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Federal Register / Vol. 86, No. 139 / Friday, July 23, 2021 / Proposed Rules addition, each such nonprofit agency must submit to its central nonprofit agency by November 1 of each year, two completed copies of the appropriate Annual Representations and Certifications covering the fiscal year ending the preceding September 30.
b In addition to paragraph a of this section, each nonprofit agency participating in the Ability One Program shall:
1 Furnish products or services in strict accordance with Government orders.

9 Upon receipt of payment by the Government for products or services furnished under the Ability One Program, pay to the central nonprofit agency a fee which meets the requirements of 513.5 of this chapter.

16. Amend 514.4 by revising paragraphs a through c to read as follows:

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514.4

Subcontracting.

a Nonprofit agencies shall seek broad competition in the purchase of materials and components used in the products and services furnished to the Government under the JWOD Act.
Nonprofit agencies shall inform the Committee, through their central nonprofit agency, before entering into multiyear contracts for materials or components used in the products and services furnished to the Government under the JWOD Act.
b Each nonprofit agency shall accomplish the maximum amount of subcontracting with other nonprofit agencies and small business concerns that the nonprofit agency finds to be consistent both with efficient performance in furnishing products or services under the JWOD Act and maximizing employment for persons who are blind or have other severe disabilities.
c Nonprofit agencies may subcontract a portion of the process for producing a product or providing a service on the Procurement List provided that the portion of the process retained by the prime nonprofit agency generates employment for persons who are blind or have other severe disabilities. Subcontracting intended to be a routine part of the production of a product or provision of a service shall be identified to the Committee at the time the product or service is proposed for addition to the Procurement List and any significant changes in the extent of subcontracting must be approved in advance by the Committee.

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PART 515CONTRACTING
REQUIREMENTS

17. Revise 515.1 to read as follows:

515.1

General.

a Contracting activities are encouraged to assist the Committee and the central nonprofit agencies in identifying suitable products and services to be furnished by nonprofit agencies employing persons who are blind or have other severe disabilities so that the Committee can attain its objective of increasing employment and training opportunities for individuals who are blind or have other severe disabilities. For items which appear to be suitable to be furnished by nonprofit agencies, the contracting activity should refer the candidate products and services to the Committee or a central nonprofit agency. If a contracting activity decides to procure one or more products which are similar to a product or products on the Procurement List, the contracting activity should refer the products it intends to procure to the Committee or a central nonprofit agency.
b Contracting activities shall provide the Committee and designated central nonprofit agencies with information needed to enable the Committee to determine whether a product or service is suitable to be furnished by a nonprofit agency. For products, information such as the latest solicitation and amendments, bid abstracts, procurement history, estimated annual usage quantities, and anticipated date of next solicitation issuance and opening may be needed. For services, similar information including the statement of work and applicable wage determination may be required. In order to assist in evaluating the suitability of an Office of Management and Budget Circular No. A76 conversion, contracting activities should provide a copy of the draft statement of work and applicable wage determination to the central nonprofit agency upon its request.
18. Amend 515.2 by revising paragraphs a through d to read as follows:
515.2

Mandatory source requirement.

a As provided in 41 U.S.C. 8504, entities of the Federal Government intending to procure products or services on the Procurement List shall procure such products and services from nonprofit agencies authorized by the Committee. The only exception to this mandatory requirement is for products available from the Federal Prison Industries, Inc., which has a
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purchase priority over products on the Procurement List.
b Purchases of products on the Procurement List by entities of the Government shall be made from sources authorized by the Committee. These sources may include nonprofit agencies, central nonprofit agencies when approved by the Committee, Government central supply agencies such as the Defense Logistics Agency and the General Services Administration, and certain commercial distributors. As noted in 516.2 of this chapter, identification of the authorized sources for a particular product may be obtained from the central nonprofit agencies indicated on the Procurement List which is found at www.abilityone.gov.
c Contracting activities shall require other persons providing products which are on the Procurement List to entities of the Government by contract to order these products from the sources authorized by the Committee.
d Procedures for obtaining military resale products are contained in 51
6.4 of this chapter.

19. Amend 515.3 by revising paragraphs a and c to read as follows:
515.3

Scope of requirement.

a When a product is included on the Procurement List, the mandatory source requirement covers the National Stock Number or item designation listed and products that are essentially the same as the listed item. In some instances, only a portion of the Government requirement for a National Stock Number or item designation is specified by the Procurement List. Where geographic areas, quantities, percentages or specific supply locations for a product are listed, the mandatory provisions of the JWOD Act apply only to the portion or portions of the product indicated by the Procurement List.

c When a product or service is added to the Procurement List, the addition does not affect contracts for the product or service awarded prior to the effective date of the Procurement List addition or options exercised under those contracts.
20. Amend 515.4 by revising paragraphs a1 and 2 to read as follows:
515.4

Purchase exceptions.

a
1 The central nonprofit agency or its nonprofit agencyies cannot furnish a product or service within the period specified, and
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