[Federal Register Volume 66, Number 106 (Friday, June 1, 2001)]
[Notices]
[Pages 29770-29771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13819]



[[Page 29770]]

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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 commodities and 
services to be furnished by nonprofit agencies employing persons who 
are blind or have other severe disabilities.

EFFECTIVE DATE: July 2, 2001.

ADDRESSES: Committee for Purchase From People Who Are Blind or Severely 
Disabled, Jefferson Plaza 2, Suite 10800, 1421 Jefferson Davis Highway, 
Arlington, Virginia 22202-3259.

FOR FURTHER INFORMATION CONTACT: Patrick T. Mooney (703) 603-7740.

SUPPLEMENTARY INFORMATION: On October 13, 2000, April 13 and 20, 2001, 
the Committee for Purchase From People Who Are Blind or Severely 
Disabled published notices (65 FR 60903, 66 FR 19136, 19137 and 20234) 
of proposed additions to the Procurement List.
    The following comments pertain to Vegetable Oil, 8945-00-NSH-0001, 
additional 5% of the Governments requirement.
    Comments were received from a current contractor for the vegetable 
oil. The commenter raised several points in opposing the Committee's 
proposal. First, the commenter questioned the scope of the proposed 
addition to the Procurement List. Second, the commenter claimed that 
the proposed addition would have a severe impact on that company. 
Third, the commenter claimed that the amount of vegetable oil being 
added to the Procurement List exceeded the share being provided by 
small businesses. Fourth, the commenter questioned the Committee's 
oversight of the fair market price determinations being made for 
vegetable oil. Fifth, the commenter claimed that the price 
determinations must be based on statutory and regulatory principles 
contained in the law governing overseas food assistance programs.
    In 1999, the Committee added 15 percent of the total Government 
requirement for this vegetable oil purchased for overseas food 
assistance to the Procurement List. By notice published in the August 
25, 2000 Federal Register (65 FR 51794), the Committee proposed the 
addition to the Procurement List of an additional 5 percent of the 
Government requirement, or a monthly amount not to exceed 3,500 metric 
tons. Because of confusion over the scope of this proposed addition, 
the Committee on October 13, 2000 republished the proposal in the 
Federal Register (65 FR 60903), stating that its scope was only an 
additional 5 percent of the Government requirement. The Committee 
further clarified this correction in a Federal Register notice of 
October 27, 2000 (65 FR 64420).
    The Committee has traditionally considered its Procurement List 
additions to apply to annual Government requirements for commodities. 
Accordingly, this addition will raise from 15 percent to 20 percent the 
portion of the total annual Government requirement for this commodity 
which must be purchased from the designated nonprofit agency. However, 
this commodity has traditionally been purchased on a monthly basis, and 
the procuring Government agency, the U.S. Department of Agriculture 
(USDA) has informed the Committee that it will apply the percentage 
reservation for the nonprofit agency to its monthly purchases.
    USDA purchases vegetable oil in three sizes of containers: 6/4 
liter, 20 liter, and 50 gallon. The nonprofit agency designated by the 
Committee produces the oil in only the first two of these three 
containers. The commenter has therefore argued that the scope of the 
Procurement List additions should be limited to a percentage of the 
vegetable oil purchases which are in those two container sizes. 
However, the intent of the Committee and USDA is that the Procurement 
List addition applies to the designated percentage of the total 
Government requirement, regardless of the size of containers involved.
    The commenter claimed in opposing the 1999 addition of 15 percent 
of the vegetable oil requirement to the Procurement List that it would 
be severely impacted by the addition. At that time, it was one of two 
suppliers of the oil to USDA. Since then, the commenter has purchased 
the oil facilities of the other supplier. While two other small 
businesses now also supply the oil to USDA, the commenter retains the 
great majority of the sales to USDA. Consequently, the Committee does 
not believe that the current addition of an additional 5 percent of the 
supply requirement to the Procurement List will have a severe adverse 
impact on the commenter, even when the 1999 addition is taken into 
account.
    Except as provided by the Regulatory Flexibility Act, 5 U.S.C. 
Chap. 6, the Committee is not required to assess the impact of its 
Procurement List additions on small businesses. Consequently, the 
commenter's claims in this area are not relevant to a Procurement List 
addition decision.
    Committee fair market price determinations on USDA bulk food item 
procurements subject to the Procurement List are governed by a 1993 
pricing procedure that establishes an annual fair market price under 
standard Committee procedures and permits monthly changes to that price 
based on negotiations between USDA and the nonprofit agency which take 
into account changing market conditions. Since 1993, the Committee has 
changed its general commodities pricing procedures to reflect a 
preference for negotiations generally as a means of assuring that its 
fair market prices reflect market conditions. Consequently, the pricing 
procedure used for vegetable oil is consistent with the Committee's 
general fair market pricing procedures for commodities and do not 
indicate a lack of Committee oversight as the commenter claimed. USDA's 
purchases of commodities such as vegetable oil are governed by a law 
commonly known as Public Law 480 and its implementing regulations. One 
of the principles of the regulations is that commodities purchased 
under the Public Law 480 program must be at the ``lowest landed cost,'' 
which, the commenter claimed, is not consistent with the Committee's 
pricing procedures. The commenter further claimed that the Committee's 
prices, which allegedly do not reflect the lowest landed cost, result 
in USDA having less money to achieve its objectives under Public Law 
480.
    USDA has informed the Committee that Public Law 480 is not 
inconsistent with the Committee's program. Furthermore, USDA is 
authorized to take into account factors other than lowest landed cost 
when buying such commodities as vegetable oil, particularly in 
connection with socioeconomic programs such as the Committee's program. 
USDA also indicated that its costs to buy vegetable oil through the 
Committee's program are not significantly increased over purchases from 
commercial suppliers, as any additional cost of dealing with the 
nonprofit agency is offset by not having to pay for replacement 
quantities, storage and transportation due to leakage and damaged 
containers, as USDA has done when dealing with commercial suppliers of 
vegetable oil.
    The following material pertains to all of the items being added to 
the Procurement List. After consideration of

