Doing Business with the AbilityOne Program

Committee for Purchase From People Who Are Blind or Severely Disabled

Operational Overview

Barry S. LinebackDirector, Business Operations

May 25, 20112

• Provide background on the AbilityOne Program and the Committee

• Discuss the Program’s statutory and regulatory framework

• Describe the Procurement List Addition Process

• Review innovative initiatives from the Committee’s perspective

Objectives

Committee for Purchase From People Who Are

Blind or Severely Disabled

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• Wagner-O’Day Act (1938): Employment opportunities for people who are blind

• Javits-Wagner-O’Day Act (1971): Employment opportunities for people with significant disabilities

MissionProvide employment opportunities for people who are blind or have

other significant disabilities through the manufacture and

delivery of products and services to the federal government.

AbilityOne Program Background

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AbilityOne Program Organization Chart

President of the United States

Committee for Purchase From People Who Are Blind or Severely Disabled

Congress(Legal Authority)

DOCDOD

Air ForceArmyNavyDOJDOLED

GSAUSDA

VACitizenCitizenCitizenCitizen

Nonprofit Agencies Employing Persons Who

Are Blind

Nonprofit Agencies Employing Persons With

Severe Disabilities

Members

Federal Customers

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Presidential Appointees

Andrew HoughtonChairperson

James OmvigVice Chairperson

Paul LairdDept. of Justice

J. Anthony PoleoDept. of Defense

P. Edward AnthonyDept. of Education

Robert Kelly, Jr.Private Citizen

James KestlelootPrivate Citizen

RADM Michael LydenDept. of the Navy

Pamela SchwenkeDept. of the Air Force

Kathy MartinezDept. of Labor

Helen HurcombeDept. of Commerce

Vacant

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Statutory Role & Responsibilities

• Establish, publish, maintain Procurement List (PL)

• Determine Fair Market Prices of PL Items

• Designate Central Nonprofit Agency(ies) (CNA)

• 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

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Committee Staff Organization

Key Regulations: 41 CFR 51

• Implement Javits-Wagner-O’Day Act; detail requirements for Procurement List additions/deletions– Establish decision, reconsideration processes– Establish suitability requirements– Require maintenance of list of items on PL– Require fair market price determination

• Describe Central Nonprofit Agency responsibilities

• Detail nonprofit agency qualification requirements

• Describe contracting and purchasing requirements

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AbilityOne Program Realities

• Over 18M working age Americans with disabilities unemployed; 10M with most significant disabilities

• Among the largest source of employment for Americans who are blind or have other significant disabilities

• 47,000 + AbilityOne employees

• 70 years supporting the military and civilian industrial base

• About ½ of 1% of Federal procurement spend (FY10)

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Serving Wounded Warriors

• Provide employment and training for veterans and service-disabled veterans– Over 3,300 vets in AbilityOne Program today– Over 1,600 have significant disabilities– Leverage skills and aptitudes developed on active duty

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AbilityOne Strategic Goals

• Strategic Plan Effective 2010 – 2014

• Core goals and measures aligned across the Committee, NIB and NISH

– Effective Stewardship

– Employee and Customer Satisfaction

– Employment Growth

– Business Excellence Mission FocusedMetrics Driven

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Procurement List Framework

• As a Federal agency, the Committee works within a statutory and regulatory framework– JWOD Act (41 U.S.C. 46-48c)– Committee’s regulations (41 CFR 51)– FAR Subpart 8.7

• Need for openness and transparency set the tone for business processes and procedures

• Every proposed Procurement List addition involves a deliberative decision by the Committee

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Procurement List Addition Process

Five Phases to Each PL Addition:• Identification of opportunity

• Development/feasibility assessment

• Committee staff analysis– Rulemaking– Impact– Capability– Pricing

• PL Addition decision by the Committee

• Contract award/performance

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Contracting ActivityCentral Nonprofit

