Doing Business with the AbilityOne Program
Committee for Purchase From People Who Are Blind or Severely Disabled Operational Overview
Barry S. Lineback Director, Business Operations May 25, 2011 2
Objectives • 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
Committee for Purchase From People Who Are Blind or Severely Disabled
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AbilityOne Program Background •
Wagner-O’Day Act (1938): Employment opportunities for people who are blind
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Javits-Wagner-O’Day Act (1971): Employment opportunities for people with significant disabilities
Mission Provide 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.
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AbilityOne Program Organization Chart President of the United States Members
DOC DOD Air Force Army Navy DOJ DOL ED GSA USDA VA Citizen Citizen Citizen Citizen
Committee for Purchase From People Who Are Blind or Severely Disabled
Nonprofit Agencies Employing Persons Who Are Blind
Congress (Legal Authority)
Nonprofit Agencies Employing Persons With Severe Disabilities
Federal Customers 5
Presidential Appointees
Andrew Houghton Chairperson
P. Edward Anthony Dept. of Education
James Omvig Vice Chairperson
J. Anthony Poleo Dept. of Defense
Robert Kelly, Jr. Private Citizen
RADM Michael Lyden Dept. of the Navy
James Kestleloot Private Citizen
Pamela Schwenke Dept. of the Air Force
Paul Laird Dept. of Justice
Helen Hurcombe Dept. of Commerce
Kathy Martinez Dept. of Labor
Vacant 6
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
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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 9
AbilityOne Program Realities •
Over 18M working age Americans with disabilities unemployed; 10M with most significant disabilities
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Among the largest source of employment for Americans who are blind or have other significant disabilities
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47,000 + AbilityOne employees
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70 years supporting the military and civilian industrial base
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About ½ of 1% of Federal procurement spend (FY10) 10
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 Focused Metrics 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 14
Procurement List Addition Process Contracting Activity Central Nonprofit Agency Nonprofit Agency
1. Identification of an opportunity 2. Development/ feasibility assessment − − −
NPA approval Project Development Price negotiation
Committee/ Committee Staff
3. Committee staff analysis: − − − −
Contracting Activity Central Nonprofit Agency Nonprofit Agency
5. Contract Award / Performance
Rulemaking Impact Capability Pricing
4. PL Addition decision by the Committee
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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 16
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 Decision Package 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%
$2,839,630,702
6.39%
Sales
FY 2010 Procurement List Additions Created 1,800+ New Jobs 20
New-Emerging Capabilities •
Contract Management Support
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Document Management
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On-Demand Parts Machining
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Hospital Aseptic Cleaning
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Total Facilities Management
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Fleet Management Services
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Employment Growth Initiatives Senior Procurement Executive (SPE) Meetings
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Support DoD commitment to grow its business with AbilityOne
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Review DoD spend for AbilityOne products and services
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Identify areas for growth, establish targets, measure progress 22
Strategic Partnerships
Small Business Organizations
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Medical, Dental Products
Fleet Management
Office Supplies
Laundry
imagine Printing More than Logistics Support you
Healthcare Hospitality Environmental Contract
Secure Mail
Transcription
Call Center
New Products and Services
Management Support
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Thinking Outside the Box‌
Experience
Security
Comfort Routine
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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.
The Contracting Officer’s Guide to the Procurement List Addition Process 1. Develop/Define the Requirement 2. Contact the AbilityOne Program 3. Determine if AbilityOne and the Community Rehabilitation Program (CRP) Business Partners Possess the Capability 4. Determine Federal Prison and NIB Priority (products only) 5. NISH/NIB Project Manager Performs a “Preliminary” Impact Determination a. Dun & Bradstreet Business Base Review (Opportunity Percentage of Contractor’s Business) b. Incumbent Contractor Profile c. 8A Contractor’s Program Status (Years To Graduation)
The Contracting Officer’s Guide to the Procurement 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
Streamlining Using AbilityOne • AbilityOne offers substantial opportunities to streamline the “normal” Federal procurement process • Save staff time, effort, money • Bring services on line quicker
Acquisition – The Federal Process Identification of requirement or need
Solicitation and Proposal phase (FAR Part 15)
Market research (FAR Part 10
Evaluation and Negotiation (FAR Part 15)
Acquisition planning (FAR Part 7)
Source selection and 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
Streamline Advantages • 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
Acquisition – The NISH Process Identification of requirement or need
Proposal and Negotiation (FAR Part 8.7)
Contract award (FAR Part 8.7)
AbilityOne is Not a “Front” • 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
Follow-on, the Real Pay Off • 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)
Strategic Sourcing
With AbilityOne Guaranteed Performance (Best in Class) Standard Levels of Service (Template SOW) Competitive Price
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-Commerce NISH’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
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ISO 9000 and ISO 14000 certified
Products
Products Apparel and Equipage/Chemical Protection Apparel and Systems • 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
Non-DoD Uniform Programs • Federal Agencies – DHS, DOI, USDA, TSA, DOJ, DOT, DOL • Military Exchanges in 3150 stores – AAFES, NEXCOM, MCX, certified manufacturers • Apparel Manufacturing Experience • Surge Capabilities/Capacities • Price-Competitive Market • Hats/Caps and Balaclava • Not Subject to Berry Amendment
Source: U.S. Department of Commerce National Oceanic Atmospheric Administration (NOAA) – Uniform Program Transportation Security Administration
Food Processing & Packaging •
Instant Nonfat Dry Milk
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Vegetable Oil
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Bakery Mixes
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Spices
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Coffee
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Military Ration Components
Medical Supplies & Equipment • 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 Improved First Aid Kit (IFAK) - Army •
Part of MOLLE System (Module Lightweight Loadcarrying Equipment)
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Consists of various expendable medical items
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Components change frequently as improvements are made – Supplier adaptability is critical
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Pouch design/pattern must be adaptable to warfighter uniform changes
Other Related Capabilities • Assembly • Packaging • Kitting • Fulfillment • Distribution
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