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3. Page 3 Outline A Wounded Warrior tells his story The AbilityOne Program “FLY-OVER” Performance Based/Streamlined AbilityOne Contracting Moving Forward with New Opportunities Discussion/ Questions The Today’s Program Overview…

4. 4 Sgt. Neil Colomac, US Army (ret.) Wounded Warrior Safety/Quality Control/Environmental Officer Skookum Fort Meade, Maryland

5. Wagner-O’Day Act (1938): Employment opportunities for people who are blind Javits-Wagner-O’Day Act (1971): Employment opportunities for people with significant disabilities Mission Provide employment opportunities for people who are blind or have other significant disabilities through the manufacture and delivery of products and services to the federal government. AbilityOne Program Background

6. AbilityOne Program Organization Chart 6 President of the United States Committee for Purchase From People Who Are Blind or Severely Disabled Congress (Legal Authority) DOC DOD Air Force Army Navy DOJ DOL ED GSA USDA VA Citizen Nonprofit Agencies Employing Persons Who Are Blind Nonprofit Agencies Employing Persons With Severe Disabilities Members Federal Customers

7. Statutory Role & Responsibilities Establish, publish, maintain Procurement List (PL) Determine Fair Market Prices of PL Items Designate Central Nonprofit Agency(ies) (CNA) 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 7

8. Presidential Appointees 8 Andrew Houghton Chairperson James Omvig Vice Chairperson Paul Laird Dept. of Justice J. Anthony Poleo Dept. of Defense P. Edward Anthony Dept. of Education Robert Kelly, Jr. Private Citizen James Kestleloot Private Citizen RADM Michael Lyden Dept. of the Navy Pamela Schwenke Dept. of the Air Force Kathy Martinez Dept. of Labor Helen Hurcombe Dept. of Commerce Carol E. Lowman Department of Army Jan R. Frye Veterans Affairs

9. Committee Staff Organization

10. Key Regulations: 41 CFR 51 Implement Javits-Wagner-O’Day Act; detail requirements for Procurement List additions/deletions –Establish decision, reconsideration processes –Establish suitability requirements –Require maintenance of list of items on PL –Require fair market price determination Describe Central Nonprofit Agency responsibilities Detail nonprofit agency qualification requirements Describe contracting and purchasing requirements

11. AbilityOne Program Realities Over 18M working age Americans with disabilities unemployed; 10M with most significant disabilities--- 70% Unemployed Among the largest source of employment for Americans who are blind or have other significant disabilities 47,000 + AbilityOne employees 70 years supporting the military and civilian industrial base About ½ of 1% of Federal procurement spend (FY10)

12. Serving Wounded Warriors Provide employment and training for veterans and service-disabled veterans –Over 3,700 vets in AbilityOne Program today –Over 1,600 have significant disabilities –Leverage skills and aptitudes developed on active duty

13. Strategic Partnerships 13 Small Business Organizations

14. FY 2011 Performance Results FY 2011 Results% Change Hours43,300,0005.26% People45,7873.25% Wages$528,324,9026.97% Promotions1,0692.69% Placements2,189-4.37% Sales$2,260,000,0006.39% FY 2011 Procurement List Additions Created 1,800+ New Jobs

26. FT Sill

28. AbilityOne Strategic Sourcing

29. Contract Management Support

35. 35 AbilityOne Approach to Performance-Based Contracting

36. NISH & PBSC Since most NISH Service contracts are PBSC, NISH has developed extensive experience in performance based service contracting 36

37. PBSC and FAR 37.601 37 Performance-based contracts- Describe the requirements in terms of the results required rather than the methods of performance Use measurable performance standards (i.e. terms of quality, timeliness, quantity) Specify procedures for reductions to price when services are not performed, and Include performance incentives where appropriate

38. Prescriptive SOW 5.3.4.2 Use a hand vacuum (Electrolux Type 16 or equal) with a 4 inch wand extension to vacuum corners and recessed areas not reached by the commercial vacuum cleaner. 5.3.4.3 After vacuuming, replace all tables and chairs in their original positions. 5.3.4.4 Note any spills, spots, etc. for treatment. 5.3.4.5 Store vacuum cleaning equipment in Closet 12A after use. 38

39. Performance Based PWS 5.3.4. Vacuum the rug in Room 12 to remove all visible traces of fuzz, lint, and other foreign materials. 39

40. Streamlining Using AbilityOne AbilityOne offers substantial opportunities to streamline the “normal” Federal procurement process Save staff time, effort, money Bring services on line quicker 40

41. Acquisition– The Federal Process 41 Identification of requirement or need Market research (FAR Part 10 Acquisition planning (FAR Part 7) Solicitation and Proposal phase (FAR Part 15) Evaluation and Negotiation (FAR Part 15) Source selection And contract award (FAR Part 15)  Functions within legal/regulatory framework implemented by the FAR  Involves entire acquisition team  Balances goals of obtaining best value for the government and promoting competition

42. Streamline Advantages Can go directly to an AbilityOne producer with a SOW No formal notice, no solicitation, no synopsis, no sources sought Can immediately begin negotiation. Not a competitive environment as used in FAR –a directed procurement under FAR 8.7 Can ask NISH to help with the SOW/PWS 42

43. Buying from AbilityOne If the item is on the Procurement List, no problem; just place the order citing FAR 6.302-5, Authorize by Statute No requirement for publication, competition, etc. AbilityOne buys at the discretion of the KO if procurement is suitable. KO must balance socio-economic programs. 43

44. Acquisition– The NISH Process 44 Identification of requirement or need Proposal and Negotiation (FAR Part 8.7) Contract award (FAR Part 8.7)

45. AbilityOne Is Not a Front” Service must be suitable- i.e. can be performed by a NPA and can be performed by individuals with disabilities Providing the Service through AbilityOne cannot have disproportionate impact on the previous supplier - 75% of our direct labor must be by individuals who qualify as severely disabled 45

46. Follow-on, The Real Pay Off Once in the AbilityOne program, the procurement becomes a base year plus four follow on years (AbilityOne Options) Automatically renewed every five years (unless agency requirements change) If performance problems, which is rare, NISH helps and can select replacement NPA 46

47. 1.Develop/Define the Requirement 2.Contact the AbilityOne Program 3.Determine If AbilityOne and Their Community Rehabilitation Program (CRP) Business Partners Possess the Capability 4.Determine Federal Prison and NIB Priority (products only) 5.NISH/NIB Project Manager Performs A “Preliminary” Impact Determination a.Dun & Bradstreet Business Base Review (Opportunity Percentage of Contractor’s Business) b.Incumbent Contractor Profile c.8A Contractor’s Program Status (Years To Graduation)

48. 6.Complete Statement Of Work (SOW) And Send To The NISH/NIB Project Manager (NISH Can and Will Assist In Writing The SOW) 7.Receive The “No-obligation” Price Proposal From The NISH/NIB Project Manager 8.Negotiate The Proposal, Sign The Concurrence Letter, and Send To NISH/NIB 9.NISH/NIB’s Project Manager Stays in Touch with the Contracting Officer to Report on the “Procurement List Addition” Process/Progress at the Committee For Purchase

49. Support to Small Businesses

50. Results of Recent Studies

51. YOUR YOUR Support of the Program provides … Turning tax users into tax payers

52. www.AbilityOne.gov –Committee for Purchase –Forms & Publications –Procurement List www.nish.org –Guides for federal customers –Training Catalog www.nib.org –National Industries for the Blind Questions