The Power of Government Purchasing

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The Powerof Government Purchasing

• Deborah Atkinson
• Workability International Conference

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Government at Its Best
A non-profit organization designated by the US
government to help administer the
Javits-Wagner-ODay (JWOD) Act.
A federal procurement program first enacted by
Congress in 1938.
formerly the Javits-Wagner-ODay Program
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Government at Its Best
Provides employment opportunities for people who
are blind or have other severe disabilities in
the manufacture and delivery of products and
services to the Federal Government
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Government at Its Best

• MissionNISH creates employment for people with
  severe disabilities

A job for every person with a severe disability
Right job options choice, personally
satisfying,advancement and upward mobility,
productivity enhancement
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Government at Its Best

• VisionEmployment for every person with asevere
  disability

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Government at Its Best

• ValuesEmployment for every person with asevere
  disability

• Excellence
• Innovation
• Accountability

• Diversity
• Collaboration
• Integrity

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Government at Its Best

• Customers

Federal Government(Purchasing agents end
users) Community Rehabilitation Programs(NPAs,
community partners) People with Severe
Disabilities
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Government at Its Best

• NISHs Other Key Stakeholders

• Committee for Purchase
• Congress
• Board of Directors
• Communities served through AbilityOne

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Government at Its Best

• Dual Political Support

LiberalsStrong social missionwith high impact
Creates Win-Win!
ConservativesReduces dependency on government
benefits and creates tax paying workers
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Government at Its Best

• Socio-economic Impact
• (Net Impact reduced entitlements taxes paid)

Annual savings of
Custodial
6,084 per worker
Food service
3,053 per worker
Commissary
3,138 per worker
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Government at Its Best

• Relationship to the Committee for Purchase and
  the National Industries for the Blind
• 1938 act passed 1971 amended
• In 1974, NISH was formed
• Board of Directors comprised of stakeholders
• A national office located near Washington, DC
  with 6 regional offices across the USA

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Big Picture
What does it take?

• A need
• A capability
• Meeting the AbilityOne program requirements

NPA
Federal Government
Committee
NISH
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Where does NISH fit?
The President of the United States
The Committee for Purchase From PeopleWho Are
Blind or Severely Disabled
Committee Staff
NIBNational Industries for the Blind
NISH
Non-profit Agencies employingpersons with severe
disabilities
Non-profit Agencies employingpersons who are
blind
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The Value of Partnering
NISH Regional Map
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Government at Its Best
2006

• 43,344 people with severe disabilities employed
• 1.8 billion plus in sales
• Average wage is 9.99 per hour(94 above Federal
  minimum wage)

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Government at Its Best

• How we do it

• 569 non profit community rehabilitation programs
  producing under AbilityOne
• Goodwill
• Many members of the Americas Group of
  Workability International
• Another 929 associated with NISH
• Many want contracts
• Many want capacity building services
• New re-affiliation process requires
  renewingapplication to include capability
  capacity

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Government at Its Best

• How we do it

• Both NISH and the community rehabilitation
  programs share missions of training employing
  people with disabilities
• Both NISH and the community rehabilitation
  programs have a vested interest in satisfying the
  federal customer
• We share the responsibility in building,
  maintaining and expanding the AbilityOne brand
• Build brand through quality, performance best
  value

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Government at Its Best
CRPs NISH share acommon mission

• The need
• 38 employment rate of people with disabilities
  in the US compared to 95 employment rate of
  general population
• 10M plus people with severe disabilities are
  unemployed in the US

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Government at Its Best
Voices of our customers

• Federal Customers Want
• Performance (ensure requirements of the
  contractare met)
• Price (offer prices based on current market
  value)
• Responsiveness (solve my problems quickly)
• Communication (notify me about policy changes)
• Create added value (save me )
• Provide social value (show me how support of
  AbilityOne is good for our country)

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Government at Its Best
Voices of our customers

• People with Severe Disabilities Want
• See me as a person not a disability
• Provide me a job
• Support my work environment
• Listen to me
• Be my voice
• Help me develop advance

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Government at Its Best
Voices of our customers

• CRPs Want
• Relationship (know me, help me resolve my
  problems, treat me fairly)
• Business development (grow my business)
• Operational excellence (make me better
  operationally)
• Be my advocate (protect jobs, be a leader in
  field)
• Help me grow my capability capacity
• Tailor services to my CRP
• Collaborate with me (involve me)

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Government at Its Best
2007-2010 NISHStrategic Goals What We Do

• Innovation in Employment
• Expansion in Employment
• New Business Development
• Program Integrity

• Program Integrity
• Customer Satisfaction
• Promoting AbilityOne
• Performance Excellence
• Leadership Succession

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Government at Its Best
How NISH does it? Simplistically find it, get
it, keep it

• Marketing

• Research marketplace potential opportunities
• Market to potential customers
• Develop market new lines of business
• Use relationship research based marketing

• Acquiring administering contracts

• Contract distribution
• Market price analysis
• Perform procurement addition list process
• Perform contract renewals

• Monitoring contract performance

• Contract readiness start-up
• Regulatory compliance reviews
• Performance reviews
• Respond to complaints concerns

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Government at Its Best
How NISH does it? Simplistically find it, get
it, keep it

• Ongoing technical assistance
• Problem resolution
• Honest broker
• Quality assessments assistance
• Ongoing technical assistance support
• Problem resolution
• Negotiation assistance
• Honest broker

