GSA Urged to Spur Alternative Fuel Vehicles in $1.5 Billion Contract for Deliveries

  GSA Urged to SpurAlternative Fuel Vehicles in $1.5Billion Contract for

Business Wire

WASHINGTON -- June 25, 2013

An upcoming five-year government-wide contract for package delivery services
is a prime opportunity for the Obama Administration to make good on
commitments to reduce America's oil dependence and cut greenhouse gas
emissions related to contract transportation services, said theAmerican Clean
Skies Foundation (ACSF), a Washington, D.C. non-profit group.

In a June 24 letter to the General Services Administration (GSA), ACSF urged
Acting Administrator, Daniel M. Tangherlini, to require the overnight delivery
vendor that wins the government's new business- which could be worth over
$1.5 billionfrom 2014 to 2018- to meet annual targetsfor reducing
emissions, cutting petroleum and increasing the use of alternative fuel
vehicles.ACSF also suggested that GSA consider providing contract incentives
based on the vendor's environmental performance.

"The leading overnight delivery services- UPS and FedEx - have both begun to
integrate alternative fuel vehicles into their fleets," said Gregory C.
Staple, the Foundation's CEO. "However, asa major customer, we think the
federal government can encourage a more rapid expansionof these electric and
natural gas vehicles while cutting spending at the same time."

Staple noted that, at a June 10 Washington workshop hosted by ACSF, GSA and 12
other federal agencies were briefed on the savings several Fortune 500
companies, including PepsiCo Frito-Lay, Owens Corning, and Procter & Gamble,
expected from contracting with trucking services that used fleets powered by
alternative fuel vehicles.

The GSA solicitation addressed by ACSF is the third generation contract, known
as Domestic Delivery Service or DDS3, for express and ground shipping of an
estimated 15 million to 35 million packages annually from federal agencies.
FedEx won the first such contract, and UPS was awarded the current DDS2
contract in 2009, which expires in September 2014. GSA is expected to
advertise the DDS3 opportunity later this summer.

ACSF said that its proposed contract terms are supported by President Obama’s
executive orders on emission and petroleum reduction, especially Executive
Order 13514 on Federal Leadership in Environmental, Energy and Economic
Performance. That order, issued in 2009, requires every agency to adopt a
sustainability plan with annual performance targets for reduced emission and
petroleum use, and to ensure that their vendors are energy efficient and
environmentally preferable.

The Foundation noted that GSA also adopted a Green Purchasing Plan in 2009
that requires the agency to consider, to the maximum extent practicable, a
preference for environmentally sustainable products or services.

The GSA transportation contract was identified as part of ACSF's ongoing
effort to implement the Foundation's landmark 2012 report on energy security
and the environment. That report - "Oil Shift: The Case For Shifting Federal
Transportation Spending To Alternative Fuel Vehicles" - explains how the
government can point its $150 billion dollar annual spend on transportation
services to advance fiscal, defenseand environmental objectives.

ACSF said that, in addition to DDS3, forthcoming transportation contracts by
the Defense Logistics Agency and the US Postal Service may also offer large
opportunities forreducing petroleum use and unwanted emissions.

Details of Request

The ACSF letter asks GSA to include the following four elements in the DDS3

1. Establish a preference for vendor commitments on fuel efficiency,
emissions, and alternative fuels in year one of the contract and in each of
the potential four years of the renewal term;

2. Set targets for each year of the contract for reduced emissions, lower
petroleum use, and increased use of alternative fuels (at least 2 percent
annual emission and petroleum reductions are proposed based on past industry

3. Require annual reporting by the vendor of relevant environmental and fuel
measures; and

4. State a preference (or renewal expectancy) in deciding on annual contract
extensions based on the vendor’s performance against its commitments and the
targets, and offer contract incentives for superior environmental performance.

ACSF’s letter and a related background memo are posted here:

About the American Clean Skies Foundation

Established in 2007, ACSF seeks to advance America’s energy independence and a
cleaner, low- carbon environment through expanded use of natural gas,
renewables, and efficiency. The Foundation is a not-for-profit organization.


American Clean Skies Foundation
Jack Deutsch, 202-682-6294
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