Northeast Regional Council Warwick RI June 13 2007

Northeast Regional Council Warwick, RI June 13, 2007 Ability. One/JWOD & Small Business. . . Partnering for Success Sheryl Kennerly Committee for Purchase From People Who Are Blind or Severely Disabled

Ability. One 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 • Ability. One Helps Address this Need – Ability. One = Single Largest Employer of People with Disabilities in the U. S. – Over 47, 000 Employees in FY 2006 Ability. One /

Ability. One 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 -48 c – Codified at 41 CFR Part 51 • FAR Subpart 8. 7 Implements the JWOD Program’s Procurement Rules Ability. One /

Ability. One ORGANIZATIONAL CHART President of the United States DOC DOD Air Force Army Navy DOJ DOL ED GSA USDA VA 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) Ability. One /

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

Ability. One 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 Ability. One /

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: – – Identification Development Decision Production/Performance

Ability. One Comprised Less Than 1% of the FY 2005 Federal Contract Spend (FPDS and Program Data) Ability. One /

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 Ability. One products or services? Ability. One services are for a specific type of service at a specific location Ability. One 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 Ability. One products: • By Phone or Fax • 1 -800 -Get-JWOD • Via the Internet (Do. D 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 Ability. One /

New Small Business Utilization Study • In Feb. 2005, NISH commissioned a 3 rd 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. 2410 d. – 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 Ability. One Program • Changes in Fee Ceiling do not change existing Fair Market Prices • Committee reviews CNA budgets and sets fee ceilings annually

Product Pricing Memorandum – PR 2 New Product Pricing Memo PR 2 • • 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 – PR 3 • • 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 Ability. One • More effectively communicate mission in program name • Extensive research conducted on Ability. One • Transition Plan of 18 months for phase-in • JWOD/Ability. One 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. Ability. One. 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 skennerly@jwod. gov