Overview

1. Overview This section of the module was developed to assist Federal Acquisition and Contracting Specialist gain a better understanding of the JWOD Program, as it pertains to contracts and pricing. We hope that the information provided will assist you in utilizing the services provided by local nonprofit agencies associated with the JWOD Program.

2. Buying Service Through Contracts Before issuing a solicitation, Acquisition professionals should check to see whether a requirement is already on the JWOD Program’s Procurement List. The Procurement List is a listing of all products and services that have been approved for the inclusion in the JWOD Program to be purchased by the Federal government. The Procurement List of supplies and services is available on the internet at www.jwod.gov. It can be downloaded in a database or text file format or can be searched by Noun Name and NSN or Type of Service, Location and Contracting Agency. If the supply or service you need is NOT on the Procurement List, and is a recurring requirement, you can work with the JWOD Program to add it. The process of addition will be described in the following pages.

3. Process of Addition • All additions to the JWOD Program Procurement List go through four phases: • Identification • Development • Committee Decision, and • Production / Performance

4. Phase 1: Identification The best time to identify an opportunity is prior to solicitation when the requirement is first identified by the Federal agency. While identification of potential products and services usually takes place at the local nonprofit agency or NIB/NISH offices, it is always best for Federal employees to bring new product and service opportunities to the attention of the JWOD staff. In fact, there are a number of ways the three groups can work together to identify a potential JWOD product or service.

5. Phase 1: Identification The Committee staff, NIB/NISH can brief an agency’s personnel on the JWOD Program and describe the kinds of projects nonprofit agencies are currently performing. These presentations often prompt government employees to think of products and services they buy that might be suitable for provision by nonprofit agencies. A good example of the identification of similar products involves the production of a strap for the Defense Logistics Agency. After addition of one type of strap to the Procurement List, other types of straps were identified within DLA for provision under the JWOD Program.

6. Phase 1: Identification Also, NIB/NISH staff will work with the contracting activity and assist them in obtaining products and services to suit their specific needs. For example, when the U.S. Department of Agriculture opened the George Washington Carver Facility in Beltsville, Maryland, it chose the JWOD Program to provide economical and reliable solutions to its building management needs. The USDA realized that services acquired by multiple contracts would cost many hours and dollars to administer and that a single contract approach with a program that consistently met their needs was beneficial to everyone involved.

7. Phase 2: Development At this point, an item has been identified as a candidate for placement in the JWOD Program and the service is “reserved” by NIB or NISH for a qualified nonprofit agency whose capabilities and resources appear to be compatible with the government’s requirements. Before proceeding further, the project is investigated to ensure that there are no surprises – for the government or for the nonprofit agency.

8. Phase 2: Development • In order to have a full understanding of the project, NIB/NISH may request the following information from the contracting office. • Current Requirements • Future Requirements • Next Contract Anticipated and • The Procurement History • Note: Because NIB and NISH are acting on behalf of the the Committee, a Federal agency, a Freedom of Information Act (FOIA) request is not necessary.

9. Phase 2: Development • Current Requirements • A detailed review of the current requirements helps NIB/NISH determine the manufacturing process / service tasks required, the direct labor content involved, the material requirements, any capital equipment needed, the amount of space required, and quality assurance requirements. • For services, background material may be requested including the the statement of work, any modifications, previous problems and the applicable Wage Determination.

10. Phase 2: Development • Future Requirements • When applicable, NIB/NISH will ask the contracting activity for an estimated annual usage amount and a forecast quantity for the next procurement year to ensure that the nonprofit agency designated to provide the product or service can meet the maximum needs required by the government. Another reason for asking is to determine whether the requirements might be phasing out or significantly decreasing in quantity during the coming years which would have an effect on JWOD employees.

11. Phase 2: Development • Next Contract Anticipated • To determine whether there is sufficient time to complete the development and addition process for a particular product or service before a new contract is awarded, NIB/NISH must obtain certain information from the contracting activity. This information must include the anticipated date of the next competitive solicitation, as well as the anticipated date of the bid opening and the contract performance period. • Inclusion of a product or service in the JWOD Program must be timed properly to ensure a smooth transition from the current contractor to the nonprofit agency.

