[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]
-----------------------------------------------------------------------
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 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