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Suggested Citation:"Summary ." National Academies of Sciences, Engineering, and Medicine. 2013. Integrating Environmental Sustainability into Airport Contracts. Washington, DC: The National Academies Press. doi: 10.17226/22567.
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Suggested Citation:"Summary ." National Academies of Sciences, Engineering, and Medicine. 2013. Integrating Environmental Sustainability into Airport Contracts. Washington, DC: The National Academies Press. doi: 10.17226/22567.
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Suggested Citation:"Summary ." National Academies of Sciences, Engineering, and Medicine. 2013. Integrating Environmental Sustainability into Airport Contracts. Washington, DC: The National Academies Press. doi: 10.17226/22567.
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As major users of diverse goods and services, airport operators have the opportunity to drive environmental sustainability performance improvements at airports through the integration of new language in contracts. FAA and national, state, and local legislation encourage and require airport operators to operate and manage their airports in an environmentally sound way. Having evolved over the decades, airport environmental management today has moved beyond compliance into proactive initiatives that not only mitigate risks to the environment but also reduce operat- ing costs. Throughout this synthesis this progressive approach to environmental manage- ment, driven largely by the public’s growing awareness of global environmental and societal constraints, along with demand from airports neighboring communities, is referred to as environmental sustainability. This synthesis provides airports with effective practices and tools to integrate environ- mental sustainability into their contracts. The methods used to gather information for this synthesis included a literature review and telephone interviews with personnel at airports around the world. It is intended for those individuals with responsibilities tied to the environment, sustainability, procurement, and contracts. Example contract language was provided primarily by the airport operators inter- viewed for this project and is included in Appendix A. There are many different types of airport contracts and each one provides some opportunity to insert language that drives airport environmental sustainability. All contract types may be leveraged by operators to improve compliance with environmental law, fulfill permit requirements, minimize environmental impacts, manage environmental impacts, and drive innovative sustainable improvements at airports. The types of airport contracts identified that provide the most opportunity to make a dif- ference to an airport’s sustainability performance include design and construction contracts, concessions and tenant lease agreements, and janitorial service contracts. All of the surveyed airport operators had environmental sustainability conditions integrated into major design and construction contracts at their airports. No other contract type had the same widespread integration. Incorporating performance standards into design and construction contracts is a good starting place for airport operators embarking on a sustainability program. Furthermore, the study identified specific contract language that can be inserted in these contract types to achieve the desired performance improvements. Example contract language is located in Appendix A of this synthesis. In addition to reviewing opportunities for inserting language in certain types of airport contracts, it was also important to explore the process by which many airport operators create and incorporate environmental sustainability clauses. There was limited evidence of a one-size-fits-all process for integrating environmental sustainability into airport contracts. It is apparent that the formal use of airport contracts as a mechanism for driving environmental SUMMARY INTEGRATING ENVIRONMENTAL SUSTAINABILITY INTO AIRPORT CONTRACTS