12. Phase 2: Development • Procurement History • To complete the procurement history on the proposed project, NIB/NISH may request a two year procurement history from the contracting activity. The history may include; Invitation for Bid (or other forms of solicitation) information, dates of solicitation, award dates, contract terms or delivery periods, awardees (including name, city, state, and contractor establishment code), award prices and quantities. • In addition, NIB/NISH may ask for information regarding problems encountered by the current or prior contractors in providing the product or service.

13. Phase 2: Development • NOTE: • Federal Prison Industries is a priority source for products (see FAR 8.0, Subpart 8.7). Therefore, NIB and NISH are responsible for obtaining clearance from Federal Prison Industries (FPI), also know as UNICOR, when considering a product. For services, no clearance is needed. • Purchase Priority for Services • JWOD participating nonprofit agencies • Federal Prison Industries, Inc., or commercial sources

14. Phase 2: Development Finally, before the Committee decides to add a project to the Procurement List, NIB or NISH will perform a preliminary review to determine if the addition would create a severe adverse impact on the current contractor. The impact is measured on a case by case basis, including whether or not other contracts performed by this firm have been added to the Procurement List in the past, and how long the incumbent firm has held the contract. The Committee also uses sales data from Dunn & Bradstreet reports to assist them in making a well-balanced decision.

15. Phase 3: Committee Review / Decision • The Committee staff will perform a preliminary review of the addition package submitted by NIB or NISH. During the review, the staff will check: • The agency’s nonprofit status to ensure that the proposed agency is a JWOD associated nonprofit entity employing people who are blind or have other severe disabilities; and • Gather data to assess the impact of the addition, if any, on the current supplier and on small entities as defined by the Regulatory Flexibility Act of 1980.

16. Phase 3: Committee Review / Decision The Committee staff will then publish a notice of proposal to add a product or service to the Procurement List in the Federal Register. The public is given a period of thirty (30) days to comment on the proposed addition. When the thirty (30) day period has elapsed and the Committee has received all the data it needs from the contracting activity and other sources, a final detailed analysis is performed by the Committee staff. The review will consist of a thorough analysis of any comments received regarding the proposed addition.

17. Phase 3: Committee Review / Decision The Committee members (15 presidential appointed members)will decide whether to add the product or service to the Procurement List. If the decision is to add the item, a “Notice of Addition to the Procurement List” is placed in the Federal Register. Also a “Notice of Change to the Procurement List – Addition” is mailed to the contracting activity. This notice will identify the product or service, National Stock Number or other comparable identifier. Note: At this stage in the process, the Committee members will set the fair market price for the product or service.

18. Summary The process of adding a product or service to the Procurement List is a well-defined process that assist the contracting activity, NIB/NISH and the NPA to work together to ensure that all parties will be satisfied with the end results. All parties will also be able to work together to arrive at a recommended fair market price, at which point the committee members will set the fair market price. The Committee has also developed a detailed resolution guideline to assist parties who are dissatisfied with the negotiated recommended fair market price. A copy of the process (memorandum 19) is available in the resources section.

19. JWOD Pricing The Committee has recently updated their pricing for services and products from a formulaic based method to market research. The Committee, NIB and NISH believe that in order to meet the demand of the Federal customer, market research is the preferred method for both the nonprofit agencies’ and the Federal customer to arrive at a recommended fair and reasonable price. Note: A copy of both pricing memorandum can be found in the resources section.

20. JWOD Pricing During the development phase of the addition process, the nonprofit agency, with the assistance of NIB and NISH, will develop a proposed price and then negotiate with the contracting activity a mutually acceptable price to recommend to the Committee. The proposed price (recommended fair market price) will be submitted to the Committee staff for review along with the project package for the product or service. It should be noted, that the recommended price is not necessarily the price ultimately designated by the Committee – only the Committee has the authority to establish the price for products and services under the JWOD Program.

21. JWOD & Small Business JWOD projects comprise less than ½ of 1% of all Federal Procurement dollars, according to data from the Federal Procurement Data System. This does not include micropurchases using purchase cards. Purchases from small business set aside, women-owned businesses, small disadvantaged businesses and 8(a) firm comprise twenty-one (21) percent of Federal procurement dollars.

