the National Asphalt Paving Association’s Emerald Eco-Label EPD Tool, the National Ready Mixed Concrete Association’s Concrete EPDs page, NSF's Search for EPDs tool, and UL’s SPOT product catalog.

Note: The information provided herein is for informational purposes only and does not indicate or imply Federal endorsement of any organization, business, material or product. The Government makes no

Internal GSA Use Only - Page 22 the Contract, prioritizing data on materials compliant with Top 20% and Top 40% Limits.

The Market report shall detail:

● the Contractor’s process for seeking IRA-Eligible Materials meeting each material’s respective Top 20% and Top 40% Limits;

● sources contacted;

● sources of Top 20% and Top 40% materials identified (if any); and

● actual or estimated pricing and environmental product declaration GWP values for each identified material.

The Contractor shall furnish an Updated Market Report 90 calendar days following submission of the initial report.

Note: Contractor consents to unrestricted GSA use of supplier names and the GWP values referenced in Market Reports. This information may be disclosed publicly or used to inform other low embodied carbon procurement activities. Technical solutions, supplier pricing and supplier-offeror terms and conditions will not be shared. Any objection shall be transmitted to the Contracting Officer with Market Reports and shall adhere to 41 C.F.R. § 105-60.601.

Note: Upon award, the Contracting Officer shall provide the contractor with supplier names and the GWP values associated with supplier materials obtained through the competition. The Contracting Officer shall not share technical solutions, supplier pricing, or supplier-offeror terms and conditions. If a vendor specifically objected to disclosure of supplier names and/or GWP values associated with supplier materials in accordance with 41 C.F.R. § 105-60.601, Contracting Officers shall not share this information with the contractor. Similarly, if the contractor has specifically objected to disclosure of supplier names and/or GWP values associated with materials provided or identified under the Low Embodied Carbon Materials Research Report and/or Market Reports in accordance with 41 C.F.R. § 105-60.601, GSA officials shall not share this information with the public.

Contracting…