AgencyNonprofit Agency

Committee/Committee Staff

Contracting ActivityCentral Nonprofit Agency

Nonprofit Agency

1. Identification of an opportunity

2. Development/feasibility assessment − NPA approval− Project

Development− Price negotiation

3. Committee staff analysis:

− Rulemaking− Impact− Capability− Pricing

4. PL Addition decision by the Committee

5. Contract Award / Performance

Procurement List Addition Process

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Process Requirements

• Law requires use of Administrative Procedures Act– Proposed and final rulemaking publication in

Federal Register for public comments

• Deliberative Process, not an entitlement program or ministerial action– i.e., not like Social Security or registering a car;

more like applying for a mortgage

• Contracting Office and nonprofit agency negotiate and recommend a fair market price to the Committee

• Rulemaking/decision process usual takes 100 -120 days from Committee’s receipt of a complete package

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Initial Federal Register Publication

• Requests for Procurement List Addition (or Deletion) transmitted by NIB or NISH electronically with necessary data and documentation

• Staff reviews proposed product/service for alignment with regulatory suitability criteria before initial publication as a Notice of Proposed Rulemaking

• If threshold met, Notice of Proposed Rulemaking is published w/ 30-day public comment period

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Vote Letter Decision Package

Purpose: Transmits the PL Addition DecisionPackage to Committee Members

• Includes staff analysis and comments – i.e., “Price is 10% higher than current contract due to expanded

scope of work”

• Incorporates Public Comments, if any, and staffs’ recommended response to comments

• Incorporates Committee decision on initial price and price change mechanism

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Final Federal Register Publication

• Notice of Final Rule is published the Friday after the vote period ends, if a majority of Committee members approve the addition

• In accordance with APA, the PL addition is effective 30 days after published

• Effective date is the legal basis for the Government to enter into a sole source contract w/ the AbilityOne nonprofit agency – FAR Part 6.302 – Circumstances Permitting Other Than Full and Open

Competition• 6.302-5 – Authorized or Required by Statute

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FY 2010 Performance Results

FY 2010 Results % Change

Hours 48,049,751 5.26%

People 47,427 3.25%

Wages $528,324,902 6.97%

Promotions 1,069 2.69%

Placements 2,189 -4.37%

Sales $2,839,630,702 6.39%

FY 2010 Procurement List Additions Created 1,800+ New Jobs

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New-Emerging Capabilities

• Contract Management Support

• Document Management

• On-Demand Parts Machining

• Hospital Aseptic Cleaning

• Total Facilities Management

• Fleet Management Services

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Employment Growth Initiatives

Senior Procurement Executive (SPE) Meetings

• Support DoD commitment to grow its business with AbilityOne

• Review DoD spend for AbilityOne products and services

• Identify areas for growth, establish targets, measure progress22

Strategic Partnerships

Small Business Organizations

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New Products and Services

imagine

you

More than

Medical, DentalProducts

HealthcareEnvironmental

PrintingFleetManagement

Tran

scrip

tion Logistics Support

Laun

dry

ContractManagementSupport

Hospitality

Offic

eSu

pplie

s

Secure Mail

Call C

ente

r

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Thinking Outside the Box…

Comfort

Security

Routine

Experience

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Doing Business with the AbilityOne Program

Looking at the Program From the Federal Contracting Officer’s Perspective

Dave Theimer,Assistant Vice President, Marketing

National Business Development

So… What is NISH?

• Central Nonprofit Agency• NISH Mission:

– Create Job Opportunities for Persons with Severe Disabilities.

• Funded by program fee based on sale of products and services.

AbilityOne…National Footprint…

NISH Organization

San Ramon, CA

Pacific West

Pacific West

Market Pricing - Services

• Committee for Purchase Established Price

• Pricing Memorandum No. 3 – Guideline

– Need Contracting Officer Concurrence– Price Recommendation is Negotiable!– Market-Based//Evaluate by Price Analysis

• Simplified Acquisition– NISH Pricing Support to Contracting Officer– Limited DCAA Involvement– Simplified Annual Renewals

Program Management Support

• NISH assist with SOW/PWS• PBSA Training and Implementation• Price to Budget (Design-to-Cost)• NISH – Contract Management Support (FAR Part 42)• Effective Teaming

– Full and Open Discussions– Mission Focused Service Providers

• No Cost – No Obligation Proposals• Provide innovative, timely and cost effective

acquisition/business solutions for the Federal Government.