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Government at Its Best

• Additional Support Providedby NISH

• Grassroots Public Policy Advocacy
• Strong Communications Publications
• Free Training
• Financial Assistance (loans, consultation, grants)

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Government at Its Best

• The current business environment facing JWOD

• The easy jobs are long gone
• People with disabilities want meaningful work,
  development advancement
• More complex work requires more sophisticated
  approaches
• High cost of line of business entry (time, money,
  skill)
• All want flexibility responsiveness in contract
  management
• Bundled contracts strategic sourcing
• Turn over in government contracting officials
• Severe federal budget reductions on
  domestic/civilian front
• Socio-economic goals of 30
• Presidential election pending

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Government at Its Best

• Core business line examples

• Custodial
• Food services
• Grounds maintenance
• Clothing textile manufacturing

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Government at Its Best

• Strategic lines of business (new expanding)

• Document destruction
• Laundry
• Hospital housekeeping
• Fleet up-fitting management
• Tele-services
• Secure mailroom
• Warehousing distribution
• More sophisticated clothing textiles with
  emphasis on civilian agencies

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Government at Its Best

• Strategic lines of business Standing Up a New
  Business Line

• Market Research Government contracting expert
  conducts market analysis (competitors, market
  share, buying trends)
• Develop Business Plan
• Obtain funding support for NISH Board of
  Directors
• Set up NISH line of business office
• Access capability capacity of CRPs
• Build capability capacity of CRPs
• Distribute contracts
• Add jobs to Procurement List
• Approximately three years start to finish

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Government at Its Best

• What AbilityOne can offer

• Ease in contracting
• A national network supporting geographic high
  volume requirements
• A dependable workforce
• Technical assistance capacity building
• Long term relationships
• Beyond provider to problem solver solution
  finder
• Trusted advise

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Government at Its Best
Leveraging AbilityOne to help support other CRP
business opportunities

• Market research
• Business risk analysis
• Line of business consulting training
• Business planning
• Pricing, distribution standardization
• Teaming with commercial partners on AbilityOne
  contracts
• Filling excess capacity
• Government experience as a reference

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Government at Its Best
How the AbilityOne Programis funded

• Committee for Purchase receives small budget from
  Federal Government appropriations
• NISH receives fee from CRP/Federal government
  based upon sales
• Paid by government to CRP who in turn pays NISH
• Set by Committee for Purchase annually
• Maximum of 4
• Currently 3.75

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Government at Its Best
Whats New

• New name
• AbilityOne program new executivedirector
  search
• New standards requirements

• Growth budget leveling off in 2007 2008
• Institute for Economic Empowerment
• Increased emphasis on business development
• Voice of the customer
• Organizational excellence

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Government at Its Best

• JWOD Act Regulations

• Independent Agency (15 members/29 staff)
• Requires if an entity of the Federal Government
  intends to procure an item on the PL, must buy
  from Committee-designated source at established
  price, if available in needed timeframe.
• Oversight of Central Non-Profit Agencies (CNAs)
• Ensure program compliance

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Government at Its Best

• JWOD Statutory Roles Responsibilities

• Establish, publish and maintain the PL with
  additions deletions
• Determine Fair Market Price
• Designate CNA to facilitate orders
• Make rules regulations
• Study evaluate

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Government at Its Best

• The Way Committee for Purchase Operates

• Deliberate decisions
• Transparent
• Suitability
• Impact
• 90 day additions administration minimum
• Impasses (e.g., pricing)
• Federal procurement trends

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Government at Its Best

• Non-Profit Agency (CRP) Qualifications

• Non-profit serving people who are blind or who
  have severe disabilities
• Certify 75 of direct labor performed by people
  who have severe disabilities
• Personnel records (disability documentation
  competitive employment evaluation)
• Placement Program
• Department of Labor requirements

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Government at Its Best

• JWOD Act Modernization

• Law since 1938
• Previous administrative clean-up only
• Congress looking at 2 long standing disability
  programs including AbilityOne
• New legislation to modernize JWOD Act not
  expected until 2008-2009
• Produces opportunities for improvements

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Government at Its Best

• Considerations for buildinga law

• Ratio 75 vs. 50 (Act vs. public policy
  thinking)
• Balance disability and (small) business concerns
• Definition of disability (Over 60 Federal
  definitions now)
• Severity of disability serve people with
  disabilities or people with severe disabilities
• Can others besides non-profit participate?
• Role of placement and advancement for peoplewith
  disabilities
• Importance of choice and options

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Government at Its Best

• Considerations for buildinga law

• Integrated work settings
• Payment of minimum wage or commensurate wage
• People with disabilities and entrepreneurial
  (self-owned) businesses
• Other Federal Government goals priorities
• Impact of other Federal laws programs (ex. SCA)
• Contracts for perpetuity
• Due diligence, transparency program
  responsiveness (AbilityOne process takes too
  long)

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Government at Its Best

• Considerations for buildinga law

• Coordination with other disability programs
  policy
• Innovation role of research development
• Count subcontracting (procurement programs)
• Agency requirements (agreement/contract,
  governance, performance, payment of program fee)
  
• Oversight compliance (program integrity)

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Government at Its Best
For More Information
Deborah Atkinson NISH 8401 Old Courthouse Road
Vienna, VA USA 22182 datkinson_at_nish.org