[Federal Register Volume 59, Number 227 (Monday, November 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29203]


[Federal Register: November 28, 1994]


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COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR SEVERELY DISABLED

Procurement List Addition

AGENCY: Committee for Purchase From People Who Are Blind or Severely 
Disabled.

ACTION: Addition to the Procurement List.

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

EFFECTIVE DATE: December 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 August 19, 1994, the Committee for 
Purchase From People Who Are Blind or Severely Disabled published 
notice (59 F.R. 42820) of proposed addition to the Procurement List. 
Comments were received from the current contractor for the janitorial 
service, four other disadvantaged businesses in Utah, the Utah office 
of the Small Business Administration (SBA), and a legal defense fund 
representing disadvantaged businesses. All the commenters opposed the 
proposal to add the service to the Procurement List.
    The current contractor indicated that its contract for the service 
represented a sizeable part of its sales for the last quarter, and 
noted that not being allowed to perform the remaining option year of 
its contract could affect its survival. The contractor cited its 
quality performance on the contract, as evidenced by an award it had 
received. The legal defense fund seconded the contractor's comments.
    The four other Utah disadvantaged businesses noted that the service 
had long been in the Federal disadvantaged business (8(a)) program. Its 
removal from the program, along with closures of two other military 
bases in Utah, would, they claimed, eliminate about a fifth of the 8(a) 
contracting business in Utah, requiring disadvantaged businesses to go 
outside of the State to do Federal work in the program. Accordingly, 
they indicated that addition of this contract to the Procurement List 
would negatively impact them.
    The SBA district office also indicated that this service has been 
in the 8(a) program for many years. The office indicated that the 
service is a substantial part of the program in Utah, representing at 
least ten percent of program dollars and nearly fifty percent of 
program dollars in janitorial services. The office also seconded the 
current contractor's comments concerning its option and its performance 
on the contract.
    Additions to the Procurement List do not affect contracts in being 
before the effective date of the addition, or options exercised under 
those contracts. The decision to exercise an option is solely at the 
discretion of the Government contracting activity. Consequently, if an 
option is not exercised, any resulting impact on a contractor is 
because of the contracting activity's decision and not the Committee's 
action in adding an item to the Procurement List. In this particular 
case, the option in question has already been exercised, so the 
contractor will retain the work for the coming year.
    A comparison of the comments by the SBA district office and the 
four Utah businesses with information available from Hill Air Force 
Base contracting staff indicates that the commenters have exaggerated 
the impact on the 8(a) program of adding this service to the 
Procurement List. Based on FY 1994 data, this contract represents only 
six percent of all 8(a) contracts at Hill Air Force Base. Since there 
are other 8(a) contracts in Utah, such as a General Services 
Administration contract for janitorial services at the Federal building 
in Salt Lake City, this contract clearly represents an extremely small 
percentage of all the 8(a) contracts in Utah.
    With respect to 8(a) janitorial contracts in Utah, the Committee 
recognizes that there are a limited number of opportunities to clean 
Federal facilities. However, it also knows that many 8(a) janitorial 
contracts are competed among 8(a) contractors on a regional or national 
basis. Consequently, the Federal business opportunities for 8(a) 
janitorial firms in Utah are not limited to contracts for facilities 
within Utah. Moreover, adding this service to the Procurement List is 
not taking business away from the current contractor or the other 8(a) 
contractors which commented, but only removing the opportunity for 8(a) 
firms other than the current contractor to obtain the work in the 
future.
    Taking into account all these factors, the Committee does not 
believe that addition of this service to the Procurement List will have 
a severe impact on the 8(a) program and its Utah contractors. The 
Committee's action will also create a very large number of jobs for 
people with severe disabilities, well beyond the average for a 
Procurement List addition.
    After consideration of the material presented to it concerning 
capability of qualified nonprofit agencies to provide the service, fair 
market price, and impact of the addition on the current or most recent 
contractors, the Committee has determined that the service 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 service to the 
Government. '
    2. The action does not appear to have a severe economic impact on 
current contractors for the service.
    3. The action will result in authorizing small entities to furnish 
the service 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 service proposed for addition to the 
Procurement List.
    Accordingly, the following service is hereby added to the 
Procurement List: Janitorial/Custodial (Remaining buildings not on 
Procurement List) Hill Air Force Base, Utah.
    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. 94-29203 Filed 11-25-94; 8:45 am]
BILLING CODE 6820-33-P