22. JWOD & Small Business For this reason, the JWOD Program does not believe it poses a significant threat to small business preference programs. If a potential addition to the Procurement List is currently provided by a firm in the 8(a) program, the Committee has adopted a voluntary policy to wait until the firm has graduated from the 8(a) program before allowing the contract to go to the nonprofit agency employing people who are blind or severely disabled. Once the 8(a) firm graduates it would not be eligible for the contract in the future.

23. JWOD & Small Business If contracting officers or small business representatives are concerned about specific contracts being considered for inclusion in the JWOD Program, we encourage them to get involved with appropriate NISH or NIB representatives and Government agencies working on that project. There are many possibilities to address concerns about the impact on current employees of these firms and often these concerns can be addressed in the field. Interested parties may also take advantage of the comment period during the Procurement List addition process discussed earlier.

24. Bundling of Service Contracts Bundling a JWOD service contract into a larger contract does not mean that the JWOD service can no longer be performed by the designated nonprofit agency. It merely requires the government to change its purchasing method – from a direct contract with the nonprofit agency to a direct subcontract by the government prime subcontractor. For example, when a JWOD janitorial contract at a Federal building is bundled into a larger facility management contract, the prime contractor for the larger facility management contract is required to establish a subcontract with the JWOD nonprofit agency to continue to provide the services already on the Procurement List.

25. Bundling of Service Contracts On the other hand, there are examples of JWOD nonprofit agencies successfully managing, as prime contractors, central facilities and base operating type contracts. Allowing bundled contract requirements for JWOD services to pass outside the JWOD Program simply because the government is no longer directly contracting for them (as it does for most JWOD services) would circumvent the JWOD mandate to create employment and training opportunities for people with severe disabilities. The direct subcontract approach is not a new one: it has been used for years in connection with JWOD products bought through office supply and other vendors. See the JWOD Regulations at 41 CFR 51-5.2 (c) in the Regulations and Policies section.

26. DoD Credit for JWOD Subcontracts Section 2410d of Title 10, United States Code, authorizes DoD contractors with small business subcontracting plans to count subcontracts with JWOD qualified nonprofit agencies and central nonprofit agencies (NIB and NISH) toward the subcontracting goals set forth in those plans. The authority only applies to subcontracts with nonprofit agencies employing people with disabilities where the nonprofit agency has been qualified to participate in the JWOD Program by the Committee. It does not apply to subcontracts with other disability organizations. Note: No comparable authority exists for contracts with other Federal agencies.

27. JWOD Services • The JWOD Program consistently seeks alternative and innovative routes in addressing Federal employment needs while ensuring jobs for individuals who are blind or have other severe disabilities. • Examples of the new and innovative solutions are: • Temporary Administrative Services • Base Supply Centers / SERVMARTs • Distribution Services • Each of the above services will be discussed in detail in the following pages.

28. JWOD Services The Temporary Administrative Services Basic Ordering Agreement (BOA) is an innovative contracting mechanism implemented by General Services Administration to expedite the time it takes to get temporary office help. There is no procurement process associated with obtaining temporary office help if you use the JWOD BOA. The JWOD BOA offers a skilled and motivated pool of workers who bring their own adaptive equipment and job skills necessary to get the job done. The temporary positions can be filled for a minimum of 90 days and a maximum of 120 days for temporary administrative staff with a one-time exemption of an additional 120 days.

29. JWOD Services The Base Supply Center (BSC) initiative is a truly innovative solution to the government’s need to cut costs. The initiative maintains supply centers in Federal buildings and on military installations operated by JWOD-participating nonprofit agencies and eliminates government inventory and staffing costs.

30. JWOD Services The JWOD Program storage and distribution contracts are yet another exciting new type of service that solves a problem for the government. Outsourcing storage and distribution services will save the government a significant amount of time and resources in human capital for small, high-volume parts or even publications. Nonprofit agencies can operate warehouses, receive orders, pick and package those orders, and then ship them using the most advantageous method for the government based on delivery requirements.

31. JWOD Services In addition to the aforementioned services, the JWOD Program provide an array of services to meet the Federal customers need. The following is an abridged list of some of the services.

32. Summary The JWOD Program has an array of services and products to assist the Federal customer