1. Develop/Define the Requirement2. Contact the AbilityOne Program3. Determine if AbilityOne and the Community Rehabilitation

Program (CRP) Business Partners Possess the Capability4. Determine Federal Prison and NIB Priority (products only)5. NISH/NIB Project Manager Performs a “Preliminary”

Impact Determinationa. Dun & Bradstreet Business Base Review (Opportunity Percentage

of Contractor’s Business)b. Incumbent Contractor Profilec. 8A Contractor’s Program Status (Years To Graduation)

The Contracting Officer’s Guide to theProcurement List Addition Process

6. Complete Statement Of Work (SOW) and send to the NISH/NIB Project Manager (NISH can and will assist in writing the SOW)

7. Receive the “No-obligation” Price Proposal from the NISH/NIB Project Manager

8. Negotiate the Proposal, Sign the Concurrence letter, and send to NISH/NIB

9. NISH/NIB’s Project Manager stays in touch with the Contracting Officer to report on the Procurement List Addition process/progress at the Committee for Purchase

The Contracting Officer’s Guide to theProcurement List Addition Process

• AbilityOne offers substantial opportunities to streamline the “normal” Federal procurement process

• Save staff time, effort, money

• Bring services on line quicker

Streamlining Using AbilityOne

Market research(FAR Part 10

Acquisition planning(FAR Part 7)

Solicitation and Proposal phase

(FAR Part 15)

Evaluation andNegotiation

(FAR Part 15)

Source selectionand contract award

(FAR Part 15)

• Functions within legal/regulatory framework implemented by the FAR

• Involves entire acquisition team

• Balances goals of obtaining best value for the government and promoting competition

Acquisition – The Federal Process

Identification of requirement or need

• Can go directly to an AbilityOne producer with a SOW

• No formal notice, no solicitation, no synopsis, no sources sought

• Can immediately begin negotiation. Not a competitive environment as used in FAR –a directed procurement under FAR 8.7

• Can ask NISH to help with the SOW/PWS

Streamline Advantages

Acquisition – The NISH Process

Proposal andNegotiation

(FAR Part 8.7)

Contract award(FAR Part 8.7)

Identification of requirement or need

• Service must be suitable; i.e., can be performed by a NPA and can be performed by individuals with disabilities

• Providing the Service through JWOD cannot have disproportionate impact on the previous supplier -

• 75% of our direct labor must be by individuals who qualify as severely disabled

AbilityOne is Not a “Front”

• After in the AbilityOne Program, the procurement becomes a base year plus four follow-on years (AbilityOne Options)

• Automatically renewed every five years (unless agency requirements change)

Follow-on, the Real Pay Off

Guaranteed Performance (Best in Class)

Standard Levels of Service (Template SOW)

Competitive Price

Strategic Sourcing

With AbilityOne

AbilityOne is Smart Business

• Quality Services and Products

• Fair Market Prices

• Long-Term Partnerships/Relationships

• Ease of Contract Award and Administration

– In Step with Acquisition Streamlining

• Break to Taxpayers (Convert Tax Users Into Taxpayers)– Reduced Entitlements– New Taxpayers

Core Service Offerings

• Administrative Services

• Custodial Services

• Food Service

• Grounds Maintenance

Innovative Service Offerings

Over the past four years, NISH has launched several new lines of business to provide additional service capabilities to Federal customers.

• Secure Document Services• Document Management• Secure Mailroom Services• Secure Document Destruction• Tele-services• Call Center Services• Medical Transcription Services• Facilities Management and Maintenance Services• Healthcare Environmental Services• Supply Chain Solutions (Warehousing/Distribution)

Administrative Services

• The AbilityOne Program is performing over $46 million worth of Administrative services with a multitude of Federal agencies.

• AbilityOne Administrative services contracts provide invaluable experience for people with a range of disabilities.

