94-19159. Procurement List; Addition

[Federal Register Volume 59, Number 150 (Friday, August 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19159]


[[Page Unknown]]

[Federal Register: August 5, 1994]


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COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR SEVERELY DISABLED
 

Procurement List; Addition

AGENCY: Committee for Purchase From People Who Are Blind or Severely 
Disabled.

ACTION: Addition to the Procurement List.

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SUMMARY: This action adds to the Procurement List a commodity to be 
furnished by nonprofit agencies employing persons who are blind or have 
other severe disabilities.

EFFECTIVE DATE: September 6, 1994.

ADDRESSES: Committee for Purchase From People Who Are Blind or Severely 
Disabled, Crystal Square 3, Suite 403, 1735 Jefferson Davis Highway, 
Arlington, Virginia 22202-3461.

FOR FURTHER INFORMATION CONTACT: Beverly Milkman [phone].

SUPPLEMENTARY INFORMATION: On February 25, 1994, the Committee for 
Purchase From People Who Are Blind or Severely Disabled published 
notice (59 FR 9189) of proposed addition to the Procurement List. 
Comments were received from the current contractor for the grommet in 
response to a request for sales data. In providing the data, the 
contractor indicated that loss of the contract would increase its 
prices for other items made of the same material, and reduce the 
company's competitiveness, because it would have to pay higher prices 
for the smaller volume of the material it would order if the grommet is 
added to the Procurement List. The contractor also indicated that it 
had spent a great amount of money to develop molds for the grommet, as 
a new producer would have to do. Because it has several molds, the 
contractor believes that it can produce the grommet for many years 
without subsequent investment, and that its experience with the molds 
permits it to keep the molds in running order easily.
    The contractor did not provide data to indicate the extent of the 
impact which paying higher prices for material would have on the 
company. Consequently, the Committee cannot assess how much it would 
add to the impact of losing Government sales of the grommet. The sales 
loss alone represents such a small percentage of the contractor's total 
sales that the Committee does not consider it to constitute severe 
adverse impact.
    The contractor's point about a new producer having to create new 
molds at substantial cost would appear to be a way of claiming that 
this cost would be reflected in the price the Government will pay for 
molds produced under the Committee's program. However, the Committee is 
required to set a fair market price for items the Government buys under 
its program. Consequently, the nonprofit agency which will produce the 
grommet under the Committee's program will not be able to charge an 
unfairly high price for the grommets in order to recoup its costs for 
the new molds.
    After consideration of the material presented to it concerning 
capability of qualified nonprofit agencies to provide the commodity, 
fair market price, and impact of the addition on the current or most 
recent contractors, the Committee has determined that the commodity 
listed below are suitable for procurement by the Federal Government 
under 41 U.S.C. 46-48c and 41 CFR 51-2.4.
    I certify that the following action will not have a significant 
impact on a substantial number of small entities. The major factors 
considered for this certification were:
    1. The action will not result in any additional reporting, 
recordkeeping or other compliance requirements for small entities other 
than the small organizations that will furnish the commodity to the 
Government.
    2. The action does not appear to have a severe economic impact on 
current contractors for the commodity.
    3. The action will result in authorizing small entities to furnish 
the commodity to the Government.
    4. There are no known regulatory alternatives which would 
accomplish the objectives of the Javits-Wagner-O'Day Act (41 U.S.C. 46-
48c) in connection with the commodity proposed for addition to the 
Procurement List. Accordingly, the following commodity is hereby added 
to the Procurement List:

Grommet
    8140-01-051-9951

    This action does not affect current contracts awarded prior to the 
effective date of this addition or options exercised under those 
contracts.
Beverly L. Milkman,
Executive Director.
[FR Doc. 94-19159 Filed 8-4-94; 8:45 am]
BILLING CODE 6820-33-P