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is made with the understanding that problems incident to the employment procurement under the Act shall be of blind individuals; one who is converlimited to that portion of the Govern. sant with the problems incident to the ment's requirement for the commodity employment of other severely handiwhich is not available from the Feder- capped individuals; one who repreal Prison Industries, Inc.

sents blind individuals employed in (b) The Committee, in the assign qualified nonprofit agencies for the ment of commodities for procurement blind; and one who represents severely under the Act, shall accord priority to handicapped individuals (other than commodities, including military resale blind) employed in qualified nonprofit commodities, produced and offered for agencies for the other severely handisale by workshops for the blind.

capped. [42 FR 13552, Mar. 11, 1977)

(39 FR 35365, Oct. 1, 1974) $ 51-1.4 Recommendations.

$ 51-2.2 Responsibility. All individuals, particularly those

It is the Committee's responsibility concerned with procurement, are en

to administer the Act, the purpose of couraged to recommend to the Com

which is to direct the procurement of mittee any commodities and services

selected products and services by the which appear to be suitable for pro

Federal Government to qualified curement by the Government from

workshops for the blind and other seblind or other severely handicapped

verely handicapped. The objective is workshops.

to increase the opportunities for the 138 FR 16316, June 21, 1973]

employment of blind and other severe

ly handicapped individuals and, whenPART 51-2-COMMITTEE FOR PUR- ever possible, to prepare these individ

CHASE FROM THE BLIND AND uals to engage in normal competitive OTHER SEVERELY HANDICAPPED employment.

(38 FR 16317, June 21, 1973] Sec. 51-2.1 Membership. 51-2.2 Responsibility.

$ 51-2.3 Duties and powers. 51-2.3 Duties and powers.

The duties and powers of the Com51-2.4 Procurement list.

mittee are: 51-2.5 Fair market price. 51-2.6 Suitability.

(a) To establish and publish in the 51-2.7 Reconsideration of Committee deci. FEDERAL REGISTER a procurement list sion.

of those commodities and services AUTHORITY: Pub. L. 92-28, 85 Stat. 77; (41

which it determines are suitable for U.S.C. 46-48).

workshops for the blind or other se

verely handicapped to supply to the $ 51-2.1 Membership.

Government. Under the Act the Committee is (b) To determine the fair market composed of 15 members appointed by price of the commodities or services on the President. There is one repre

the procurement list and to revise its sentative from each of the following price determinations in accordance departments or agencies of the Gov. with changing market conditions. ernment: The Department of Agricul- (c) To designate a central nonprofit ture, the Department of Defense, the agency or agencies to facilitate the disDepartment of the Army, the Depart tribution, among the workshops for ment of the Navy, the Department of the blind and other severely handithe Air Force, the Department of capped, of orders of the Government Health, Education and Welfare, the for commodities or services appearing Department of Commerce, the Depart. on the procurement list (by direct alloment of Justice, the Department of cation, subcontract, or any other Labor, the Veterans Administration, means). and the General Services Administra- (d) To establish rules and regulation. Four members are private citi- tions regarding the effective implezens: One who is conversant with the mentation of the Act.

(e) To assure that workshops for the price to the Committee along with the blind will have priority over work detailed justification necessary to supshops for other severely handicapped port the recommended price. in the production of commodities.

(38 FR 16317, June 21, 1973] (f) To conduct a continuing study and evaluation of its activities under $ 51-2.6 Suitability. the Act for the purpose of assuring ef

(a) The Committee has eatablished fective and efficient administration of

the following criteria for determining the Act. On its own, or in cooperation

if a commodity or service to suitable with other public or nonprofit private

for addition to the Procurement List: agencies, the Committee may study

(1) A qualified workshop must be caproblems relating to the employment

pable of producing the commodity or of the blind and other severely handi

providing the service at a fair market capped individuals, and to the develop

price. ment and adaptation of production

(2) The addition of the community methods which would enable a greater

or service to the Procurement List utilization of these individuals.

would not have a serious adverse (38 FR 16317, June 21, 1973, as amended at impact on the current or most recen 42 FR 13552, Mar. 11, 1977)

contractor for the commodity or sery

ice. $ 51-2.4 Procurement list.

