(4) Submit to its central nonprofit agency by November 15 the appropriate annual workshop certificate and the information required by the central nonprofit agency to prepare its annual report both covering the fiscal year ending the preceding September 30.

(5) Comply with applicable occupational health and safety standards prescribed by the Secretary of Labor.

(6) Maintain a file on each blind individual which includes a written report prepared by a licensed physician reflecting visual acuity and field of vision of each eye with and without glasses.

(7) Maintain a file on each blind and other severely handicapped individual which includes reports of preadmission evaluation, and annual reevaluations of the individual's capability for normal competitive employment, prepared by a person or persons qualified by training and experience to evaluate the work potential, interests, aptitudes and abilities of handicapped persons.

(8) Maintain an ongoing placement program that includes staff assigned evaluation duties and liaison responsibilities with appropriate community services such as the State employment service, employer groups, and others; and list with one or more of these services those individuals whose most recent evaluations show them to be capable of normal competitive employment.

(b) Each workshop for other severely handicapped participating under the Act shall, in addition to the requirements of paragraph (a) of this section, maintain a file for each other severely handicapped individual which includes a written report prepared by a licensed physician, psychiatrist, and/ or qualified psychologist, reflecting the nature and extent of the disability or disabilities that cause such person to qualify as severely handicapped.

[38 FR 16318, June 21, 1973, as amended at 41 FR 45566, Oct. 15, 1976]

§ 51-4.4 Subcontracting.

(a) Workshops shall seek broad competition in the purchase of raw materials and components used in the commodities and services provided the Government under the Act. Work

shops shall inform the Committee before entering into multiyear contracts for raw materials or components used in the commodities and services provided the Government under the Act.

(b) Each workshop shall accomplish the maximum amount of subcontracting to small business concerns that the workshop finds to be consistent with efficient performance in producing commodities or providing services under the Act.

§ 51-4.5 Production.

In the production of commodities under the Act, a workshop shall make an appreciable contribution to the reforming of raw materials or the assembly of components or a combination thereof.

§ 51-4.6 Violations.

Any alleged violations of these regulations by a workshop shall be investigated by the appropriate central nonprofit agency which shall notify the workshop concerned and afford it an opportunity to submit a statement of facts and evidence. The central nonprofit agency shall report its findings to the Committee, together with its recommendations, including a recommendation regarding whether allocations to workshops concerned should be suspended for a period of time. In reviewing the case, the Committee may request the submission of additional evidence or may hold a hearing on the matter. Pending a decision by the Committee, the central nonprofit agency concerned may be directed by the Committee to temporarily suspend allocations to the workshop.

Sec.

51-5.10 Quality complaints. 51-5.11 Specification changes.

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

SOURCE: 38 FR 16319, June 21, 1973, unless otherwise noted.

§ 51-5.1-1 General.

(a) Ordering offices shall obtain commodities and services on the procurement list from the central nonprofit agency shown thereon or its designated workshop(s), except for commodities identified on the procurement list as available through Defense Supply Agency (DSA) or from General Services Administration (GSA) supply distribution facilities.

(b) When a commodity is identified on the Procurement List as being available through DSA or from GSA supply distribution facilities, it shall be obtained in accordance with the requisitioning procedures of the supplying agency. If the supplying agency cannot supply such a commodity, it shall inform the ordering office that the commodity must be procured in accordance with the provisions of this part.

(c) DSA supply centers and GSA supply distribution facilities shall also obtain commodities on the procurement list from the central nonprofit agency shown thereon or its designated workshop(s).

(d) Procedures for obtaining military resale commodities are contained in section 51-5.6.

[38 FR 16319, June 21, 1973, as amended at 42 FR 13553, Mar. 11, 1977]

§ 51-5.1-2 Allocations and orders.

(a) Allocation is the action to be taken by a central nonprofit agency to designate the workshop(s) that will produce definite quantities of commodities or perform specific services upon receipt of an order from the ordering office.

(b) Letter requests for allocation shall be submitted to the appropriate central nonprofit agency listed below:

(c) Central nonprofit agencies may authorize the ordering office to transmit orders for specified commodities or services directly to the workshop(s) concerned without requesting an allocation for each order. In these cases the central nonprofit agency shall specify the normal leadtime required for orders transmitted directly to the workshop(s). This method shall be used whenever possible since it eliminates double handling and decreases the time required for processing orders.

(d) Requests for allocations shall contain for:

(1) Commodities. Name, stock number, latest specification, quantity, unit price, and place and time of delivery.

(2) Services. Type and location of service required, latest specification, work to be performed, estimated volume, and time for completion.

(e) Ordering offices shall request allocations in sufficient time for the central nonprofit agency to reply, for the order(s) to be placed, and for the workshops to produce the commodity or provide the service (see paragraph (k) of this section).

