[Federal Register Volume 59, Number 83 (Monday, May 2, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10429]


[[Page Unknown]]

[Federal Register: May 2, 1994]


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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 combat caps to be 
furnished by nonprofit agencies employing persons who are blind or have 
other severe disabilities.

EFFECTIVE DATE: May 31, 1994.

ADDRESS: 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 July 23, 1993, the Committee for Purchase 
From People Who Are Blind or Severely Disabled published notice (58 FR 
39527) of proposed additions to the Procurement List.
    Comments were received from one of the two current contractors for 
the cap. The commenter indicated that the cap constituted a sizeable 
part of its total sales and that without the opportunity to produce the 
cap it would have to lay off about half its largely minority female 
work force. The commenter also indicated that loss of the cap would 
imperil its shared production arrangement with another company.
    In order to avoid the possibility of having a severe adverse impact 
on this commenter, the Committee has reduced the number of caps being 
added to the Procurement List from 450,000 annually to 375,000 
annually. This reduction should lessen the level of impact on the 
commenting contractor to a degree that will not constitute severe 
adverse impact, and should minimize employment losses. Additionally, 
the Committee believes that these losses are outweighed by the creation 
of employment for people with severe disabilities, whose unemployment 
rates are higher that those of other workers.
    Comments were also received from two companies which are not 
current contractors for the cap. Both alleged that addition of the cap 
to the Procurement List would constitute severe adverse impact on them, 
particularly in light of the impact of other additions to the 
Procurement List.
    One of these commenters noted that the market for the cap and 
similar items is shrinking significantly because of declining 
Government procurement of the items. The other commenter noted that the 
Government is the only potential market for these items. Consequently, 
both commenters believe the impact of this addition to the Procurement 
List on them is increased by these conditions.
    As one of the commenters noted, however, the Committee assesses 
impact on ``the current or most recent contractor.'' 41 CFR 51-2.4(e). 
Neither commenter falls within this category. Consequently, the impact 
which they will experience is merely the loss of subsequent 
opportunities to bid on contracts for the caps. The Committee does not 
normally consider this loss to constitute severe adverse impact because 
the competitive bidding system does not guarantee that anyone will get 
or keep a contract for a specific item the Government buys. In this 
case, because the Committee never proposed to add the total Government 
requirement for the cap to the Procurement List and has substantially 
reduced the part of the Government requirement to be added from what 
was proposed, competing contractors will have more of an opportunity to 
win awards of the part of the Government requirement for the cap not 
added to the Procurement List than they normally would, as the 
Committee's usual practice is to add the total Government requirement 
for a commodity to the Procurement List.
    One of the commenters noted that it had previously produced the cap 
for several years and had become substantially dependent on income from 
those sales. However, it lost the contract in the last competitive 
bidding. While it retained the affected employees in hopes of acquiring 
another contract for the cap, it has no guarantee of doing so and has 
lost any advantage that an incumbent contractor may enjoy. Accordingly, 
the eventual termination of the affected employees will be due to these 
circumstances rather than the Committee's action.
    The same commenter also questioned whether it received adequate 
notice and whether the statements in the notice of proposed rulemaking 
concerning significant impact on a substantial number of small entities 
and a lack of regulatory alternatives were correct. The Committee is 
required by law, 41 U.S.C. 47(a)(2), to add items to the Procurement 
List in accordance with the rulemaking provisions of 5 U.S.C. 553, 
which requires notice in the Federal Register. The notice contained all 
the elements required by 5 U.S.C. 553(b). The statements the commenter 
questioned are also required by law, 5 U.S.C. 605(b). Consequently, the 
Committee believes that it has acted properly in these matters.
    This commenter also questioned whether the Committee had explored 
the possibility of having its nonprofit agencies produce the caps under 
a small business set-aside. The legal authority for nonprofit agencies 
to bid on these set-asides which the commenter noted has expired.
    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 (41 U.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:

Cap, Combat Camouflage
    8415-01-084-1683
    8415-01-084-1684
    8415-01-084-1685
    8415-01-084-1686
    8415-01-084-1687
    8415-01-084-1688
    8415-01-134-3175
    8415-01-134-3176
    8415-01-134-3177
    8415-01-134-3178
    8415-01-134-3179
    8415-01-134-3180
    (375,000 annually)

    This action does not affect current contracts awarded prior to the 
effective date of this addition or options exercised under those 
contracts.
E.R. Alley, Jr.,
Deputy Executive Director.
[FR Doc. 94-10429 Filed 4-29-94; 8:45 am]
BILLING CODE 6820-33-P