(b) To qualify to participate under The Committee shall issue to each the Act, a workshop must meet the reordering office a procurement list quirements as a nonprofit agency servwhich will include commodities and

ing the blind or other severely handiservices which shall be procured from

capped set forth in Part 51–4 of this the indicated central nonprofit agency

chapter. A workshop desiring to proor its workshops.

duce a commodity or provide a service (a) For commodities (except military

under the Act must satisfy the Comresale commodities), the procurement

mittee that it will have the capability list includes the item description, spec

to meet the Government's quality ification identification, and other per

standards and delivery schedules by tinent information.

the time it assumes responsibility for (b) For services, the procurement list

supplying the Government under the identifies the type of service to be pro

Act and that it can supply he commodvided, the area(s) and/or agency(s) to

ity or service at a fair market price. be serviced and includes information

(c) At least 30 days prior the Com

mittee's consideration of the addition on prices.

of a commodity or serive to the Pro(c) For military resale commodities,

curement List, the Committee pubthe procurement list includes name of

lishes a notice in the FEDEAL REGISTER commodity and identification number.

announcing the proposed addition and (38 FR 16317, June 21, 1973, as amended at providing interested persons an oppor41 FR 45565, Oct. 15, 1976)

tunity to submit wirtten data, views,

or arguments on the proposed addi$ 51-2.5 Fair market price.

tion. The Committee is responsible for de (d) In deciding whether or not a protermining the fair market prices in- posed addition to the Procurement cluding changes thereto, for commod. List would have a serious adverse ities or services on the procurement impact on the current or most recent list and shall consider recommenda contractor for the particular commodtions from the procuring agencies and ity or service, the Committee gives the central nonprofit agency con particular attention to: cerned. Recommendations for fair (1) The possible impact on that conmarket prices or changes thereto shall tractor's sales, including any cumulabe submitted by the workshops to the tive impact as the result of other central nonprofit agency representing recent Committee actions. the workshop. The central nonprofit (2) Whether or not that contractor agency shall analyze the data and has been a continuous supplier to the submit a recommended fair market Government of the specific commodity

or serive proposed for addition and is, therefore, more dependent on the income from such sales to the Govern ment, and

(3) Any substantive comments received as the result of the notice in the FEDERAL REGISTER.

(e) The Committee considers the particular facts and circumstances in each cases in determinin if a commodity or service is suitable for addition to the Procurement List. When the Committee determines that a proposed addition to the Procurement List would have a serious adverse impact on a particular company, it takes this fact into consideration in deciding whether or not the Government's procurement of the commodity or service in question, or a portion thereof, should be added to the Procurement List. (42 FR 36457, July 15, 1977)

8 51-2.7 Reconsideration of Committee de

cision. An interested person may request reconsideration of a Committee decision by submitting a request to the Committee in writing setting forth the facts which he or she considers would justify the Committee's modifying or reversing its decision. (42 FR 36458, July 15, 1977)

851-3.2 Responsibilities.

Each central nonprofit agency for its participating workshops shall:

(a) Represent them in dealing with the Committee under the Act.

(b) Evaluate the qualifications and capabilities of its workshops and provide the Committee with pertinent data concerning its workshops, their status as qualified nonprofit agencies, their manufacturing or service capabilities, and other information required by the Committee.

(c) Recommend to the Committee, with appropriate justification including recommended prices, suitable commodities or services for procurement from its workshops.

(d) Distribute within the policy guidelines of the Committee (by direct allocation, subcontract, or any other means) orders from Government activities among its workshops.

(e) Maintain the necessary records and data on its workshops to enable it to allocate orders equitably.

(f) Supervise its workshops to insure contract compliance in the production of a commodity or performance of a service.

