AbilityOne Overview

August 26, 2014

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• What is AbilityOne®?

• History

• Procurement List Process

• AbilityOne Program Capabilities

Today’s Agenda

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What is the AbilityOne Program?

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AbilityOne Overview

• If you call the U.S. passport 800 number, chances are you have spoken with AbilityOne

• When you see a Navy, Army or Marine camouflage uniform, chances are AbilityOne supplied it

• Visiting a military installation, chances are AbilityOne has a contract there

• If you have gone through airport security, the gloves you see on the TSA Agents were supplied by AbilityOne®

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Program Mission

Provide employment opportunities for people who are blind or have

significant disabilities in the manufacture and delivery of quality

products and services to the Federal Government.

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AbilityOne Overview

• AbilityOne is the single largest employer of people that are blind or have significant disabilities.

– Over 2,900 contracts are currently being performed for the Federal Government

– Over 1,400 available Nonprofit Agency (NPA) providers with more are being added each day

– AbilityOne employs over 2,800 veterans with disabilities• More than 19M working age Americans who are blind or have significant disabilities

• 70% of this population do not have jobs

General population unemployment rate: 8.7%

Veterans unemployment rate: 9.4%Source: Bureau of Labor Statistics-October 2011 Release

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AbilityOne Benefits

TO OUR CUSTOMERS TO OUR EMPLOYEES

• National network of solution providers

• Provide quality products and services

• Fair market prices

• Long-term relationships, increased institutional knowledge

• Wide range of employment opportunities

• Marketable job skills and job training

• Career advancement, equitable wages and benefits

• Greater independence

• Taxpaying citizens

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History of the AbilityOne Program

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President Roosevelt signs Wagner-O’Day Act: This ACT created employment for people who are blind

NIB promotes AbilityOne Program for people who are blind

2008197419701938

Act is amended to include people with significant disabilities by Senator Jacob Javits; law becomes Javits-Wagner-O’Day Act

NISH commences to do business with the Federal Government

History of AbilityOne

JWOD is renamed the AbilityOne Program to better communicate the program’s mission

2011

Committee for Purchase for PeopleWho Are Blind or Severely Disabled changes its name to the U.S. AbilityOne Commission.NISH promotes

AbilityOne Program for people who have significant disabilities 2013

NISH renamed SourceAmerica

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AbilityOne Program Structure

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Presidential Appointees

11Carol E. Lowman Department of Army

Jan R. Frye Veterans Affairs

J. Anthony (Tony) Poleo, Chairperson

Chief Financial Officer (CFO) of the Defense Logistics Agency.

J. Anthony Poleo was appointed by President George W. Bush to the U.S. AbilityOne Commission in March 2007, representing the Department of Defense; and in July 2011, he was elected Chairperson of the Commission.

Fifteen Presidential appointee members, eleven of whom represent government agencies (including Departments of Agriculture, Air Force, Army, Commerce, Defense, Education, Justice, Labor, Navy, and Veterans Affairs, and the General Services Administration) vote on the Procurement List additions.

The remaining four members are private citizens knowledgeable about the employment problems of people who are blind or have other significant disabilities, including those employed by nonprofit agencies affiliated with the AbilityOne Program.The Presidential Appointees who are private citizens serve five-year terms and may be reappointed. Federal Government Appointees serve for the period of time designated by their agency.

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Procurement List Process

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AB1 Procurement List (PL) Addition Process After Price Concurrence

Addition request submitted to the U.S. AbilityOne Commission™

Commission staff reviews and requests clarification

and additional

information, as needed

Commission staff posts

‘Intent’ in the Federal Register

Public comments on

the Commission’s intent to add product(s) to

the PL

Commission staff

prepares ‘Vote Letter’

for Commission

members

Commission members

vote

Commission staff posts

‘Addition’ in the Federal Register & issues PL

Notice

Public comments

on the Addition

PL Addition is effective

Commission staff reviews and requests clarification

and additional

information, as needed

PL Addition is effective

Commission issues PL

Notice

Full Additions

Administrative Additions

21 - 30 days 30 days 14 - 21 days 14 - 21 days 30 days 109 – 132 days

45 - 60 days

In specific situations, this step may be done concurrently with development actions that occur before the formal addition request is submitted to the Commission. This is known as ‘early publication’ and will reduce the process time by approximately 30 days.

Identification of an opportunity may be initiated by the Nonprofit Agency, Contracting Activity, NIB or NISH. Contracting activities are encouraged to assist with identification of opportunities.

