1. 2014 State Use Vendor Training Conference

2.  AbilityOne Program Overview  AbilityOne Partner Roles  Program Capabilities  Acquisition Process Topics of Discussion Page 2

3. “Provide employment opportunities for people who are blind or have significant disabilities in the manufacture and delivery of products and services to the Federal Government” Page 3 AbilityOne Mission

4. Page 4 National disability statistics: 17 Million+ Americans have severe disabilities 70% of this Population is not employed AbilityOne is the single largest creator of jobs Over 49,000 employees in FY2013 Over 2,800 Federal Government AbilityOne contracts Over 3,300 Disabled War Veterans Working Why is our mission so important?

5. What is the need??? In the USA: 70% 70% unemployment rate for persons with a disability who want to work Affecting: All economic strata, color, creed – physical, mental and development disabilities including our wounded warriors and service disabled veterans

6. Did you know – AbilityOne: Provides shipboard provisioning to the Pacific Fleet Theater Sews all the internment flags for the VA Manufactures all the chem-bio suits for our war fighters with a 0 defect tolerance Operates the full DPW for Ft. Bliss, TX Chosen as secure mailroom “vendor of choice” by DHS Operates fleet management @ Ft. Riley – Named in the Top 100 Fleets in the US

7. Statutory & Regulatory Authority Page 7

8. Mandatory Source Once Added to the Procurement List (PL) Site Specific Service Specific No Need to ever re-compete Sole Source No Option Years Follow On Years instead AbilityOne Program

9. Page 9 AbilityOne Milestones

10. Program Structure Page 10

11. Commission Members 11 J. Anthony Poleo Commission Chairperson Defense Logistics Agency James M. Kesteloot Commission Vice Chairperson Private Citizen Thomas D. Robinson Department of the Air Force Harry P. Hallock Department of the Army Kathleen Martinez Department of Labor Dr. P. Edward Anthony Department of Education Paul M. Laird Department of Justice William Sisk General Services Administration Karen McCulloh Private Citizen Jan R. Frye Department of Veterans Affairs Lisa M. Wilusz Department of Agriculture Robert T. Kelly, Jr. Private Citizen Anil Lewis Private Citizen Vacant Department of Commerce Vacant Department of the Navy

12. Page 12 Commission Staff

13. Page 13  AbilityOne Partner Roles

14. Page 14 AbilityOne Partners Federal Customers AbilityOne Commission NPA Contractors NIB & SourceAmerica

15. Page 15 AbilityOne Partnership

16. Page 16 AbilityOne Commission Oversee Central Nonprofit Agencies (NIB & SourceAmerica) Determine Suitability of Products & Services Establish Fair Market Price Maintain the Procurement List Interpret & Enforce AbilityOne Regulations

17. Page 17 SourceAmerica Liaison between Commission, Federal Customers, & NPAs Develop & Allocate Contract Opportunities Contract Negotiation & Startup Assistance Quality Control Support & Regulatory Assistance Professional Training & Development

18. Page 18 Assistance with the PWS Business Management Contract Admin Quality Assurance Methods/Time Mgmt Regulatory Assistance Outside Engineering, Consulting Market Research Costing & Pricing Training Marketing Advocacy Computerization Start-Up Capital Peer Business Mentoring SourceAmerica Assistance SourceAmerica

19. Page 19 NPA Contractors Independent Nonprofit Contractor Privately Incorporated 501(c)(3) Organization Mission is Employing People with Significant Disabilities Disability Ratio Ranging from 60% to 75% Pre-qualified Contractor to Ensure Capacity & Capability

20. Page 20 Total of 1270 NPA Affiliates AbilityOne Capacity

21. AbilityOne Affiliation Affiliation – What it means to you

22. What is Affiliation? “Affiliation” is SourceAmerica’s term for participation in the SourceAmerica Network. Affiliation is available to nonprofit agencies who submit and online application, meet all minimum requirements, and are approved by SourceAmerica. Contact: www.SourceAmerica.org for online application to join.www.SourceAmerica.org

23.  Non Profit Agency Status – 501(C) 3  Must be in business and currently employing persons with disabilities  Must have at least 75% (Total Agency) of Direct Labor Hours being worked by persons with disabilities.  State or a county Agency can join network  Re-Registration annually to maintain affiliation To Maintain Affiliation

24. Benefits of Affiliation Attend SourceAmerica’s Academy for Leadership, Performance, and Development Training Access regulatory and compliance support and information Network and partner with other CRP’s who employ people with disabilities Research and pursue Federal contracts available through the AbilityOne Program Work with network of business subject matter experts, who are able to consult and assist in the development of new business opportunities

25. Page 25 What is a Severe Disability? SEVERE DISABILITY means a person other than a blind person who has a severe physical or mental impairment (residual limiting condition resulting from an injury, disease, or congenital defect) which so limits a person’s functional capabilities (mobility, communication, self-care, self-direction, work tolerance, or work skills) that the individual is unable to engage in normal competitive employment over an extended period of time.

