U.S. DEPARTMENT OF EDUCATION

OFFICE OF SPECIAL EDUCATION AND REHABILITATION SERVICES

REHABILITATION SERVICES ADMINISTRATION

WASHINGTON, D.C. 20202

> MEMORANDUM
>
> RSA-IM-01-32
>
> RSM-3015
>
> DATE: April 24, 2001

TO : STATE VOCATIONAL REHABILITATION AGENCIES (GENERAL)

> STATE VOCATIONAL REHABILITATION AGENCIES (BLIND)
>
> CLIENT ASSISTANCE PROGRAM
>
> REGIONAL REHABILITATION CONTINUING EDUCATION PROGRAMS
>
> RSA SENIOR MANAGEMENT TEAM

SUBJECT : Summary of Statistical Information of the Randolph-Sheppard
Vending Facility Program for Fiscal Year 2000

> Attached for your use is a table showing the National Summary of
> Operations of the Vending Facility Program for Fiscal Year (FY) 2000
> as compared with FY 1999.
>
> The Randolph-Sheppard Act at 20 U.S.C. Sec. 107d-3 (a) provides
> authority to the Commissioner of the Rehabilitation Services
> Administration to prescribe regulations that impose a ceiling on
> income from vending machines on Federal property that is disbursed to
> eligible vendors each year. The Randolph-Sheppard regulations at 34
> C.F.R. Sec 395.8 (a) state: \"Vending machine income from vending
> machines on Federal property which has been disbursed to the State
> licensing agency by a property managing department, agency, or
> instrumentality of the United States under Sec. 395.32 shall accrue to
> each blind vendor operating a vending facility on such Federal
> property in each State in an amount not to exceed the average net
> income of the total number of blind vendors within such State, as
> determined each fiscal year on the basis of each prior year\'s
> operation, except that vending machine income shall not accrue to any
> blind vendor in any amount exceeding the [average net income of the
> total number of blind vendors in the United States]{.underline}.\"
> (Underlining added). The national average net income in FY 2000 was
> \$34,298.

It should be noted that the degree of competition presented to blind
licensees operating facilities on Federal property by non-blind operated
vending machines is relevant only to a determination of the amount of
vending machine income the Federal agency must disburse to the State
licensing agency. The degree of competition is not relevant to the
obligations imposed upon the State licensing agency to, in turn,
disburse income to a licensed vendor on the Federal property. See 20
U.S.C. Sec. 107d-3 and 34 C.F.R. Sec. 395.32.

> The Randolph-Sheppard regulations at 34 C.F.R. Sec. 395.1 (g) state in
> relevant part: \"Federal property means any building, land, or other
> real property owned, leased, or occupied by any department, agency, or
> instrumentality of the United States ....\"
>
> The data contained in the attached table were obtained from the Form
> RSA-15 for FY 2000. Any subsequent data revisions by individual States
> may cause minor changes in the totals. These data in part are used by
> the Commissioner to implement 34 C.F.R. Sec. 395.8 (a).
>
> The total gross income for the program was \$469.4 million in FY 2000
> compared to \$448.1 million in FY 1999, a 4.7 percent increase. The
> total earnings of all vendors were \$93.3 million in FY 2000 and
> \$90.6 million in FY 1999, an increase of 2.9 percent. The national
> average annual earnings of vendors increased 5.4 percent to \$34,298
> in FY 2000 from \$32,544 the previous year.[^1]
>
> The number of vendors in FY 2000 was 2,716 compared to 2,809 in FY
> 1999, a decrease of 93 operators. There were 3,292 vending facilities
> in FY 2000 and 3,352 the previous year, a decrease of 60 facilities.
>
> Please direct any questions concerning this report to Mr. George F.
> Arsnow, Randolph-Sheppard Program Specialist, Rehabilitation Services
> Administration, Mary E. Switzer Building, 330 \"C\" Street, S.W.,
> Washington, DC, 20202-2738 or by telephone (202) 205-9317.

INQUIRIES TO: RSA Regional Commissioners

> Mark E. Shoob
>
> Deputy Commissioner

Attachment

**RANDOLPH-SHEPPARD VENDING FACILITY PROGRAM**

**DATA SUMMARY FOR FISCAL YEARS 1999 and 2000**

+----------------------+---------------+---------------+---------------+
| **ITEM**             | **FY 2000**   | # FY1999      | **PERCENT     |
|                      |               |               | CHANGE**      |
+----------------------+---------------+---------------+---------------+
| ## INCOME & EARNINGS |               |               |               |
+----------------------+---------------+---------------+---------------+
| **Gross Income**[^2] | **            | **            | **4.7%**      |
|                      | 469,395,355** | 448,142,701** |               |
+----------------------+---------------+---------------+---------------+
| **Vendor Earnings**  | *             | *             | **2.9%**      |
|                      | *93,273,607** | *90,613,880** |               |
+----------------------+---------------+---------------+---------------+
| **Average            | **34,298**    | **32,544**    | **5.4%**      |
| Earnings**[^3]       |               |               |               |
+----------------------+---------------+---------------+---------------+
| **NUMBER OF          |               |               |               |
| VENDORS**            |               |               |               |
+----------------------+---------------+---------------+---------------+
| **Federal            | **897**       | **925**       | **‑3.0%**     |
| Locations**          |               |               |               |
+----------------------+---------------+---------------+---------------+
| **Non-Federal        | **1,819**     | **1,884**     | **‑3.5%**     |
| Locations**          |               |               |               |
+----------------------+---------------+---------------+---------------+
| **Total**            | **2,716**     | **2,809**     | **‑3.3%**     |
+----------------------+---------------+---------------+---------------+
| ## NUMBER O          |               |               |               |
| F VENDING FACILITIES |               |               |               |
+----------------------+---------------+---------------+---------------+
| **Federal            | **1,114**     | **1,120**     | **-.5%**      |
| Locations**          |               |               |               |
+----------------------+---------------+---------------+---------------+
| **Non-Federal        | **2,178**     | **2,232**     | **‑2.4%**     |
| Locations**          |               |               |               |
+----------------------+---------------+---------------+---------------+
| **Total**            | **3,292**     | **3,352**     | **‑1.8%**     |
+----------------------+---------------+---------------+---------------+

[^1]: The average annual earnings of vendors is determined by dividing
    the vendors\' total earnings by the number of vendor person years.
    In FY 2000, the number of vendor person years was 2,719.4.

[^2]: Gross sales, vending machine income, and fair minimum return

[^3]: Vendor earnings divided by vendor person years