NPA develops Requirement/Feasibility Assessment. AbilityOne uses the government‘s requirement to develop a recommended price for the product or service. Price is submitted to the customer, starting the negotiation process. Site survey may be conducted.

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AB1 Procurement List (PL) Addition Process After Price Concurrence

Addition request submitted to the U.S. AbilityOne Commission™

Commission staff reviews and requests clarification

and additional

information, as needed

Commission staff posts

‘Intent’ in the Federal Register

Public comments on

the Commission’s intent to add product(s) to

the PL

Commission staff

prepares ‘Vote Letter’

for Commission

members

Commission members

vote

Commission staff posts

‘Addition’ in the Federal Register & issues PL

Notice

Public comments

on the Addition

PL Addition is effective

Commission staff reviews and requests clarification

and additional

information, as needed

PL Addition is effective

Commission issues PL

Notice

Full Additions

Administrative Additions

21 - 30 days 30 days 14 - 21 days 14 - 21 days 30 days 109 – 132 days

45 - 60 days

In specific situations, this step may be done concurrently with development actions that occur before the formal addition request is submitted to the Commission. This is known as ‘early publication’ and will reduce the process time by approximately 30 days.

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After An Item Is On The Procurement List

• Federal agencies are required to buy AbilityOne products and are discouraged from purchasing commercial equivalents determined Essentially the Same (ETS)

– Form – appearance, shape, design, color, texture, quality, features.– Fit – size or dimensional characteristics.– Function – purpose.

• Commission designates commercial products as ETS to AB1.

• How you can help:– Buy AbilityOne products from Procurement List.– Buy products from AbilityOne authorized distributors: (www.abilityone.gov)– Look for AbilityOne logo when buying.– Become an advocate for AbilityOne Program.

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Local support

• Base Supply Centers

• AbilityOne Authorized Distributors (www.abilityone.gov)

• www.abilityone.com

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AbilityOne Program Capabilities

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AbilityOne Myth Busters

People with disabilities can’t do that!

AbilityOne costs too much! 1

Nonprofits train the workforce to meet requirements

Match workforce to the work

Focus on customer satisfaction

Stable, dedicated workforce

Nonprofits don’t offer to do what they can’t do

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Fair price guarantee – U.S. AbilityOne Commission

Negotiate price to budget constraints

Price analysis is preferred method

- Government estimates

- Previous contract prices

Negotiate method to adjust future prices

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AbilityOne Myth Busters

I have small business goals!3

Subcontracts with small business in FY13 over $200M

Consider clauses in prime contracts requiring % of subcontracts to AbilityOne

AbilityOne awards reduce small business goal base

Statutory language enables DoD Defense contractors to credit AbilityOne investments against SB subcontract goals

Items On PL: Can be deleted form PL if the AB1 Program isn’t meeting the requirement

We have over 600 Contractors between NIB & SourceAmerica: If there’s ever a problem, we have a vast network of capable contractors across the United States that can produce simple to complexed products and services

Quality is inferior: how can someone with a disability or who are blind able to deliver a high quality product or service?

We are Stuck with AbilityOne!4

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• Create new taxpayers; generate tax revenue

• Create employment opportunities for people who are blind or have significant disabilities

So that these individuals• Get job training and supports• Receive

– Individual choice– Equitable wages and benefits– Upward mobility– Personal satisfaction

• Achieve financial independence• Build pride and a sense of self-worth

AbilityOne Empowers You to

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AbilityOne Services

• Administrative

• Blow & Injection Molding

• Commissary Shelf Stocking

• Contact Center

• Contract Management/Closeout

• Custodial

• Document Management

• Fleet Management

• Food Services

• Grounds Maintenance

• Healthcare Environmental

• Hospitality

• Kitting

• Laundry

• Metal Parts Fabrication

• Secure Document Destruction

• Secure Mail/Digital Document*

• Supply Chain Management

• Total Facility Management*

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What Is CMS?

Contract Management Support Services (CMS) Partnership:

Between AbilityOne and the customer to support the Contracting community workplace needs by offering administrative contracting support for Contract Closeout.

“Non-Inherently” Governmental contract management support. Administrative support provided by gathering of information through contractor

communications, DFAS payment confirmation and customer delivery validation.

“Win-Win” Relationship: Government receives professional assistance so they can focus on the next

buy supporting our troops. AbilityOne establishes a “career oriented”, upwardly mobile employment for people who are blind or have significant disabilities.