Fleet Maintenance & Management

Fleet Managers today face an array of challenges and opportunities unlike any seen in the last 20 years; such as:• Budget deficits and cost-cutting pressures• Growing fleet replacement backlogs• Fleet “right sizing” directives• Alternative fuel mandates• Technological changes• Mechanic shortages and E-CommerceNISH’s approach involves partnering with Fleet Managers to leverage the core competencies and to focus on the core mission of their organizations.AbilityOne currently provides Fleet Management solutions at Fort Lewis, Army SDDC Headquarters at Norfolk, Tinker Air Force Base, and Fort Riley.Check out all of the successes at www.nishfleet.com.

Secure Document Services

The AbilityOne Program is performing Secure Document Services for the IRS in over 34 locations nationwide.

AbilityOne Secure Document Destruction Services provides are NAIDD AAA Certified and shred to 5/16”.

GSA Schedule for Office Imaging and Document Solutions #GS-25F-0031S

Facilities Management Solutions

AbilityOne provider are now involved in more complex Facilities Management Solutions for many Federal customers; including: Fort Bliss, TX; Fort Polk, LA; Travis Air Force Base, CA; NASA’s Dryden Flight Research Center, CA; Fort Dix, NJ (initial start-up); and NAVFAC Midwest, IL.

Nonprofit agencies are providing complete facility services that include management of mechanical, HVAC, construction, paining, plumbing, and security.

Consolidated facilities management solutions through AbilityOne offer great cost savings and simplified contract management.

Supply Chain Solutions

AbilityOne Supply Chain Solutions is current responsible for $35 million in warehousing and distribution contracts.

Current Federal contracts include: Fort Lewis/Fort Drum Central Issue Facilities, Fort Hood Manage Class 9 repair parts and ASP, ASCO –Virtual Prime Vendor for Depot Operations.

There are 500 employed member with 1000 additional people in the training pipeline.

NISH’s Supply Chain Management Solutions network includes over 100 NPAs nationwide.

• Proven success in Supply Chain Management operations

• ISO 9000 and ISO 14000 certified

Products

• Chemical Protective Suits• Cold/Wet Weather Gear• Pouches, Cases, Pockets, Packs and Load

Carriage Systems• Combat Uniforms• Helmet Covers• Hats/Caps and Balaclava• Fleece Jackets and Overalls• Underwear and Multi-Layered Insulation Systems• Duffel and Cargo Bags• Tents, Shelters, and Sleeping Mats • Interment Flags

Apparel and Equipage/Chemical Protection Apparel and Systems

Products

Source:U.S. Department of CommerceNational Oceanic Atmospheric Administration (NOAA) – Uniform ProgramTransportation Security Administration

• Federal Agencies – DHS, DOI, USDA, TSA, DOJ, DOT, DOL

• Military Exchanges in 3150 stores – AAFES, NEXCOM, MCX, certified manufacturers

Non-DoD Uniform Programs

• Apparel Manufacturing Experience• Surge Capabilities/Capacities• Price-Competitive Market• Hats/Caps and Balaclava• Not Subject to Berry Amendment

• Instant Nonfat Dry Milk

• Vegetable Oil

• Bakery Mixes

• Spices

• Coffee

• Military Ration Components

Food Processing & Packaging

• Improved (Army)/Individual (Marines) First Aid Kits (IFAK)

• Aircraft First Aid Kits

• Firefighter Field Packs

• Hydration Systems

• Enroute Care Systems

• Evasion and Escape Kits

• Personal Care Items

Medical Supplies & Equipment

• Part of MOLLE System (Module Lightweight Load-carrying Equipment)

• Consists of various expendable medical items

• Components change frequently as improvements are made – Supplier adaptability is critical

• Pouch design/pattern must be adaptable to warfighter uniform changes

Medical Supplies & Equipment

Improved First Aid Kit (IFAK) - Army

• Assembly

• Packaging

• Kitting

• Fulfillment

• Distribution

Other Related Capabilities

IN SUMMARY

• AbilityOne providers:– Manufacture and deliver hundreds of products– Provide multiple services– Produce the highest quality– Deliver at a fair price

Think AbilityOne First!

Session Evaluation Information

SESSION TITLE: Business A1

SESSION CODE: F-W1045