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Federal Register / Vol. 86, No. 139 / Friday, July 23, 2021 / Proposed Rules List be purchased from qualified nonprofit agencies, and encourage and assist entities of the Federal Government to identify additional products and services that can be purchased from qualified nonprofit agencies. To the extent possible, monitor Federal agencies compliance with JWOD requirements.
f Designate, set appropriate ceilings on fee paid to these central nonprofit agencies by nonprofit agencies selling items under the AbilityOne Program, and provide guidance to central nonprofit agencies engaged in facilitating the distribution of Government orders and helping State and private nonprofit agencies participate in the AbilityOne Program.
g Conduct a continuing study and evaluation of its activities under the JWOD Act for the purpose of assuring effective and efficient administration of the JWOD Act. The Committee may study, independently, or in cooperation with other public or nonprofit private agencies, problems relating to:
1 The employment of the blind or individuals with other severe disabilities.
2 The development and adaptation of production methods which would enable a greater utilization of these individuals.
h Provide technical assistance to the central nonprofit agencies and the nonprofit agencies to contribute to the successful implementation of the JWOD
Act.
i Assure that nonprofit agencies employing persons who are blind will have priority over nonprofit agencies employing persons with severe disabilities in furnishing products.
6. Revise 512.3 to read as follows:

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512.3 Notice of proposed addition or deletion.

At least 30 days prior to the Committees consideration of the addition or deletion of a product or service to or from the Procurement List, the Committee publishes a notice in the Federal Register announcing the proposed addition or deletion and providing interested persons an opportunity to submit written data or comments on the proposal. Interested persons submitting comments in bound form should also submit an unbound copy that is capable of being legibly photocopied.
7. Revise 512.4 to read as follows:
512.4

Determination of suitability.

a For a product or service to be suitable for addition to the Procurement List, each of the following criteria must be satisfied:

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1 Employment potential. The proposed addition must demonstrate a potential to generate employment for persons who are blind or have other severe disabilities.
2 Nonprofit agency qualifications.
The nonprofit agency or agencies proposing to furnish the item must qualify as a nonprofit agency serving persons who are blind or have other severe disabilities, as set forth in part 514 of this chapter.
3 Capability. The nonprofit agency or agencies desiring to furnish a product or service under the JWOD
Program must satisfy the Committee as to the extent of the labor operations to be performed and that it will have the capability to meet Government quality standards and delivery schedules by the time it assumes responsibility for supplying the Government.
4 Level of impact on the current contractor for the product or service. i In deciding whether or not a proposed addition to the Procurement List is likely to have a severe adverse impact on the current contractor for the specific product or service, the Committee gives particular attention to:
A The possible impact on the contractors total sales, including the sales of affiliated companies and parent corporations. In addition, the Committee considers the effects of previous Committee actions.
B Whether that contractor has been a continuous supplier to the Government of the specific product or service proposed for addition and is, therefore, more dependent on the income from such sales to the Government.
ii If there is not a current contract for the product or service being proposed for addition to the Procurement List, the Committee may consider the most recent contractor to furnish the item to the Government as the current contractor for the purpose of determining the level of impact.
b In determining the suitability of a product or service for addition to the Procurement List, the Committee also considers other information it deems pertinent, including comments on a proposal published in the Federal Register to add the product or service to the Procurement List and information submitted by Government personnel and interested persons. Because the Committees authority to establish fair market prices is separate from its authority to determine the suitability of a product or service for addition to the Procurement List, the Committee does not consider comments on proposed fair market prices for products and services proposed for addition to the
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Procurement List to be pertinent to a suitability determination.
8. Revise 512.5 to read as follows:
512.5

Committee decision.

The Committee considers the particular facts and circumstances in each case in determining if a product or service is suitable for addition to the Procurement List. When the Committee determines that a proposed addition is likely to have a severe adverse impact on a current contractor, it takes this fact into consideration in deciding not to add the product or service to the Procurement List, or to add only a portion of the Government requirement for the item. If the Committee decides to add a product or service in whole or in part to the Procurement List, that decision is announced in the Federal Register with a notice that includes information on the effective date of the addition.
9. Amend 512.7 by revising paragraphs a and c to read as follows:
512.7

Fair market price.

a The Committee is responsible for determining fair market prices, and changes thereto, for products and services on the Procurement List. The Committee establishes an initial fair market price at the time a product or service is added to the Procurement List. This initial price is based on Committee procedures, which permit negotiations between the contracting activity and the nonprofit agency which will produce or provide the product or service to the Government, assisted by the appropriate central nonprofit agency. If agreed to by the negotiating parties, the initial price may be developed using other methodologies specified in Committee pricing procedures.

c Recommendations for initial fair market prices, or changes thereto, shall be submitted jointly by the contracting activities and nonprofit agencies concerned to the appropriate central nonprofit agency. After review and analysis, the central nonprofit agency shall submit the recommended prices and methods by which prices shall be changed to the Committee, along with the information required by Committee pricing procedures to support each recommendation. The Committee will review the recommendations, revise the recommended prices where appropriate, and establish a fair market price, or change thereto, for each product or service which is the subject of a recommendation.

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