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Contract Management SupportCapability Overview

• Contract closeout document prep – deliver “ready to close” contracts

• Contract document imaging and indexing

• Contract document destruction

• Payment reconciliation

• Delinquency follow-up

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Results To-Date(Sept 2010-June 2014)

148,679Contracts closed

$639 MillionDe-obligated

8millionImages scanned

99.65%Accuracy/quality rate

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CMS AbilityOne Contract

Contract Accessible by all: IDIQ Contract Term: 5 years (base + 4 one year options) FFP Performance based Subcontracts to AbilityOne non-profit agencies IDIQ Task Orders issued from “menu of services” Decentralized Ordering Cost (CRC) contracting in pilot stages

Menu of Services: Contracts Inventory preparation Contract Close-Out - # DD1594/DD1597 (in accordance with FAR/DFAR) Digital Imaging Document Destruction De-obligation Mods prepared and distributed Storage

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CMS: Team Structure

A CMS needs assessment is performed to determine customer requirement.

An annual requirement of 2800 FFP closeouts supports a 5 member team. – Team of 5 Members

• Supervisor (GS 12, step 5)• DAWII II Certification • Former Contracting Officer - held warrant

• Contract Specialists GS 5 or 7• Bachelors degree – 24 Cr. hrs. business• or Equivalent Government Contracting experience• DAU CON 100 completion

• General Clerk II (SCA WDR)• Completion of Con 100, prefer college degree• Experience with Government Contracting helpful• Utilize DOL locality WDR

Emphasis to employ Wounded Disabled Veterans at 100% of team!

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CMS: Personnel

Personnel:• 120 direct labor personnel

– ~25 Wounded Warriors or Service Disabled Veterans

• 200+ personnel in pipeline– 75% + College educated– Completed DAU CON 110– Completed ESI Contract Closeout Class

• 10 personnel placed directly with federal agencies/DoD

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Requirements:

• Provide contract close-out services for Rock Island Arsenal for Iraq and Afghanistan location procurements

• De-obligate and return unused funds to the U.S. Treasury

Impact:

• Received 9,000+ contracts

• Closed 8,000 contracts since September 2011

• De-obligated $89.9 million

• Exceeded yearly close-out expectations

Contract Management SupportCase Study – U.S. Department of the Army

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Contract Management SupportScalability

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San Antonio Lighthouse

Susquehanna Association

(Lancaster)

Chicago Lighthouse

Virginia Industries(Charlottesville)

Lighthouse for the Blind

(Seattle)

Alphapointe(Kansas City)

Cincinnati Association

(Cincinnati)

Lighthouse Central FL

(Orlando)

Columbia Lighthouse

(D.C)

Bosma(Indianapolis)

Mississippi Industries

(Jackson)

Keystone(Scranton)

San Francisco Lighthouse

(San Francisco)

Carroll Center

(Newton)

LC Industries(Raleigh)

Arkansas Lighthouse(Little Rock)

Alabama Industries(Talladega)

IB Milwaukee(Milwaukee)

NewView(Oklahoma City)

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CMS Customers

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AbilityOne Products

• Office Products & Equipment• Paints & Tools• Writing Instruments

• Aircraft, Vehicular & Electrical Equipment• Computer Accessories• Custom Manufacturing• Cleaning Supplies• “Green” Products

• Gloves• Tape• Unique Military Items• Special Operations Load Carriage

System

• Military Combat Uniforms• Army/Air Force Physical Fitness Uniform• Special Operation Forces and War Fighter

Joint Services Lightweight Integrated Suit

PRODUCTS

CLOTHING, TEXTILES and INDIVIDUAL EQUIPMENT

NICHE

SKILCRAFT

• Injection Molded/Bio-based Plastics• Medical and Dental Products• Machining, Metal Fabrication, Radio

Frequency Welding, and Hydro-foaming

• Navy Fleece Liner • Navy Blue T-Shirt• Selective Recruit Bag Items

• First Aid Kits• Prescription Bottles• Canteens

• Cleaning & Custodial Supplies• Mattresses & Bedding• Medical Supplies & Equipment

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AbilityOne Products

Extended Cold Weather Clothing System

FR Army Combat Uniform (FR ACU)

Lightweight Performance Hood

(LPH)

Army Combat Shirt

IR Strobe

Joint Service Lightweight Integration Technology

(JSLIST)

MOLLE

Base Layers Insulating Layer

Outer Shell Layers

GEN III Extended Cold Weather Clothing System

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AbilityOne Products Food Processing and Packaging

• Instant Nonfat Dry Milk• Dry Mixes• Spices• Coffee• Military Ration

Components

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Office and Cleaning Products

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“Green” Products• Biodegradable paper cups• Process Chlorine Free (PCF) office paper• Pens made from recycled materials• Disposable cutlery• Environmental cleaning agents

Office and Cleaning Products Cont.

