# Presentation: 855768

## JWOD & Small Business . . . . Partnering for Success

- Mid-Atlantic Regional Conference
- Atlantic City, NJ
- January 17, 2007

*JWOD & Small Business . . . . *Partnering for Success
- Sheryl Kennerly
- Committee for Purchase From
- People Who Are Blind or Severely Disabled

## JWOD PROGRAM PURPOSE

- Create Jobs for People Who Are Blind or Have Other Severe Disabilities Through the Delivery of Products and Services to Federal Customers
- 17 Million+ Americans Have Severe Disabilities
- 70% of this Population is _**not**_** **Employed
- JWOD Program Helps Address this Need
- JWOD is the Single Largest Employer of People with Disabilities in the U.S.
- Over 46,000 Employees in FY 2005

**Notes:**
But first, let me tell you a little bit about the JWOD Program.  [Read mission, talk about unemployment rate].

## JWOD PROGRAM HISTORY

- 1938 – Wagner-O’Day Act:  Established the Program for products made by people who are blind
- 1971 – Javits Amendment:Expanded the Program to include people with other severe disabilities, and added services
- 41 USC 46-48c
- Codified at 41 CFR Part 51
- FAR Subpart 8.7 implements the JWOD Program’s procurement rules

## JWOD Organizational Structure

**Notes:**
The JWOD Act created a public/private partnership, as you can see from this chart.  

The Committee for Purchase From People Who Are Blind or Severely Disabled is a small, independent government agency that reports to the President.  The Committee is made up of 15 members appointed by the President as is shown on the block to the left of the chart:  
One Federal employee from each of the 11 agencies shown in the block.
The remaining four members are private citizens knowledgeable about the employment problems of people who are blind or have other severe disabilities, including those employed by nonprofit agencies affiliated with the JWOD Program. 
You will find a list of the members and their biographies at www.jwod.gov under “About Us” section.

The Committee also has a small staff of 29 civil servants who support the Committee members.  You can find an organization chart identifying the members and the staff organization at www.jwod.gov.  

The Committee is assisted by two central nonprofit agencies (CNAs) designated by the Committee:  National Industries for the Blind (NIB) and NISH (creating employment opportunities for people with severe disabilities).  

The CNAs in turn represent nonprofit agencies that qualify to operate under the JWOD Program.  Currently there are more than 600 participating NPAs.  Without the NPAs, the Program could not achieve its objectives.  They provide the employment opportunities for people who are blind or severely disabled.   

Jobs are created at the grass-roots level in over 600 nonprofit agencies nationwide, such as affiliates of Goodwill Industries, the Easter Seal Society, individual Lighthouses for the Blind, and many local organizations.

Congress, of course, plays a legislative and oversight role.

## JWOD Mission and Vision

- Mission:
- Provide _employment opportunities_ for people
- who are blind or have other severe disabilities
- in the manufacture and delivery of products and
- services to the Federal Government.
- Vision:
- The JWOD Program enables all people who
- are blind or have other severe disabilities to
- achieve their maximum employment potential.

**Notes:**
Mr. Omvig 

## Strategic Plan FY 2007-2009 Goals

**Goal 1. People Who Are Blind Or Have Other Severe Disabilities **
- Continue to expand _employment opportunities_
**Goal 2. Federal Customers**
- Partner to increase customer satisfaction and loyalty
**Goal 3. Process and Procedures**
- Improve efficiency and effectiveness
**Goal 4. Communication and Information Sharing**
- Expand support for the JWOD Program
**Goal 5. Market Development**
- Strategically develop new markets and expand existing markets

**Notes:**
Mr. Omvig 

## JWOD Regulatory Framework

- As a Federal agency, the Committee works
-     within a statutory and regulatory framework
- Need for openness and transparency of the
-      Committee’s operations set the tone for
- 	business processes and procedures
- Every Proposed Addition involves a _*deliberative decision*_ by the Committee
- All decisions are based on suitability
- 	 _*judgments*_*;* no set formula

## Committee Responsibilities

- Establish, publish, maintain Procurement List (PL) Additions and Deletions; informal rulemaking process via Federal Register
- Determine Fair Market Prices of PL items
- Designate Central Nonprofit Agency(ies) (CNA)
- 	to facilitate orders from the PL
- 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

## PROCUREMENT LIST ADDITION PROCESS

- What is the Procurement List?
- Procurement List Additions Have 4 Phases:
- Identification
- Development
- Decision
- Production/Performance

## Process Requirements

- Law requires use of Administrative Procedures Act, w/ public comment periods, for both PL Additions and Deletions
- Decision/Rulemaking is not just a “formality”
- Each addition is a rulemaking based on
-     application of suitability criteria
- Deliberative Process, not an entitlement program or ministerial action
- i.e., not like getting Social Security or
-     registering a car; more like applying for
- 	a mortgage or life insurance

