[Federal Register Volume 59, Number 19 (Friday, January 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1951]


[Federal Register: January 28, 1994]


-----------------------------------------------------------------------


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.

-----------------------------------------------------------------------

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

EFFECTIVE DATE: February 28, 1994.

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 October 22, 1993, the Committee for 
Purchase From People Who Are Blind or Severely Disabled published 
notice (58 FR 54560) of proposed additions to the Procurement List.
    Comments were received from the two current contractors for the 
folders. One of the commenters enclosed letters in support of its 
comments from three nonprofit agencies employing people with severe 
disabilities which have subcontracts to package folder tabs for the 
folders. That commenter indicated that addition of the folders to the 
Procurement List would have a severe impact on the firm and its 
employees, particularly when other recent Committee actions impacting 
the firm are taken into account. The commenter also indicated that 
these folders provide most of the work it subcontracts to three 
agencies employing people with severe disabilities which make tabs for 
use with the folders.
    According to the figures available to the Committee, the impact of 
the loss of sales for the folders on this company, together with the 
impact of the earlier actions, does not rise to a level which the 
Committee normally considers severe adverse impact. As for the possible 
loss of employment for the commenter's workers, the Committee feels 
that it is outweighed by the creation of jobs for people with severe 
disabilities, whose unemployment rates greatly exceed those of people 
without disabilities. In addition, for at least the first two years 
after the JWOD agencies assume supply responsibility, the commenter 
will be afforded the opportunity to compete as a supplier of folder 
tabs to the nonprofit agencies which will produce the folders. Thus, 
any impact on this commenters and its employees would be mitigated by 
the opportunity they will have initially to compete to supply the 
folder tabs.
    One of the three nonprofit agencies which are the commenter's 
subcontractors for the folder tabs participates in the JWOD Program. 
According to that agency, its subcontract with the commenter only 
recently produced work for its people with severe disabilities, and at 
very low wages. While the nonprofit agency has been led to expect a 
constant flow of this work, it has no guarantee that this will occur.
    If the JWOD-participating agency's subcontract work volume is 
typical of that provided to the other two nonprofit agencies (which 
both the JWOD agency and the figure for subcontractor employees 
provided by the commenter suggest it is), the commenter's Government 
business for these folders is only a portion of its total folder 
business. Consequently, even if the commenter is not successful in 
competing to supply the folder tabs to the nonprofit agencies which 
will produce the folders, addition of these folders to the Procurement 
List should not markedly diminish the amount of subcontract work which 
would be available to the three nonprofit agencies employing people 
with disabilities. Moreover, if the commenter (or the JWOD-
participating subcontractor agency) is successful in bidding to supply 
the folder tabs to the nonprofit agencies which will produce the 
folders, the work for the subcontractor agencies could actually 
increase for at least two years since the commenter currently provides 
less than half of the Government requirement for the folders.
    Also, it should be noted that the commenter could discontinue 
providing this work to the nonprofit agencies employing persons with 
severe disabilities if it chose. The commenter indicated that it would 
take only a small investment to automate this work. On the other hand, 
placing the folders on the Procurement List guarantees that people with 
severe disabilities will be involved in producing them for the 
Government. The Committee believes the jobs its action would create 
outweigh the possible loss of employment for employees of the 
commenter's subcontractors.
    The other commenter also indicated that it was being significantly 
impacted by this and other recent additions to the Procurement List. It 
also provided a small amount of information to substantiate its claim 
that small businesses like itself are being forced out of the 
commercial market by large office products companies. Because of this 
development, the impact of additions to the Procurement List is 
magnified as there are fewer opportunities to recoup losses to the 
Procurement List in the commercial market.
    The impact of this and other recent Procurement List additions on 
this commenter, as a percentage of the commenter's sales, is less than 
half the impact on the first commenter. In the Committee's view, 
neither impact rises to the level of severe adverse impact. Given the 
small impact figure for this commenter, the Committee does not believe 
that the effect of a shrinking office products market for small 
businesses, if such is the case, is significant enough to make the 
impact on this commenter severe.
    After consideration of the material presented to it concerning 
capability of qualified nonprofit agencies to provide the commodities, 
fair market price, and impact of the addition on the current or most 
recent contractors, the Committee has determined that the commodities 
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 to the 
Government.
    2. The action does not appear to have a severe economic impact on 
current contractors for the commodities.
    3. The action will result in authorizing small entities to furnish 
the commodities to the Government.
    4. There are no known regulatory alternatives which would 
accomplish the objectives of the Javits-Wagner-O'Day Act (41U.S.C. 46-
48c) in connection with the commodities proposed for addition to the 
Procurement List.
    Accordingly, the following commodities are hereby added to the 
Procurement List:

Folder, File, Hanging
    7530-01-357-6854
    7530-01-357-6855
    7530-01-357-6856
    7530-01-357-6857
    7530-01-364-9487
    7530-01-364-9495
    7530-01-364-9496
    7530-01-364-9497
    7530-01-364-9498
    7530-01-364-9499
    7530-01-364-9500
    7530-01-364-9501

    This action does not affect current contracts awarded prior to the 
effective date of this addition or options exercised under those 
contracts.
Beverly L. Milkman,
Executive Director.
[FR Doc. 94-1951 Filed 1-27-94; 8:45 am]
BILLING CODE 6820-33-P