2014 State Use Vendor Training Conference

1. 2014 State Use Vendor Training Conference

2. Topics of Discussion  AbilityOne Program Overview  AbilityOne Partner Roles  Program Capabilities  Acquisition Process

3. AbilityOne Mission “Provide employment opportunities for people who are blind or have significant disabilities in the manufacture and delivery of products and services to the Federal Government”

4. Why is our mission so important? • National disability statistics: • 17 Million+ Americans have severe disabilities • 70% of this Population is not employed • AbilityOne is the single largest creator of jobs • Over 49,000 employees in FY2013 • Over 2,800 Federal Government AbilityOne contracts • Over 3,300 Disabled War Veterans Working

5. What is the need??? In the USA: 70% unemployment rate for persons with a disability who want to work Affecting: All economic strata, color, creed – physical, mental and development disabilities including our wounded warriors and service disabled veterans

6. Did you know – AbilityOne: • Provides shipboard provisioning to the Pacific Fleet Theater • Sews all the internment flags for the VA • Manufactures all the chem-bio suits for our war fighters with a 0 defect tolerance • Operates the full DPW for Ft. Bliss, TX • Chosen as secure mailroom “vendor of choice” by DHS • Operates fleet management @ Ft. Riley – Named in the Top 100 Fleets in the US

7. Statutory & Regulatory Authority

8. AbilityOne Program • Mandatory Source • Once Added to the Procurement List (PL) • Site Specific Service Specific • No Need to ever re-compete • Sole Source • No Option Years • Follow On Years instead

9. AbilityOne Milestones

10. Program Structure

11. Commission Members J. Anthony Poleo Commission Chairperson Defense Logistics Agency James M. Kesteloot Commission Vice Chairperson Private Citizen Lisa M. Wilusz Department of Agriculture Thomas D. Robinson Department of the Air Force Harry P. Hallock Department of the Army Dr. P. Edward Anthony Department of Education William Sisk General Services Administration Paul M. Laird Department of Justice Jan R. Frye Department of Veterans Affairs Kathleen Martinez Department of Labor Robert T. Kelly, Jr. Private Citizen Anil Lewis Private Citizen Karen McCulloh Private Citizen Vacant Department of Commerce Vacant Department of the Navy

12. Commission Staff Page 12

13.  AbilityOne Partner Roles

14. AbilityOne Partners • Federal Customers • AbilityOne Commission • NPA Contractors • NIB & SourceAmerica

15. AbilityOne Partnership

16. AbilityOne Commission • Oversee Central Nonprofit Agencies (NIB & SourceAmerica) • Determine Suitability of Products & Services • Establish Fair Market Price • Maintain the Procurement List • Interpret & Enforce AbilityOne Regulations

17. SourceAmerica • Liaison between Commission, Federal Customers, & NPAs • Develop & Allocate Contract Opportunities • Contract Negotiation & Startup Assistance • Quality Control Support & Regulatory Assistance • Professional Training & Development

18. Assistance with the PWS Business Management Contract Admin Quality Assurance Methods/Time Mgmt Regulatory Assistance Outside Engineering, Consulting Market Research Costing & Pricing Training Marketing Advocacy Computerization Start-Up Capital Peer Business Mentoring SourceAmerica SourceAmerica Assistance

19. NPA Contractors • Independent Nonprofit Contractor • Privately Incorporated 501(c)(3) Organization • Mission is Employing People with Significant Disabilities • Disability Ratio Ranging from 60% to 75% • Pre-qualified Contractor to Ensure Capacity & Capability

20. AbilityOne Capacity Total of 1270 NPA Affiliates

21. AbilityOne Affiliation Affiliation – What it means to you

22. What is Affiliation? • “Affiliation” is SourceAmerica’s term for participation in the SourceAmerica Network. • Affiliation is available to nonprofit agencies who submit and online application, meet all minimum requirements, and are approved by SourceAmerica. • Contact: www.SourceAmerica.org for online application to join.