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the material presented to it concerning capability of qualified 
nonprofit agencies to provide the commodities and services and impact 
of the additions on the current or most recent contractors, the 
Committee has determined that the services 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 and 
services to the Government.
    2. The action will not have a severe economic impact on current 
contractors for the commodities and services.
    3. The action will result in authorizing small entities to furnish 
the commodities and services 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 and services proposed for 
addition to the Procurement List.
    Accordingly, the following commodities and services are hereby 
added to the Procurement List:

Commodities

Hose, Fire, 4210-00-542-3480, Vegetable Oil, 8945-00-NSH-0001.

Services

Administrative Services, Building 8-1078, 1-3571, C-7417, 8-6643, Fort 
Bragg, North Carolina.
Call Center Services, Department of State, Bureau of Consular Affairs 
(Various location throughout USA), Washington, DC.
Food Service Attendant, Main Dining Facility--Building 3650, Expanded 
Flight Kitchen--Building 4507, Seymour Johnson AFB, North Carolina.
Janitorial/Custodial, U.S. Air Force Recruiting Station, Wasilla, 
Alaska.
Janitorial/Custodial, Veterans Affairs, Greater Los Angeles Healthcare 
System, East Los Angeles Out Patient Clinic, East Los Angeles, 
California.
Janitorial/Custodial, Social Security Administration, Western Program 
Center, 1221 Nevin Avenue, Richmond, California.
Janitorial/Custodial, Chateaugay Border Station, Chateaugay, New York.
Janitorial/Custodial, Defense Enterprise Computing Center (DECC), 
Buildings 308 and 309, Naval Supply Activity (NSA), Mechanicsburg, 
Pennsylvania.
Janitorial/Custodial, Veteran Affairs Building, 5000 Wissahickon 
Avenue, Philadelphia, Pennsylvania.
Janitorial/Custodial, Veterans Affairs Medical Center, Huntington, West 
Virginia.
Janitorial/Custodial, ATF Building, Martinsburg, West Virginia.
Ophthalmic Support Services, Yorktown Naval Weapons Station, Yorktown, 
Virginia.

    This action does not affect current contracts awarded prior to the 
effective date of this addition or options that may be exercised under 
those contracts.

Louis R. Bartalot,
Director, Program Analysis and Evaluation.
[FR Doc. 01-13819 Filed 5-31-01; 8:45 am]
BILLING CODE 6353-01-P