[Federal Register Volume 62, Number 187 (Friday, September 26, 1997)]
[Notices]
[Pages 50555-50556]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25609]


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COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR SEVERELY DISABLED


Procurement List; Additions

AGENCY: Committee for Purchase From People Who Are Blind or Severely 
Disabled.

ACTION: Additions to the Procurement List.

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SUMMARY: This action adds to the Procurement List commodities and 
services to be furnished by nonprofit agencies employing persons who 
are blind or have other severe disabilities.

EFFECTIVE DATE: October 27, 1997.

ADDRESSES: Committee for Purchase From People Who Are Blind or Severely 
Disabled, Crystal Square 3, Suite 403, 1735 Jefferson Davis Highway, 
Arlington, Virginia 22202-3461.

FOR FURTHER INFORMATION CONTACT: Beverly Milkman (703) 603-7740.

SUPPLEMENTARY INFORMATION: On May 16, June 6, 20, July 7 and August 8, 
1997, the Committee for Purchase From People Who Are Blind or Severely 
Disabled published notices (62 F.R. 27011, 31065, 33585, 26256 and 
42745) of proposed additions to the Procurement List.

The Following Comments Pertain to Paper, Perforator, Desk

    Comments were received from the current contractor for the 
perforator. The contractor claimed that addition of the perforator to 
the Procurement List would have a severe adverse impact on the 
company's sales, as it is part of the company's core business, and 
would require closing a dedicated production line, with consequent 
layoffs and loss of use of equipment.
    The contractor's Government business includes two perforators, only 
one of which is being added to the Procurement List. The percentage of 
the contractor's total sales which this

[[Page 50556]]

perforator represents is below the level which the Committee normally 
considers to constitute severe adverse impact. The contractor will 
continue to have the opportunity to produce the other perforator for 
the Government, so the equipment and workers on its dedicated 
production line will not be idle.
    Addition of this perforator to the Procurement List will create 
employment for several persons with severe disabilities. These persons 
as a group have a very high unemployment rate, so it is likely that any 
of the contractor's workers who may be displaced by the Committee's 
action will have a better chance of finding other work than these 
persons with severe disabilities.

The Following Comments Pertain to Linen Management Service, Norfolk, 
Virginia

    Comments were received from the current contractor for this 
service. The contractor claimed that the proposed addition to the 
Procurement List does not meet the Committee's regulatory requirements 
on contractor impact and nonprofit agency capability, and cited court 
decisions on these points.
    The contractor claimed that the proposed addition will have a 
severe adverse impact on the sales of the local plant which is 
performing the service. However, the Committee's regulation on 
contractor impact requires the Committee to look at the entire 
corporate structure of a contractor, including parent and affiliated 
companies, in making a determination. This addition to the Procurement 
List represents a very small percentage of the total sales of the 
corporate structure of this contractor, which is a very large business, 
even when the impact of other Procurement List additions on the 
contractor and its long record as a contractor for this service are 
taken into account.
    The contractor also claimed that the addition would require it to 
discharge a number of workers and would result in a loss in annualized 
projected revenue. The number of workers and the anticipated loss far 
exceeds the number of jobs the service is expected to create for people 
with severe disabilities, and the anticipated revenue loss is well 
above the annual contract value for the service. Accordingly, the 
Committee does not believe the contractor's figures to be credible. Any 
actual loss suffered by the contractor in these areas is outweighed by 
the creation of jobs for people with severe disabilities, who 
experience very high unemployment rates.
    The contractor cited a 1970 court decision to the effect that the 
Committee's program was not intended to have any impact on commercial 
businesses. That decision construed an earlier version of the 
Committee's statute. The statute was substantially amended in 1971, and 
the same court in a 1978 decision noted the legislative intent of the 
new statute was to allow impact on commercial entities. The contractor 
impact for this Procurement List addition is far below the figure 
allowed by that court decision.
    The contractor also claimed that the nonprofit agency could not be 
deemed capable of providing the service in compliance with strict 
requirements applicable to it, such as local water quality and 
discharge standards. The contractor cited another court decision which 
requires the Committee to have evidence that the particular nonprofit 
agency has the capability to provide the service, rather than relying 
on generalized statements about the capability of people with severe 
disabilities. The nonprofit agency is currently successfully providing 
the same service to another Federal installation in the same area, and 
the Government contracting activity which is responsible for the 
service now being added to the Procurement List has informed the 
Committee that it has inspected the nonprofit agency and found it 
capable of providing this service. After consideration of the material 
presented to it concerning capability of qualified nonprofit agencies 
to provide the commodities and services and impact of the additions on 
the current or most recent contractors, the Committee has determined 
that the commodities and services listed below are suitable for 
procurement by the Federal Government under 41 U.S.C. 46-48c and 41 CFR 
51-2.4.
    I certify that the following action will not have a significant 
impact on a substantial number of small entities. The major factors 
considered for this certification were:
    1. The action will not result in any additional reporting, 
recordkeeping or other compliance requirements for small entities other 
than the small organizations that will furnish the commodities and 
services to the Government.
    2. The action will not have a severe economic impact on current 
contractors for the commodities and services.
    3. The action will result in authorizing small entities to furnish 
the commodities and services to the Government.
    4. There are no known regulatory alternatives which would 
accomplish the objectives of the Javits-Wagner-O'Day Act (41 U.S.C. 46-
48c) in connection with the commodities and services proposed for 
addition to the Procurement List.
    Accordingly, the following commodities and services are hereby 
added to the Procurement List:

Commodities

Office and Miscellaneous Supplies

(Requirements for Lackland Air Force Base, Texas)

Cross ``Solo'' Pen and Refill
    7520-01-424-4846
    7520-01-424-4881
    7520-01-424-4860
    7520-01-424-4848
    7520-01-424-4871
    7510-01-425-6802
Perforator, Paper, Desk
    7520-00-224-7589

Services

Janitorial/Custodial, Plains High School/Visitor Center, Jimmy 
Carter National Historic Site, Plains, Georgia
Laundry Service, Evans U.S. Army Community Hospital, (all general 
laundry excluding uniforms), Fort Carson, Colorado
Linen Management Service, Fleet and Industrial Supply Center, 
(standard grade linen), Norfolk, Virginia

    This action does not affect current contracts awarded prior to 
the effective date of this addition or options that may be exercised 
under those contracts.
Beverly L. Milkman,
Executive Director.
[FR Doc. 97-25609 Filed 9-25-97; 8:45 am]
BILLING CODE 6353-01-P