## Process Requirements (Cont’d)

- Decision/Rulemaking process takes about
-      85-120 days from Committee’s receipt of a _complete_ package
- Only upon PL Effective Date (30 days after
-      Notice of Final Rule) may the Government use JWOD sole source authority to enter into a contract

## SUITABILITY CRITERIA

- The Committee’s decision is based on regulatory suitability criteria as follows:
- Employment potential
- Qualified nonprofit agency
- Capability of nonprofit agency
- No severe adverse impact
- The Committee must also establish an initial Fair Market Price and approve the process for updating the price over time

## IMPACT ANALYSIS

- Current contractor is contacted by certified letter notifying them of the proposed addition and requesting sales information
- Contractor is able to submit comments on the proposed addition to the Procurement List
- Cumulative impact is taken into account
- If severe adverse impact is shown, the proposed addition is stopped

## HANDLING OF CONTRACTS UNDER THE 8(a) PROGRAM

- The Committee recognizes and supports other socioeconomic initiatives
- The JWOD Program has policies designed to minimize its impact on incumbent procurement solution providers
- Of all Federal contracts considered by the JWOD Program, tens of millions of dollars are not added to the Procurement List annually because of their potential severe adverse impact
- Current contract must have expired and the contractor must have graduated from the 8(a) Program before the requirement can be added to the Procurement List

## PARTNERING WITH SMALL BUSINESS

- The JWOD Program partners with the small business community in the following areas:
- Suppliers of raw materials/components
- Subcontractors for production or service provision
- Distribution of JWOD products
- The JWOD Program utilizes nonprofit agencies with Board members and Executives who are members of their local business communities to create job opportunities for persons who are blind or have other severe disabilities

## JWOD Contract Totals Less Than 1%   2005 Total Federal Spend (FPDS)

## How do I know if I have to buy JWOD products or services?

- JWOD services are for a specific type of service at a specific location
- JWOD products coverage in categories
- A List=Total Government Requirement
- Commonly used commodities that are to be bought by all Government agencies
- B List=Broad Government Requirement
- Products used by many agencies, not all, as aggregated by GSA
- C List=Unique Government Requirements
- Products for a special use by one or a group of agencies, not widely available

## JWOD PRODUCT DISTRIBUTION

- You can buy JWOD products:
** ****By Phone or Fax **
**(1-800-Get-JWOD**
** ****Via the Internet (DoD E-Mall; GSA Advantage)**
**From Authorized Commercial          Distributors (300+ small businesses)**
**	**** ****(see **_**www.jwod.gov/distributors**_**)**
** ****At Base Supply Centers**

## FY 2007 CNA Fee Ceiling

- Effective October 1, 2006
- Fee paid by the NPAs to finance CNA operations
- Inherent in Fair Market Price, not an add-on or pass-through cost to the Government
- Included in Overhead of the NPA as cost of doing business in the JWOD Program
- Changes in Fee Ceiling do not change existing Fair Market Prices
- Committee reviews CNA budgets and sets fee ceilings annually

**Notes:**
RADM Stone

## Product Pricing Memorandum – PR2

- New Product Pricing Memo PR2
- Establishes preference for Market Based pricing
- Requires price analysis to establish price
- Cost Realism/Cost Analysis only when necessary
- Establishes Contracting Officer responsibility to recommend Fair Market Price
- Greater consistency with FAR practices
- Committee maintains sole authority to establish prices, based on recommendations—CNA & CA
- Negotiations required to achieve agreement between NPA and CA on price recommendation
- Impasse Process when agreement not possible

## Service Pricing memorandum – PR3

- Establishes preference for Market Based pricing
- Requires price analysis to establish price
- Cost Realism/Cost Analysis only when necessary
- Establishes Contracting Officer responsibility to recommend Fair Market Price
- Greater consistency with FAR practices
- Committee maintains sole authority to establish prices, based on recommendations—CNA & CA
- Negotiations required to achieve agreement between NPA and CA on price recommendation
- Impasse Process when agreement not possible

## JWOD Name Changing to AbilityOne

- More effectively communicate mission in program name
- Extensive research conducted on AbilityOne
- Transition Plan of 18 months for phase-in
- JWOD/AbilityOne will be used during transition to communicate change
- “Business as Usual”- no substantive changes to the program or to customers
- New Graphics and brands available soon.
- Communicate through Acquisition Council

## QUESTIONS??WWW.JWOD.GOV

**Sheryl Kennerly****Director of Information Management****Committee for Purchase From People****   Who Are Blind or Severely Disabled****1421 Jefferson Davis Hwy, Suite 10800****Arlington, VA  22202****703-603-2134**_[skennerly@jwod.gov](mailto:skennerly@jwod.gov)_