2 sustainability is in the early stages. Although airport operators acknowledge the opportunity in this area, and are making inroads at using procurement as a means of driving sustainability, the practice is not consistently applied. At times conditions for contracts are generated by a top-down, formal process, as is typically the case when required by national or state law. Other contractual conditions are generated from the ground up, such as opportunities identi- fied by the airport operator’s green team. Laws, voluntary standards, and airport policies are actively employed as mechanisms for imposing requirements related to environmental sus- tainability on contractors and suppliers. Accordingly, changes in the economy, politics, top- level commitment from airport operators, and support among airport operators’ employees can actively shape or accelerate the influence of any of these mechanisms in airport contracts. Key factors affecting the success of the integration of environmental provisions in airport contracts include: • Political, economic, and regulatory pressure; • Airport management commitment; • Teamwork and communication; • Environmental sustainability policy; • Roles and responsibilities; • Upfront and ongoing resources; • Awareness and employee engagement; • Contract terms; and • Perceived contract cost increases, potential revenue losses, and whole life-cycle costing tools. This synthesis shows that many airport operators are using contract conditions to ensure environmental sustainability improvements following years of informal arrangements with suppliers and contractors. This is the result, in some cases, of airport operators being held more accountable to stakeholders on issues such as sustainability. Airport operators are much more advanced in their own sustainability policies and plans since environmental sustainability awareness first became a public issue. Airport operators who have formalized sustainable procurement and integrated environmental language into most of their contracts were those with a long-running, comprehensive airport sustainability program. The findings from this report indicated that the airport operators that have an Environmental Management System (EMS) with ISO 14001 certification (an international certification stan- dard) or an alternative management framework in place had the most robust process for integrating sustainability throughout their operations. To achieve and maintain ISO 14001 certification or fulfill a management commitment to sustainability airport operators work toward a plan to continually improve their environmental performance, which would reach its supply chain and stakeholders. Once a commitment is made, there is momentum by the organization to achieve and maintain this standard and in turn their reputation. Airports with widespread integration of environmental sustainability throughout their operations and specifically throughout their procurement process typically have the follow- ing policies and processes in place: • Established environmental sustainable policy and goals • Established environmental sustainable procurement procedure • Database or matrix of environmental impacts by activity and stakeholder • Record of contract renewal and negotiation dates • Multi-stakeholder committee to review contract language and innovative ways of driving sustainability through contracts • Environmental sustainability educational activities for airport employees.

3 Throughout a typical airport procurement process each stage presents an opportunity for integrating sustainability considerations. The following five stages of a typical airport pro- curement process were assessed and the opportunity to consider environmental sustainability is described: • Product or service identified In this first stage of procurement, the airport operator needs to ascertain the following: – How does procuring this service or product impact the sustainability footprint of the airport? – Can the impact be managed within the contract requirements? – Does it help the airport operator in achieving its sustainability goals and targets? – If not directly, can the needs and goals of the contract be adapted to align with the organization’s sustainability goals? It is important for airport operators to clearly state the intentions for the contract in the subject of the solicitation. • Request for Proposal template standard language If the airport operator has a sustainability policy, environmental management system, ISO 14001 certification, or environmental goals or objectives, these should be referenced as standard contract language and included in full as an attachment. It is usually cost- effective if an airport operator requires contractors and suppliers to follow industry standards such as Leadership in Energy and Environmental Design or ISO 14001, in addition to any federal, state, county, or city laws, and to leverage industry-wide best practices. • Technical specifications produced For every Request for Proposal and contract that is let, there is an opportunity to specify the most environmentally sustainable option, whether a product specification, a service process, or a performance-based functional specification. • Scoring criteria created The commitment to sustainability of the contractor may be examined and scored for all types of contracts. • Contract management Active contract management ensures that contractors are meeting the requirements set forth in their contract. This can be done through scheduled inspections, spot checks, monthly reports, or requests for information. Incentives and punitive measures within a contract can motivate suppliers and contractors to fulfill the requirements. It was determined that, with the exception of design and construction contracts, formal contract management and performance monitoring is generally not comprehensive across the airport industry. For design and construction contracts, noncompliance can result in financial penalties or delayed payments for the contractor. Currently, most of the environmental language in contracts is not strictly enforceable because of its wording. When the language is enforceable, it is possible for the airport operator to withhold payment or enact other punitive measures if the contractor is not delivering what was explicitly agreed to in the contract. Financial incentives or penalties are extremely effective mechanisms in contract management. However, this type of active contract man- agement requires resources to set up and maintain monitoring, which makes it cost pro- hibitive for some airport operators.

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TRB’s Airport Cooperative Research Program (ACRP) Synthesis 42: Integrating Environmental Sustainability into Airport Contracts provides examples of how airports might help drive environmental sustainability performance improvements at their facilities by integrating environmental sustainability concepts into contracts with contractors, suppliers, and vendors.

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