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Custom Products

• Biodegradable paper cups• Process Chlorine Free (PCF)

office paper• Pens made from recycled

materials• Disposable cutlery• Environmental cleaning agents

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AbilityOne Strategic Solutions

• Creates a win-win AbilityOne total solution demonstrating value-added mission support.

• Leverages buying power of Federal Government.

• Provides visibility of strategic initiative execution.

• Establishes long term, mutually supportive relationship, centralized planning, standardized approach, mutual goal setting for effectiveness and metrics.

• Provides decentralized quality execution via national reach of affiliated agencies.

• Where appropriate, leverages prime contractors, small business, and SourceAmerica partnerships.

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Network of over 550+ NPAs -- Key to Strategic Sourcing

AbilityOne - National Footprint

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Additional Procurement Options to Utilize the AbilityOne Program

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AB1 Procurement List (PL) Addition Process After Price Concurrence

Addition request submitted to the U.S. AbilityOne Commission™

Commission staff reviews and requests clarification

and additional

information, as needed

Commission staff posts

‘Intent’ in the Federal Register

Public comments on

the Commission’s intent to add product(s) to

the PL

Commission staff

prepares ‘Vote Letter’

for Commission

members

Commission members

vote

Commission staff posts

‘Addition’ in the Federal Register & issues PL

Notice

Public comments

on the Addition

PL Addition is effective

Commission staff reviews and requests clarification

and additional

information, as needed

PL Addition is effective

Commission issues PL

Notice

Full Additions

Administrative Additions

21 - 30 days 30 days 14 - 21 days 14 - 21 days 30 days 109 – 132 days

45 - 60 days

In specific situations, this step may be done concurrently with development actions that occur before the formal addition request is submitted to the Commission. This is known as ‘early publication’ and will reduce the process time by approximately 30 days.

41

After An Item Is On The Procurement List

• Federal agencies are required to buy AbilityOne products and are discouraged from purchasing commercial equivalents determined Essentially the Same (ETS)

– Form – appearance, shape, design, color, texture, quality, features.– Fit – size or dimensional characteristics.– Function – purpose.

• Commission designates commercial products as ETS to AB1.

• How you can help:– Buy AbilityOne products from Procurement List.– Buy products from AbilityOne authorized distributors: (www.abilityone.gov)– Look for AbilityOne logo when buying.– Become an advocate for AbilityOne Program.

42

Local support

• Base Supply Centers

• AbilityOne Authorized Distributors (www.abilityone.gov)

• www.abilityone.com

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…Opportunity

…We Deliver!

( & create Jobs)

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QUESTIONS???

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Back-UpLaws, Regulations and Policy

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AbilityOne Program Regulations

• Federal Acquisition Regulations– FAR 6.302-5(b)(2), authorized or required by statute

• Qualified nonprofit agencies for people who are blind or have significant disabilities are explicitly listed as an authorized application of this exception

– FAR 8.7, implementing guidance Javits-Wagner O’Day Act• Requires Federal Government to purchase supplies or services on

Procurement List at prices established by Commission from AbilityOne participating nonprofit agencies if they are available within the period required

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AbilityOne Program Regulations

– FAR Part 8.002 (a)(2)(i) “top priority source” • Establishes descending order of priority that Federal Government

shall use to satisfy requirements for supplies and services from or through sources and publications

Supplies- Agency inventory- Other agency excess- Federal Prison Industries- AbilityOne Procurement List- Wholesale supply sources- Mandatory Federal Supply

Schedules- Option Federal Supply Schedules- Commercial sources

Services- AbilityOne Procurement List- Mandatory Federal Supply

Schedules- Optional Federal Supply

Schedules- Federal Prison Industry and Commercial sources

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AbilityOne Program Regulations

– FAR Part 8.704, Purchase Priorities- Supplies

• Federal Prison Industries, Inc. (41 U.S.C.48)• AbilityOne participating nonprofit agencies• Commercial sources.

- Services• AbilityOne participating nonprofit agencies• Federal Prison Industries, Inc., or commercial sources

– DFARS PGI 207.105, Contents of written acquisition plans- Acquisition officials shall use AbilityOne Program Procurement List

published by AbilityOne Commission at http://www.abilityone.gov/proc_list.html