(f) When a commodity on the procurement list also appears on the schedule of products, Federal Prison Industries, Inc. (FPI), the ordering office shall obtain clearance from FPI prior to requesting an allocation or placing an order directly to the workshop(s).

(g) The central nonprofit agency shall make allocations to the appropriate workshop(s) upon receipt of a request from the ordering office and instruct the ordering office to forward the order to the central nonprofit agency or direct to the workshop(s).

(h) Central nonprofit agencies shall reply promptly to requests for allocations. When a request for allocation provides a delivery schedule which cannot be met, the central nonprofit agency shall request a revision, which the ordering office should grant, if

feasible, or the central nonprofit agency shall issue a purchase exception authorizing procurement from commercial sources as provided in § 51-5.2.

(i) Allocations are not an obligation to supply any commodity or service, nor an obligation for the ordering office to issue an order, nor are workshops authorized to commence production until receipt of an order.

(j) Upon receipt of an allocation, the ordering office shall promptly submit an order to the appropriate central nonprofit agency or designated workshop(s). Where this cannot be done promptly, the ordering office shall so advise the central nonprofit agency and the workshop(s) immediately.

(k) An order for commodities or services shall provide leadtime sufficient for purchase of materials, production or preparation, and delivery or completion.

(1) The central nonprofit agency shall keep the ordering office informed of any changes in leadtime experienced by its workshop(s) in order to keep to a minimum requests for extensions once an order is placed by the ordering office. Where, due to unusual conditions, an order does not provide sufficient leadtime, the central nonprofit agency or workshop, depending on which received the order, may request an extension of delivery or completion date which should be granted, if feasible. If extension of delivery or completion date is not feasible, the ordering office shall (i) notify the central nonprofit agency and workshop(s) as appropriate, and (ii) request the central nonprofit agency to reallocate or to issue a purchase exception authorizing procurement from commercial sources as provided in § 51–5.2.

(m) The ordering office shall provide to the central nonprofit agency concerned a copy of all orders to workshops.

[38 FR 16319, June 21, 1973, as amended at 39 FR 35365, Oct. 1, 1974; 41 FR 26906, June 30, 1976]

§ 51-5.2 Purchase exceptions.

(a) A central nonprofit agency shall grant a purchase exception for an ordering office to procure from commer

cial sources commodities or services on the procurement list when both of the following conditions are met:

(1) The central nonprofit agency cannot furnish a commodity or service within the period specified, and

(2) The commodity or service is available from commercial sources in the quantities and at an earlier time than it is available from the workshop(s).

(b) The central nonprofit agency may grant a purchase exception when the quantity involved is not sufficient for economical production or provision by the workshop(s).

(c) When the conditions in paragraphs (a) and (b) of this section are met, the central nonprofit agency shall provide a purchase exception promptly and shall specify the quantities and delivery period covered by the exception. The central nonprofit agency shall inform the Committee prior to issuing a purchase exception to procure a commodity or service from commercial sources when the value of the procurement is $2,500 or

more.

(d) When a purchase exception is granted for procurement from commercial sources under paragraph (a) of this section:

(1) Purchase action shall be taken within 15 days following the date of the purchase exception or as may be extended by the central nonprofit agency with the concurrence of the Committee.

(2) A copy of the solicitation shall be provided to the appropriate central nonprofit agency at the time it is issued.

(e) The Committee shall grant a purchase exception when it deems such action is appropriate.

[38 FR 16319, June 21, 1973, as amended at 42 FR 13553, Mar. 11, 1977]

§ 51-5.3 Prices.

(a) The prices included in the procurement list are fair market prices established by the Committee.

(b) Prices for commodities, except for military resale commodities, are for delivery aboard the vehicle of the initial carrier at point of production (f.o.b. shipping point), and include

packaging, packing, and marking as shown on the procurement list.

(c) Price changes for commodities and services shall usually apply to orders received by the workshop on or after the effective date of the change. In special cases, after considering the views of the ordering office, the Committee may make price changes applicable to orders received by the workshop prior to the effective date of the change.

(d) Some prices are different for eastern and western areas of the United States. The western area includes the States of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, and Washington. Western-area prices are applicable to items manufactured by workshops located in these States.

(e) If an ordering office desires packing, packaging, or marking of products other than the standard pack or as provided in the procurement list, the difference in cost thereof, if any, shall be added to the purchase price.

[38 FR 16319, June 21, 1973, as amended at 44 FR 30340, May 25, 1979]

§ 51-5.4 Shipping and packing.

(a) For commodities, except for military resale commodities, delivery is accomplished when a shipment is placed aboard the vehicle of the initial carrier. Time of delivery is the date shipment is released to and accepted by the initial carrier. Method of transportation to destination shall normally be by Government bills of lading. However, for small shipments, the ordering office may designate another method of transportation on its order. When shipments are under Government bills of lading, the bills of lading may accompany orders or be otherwise furnished, but they shall be supplied promptly. Failure by an ordering office to furnish bills of lading promptly, or to designate a method of transportation, may result in an excusable cause for delay in delivery. When the workshop pays for transportation to destination, these costs shall be included as a separate item on the workshop's invoice and the workshop shall be reimbursed by the ordering office for these costs.

