Transcript Document

Northeast Regional Council
Warwick, RI
June 13, 2007
AbilityOne/JWOD & Small Business . . .
Partnering for Success
Sheryl Kennerly
Committee for Purchase From
People Who Are Blind or Severely Disabled
AbilityOne Program Mission
– Create Jobs for People Who Are Blind or Have
Other Severe Disabilities Through the Delivery
of Products and Services to Federal Customers
• 17 Million+ Americans Have
Severe Disabilities
• 70% of this Population is not Employed
• AbilityOne Helps Address this Need
– AbilityOne = Single Largest Employer
of People with Disabilities in the U.S.
– Over 47,000 Employees in FY 2006
AbilityOne /
AbilityOne Program History
• 1938 – Wagner-O’Day Act:
Established the Program for Products Made
by People Who are Blind
• 1971 – Javits Amendment:
Expanded the Program to Include People with
other Severe Disabilities, and Added Services
– 41 USC 46-48c
– Codified at 41 CFR Part 51
• FAR Subpart 8.7 Implements the JWOD
Program’s Procurement Rules
AbilityOne /
AbilityOne ORGANIZATIONAL CHART
President of the United States
DOC
DOD
Air
Force
Army
Navy
DOJ
DOL
ED
GSA
USDA
VA
Citizen
Citizen
Citizen
Citizen
Congress
Committee for Purchase From People Who
Are Blind or Severely Disabled
National Industries for
the Blind (NIB)
Nonprofit Agencies
Employing Persons Who
Are Blind (71)
Legal
Authority
NISH
Nonprofit Agencies
Employing Persons with
Severe Disabilities (552)
AbilityOne /
Committee Responsibilities
• Establish, publish, maintain Procurement List
(PL) Additions and Deletions; informal
rulemaking process via Federal Register
• Determine Fair Market Prices of PL items
• Designate Central Nonprofit Agency(ies) (CNA)
to facilitate orders from the PL
• Make rules and regulations as necessary to
carry out the purposes of the JWOD Act
• Conduct continuing study and evaluation of
activities under the JWOD Act
AbilityOne Regulatory Framework
• As a Federal agency, the Committee works
within a statutory and regulatory framework
• Need for openness and transparency of the
Committee’s operations set the tone for
business processes and procedures
• Every Proposed Addition involves a
deliberative decision by the Committee
• All decisions are based on suitability
judgments; no set formula
Committee Suitability Criteria
• The Committee’s Decision to Add to the
Procurement List is Based on Regulatory
Suitability Criteria as Follows:
– Employment Potential
– Qualified Nonprofit Agency
– Capability of Nonprofit Agency
– No Severe Adverse Impact
• The Committee Must Also Establish an
Initial Fair Market Price and Approve the
Process for Updating the Price Over Time
AbilityOne /
Procurement List Background
• What is the Procurement List?
• Additions and Deletions Go Through a
Deliberative, Public Rulemaking Process
• The Four Phases of the Additions Process:
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Identification
Development
Decision
Production/Performance
FPDS FY
2005
Spend
AbilityOne Comprised
Less
Than
1% of Data
the
FY2005 Federal Contract Spend (FPDS and Program Data)
SDB (non-8a)
2.92%
SB
15.03%
JWOD
0.59%
8(a)
2.72%
Other
77.97%
AbilityOne /
IMPACT ANALYSIS
• Current contractor is contacted by certified
letter notifying them of the proposed
addition and requesting sales information
• Contractor is able to submit comments on
the proposed addition to the Procurement
List
• Cumulative impact is taken into account
• If severe adverse impact is shown, the
proposed addition is stopped
How do I know if I have to buy AbilityOne
products or services?
AbilityOne services are for a specific type of
service at a specific location
AbilityOne products coverage in categories
• A List=Total Government Requirement
– Commonly used commodities that are to
be bought by all Government agencies
• B List=Broad Government Requirement
– Products used by many agencies, not all,
as aggregated by GSA
• C List=Unique Government Requirements
– Products for a special use by one or a
group of agencies, not widely available
JWOD PRODUCT DISTRIBUTION
–
You can buy AbilityOne products:
• By Phone or Fax
• 1-800-Get-JWOD
• Via the Internet (DoD E-Mall;
GSA Advantage)
• From Authorized Commercial
Distributors (300+ small
businesses)
(see www.jwod.gov/distributors)
• At Base Supply Centers
Partnering With Small Business
• The JWOD Program Partners with Members
of the Small Business Community, as:
– Distributors of JWOD Products
– Subcontractors for Portions of
Manufacturing or Service Delivery
– Suppliers of Raw Materials/Components
• NIB’s previous research found its associated
agencies did 60% of their purchases of
materials from small businesses
AbilityOne /
New Small Business Utilization Study
• In Feb. 2005, NISH commissioned a 3rd
party research firm to conduct a survey of
its nonprofit agencies to identify
– The variety of ways nonprofit agencies
work with small businesses
– The dollar value of nonprofit agencies’
spend with small businesses
– With a 69% response rate, NISH found
that its agencies spent $196-$298 M
with small businesses in FY 2004.
Meeting Small Business Subcontracting Plan
Goals
• 10 US Code Sec. 2410d. – Subcontracting
Plans: Credit for Certain Purchases
• Purchases Benefiting Severely Handicapped
Persons
“In the case of a business concern that has
negotiated a small business subcontracting
plan with a military department or a Defense
Agency, purchases made by that business
concern from qualified nonprofit agencies for
the blind or other severely handicapped shall
count toward meeting the subcontracting goal
provided in that plan.”
FY 2007 CNA Fee Ceiling
Effective October 1, 2006
• Fee paid by the NPAs to finance CNA operations
• Inherent in Fair Market Price, not an add-on or
pass-through cost to the Government
• Included in Overhead of the NPA as cost of
doing business in the AbilityOne Program
• Changes in Fee Ceiling do not change existing
Fair Market Prices
• Committee reviews CNA budgets and sets fee
ceilings annually
Product Pricing Memorandum – PR2
New Product Pricing Memo PR2
• Establishes preference for Market Based pricing
• Requires price analysis to establish price
• Cost Realism/Cost Analysis only when necessary
• Establishes Contracting Officer responsibility to
recommend Fair Market Price
• Greater consistency with FAR practices
• Committee maintains sole authority to establish
prices, based on recommendations—CNA & CA
• Negotiations required to achieve agreement
between NPA and CA on price recommendation
• Impasse Process when agreement not possible
Service Pricing memorandum – PR3
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Establishes preference for Market Based pricing
Requires price analysis to establish price
Cost Realism/Cost Analysis only when necessary
Establishes Contracting Officer responsibility to
recommend Fair Market Price
Greater consistency with FAR practices
Committee maintains sole authority to establish
prices, based on recommendations—CNA & CA
Negotiations required to achieve agreement
between NPA and CA on price recommendation
Impasse Process when agreement not possible
JWOD Name Changing to AbilityOne
• More effectively communicate mission in
program name
• Extensive research conducted on AbilityOne
• Transition Plan of 18 months for phase-in
• JWOD/AbilityOne will be used during
transition to communicate change
• “Business as Usual”- no substantive changes to
the program or to customers
• New Graphics and brands available soon.
• Communicate through Acquisition Council
QUESTIONS??
WWW.AbilityOne.GOV
Sheryl Kennerly
Information Management
Committee for Purchase From People
Who Are Blind or Severely Disabled
1421 Jefferson Davis Hwy, Suite 10800
Arlington, VA 22202
703-603-2134
[email protected]