ExecutiveOrdersEO
Memo 13514MemorandumObama · D Quiet signal

Presidential Memorandum 13514

Driving Innovation and Creating Jobs in Rural America Through Biobased and Sustainable Product Procurement

This 2012 memorandum directs federal agencies to significantly increase procurement of biobased and sustainable products to promote rural economic development and job creation. It establishes specific targets for USDA to expand product designations by 50%, mandates reporting mechanisms, requires procurement system changes, and directs training and outreach for both federal acquisition personnel and small business suppliers.

Federal Register Open PDF 77 FR 10939

Impact dates

  1. Agency specification review on recurring 4-year cycle

  2. USDA to submit jobs creation and economic impact report

  3. USDA to increase biobased product categories and individual products eligible by 50%

  4. Significant agency specification review completed

  5. FAR Council to propose amendment requiring reporting of biobased product purchases

  6. USDA to update BioPreferred and sustainable acquisition training materials

  7. USDA to develop small business training; SBA to disseminate

  8. USDA to propose designation of new product categories within 180 days of manufacturer request

Key directives

  • Agencies shall include biobased acquisition in Strategic Sustainability Performance Plans
  • Agencies shall ensure 95% of applicable new contract actions advance sustainable acquisition including biobased
  • USDA to increase biobased product categories and individual products eligible by 50% within 1 year
  • USDA to establish web-based process for manufacturers to request new product categories with 180-day designation timeline
  • Senior Sustainability Officers and Chief Acquisition Officers to randomly sample procurement actions for biobased compliance
  • Agency specification review on 4-year cycle with significant review within 1 year
  • Secretary of Commerce to use Manufacturing Extension Partnership to assist biobased manufacturers
  • USDA to develop small business training within 6 months; SBA to disseminate
  • FAR Council to propose amendment requiring annual public reporting of biobased purchases within 1 year
  • USDA to prepare jobs creation and economic impact report within 2 years

Who is ordered

Timeline

Immediate

  • Agency education and outreach programs to be immediately implemented
  • Random sampling of procurement actions to begin

Near term (90d)

  • SBA to disseminate small business training within 6 months
  • OMB to emphasize biobased purchasing in FY 2012-2013 Sustainability/Energy scorecard

Long term

  • USDA to increase biobased product categories by 50% within 1 year
  • Agency specification review on 4-year cycle with significant review within 1 year
  • FAR Council to propose amendment within 1 year
  • USDA to update training materials within 1 year
  • USDA to submit jobs creation report within 2 years

Risks & tensions

  • Marginal cost claim assumes biobased products are cost-competitive; price premiums could create implementation resistance
  • 95% sustainable acquisition target may conflict with other procurement priorities (cost, performance, small business set-asides)
  • 4-year specification review cycle with annual reporting creates sustained compliance burden
  • Cross-agency coordination requirement (with OMB, OSTP, USDA, SBA, Commerce) may slow implementation
  • No enforcement mechanism specified beyond scorecard visibility; effectiveness depends on voluntary agency compliance
  • Exclusion of biofuels from industry value calculation (Sec. 6(b)) may understate total economic impact
Presidential Memorandum 13514: Driving Innovation and Creating Jobs in Rural America Through Biobased and Sustainable Product Procurement · Executive Orders