Overview
FAR Subpart 8.7 implements the AbilityOne Program (formerly Javits-Wagner-O'Day Act), which requires Government agencies to purchase specific supplies and services from designated nonprofit agencies employing people who are blind or severely disabled. It establishes the "Procurement List" as a mandatory source of supply and outlines the roles of the Committee for Purchase and Central Nonprofit Agencies (NIB and NISH/SourceAmerica).
Key Rules
- Mandatory Source: Government entities (Executive, Legislative, Judicial, and others) are required by law (41 U.S.C. chapter 85) to purchase items on the Procurement List from AbilityOne agencies if they are available within the required timeframe.
- Purchase Priorities:
- Supplies: 1st Priority is Federal Prison Industries, Inc. (UNICOR); 2nd Priority is AbilityOne agencies.
- Services: 1st Priority is AbilityOne agencies; Federal Prison Industries and commercial sources follow.
- Pricing: Prices are established as "fair market prices" by the Committee. They are typically adjusted semiannually for supplies and annually for services.
- No Unauthorized Exceptions: No other provision of the FAR allows for an exception to these mandatory sources unless a formal purchase exception is granted by a Central Nonprofit Agency (CNA) or the Committee.
- Replacement Commodities: If a commodity on the Procurement List is replaced by a new item, the replacement is automatically added to the list.
Responsibilities
- The Committee (independent Government activity): Responsible for determining which supplies/services are mandatory, establishing prices, and setting implementing regulations.
- Central Nonprofit Agencies (NIB and NISH/SourceAmerica): Responsible for designating specific nonprofit agencies to fill orders (allocation), authorizing direct-order processes, and granting purchase exceptions when nonprofits cannot perform.
- Contracting Officers/Ordering Offices:
- Must check the Procurement List (abilityone.gov) before pursuing commercial acquisitions.
- Must request "allocations" from the CNA when a direct-order process isn't authorized.
- Must provide 90 days' advance notice to the Committee for changes in specifications or scope of work.
- Must initiate purchase action within 15 days after receiving a purchase exception.
- AbilityOne Participating Nonprofit Agencies: Must comply with Government specifications and standards; if none exist, they must provide items of the "highest quality" equal to commercial market standards.
Practical Implications
- Market Research Mandate: In real-world contracting, checking the AbilityOne Procurement List is a non-discretionary first step in market research. Ignoring this source can lead to protests or violations of federal law.
- Lead Time Planning: Ordering offices must account for the time required for the "allocation process" (requesting a designation from the CNA) if a direct-order process is not already in place.
- Performance Issues: If an AbilityOne agency fails to perform, the Contracting Officer cannot simply cancel the contract for default. They must first attempt to resolve the issue with the nonprofit, then the CNA, and finally the Committee before a purchase exception for a commercial source is granted.
- Fixed Pricing: Because the Committee sets the price, Contracting Officers do not negotiate price but instead focus on ensuring the technical requirements and delivery schedules are clearly communicated and met.