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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Public Law 108-136

House Conference Report 108-354

SEC. 853. DEMONSTRATION PROJECT FOR CONTRACTORS EMPLOYING PERSONS WITH DISABILITIES.

(a) AUTHORITY- The Secretary of Defense may carry out a demonstration project by entering into one or more contracts with an eligible contractor for the purpose of providing defense contracting opportunities for severely disabled individuals.

(b) EVALUATION FACTOR- In evaluating an offer for a contract under the demonstration program, the percentage of the total workforce of the offeror consisting of severely disabled individuals employed by the offeror shall be one of the evaluation factors.

(c) DEFINITIONS- In this section:

(1) ELIGIBLE CONTRACTOR- The term `eligible contractor' means a business entity operated on a for-profit or nonprofit basis that--

(A) employs severely disabled individuals at a rate that averages not less than 33 percent of its total workforce over a period prescribed by the Secretary;

(B) pays not less than the minimum wage prescribed pursuant to section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) to the employees who are severely disabled individuals; and

(C) provides for its employees health insurance and a retirement plan comparable to those provided for employees by business entities of similar size in its industrial sector or geographic region.

(2) SEVERELY DISABLED INDIVIDUAL- The term `severely disabled individual' means an individual with a disability (as defined in section 3 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102)) who has a severe physical or mental impairment that seriously limits one or more functional capacities.

The Senate amendment contained a provision (sec. 368) that would provide for two pilot demonstration projects for contractors employing persons with disabilities. The Senate provision would also provide for the continuation and completion of existing contracts (including any options) awarded to the blind and severely disabled for the operation of military troop dining facilities, military mess halls, and other similar military dining facilities.

The House bill contained no similar provision.

The House recedes with an amendment to: (1) split the provision into two sections; (2) authorize a demonstration project by entering into one or more contracts with an eligible contractor for the purpose of providing defense contracting opportunities for severely disabled individuals; and (3) remove some of the limitations of the pilot program to promote greater participation. The conferees intent is to provide defense contracting opportunities for business entities that employ the severely disabled. The conferees believe such opportunities may exist in the purchase of aerospace end items or components and information technology products and services. The continuation and completion of existing contracts (including any options) awarded to the blind and severely disabled for the operation of military troop dining facilities, military mess halls, and other similar military dining facilities is addressed elsewhere in this conference report.

Senate Report 108-046

The committee recommends a provision that would provide for the continuation and completion of existing contracts (including any options) awarded to the blind and severely disabled for the operation of military troop dining facilities, military mess halls, and other similar military dining facilities. The provision recommended by the committee would not address either: (1) laws applicable to any follow-on or successor contracts to these existing contracts; or (2) laws applicable to contracts for the operation of military dining facilities not currently operated by the blind and severely disabled.