26. Page 26 DIRECT LABOR RATIO REQUIREMENTS AGENCY - 75% ABILITYONE - 60% AbilityOne Requirements

27. Page 27 Comply With Other Applicable Federal Regulations Service Contract Act Fair Labor Standards Act Family and Medical Leave Act Occupational Safety & Health Act Equal Employment Opportunity Americans With Disabilities Act Drug Free Workplace Act Office of Federal Contract Compliance Programs (OFCCP) Government Contracting

28.  AbilityOne Capabilities Page 28

29. The AbilityOne Network * SourceAmerica Offices Vienna, VA Kennesaw, GA Des Plaines, IL Arlington, TX San Ramon, CA Seattle, WA SourceAmerica Offices Vienna, VA Kennesaw, GA Des Plaines, IL Arlington, TX San Ramon, CA Seattle, WA * Includes coverage in D.C., Puerto Rico, Virgin Islands, Guam, American Samoa and the Trust Territory of the Pacific Islands

30. AbilityOne Products Page 30

31. AbilityOne Services Page 31

32. AbilityOne Projects Page 32

33. AbilityOne Projects Page 33

34. AbilityOne Today Page 34

35.  AbilityOne Acquisition Process Page 35

36. AbilityOne Acquisition Process Page 36

37. Acquisition Process Comparison Page 37

38. AbilityOne Addition Process Page 38 Submitted by Thu. Noon – week before Friday Pub. Proposed Add Request 9 days Initial Notice in Fed. Register 30 days Vote Letter Sent to COMM 10 days COMM Decision to Approve Add 14 days Fed. Register Final Addition Notice Effective Date 30 days Submitted by Tue. before Friday Publication Notice Submitted once questions have been answered Commission Decision Due following Monday AbilityOne Authority FAR 8.704 Submitted by Tue. before Friday publication Timeline for Procurement List Addition 90 Days Minimum

39. Moving Forward Next Steps…

40. Business Considerations for growth and participation in AbilityOne Program  Executive Management  Supervision and Program Management  Clients and or Consumer Considerations  Training Programs  Current Capabilities  Capacity for New Work  Quality Systems  Territory Nonprofit Agency Considerations

41. AbilityOne Solutions For the Government Streamlined acquisition strategy at negotiated prices Quality services, competitive prices Flexibility: responsive to changing budgets & service needs/surges Large, skilled contract workforce For these Individuals Employment opportunities with: –Individual choice –Equitable wages & benefits –Upward mobility –Personal satisfaction Achieve financial independence Build pride & sense of self-worth

42. 21 AbilityOne Myths Page 42 People with disabilities can’t do that! Match Abilities with contract requirements NPAs train workforce to meet standards Focus on customer satisfaction Stable, dedicated workforce NPAs don’t offer to do what they can’t do I’m stuck with AbilityOne for life! If the requirement goes away, so does the contract Re-negotiate contract & price when necessary SourceAmerica will intervene if quality issues occur SourceAmerica will assign new NPA if necessary SourceAmerica will work with you to obtain purchase exception

43. Fair price guarantee throughout life of contract Negotiate price to budget constraints - Government estimates - Previous contract prices Negotiate method to adjust future prices AbilityOne costs too much! AbilityOne Myths Page 43 4 I have to meet small business goals! AbilityOne set-asides reduce small business goal base Consider inserting clauses in prime contracts requiring % of subcontracts to AbilityOne AbilityOne subcontracts to small business whenever possible - $217M in FY10 3

44. AbilityOne Program Resources Page 44 Websites www.AbilityOne.gov AbilityOne Commission Forms & Publications Procurement List www.AbilityOne.org Capabilities www.AbilityOne.com Catalog of Products www.nib.org National Industries for the Blind www.SourceAmerica.org Guidelines for Federal Customers Training Catalog

45. Questions “Thank You for Your Time!” Questions?