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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: July 3, 2000

FROM: Barry McVay, CPCM

SUBJECT: Federal Acquisition Regulation (FAR); Javits-Wagner-O'Day (JWOD) Subcontract Preference Under Service Contracts

SOURCE: Federal Register, July 3, 2000, Vol. 65, No. 128, page 41265

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: It is proposed to amend the FAR to implement changes relating to preferences for award of subcontracts under service contracts to nonprofit workshops designated by the Committee for Purchase From People Who Are Blind or Severely Disabled (Javits-Wagner-O'Day (JWOD) Act).

EDITOR'S NOTE: Purchases under the JWOD program are covered in Federal Acquisition Regulation (FAR) Subpart 8.7, Acquisition from Nonprofit Agencies Employing People Who Are Blind or Severely Disabled.

Also, for more on President Clinton's memorandum of March 29, 2000, "Continued Commitment to the Javits-Wagner-O'Day Program," see the April 3, 2000, FEDERAL CONTRACTS DISPATCH "President Urges Agencies to Purchase Javits-Wagner-O'Day (JWOD) Products and Services."

DATES: Submit comments on or before September 1, 2000.

ADDRESSES: Submit comments to General Services Administration, FAR Secretariat (MVRS), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405, e-mail: farcase.1999-017@gsa.gov. Cite FAR case 1999-017 in all correspondence related to this proposed rule.

FOR FURTHER INFORMATION CONTACT: Mrs. Linda Nelson, Procurement Analyst, 202-501-1900.

SUPPLEMENTAL INFORMATION: This proposed rule would implement changes that were made to the Committee for Purchase From People Who Are Blind or Severely Disabled regulations in Title 41 of the Code of Federal Regulations (CFR), paragraph (e) of Section 51-5.2, Mandatory Source Requirement, effective May 4, 1998 (published April 3, 1998). That change added paragraph (e), which states that "contracting activities procuring services which have included within them services on the Procurement List shall require their contractors for the larger service requirement to procure the included Procurement List services from nonprofit agencies designated by the Committee." In other words, if a contract contains bundled JWOD services, the contracting activity must include a requirement in the contract that the prime contractor subcontract with JWOD nonprofit agencies for performance of those services. (EDITOR'S NOTE: The "Procurement List" is a list of supplies and services that the Committee has determined are suitable for purchase by the government and are required to be purchased from one of the 600 JWOD nonprofit agencies associated with the National Industries for the Blind (NIB) or with NISH (formerly the "National Industries for the Severely Handicapped," a national nonprofit agency that serves persons with a wide range of disabilities). Also, the proposed rule says that it is implementing paragraph (e) of Section 51-5.5, Pricing, but that is incorrect because paragraph (e) deals with nonstandard packing, packaging, and marking of products.)

To conform the FAR to the changed Committee regulations, the following changes are proposed:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

Copyright 2000 by Panoptic Enterprises. All Rights Reserved.

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