(b) Standard pack information is stated in item descriptions. In ascend

ing order, standard pack is given in multiples of the unit of issue contained within the inner wrap(s) and the outer shipping container pack.

(c) Shipping weights, where available, are included in the procurement list. The weight indicated applies to the last quantity shown in the information on standard pack.

[38 FR 16319, June 21, 1973, as amended at 41 FR 11516, Mar. 19, 1976]

§ 51-5.5 Payments.

Payments for products or services of the blind or other severely handicapped shall normally be made within 20 days, but in no event later than 30 days, after shipment or receipt of a correct invoice or voucher.

§ 51-5.6 Military resale commodities.

(a) Purchase procedures for ordering military resale commodities are contained in instructions issued by the designated central nonprofit agency and are available upon request from that agency. Military commissary stores, Armed Forces exchanges and like activities of other Government departments and agencies (authorized resale outlets) shall request the central nonprofit agency to designate the workshop to which orders shall be forwarded.

(b) Authorized resale outlets shall stock military resale commodities in as broad a range as is practicable. Authorized resale outlets may stock items procured from commercial sources which are comparable to a military resale commodity, provided the military resale commodity is also stocked, except that in military commissary stores military resale commodities in the 900-series normally shall be stocked exlusively. The stocking of commerical items in military commissary stores which are comparable to 900-series military resale commodities shall be restricted to those individual items, on a store-by-store basis, for which there is significant customer demand.

(c) Each military department shall, after consultation with the Committee:

(1) Establish mandatory lists of military resale commodities to be stocked in commissary stores.

(2) Require the stocking in commissary stores of military resale commodities in both the 500- and 900-series in as broad a range as is practicable.

(3) Issue guidance to commissary store personnel to take those actions required to achieve the maximum sales potential of military resale commodities.

(4) Establish policies and procedures which reserve at a level not lower than its military commissary service headquarters the authority to grant exceptions to the exclusive stocking of 900series military resale commodities.

(d) Each military department shall provide the Committee a copy of each directive which relates to the stocking of military resale commodities in commissary stores, including exceptions authorizing the stocking of commercial items in competition with 900series military resale commodities.

(e) The prices of military resale commodities includes delivery to destination or, in the case of destinations overseas (including Alaska and Hawaii), to designated depots at ports of embarkation.

[43 FR 28496, June 30, 1978]

§ 51-5.7 Adjustment and cancellation of orders.

When the central nonprofit agency or a workshop fails to comply with the terms of a Government order, the ordering office shall make every effort to negotiate an adjustment before taking action to cancel the order. When a Government order is canceled for failure to comply with its terms, the central nonprofit agency shall be notified, and, if practicable, requested to reallocate the order. The central nonprofit agency shall notify the Committee of any cancellation of an order and the reasons therefor.

§ 51-5.8 Correspondence and inquiries.

Routine correspondence or inquiries concerning deliveries of commodities being shipped from or performance of service by blind and other severely handicapped workshops shall be with the workshop involved. Major problems shall be referred to the appropriate central nonprofit agency. In those instances where the problem cannot be resolved by the central nonprofit

agency and the procuring activity involved, the procuring activity or central nonprofit agency shall notify the Committee of the problem so that action can be taken by the Committee to resolve it.

[38 FR 16319, June 21, 1973, as amended at 42 FR 13553, Mar. 11, 1977]

§ 51-5.9 Quality of merchandise.

(a) Commodities furnished under Government specification by blind or other severely handicapped workshops shall be manufactured in strict compliance with such specifications. Where no specifications exist, commodities produced shall be of the highest quality and equal to similar items available on the commercial market. Commodities shall be inspected utilizing nationally recognized test methods and procedures for sampling and inspection.

(b) Services provided by blind or other severely handicapped workshops shall be performed in accordance with Government specifications and standards. Where no Government specification or standard exists, the services shall be performed in accordance with good commercial practices.

§ 51-5.10 Quality complaints.

(a) When the quality of a commodity received is not considered satisfactory by the using activity, the activity shall take the following actions as appropriate:

(1) For commodities received from DSA supply centers or GSA supply distribution facilities, notify the supplying agency in accordance with that agency's procedures.

(2) For commodities received from blind or other severely handicapped workshops, address complaints to the workshop involved with a copy to the central nonprofit agency with which it is affiliated.

(b) When the quality of a service is not considered satisfactory by the using activity, the activity shall address complaints to the workshop involved with a copy to the central nonprofit agency with which it is affiliated.

(c) In those instances where quality problems cannot be resolved by the workshop and the using activity, the