AbilityOne proposal would tighten fee rules and loosen subcontracting rules
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This proposed rule would make it explicit that AbilityOne’s central nonprofit agencies must have a written cooperative agreement with the Commission before charging program fees, and that those fees are tied to the work actually performed by nonprofit agencies, not to work handed off to for-profit subcontractors. It also updates the program’s fee framework to match federal grant rules and asks for public comment on whether the current 3.75% fee is still the best way to fund the program. For nonprofit agencies in the AbilityOne Program, the proposal would also make subcontracting easier and less paperwork-heavy in some cases. It defines subcontracting more clearly, sets thresholds for when the Commission must be notified or must approve subcontracting, and allows more flexibility for nonroutine subcontracting as long as it does not undermine the program’s job-creation goals for people who are blind or have significant disabilities.
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Key Changes
- Requires central nonprofit agencies to have a cooperative agreement with the Commission before charging program fees.
- Clarifies that program fees are allowable only on work performed by the nonprofit agency, not on portions subcontracted to for-profit firms.
- Reduces subcontracting paperwork by defining subcontracting more clearly and adding notification and approval thresholds.
Obligations
What this law requires
Central nonprofit agencies must have a written cooperative agreement with the Commission before they may charge program fees to nonprofit agencies in the AbilityOne Program.
Central nonprofit agencies must enter into a written cooperative agreement with the U.S. AbilityOne Commission before charging any program fee to nonprofit agencies.
Central nonprofit agencies must have a written cooperative agreement with the Commission before they may charge a program fee to nonprofit agencies in the AbilityOne Program.
The cooperative agreement used to authorize program fees must be consistent with the framework of 2 CFR part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards).
The cooperative agreement governing program fees must be consistent with the framework of 2 CFR part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards).