The AbilityOne Program Co-Branding Initiative

1. March 19, 2012 The AbilityOne Program Co-Branding Initiative

2. Page 2 Introduction This is a supplemental resource for NISH and CRP personnel that are interested in co-branding a specific product that is on the Procurement List (PL) or is being developed for PL addition. It is important to review this supplement when a project has been identified or is being assessed for PL suitability.

3. Page 3 Objectives Understand co-branding vs. Co-Branding Become familiar with the Committee�s operational requirements Learn NISH�s internal Co-Branding Feasibility and Execution processes Become familiar with the Co-Branding documents

4. Page 4 Co-Branding vs. co-branding Generally, �co-branding� is the practice of using multiple brand names together on a single product. It is usually a marketing strategy that leverages all brands with the goal of reaching a larger target market and, ultimately, increasing sales. Terms of the arrangement are determined by the participating firms.

5. Page 5 Co-Branding vs. co-branding Cont�d Co-Branding is the AbilityOne Program�s application of co-branding practices. The AbilityOne brand and one or more commercial brands are used together on a single AbilityOne product. The terms of the arrangement are determined by the participating AbilityOne producer and the commercial firm in accordance with the Committee�s Co-Branding requirements. Co-Branded product development must also be in accordance with Committee requirements.

6. Page 6 Committee Requirements Committee Operations Memo No. 22 Primary guiding document for AbilityOne Co-Branded Products Located at http://www.abilityone.gov/policy_memo/ops_memo.html

7. Page 7 Committee Requirements Cont�d �Ops Memo No. 22� Highlights Established AbilityOne initiative to offer nationally-recognized branded products in lieu of or in addition to equivalent, generic PL products i.e. AbilityOne-Energizer Battery in lieu of Non-rechargeable Alkaline Battery Comprised of nationally-recognized name brand(s) and the AbilityOne Program brand and/or Skilcraft� brand (product group can have multiple brands)

8. Page 8 Committee Requirements Cont�d �Ops Memo No. 22� Highlights Cont�d: Applies to new product additions and to unbranded products currently on the PL Co-brand partner must have a nationally-recognized name brand (may be regionally-recognized for some products) and possess significant market share and brand equity

9. Page 9 Committee Requirements Cont�d �Ops Memo No. 22� Highlights Cont�d: Co-brand partner must be competitively selected Responses are solicited via a Sources Sought notice on the Federal Business Opportunities web site

10. Page 10 Committee Requirements Cont�d �Ops Memo No. 22� Highlights Cont�d: Co-brand partner selection results in a formal subcontract agreement between the AbilityOne nonprofit agency and the commercial firm(s) Period of performance can be from 3 � 5 years before co-brand re-competition is required Subcontract agreement must be approved by the Committee before CRP signs Subcontracts must be compliant with the Committee�s Operation Memorandum No. 21

11. Page 11 Committee Requirements Cont�d �Ops Memo No. 22� Highlights Cont�d: �Ops Memo No. 21� highlights: Primary guiding document for subcontract agreements Provides transparency to ensure that blind/disabled work is not assigned to non-disabled firms Requires Committee approval of multi-year agreements Located at http://www.abilityone.gov/policy_memo/ops_memo.html

12. Page 12 Committee Requirements Cont�d �Ops Memo No. 22� Highlights Cont�d: Co-Brand partnership must: Create at least 1 FTE (can be less with Committee approval) CRP contributes value-added direct labor Enclaves or competitive employment at the commercial firm is encouraged

13. Page 13 Committee Requirements Cont�d �Ops Memo No. 22� Highlights Cont�d: Requested addition of the product occurs: After the commercial partner has been selected and subcontract agreement has been approved Project meets all other regulatory addition requirements Co-brand partner selection for Products already on the PL can occur at any time Committee sets the price Co-branded products are intended to be available at prices that the Federal Government would pay to buy the branded products from other retail sources

14. Page 14 NISH�s Co-Branding Processes Includes three distinct phases: NISH facilitates all phases CRP may be involved in first phase CRP involvement in second phase depends on whether the Opportunity will be assigned via a Sources Sought Notice or an Informational Posting CRP plays a key role in the third phase

15. Page 15 Co-Branding Feasibility Determination Process High level view of the process:

16. Page 16 Co-Branding Feasibility Determination Process NISH, the Contracting Activity, or a CRP can identify of potential co-branding opportunity CRPs should immediately inform NISH of identified opportunities so that they can be guided through Co-Branding initiative requirements NISH facilitates data gathering for feasibility analysis (with the CRP, if applicable): Determination of CA support (if CA did not identify the opportunity) Market research Determination if co-branded product will maximize employment for people with significant disabilities Development of a �Co-Brand Partnership Action Plan�

17. Page 17 Co-Branding Feasibility Determination Process NISH facilitates the identification of potential co-brand partners Identify nationally-recognized name brands Possibly contact commercial firms to gather additional information regarding Co-Branding feasibility (Co-Brand Discovery Meeting) NOTE: Competition is the cornerstone of the co-branding initiative. NISH and CRP staff should not engage in pre-selection activities that may give any one potential co-brand partner an advantage during the selection phase. Under no circumstances should a CRP enter into a formal relationship (or promise of one) with a potential co-brand partner prior to the selection phase.

18. Page 18 Co-Branding Feasibility Determination Process NISH (with input from CRPs, if applicable) makes a feasibility determination Those not feasible are considered �Lost Opportunities� Feasible opportunities then move to NISH�s internal project distribution process:

19. Page 19 Project Distribution Process All Co-Branding Opportunities must be assigned to a CRP producer in accordance with NISH�s Program Bulletin No. B-1 Processed like any other Opportunity Sources Sought Notice to solicit interested CRP responses for CRP assignment OR Informational Posting for opportunities identified by a CRP Existing PL products that are proposed for Co-Branding also go through transparency in order to confirm a CRP�s capability/capacity to produce a co-branded product and to communicate the change in scope of the PL project to the CRP community (generally Informational Posting)

20. Page 20 Project Distribution Process Once CRP is assigned, then the opportunity moves to the Co-Branding Execution process:

21. Page 21 Co-Branding Execution Process High level view of the process:

22. Page 22 Co-Branding Execution Process NISH and CRP work on two actions concurrently: The Request for Co-Brand Agreement The draft of the FBO posting The Request for Co-Brand Agreement Committee requirement Intended to supply the Committee with information in order to determine if the project meets the requirements of Ops Memo No. 22 No special format; must contain specific information though Can be submitted to the Committee during the feasibility or project distribution phases if there is concern that project does not meet the requirements of Ops Memo No. 22

23. Page 23 Co-Branding Execution Process The Request for Co-Brand Agreement Should be submitted in advance of the FBO draft Committee guidance: Sample:

24. Page 24 Co-Branding Execution Process The draft of the FBO posting Document that the Committee will post to FBO in order to solicit responses from interested commercial firms Draft will go through an internal NISH review for Ops Memo No. 22 compliance Committee may request revisions before posting Must be drafted on the Committee�s template Cannot be submitted to the Committee until the Committee has reviewed and approved the Request for Co-Brand Agreement

25. Page 25 Co-Branding Execution Process Template:

26. Page 26 Co-Branding Execution Process Once the Request for Co-Brand Agreement and draft FBO have been approved, the Committee will post the notice to www.FBO.gov Commercial firms review and respond Interested parties may submit inquiries about the Opportunity NISH provides response with input from CRP, as needed No specific format for responses Commercial responses are submitted to NISH FBO notice is usually open for 30 days

27. Page 27 Co-Branding Execution Process NISH completes an initial assessment of responses (via the Co-Brand Selection Matrix) Initial assessment and commercial responses are sent to NISH regional personnel Regional personnel distribute the information to the CRP Regional personnel and CRP review and provide feedback on the assessment and recommended selection

28. Page 28 Co-Branding Execution Process NISH updates the assessment and recommendation based on input from Regional personnel and the CRP May require follow-up communication NISH sends the updated assessment and recommendation to the Products and Regional Executive Director for approval (official Co-Brand Partner selection) NISH informs Regional personnel, CRP, the Committee and all commercial respondents of selection outcome

29. Page 29 Co-Branding Execution Process The CRP and the Co-Brand Partner develop the draft subcontract agreement Draft agreement is submitted to NISH NISH completes an internal review of the draft for Ops Memo No. 21 and No. 22 compliance Revisions may be requested NISH submits the draft agreement to the Committee for approval Committee may request revisions before approving

30. Page 30 Co-Branding Execution Process Upon Committee approval, the CRP (and Co-Brand Partner) signs the subcontract agreement CRP submits a copy of the signed agreement to NISH for retention as part of the addition request/request for PL change Project addition/change can be submitted to the Committee once all other addition requirements have been completed

31. Page 31 Closing Questions? Contact the Products Opportunity Management Team: Rajiv Lamichhane, Manager 571-226-4673 rlamichhane@nish.org Steph Blake, Project Manager 571-226-4620 sblake@nish.org