23. To Maintain Affiliation • Non Profit Agency Status – 501(C) 3 • Must be in business and currently employing persons with disabilities • Must have at least 75% (Total Agency) of Direct Labor Hours being worked by persons with disabilities. • State or a county Agency can join network • Re-Registration annually to maintain affiliation

24. Benefits of Affiliation • Attend SourceAmerica’s Academy for Leadership, Performance, and Development Training • Access regulatory and compliance support and information • Network and partner with other CRP’s who employ people with disabilities • Research and pursue Federal contracts available through the AbilityOne Program • Work with network of business subject matter experts, who are able to consult and assist in the development of new business opportunities

25. What is a Severe Disability? SEVERE DISABILITY means a person other than a blind person who has a severe physical or mental impairment (residual limiting condition resulting from an injury, disease, or congenital defect) which so limits a person’s functional capabilities (mobility, communication, self-care, self-direction, work tolerance, or work skills) that the individual is unable to engage in normal competitive employment over an extended period of time.

26. AbilityOne Requirements DIRECT LABOR RATIO REQUIREMENTS AGENCY - 75% ABILITYONE - 60%

27. Government Contracting • Comply With Other Applicable Federal Regulations • Service Contract Act • Fair Labor Standards Act • Family and Medical Leave Act • Occupational Safety & Health Act • Equal Employment Opportunity • Americans With Disabilities Act • Drug Free Workplace Act • Office of Federal Contract Compliance Programs (OFCCP)

28.  AbilityOne Capabilities

29. The AbilityOne Network* SourceAmericaOffices Vienna, VA Kennesaw, GA Des Plaines, IL Arlington, TX San Ramon, CA Seattle, WA * Includes coverage in D.C., Puerto Rico, Virgin Islands, Guam, American Samoa and the Trust Territory of the Pacific Islands

30. AbilityOne Products

31. AbilityOne Services

32. AbilityOne Projects

33. AbilityOne Projects

34. AbilityOne Today

35.  AbilityOne Acquisition Process

36. AbilityOne Acquisition Process

37. Acquisition Process Comparison

38. Proposed Add Request 9 days Vote Letter Sent to COMM 10 days Effective Date 30 days COMM Decision to Approve Add 14 days Initial Notice in Fed. Register 30 days Fed. Register Final Addition Notice Submitted by Thu. Noon – week before Friday Pub. Submitted by Tue. before Friday Publication Notice Submitted by Tue. before Friday publication Submitted once questions have been answered AbilityOne Authority FAR 8.704 Commission Decision Due following Monday AbilityOne Addition Process Timeline for Procurement List Addition 90 Days Minimum

39. Moving Forward Next Steps…

40. Nonprofit Agency Considerations Business Considerations for growth and participation in AbilityOne Program • Executive Management • Supervision and Program Management • Clients and or Consumer Considerations • Training Programs • Current Capabilities • Capacity for New Work • Quality Systems • Territory

41. AbilityOne Solutions For the Government • Streamlined acquisition strategy at negotiated prices • Quality services, competitive prices • Flexibility: responsive to changing budgets & service needs/surges • Large, skilled contract workforce For these Individuals • Employment opportunities with: • Individual choice • Equitable wages &benefits • Upward mobility • Personal satisfaction • Achieve financial independence • Build pride & sense of self-worth

42. AbilityOne Myths People with disabilities can’t do that! I’m stuck with AbilityOne for life! 1 2 • If the requirement goes away, so does the contract • Re-negotiate contract & price when necessary • SourceAmerica will intervene if quality issues occur • SourceAmerica will assign new NPA if necessary • SourceAmerica will work with you to obtain purchase exception • Match Abilities with contract requirements • NPAs train workforce to meet standards • Focus on customer satisfaction • Stable, dedicated workforce • NPAs don’t offer to do what they can’t do

43. AbilityOne Myths AbilityOne costs too much! I have to meet small business goals! 3 4 • Fair price guarantee throughout life of contract • Negotiate price to budget constraints • - Government estimates • - Previous contract prices • Negotiate method to adjust future prices • AbilityOne set-asides reduce small business goal base • Consider inserting clauses in prime contracts requiring % of subcontracts to AbilityOne • AbilityOne subcontracts to small business whenever possible • - $217M in FY10

44. AbilityOne Program Resources Websites www.AbilityOne.gov • AbilityOne Commission • Forms & Publications • Procurement List www.AbilityOne.org • Capabilities www.AbilityOne.com • Catalog of Products www.nib.org • National Industries for the Blind www.SourceAmerica.org • Guidelines for Federal Customers • Training Catalog

45. Questions Questions? “Thank You for Your Time!”