Title: Northeast Regional Council
1Northeast 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
2AbilityOne 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 /
3AbilityOne Program History
- 1938 Wagner-ODay Act Established the
Program for Products Made by People Who are Blind - 1971 Javits AmendmentExpanded 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 Programs
Procurement Rules
AbilityOne /
4AbilityOne ORGANIZATIONAL CHART
President of the United States
DOCDODAir 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
Legal Authority
National Industries for the Blind (NIB)
NISH
AbilityOne /
5Committee 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
6AbilityOne Regulatory Framework
- As a Federal agency, the Committee works
- within a statutory and regulatory framework
- Need for openness and transparency of the
- Committees 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
7Committee Suitability Criteria
- The Committees 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 /
8Procurement List Background
- What is the Procurement List?
- Additions and Deletions Go Through a
Deliberative, Public Rulemaking Process - The Four Phases of the Additions Process
- Identification
- Development
- Decision
- Production/Performance
9AbilityOne Comprised Less Than 1 of the FY2005
Federal Contract Spend (FPDS and Program Data)
AbilityOne /
10IMPACT 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
11How 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 ListTotal Government Requirement
- Commonly used commodities that are to be bought
by all Government agencies - B ListBroad Government Requirement
- Products used by many agencies, not all, as
aggregated by GSA - C ListUnique Government Requirements
- Products for a special use by one or a group of
agencies, not widely available
12JWOD 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
13Partnering 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
- NIBs previous research found its associated
agencies did 60 of their purchases of materials
from small businesses
AbilityOne /
14New 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.
15Meeting Small Business Subcontracting Plan Goals
- 10 US Code Sec. 2410d. Subcontracting Plans
Credit for Certain Purchases - Purchases Benefiting Severely Handicapped
PersonsIn 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.
16FY 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
17Product 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 recommendationsCNA CA - Negotiations required to achieve agreement
between NPA and CA on price recommendation - Impasse Process when agreement not possible
18Service Pricing memorandum PR3
- 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 recommendationsCNA CA - Negotiations required to achieve agreement
between NPA and CA on price recommendation - Impasse Process when agreement not possible
19JWOD 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
20QUESTIONS??WWW.AbilityOne.GOV
Sheryl KennerlyInformation ManagementCommittee
for Purchase From People Who Are Blind or
Severely Disabled1421 Jefferson Davis Hwy, Suite
10800Arlington, VA 22202703-603-2134skennerly
_at_jwod.gov