41 C.F.R. § 51-4.2

Initial qualification

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(a) To qualify for participation in the JWOD Program:

(1) A privately incorporated nonprofit agency 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 nonprofit agency may inure to the benefit of any shareholder or other individual, one of the following shall be submitted:

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

(B) 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 nonprofit agency may inure to the benefit of any shareholder or other individual.

(iv) A certification that the nonprofit agency will not use wage certificates authorized under section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)) to employees on any contract or subcontract awarded under the AbilityOne Program.

(2) A State-owned or State-operated nonprofit agency, or a nonprofit agency established or authorized by a State statute other than the State corporation laws and not privately incorporated, 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 nonprofit agency, as applicable:

(i) A certified true copy of the State statute establishing or authorizing the establishment of nonprofit agency(ies) for persons who are blind or have other severe disabilities.

(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 or local government agency, a certified true copy of implementing regulations, operating procedures, notice of establishment of the nonprofit agency, or other similar documents.

(b) The Committee shall review the documents submitted and, if they are acceptable, notify the nonprofit agency by letter, with a copy to its central nonprofit agency, that the Committee has verified its nonprofit status and certification under paragraph (a)(1)(iv) of this section under the under the Javits-Wagner-O'Day Act.

(c) A nonprofit agency shall submit two completed copies of the appropriate Initial Certification (Committee Form 401 or 402) to its central nonprofit agency at the time designated by the Committee. This requirement does not apply if a nonprofit agency is already authorized to furnish a commodity or service under the JWOD Act.

[56 FR 48980, Sept. 26, 1991, as amended at 59 FR 59342, Nov. 16, 1994; 87 FR 43433, July 21, 2022]

Notes of Decisions

Cited in 4 cases, 2005–2020 · leading case: Goodwill Indus. Servs. Corp. v. Comm. for Purchase From People Who Are Blind or Severely Disabled, 378 F. Supp. 2d 1290 (D. Colo. 2005).

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Goodwill Indus. Servs. Corp. v. Comm. for Purchase From People Who Are Blind or Severely Disabled, 378 F. Supp. 2d 1290 (D. Colo. 2005). “§ 48b(3)-(4) and the regulatory criteria set forth at 41 C.F.R. §§ 51-4.2 ,and 51-4.3 in order to qualify for the JWOD Program.”

Akima Intra-Data, LLC v. United States, 119 Fed. Cl. 520 (Fed. Cl. 2014). “§ 8501 (6); see also 41 C.F.R. §§ 51-4.2 , 51-4.3. While exceptions may be made on a case-by-case basis, 'CFP policy “expects that the vast majority of individual AbilityOne Procurement List projects (fulfilling products or services) are performed with a direct labor ratio of at…”

Top Gun Servs., LLC v. United States (Fed. Cl. 2020). “§ 8501 (6); see also 41 C.F.R. §§ 51-4.2 (procedures for initial qualification), 51-4.”

Patriot Resource Partners II, LLC v. Serv. Disabled Vets. Bus. Assocs., Inc., 635 F. Supp. 2d 815 (N.D. Ill. 2009). “” 41 CFR 51-4.2. Defendant maintains that this provision prohibits the profit-split arrangement as the resulting profit inures to the benefit of Dan Kennison and Jim Garvey.”

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