(g) As market conditions change, recommend price changes with appropriate justification for assigned commodities or services on the procurement list.

(h) Monitor and inspect the activities of its workshops to insure compliance with the Act and appropriate regulations.

(i) When authorized by the Committee, enter into contracts with the Federal procuring activities for the furnishing of commodities or services provided by its workshops.

(j) Submit to the Committee a comprehensive annual report for each fiscal year concerning the operations of its workshops under the Act, including significant accomplishments and developments, and such other details as the central nonprofit agency considers appropriate or the Committee may request. This report will be submitted by December 15 for the fiscal year ending the preceding September 30.

(k) Review and forward to the Committee by December 15 the annual workshop certification for each of its participating workshops covering the

PART 51-3-CENTRAL NONPROFIT

AGENCIES

Sec. 51-3.1 General. 51-3.2 Responsibilities. 51-3.3 Assignment of commodity or service. 51-3.4 Distribution of orders. 51-3.5 Fees.

AUTHORITY: Pub. L. 92-28, 85 Stat. 77; (41 U.S.C. 46-48).

8 51-3.1 General.

Under the provisions of section 2(c) of the Act, the following are designated central nonprofit agencies:

(a) To represent the workshops for the blind: National Industries for the Blind.

(b) To represent the workshops for other severely handicapped: National Industries for the Severely Handicapped, Inc. (41 FR 26906, June 30, 1976)

fiscal year ending the preceding Sep- tial steps to place the commodity on tember 30.

the Procurement List within nine (38 FR 16318, June 21, 1973, as amended at

months after assignment. If the Na41 FR 45565, Oct. 15, 1976; 42 FR 13552,

tional Industries for the Blind has not Mar. 11, 1977)

completed these steps within that

time period, the Committee shall reas$ 51-3.3 Assignment of commodity or sign the commodity to the National service.

Industries for the Severely Handi(a) The central nonprofit agency

capped. However, the nine-month first proposing a service for possible

period may be extended for a reasonaddition to the Procurement List shall

able period of time when the National be assigned the service.

Industries for the Blind has been de(b) Within 60 days after notification layed by conditions beyond its control. by the Committee that a commodity (42 FR 13552, Mar. 11, 1977) has been proposed for possible addition to the Procurement List, the Fed- $51-3.4 Distribution of orders. eral Prison Industries, Inc., and the

Central nonprofit agencies shall disNational Industries for the Blind (for

tribute orders from the Government commodities proposed by the National only to workshops which the Commit. Industries for the Severely Handi

tee has approved to produce the specapped) shall notify the Committee of

cific commodity or to perform the partheir decisions regarding the exercise ticular service. When the Committee or waiver of priority on the proposed

has approved two or more workshops commodity.

to produce a specific commodity or (c) When the Federal Prison Indus perform a particular service, the centries, Inc. exercises its priority for a tral nonprofit agency shall distribute commodity proposed by the National

orders among those workshops in a Industries for the Blind or the Nation fair and equitable manner. al Industries for the Severely Handicapped for possible addition to the

[38 FR 16318, June 21, 1973] Procurement List, the commodity may

$ 51-3.5 Fees. be assigned to the National Industries for the Blind or the National Indus

The fees the central nonprofit tries for the Severely Handicapped in

agency shall charge workshops for faaccordance with paragraph (d) or (e)

cilitating participation by their workof this section.

shops under the Act shall not exceed (d) When the National Industries for the rates approved by the Committee. the Blind proposes a commodity for [38 FR 16318, June 21, 1973) possible addition to the Procurement List, it shall be assigned to the Nation

PART 51-4-WORKSHOPS al Industries for the Blind.

(e) When the National Industries for the Severely Handicapped proposes a 51-4.1 General. commodity for possible addition to the 51-4.2 Procedures for qualification. Procurement List, it shall be assigned 51-4.3 Responsibilities. to the National Industries for the Se 51-4.4 Subcontracting.

51-4.5 Production. verely Handicapped, unless the Na

51-4.6 Violations. tional Industries for the Blind exercises the priority accorded to the AUTHORITY: Pub. L. 92-28, 85 Stat. 77; (41 workshops for the blind, in which case U.S.C. 46-48). the commodity shall be assigned to SOURCE: 38 FR 16318, June 21, 1973, unless the National Industries for the Blind. otherwise noted.

(f) When the National Industries for the Blind exercises the priority of the

$ 51-4.1 General. workshops for the blind for a commod- To participate under the Act. a ity which was initially proposed by the workshop shall be represented by the National Industries for the Severely appropriate central nonprofit agency. Handicapped, the National Industries The designation of the central nonfor the Blind shall complete the essen profit agency shall not be changed

Sec.

without prior written approval of the Committee. (41 FR 26906, June 30, 1976) $ 51-4.2 Procedures for qualification.

(a) To qualify for participation under the Act,

(1) A workshop, other than a State. owned or State-operated workshop, shall submit to the Committee through its central nonprofit agency the following documents, transmitted by a letter signed by an officer of the corporation or chief executive:

(i) A legible copy (preferably a photocopy) of the articles of incorporation showing the date of filing and the signature of an appropriate State official.

(ii) A copy of the bylaws certified by an officer of the corporation.

(iii) If the articles of incorporation or bylaws do not include a statement to the effect that no part of the net income of the workshop may inure to the benefit of any shareholder or other individual, one of the following:

(a) A certified true copy of the State statute under which the workshop was incorporated which includes wording to the effect that no part of the net income of the workshop may inure to the benefit of any shareholder or other individual.

(6) A copy of a resolution approved by the governing body of the corporation, certified by an officer of the corporation to the effect that no part of the net income of the workshop may inure to the benefit of any shareholder or other individual.

(c) A copy of the Internal Revenue Service certificate, duly executed during the prior twelve months, indicating that the corporation has been accepted as a non-profit agency for taxation purposes.

(2) A State-owned or State-operated workshop for the blind or other severely handicapped shall submit to the Committee through its central nonprofit agency the following documents, transmitted by a letter signed by an officer of the wholly-owned State corporation or an official of the agency that directs the operations of the workshop, as applicable:

(i) A certified true copy of the State statute establishing or authorizing the

establishment of workshop(s) for the blind or other severely handicapped.

(ii) In the case of a wholly-owned State corporation, a certified true copy of the corporation bylaws; and, in the case of a State agency, a certified true copy of implementing regulations, operating procedures, notice of establishment of the workshop, or other similar documents.

(3) The Committee shall review the documents submitted and, if they are acceptable, notify the workshop through the central nonprofit agency of the workshop's eligibility to participate under the Act.

(b) At the time the central nonprofit agency recommends to the Committee the addition of a commodity or service to the procurement list, it shall submit a signed copy of the appropriate initial workshop certification for the workshop concerned. This requirement does not apply when a workshop is already authorized to produce a commodity or provide a service under the Act.

(c) To maintain its qualification under the Act, each workshop authorized to produce a commodity or provide a service under the Act must continue to meet the requirements of a “workshop for the blind” or “workshop for the other severely handicapped” as defined in § 51-1.2 (h) and (i) respectively and shall complete and submit an annual workshop certification to its central nonprofit agency by November 15 for the fiscal year ending the preceding September 30. (38 FR 16318, June 21, 1973, as amended at 41 FR 11515, Mar. 19, 1976; 41 FR 45566, Oct. 15, 1976)

$ 51-4.3 Responsibilities.

(a) Each workshop participating under the Act shall:

(1) Furnish commodities or services in strict accordance with the allocation and Government orders.

(2) Make its records available for inspection at any reasonable time to representatives of the Committee or the central nonprofit agency representing the workshop.

(3) Maintain records of direct labor hours performed in the workshop by each worker.

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