Setting the Record Straight
We continue to stand fully behind our statements that the allegations being
made against SourceAmerica in recent media stories and ongoing litigation are
simply without merit. SourceAmerica conducts its business with the utmost
integrity and complies with federal and state requirements, including those
related
to the administration of the AbilityOne Program. SourceAmerica is continuing to
vigorously defend itself against these unfounded allegations.
Below are facts that set the record straight.
Investigations
Organizations like SourceAmerica that work with the federal government for
several decades are subject to routine audits and inspections, and can become
involved in occasional investigations. In its 42 years of existence,
SourceAmerica has never been found guilty of malfeasance, fraud, waste, abuse,
or
mismanagement by any government agency.
In 2011, SourceAmerica was initially contacted by the Office of the Inspector
General of the General Services Administration. The U.S. Department of Justice
informed SourceAmerica it is looking into allegations related to the AbilityOne
Program and SourceAmerica. We take these matters seriously. SourceAmerica
continues to cooperate with all federal government investigations and inquiries.
Statements on Robinson Tapes Quoted in Media
The statements and allegations in the tape recordings of Jean M. Robinson,
SourceAmerica's former General Counsel, that have been raised in some media
stories
and lawsuits are factually inaccurate and untrue.
Since select quotes from these tapes were first raised in meritless litigation
against SourceAmerica brought by one of the nonprofit agencies behind the
current smear campaign, we have worked hard to set the record straight by
providing the facts and pointing out that the allegations are false, unsupported
by facts, and uncorroborated. The other speaker on the tapes we are aware of is
Ruben Lopez, CEO/Executive Director of Bona Fide Conglomerate, Inc., one
of the disgruntled nonprofits currently involved in litigation against
SourceAmerica. Mr. Lopez appeared in a January 21, 2016 CNN story, in which he
made
several misleading and factually inaccurate statements. For instance, Mr. Lopez
indicated that a certain federal contract was taken away from his company,
Bona Fide Conglomerates. In fact, Bona Fide Conglomerates never had the
contract being discussed. A for-profit company owned by Mr. Lopez, which does
not
primarily employ people with significant disabilities, previously held the
contract. At the request of the contracting agency, the work is now performed
by a non-profit company employing people with significant disabilities through
the AbilityOne program, following a proper contract review and award process.
SourceAmerica conducts its business with the utmost integrity and complies with
all federal and state requirements, including those related to the
administration
of the AbilityOne Program. SourceAmerica is continuing to vigorously defend
itself against these unfounded allegations.
Nonprofit Agency Compliance with AbilityOne Program Requirements
Over 97 percent of nonprofit agencies in SourceAmerica's network are in
compliance with the applicable statute requiring the employment of persons with
significant disabilities.
The legislation (the Javits-Wagner-O'Day Act) that established the AbilityOne
Program and AbilityOne Program requirements mandate that 75 percent of ALL
work done by a nonprofit agency participating in the Program is performed by
individuals with significant disabilities. Compliance is measured using the
total number of non-managerial work hours done by a nonprofit agency. Nonprofit
agencies are required to submit annual certifications with their total
direct labor hours to the Commission, which, coupled with compliance audits
conducted by the Commission, enable the Commission to evaluate compliance with
statute and regulations.
Recent data from onsite-reviews conducted by SourceAmerica, certifications by
the individual nonprofit agencies and audits conducted by the Commission
demonstrates
widespread compliance. As of the end of FY15, 96.5 percent of the nonprofit
agencies in the SourceAmerica network met or exceeded the 75 percent ratio
requirement.
SourceAmerica's Role in Nonprofit Agency Compliance with AbilityOne Program
Requirements
Under federal regulations and AbilityOne Commission policies, SourceAmerica has
no investigatory or enforcement authority over nonprofit agencies awarded
AbilityOne contracts by the federal government. The nonprofit agencies are
independent 501(c)(3) organizations with their own Boards of Directors, and
operate separately from SourceAmerica.
SourceAmerica assists the Commission's compliance efforts through on-site
reviews. These reviews employ audit and oversight methodologies that meet or
exceed
industry standards. SourceAmerica reviews approximately 30 percent of its
nonprofit agencies annually, with virtually every nonprofit agency visited
within
a three-year period. Using risk based assessment methodologies during these
reviews a statistically sound sample of disability documentation is examined
to assist the Commission in its oversight and compliance role. In instances
where noncompliance concerns exist, SourceAmerica notifies the Commission which
has the legal oversight, authority and responsibility for enforcing AbilityOne
Program requirements. Nonprofit agencies out of compliance can be required
to testify before the Commission in open public meetings. Nonprofit agencies
that continue to be out of compliance may be subject to disciplinary actions,
including process improvement plans, removal of individual projects, and
ultimately removal of the nonprofit agency from the Program.
Integrity of Records Supplied by Nonprofit Agencies
SourceAmerica places a high value on integrity and has zero tolerance for any
actions that undermine its ability to create more employment opportunities
for people with disabilities.
SourceAmerica Support for Nonprofit Agencies in Our Network
As part of its support to its network agencies, SourceAmerica provides targeted
training and technical guidance, and assists the nonprofit agencies in
addressing
contract performance issues - including compliance concerns - that may arise.
On average, SourceAmerica staff annually visits nearly 200 of the roughly 500
nonprofit agencies with active AbilityOne projects to provide training and
technical guidance to ensure that every nonprofit agency with an AbilityOne
project receives the necessary amount of support to meet Program requirements.
The nonprofit agencies in turn provide training to persons with significant
disabilities, assist them in identifying employment options, and then enable
them to be successful through meaningful employment opportunities.
Award of Contracts to Nonprofit Agencies with an Employee on the SourceAmerica
Board of Directors
Over 94 percent of the AbilityOne Program projects (commonly understood as
"contracts") in FY15 were held by nonprofit agencies that did not have an
executive
or employee on the SourceAmerica Board of Directors. Specifically, as of the
end of FY15, SourceAmerica's nonprofit network was composed of 1,157 nonprofit
agencies that collectively held 2,703 AbilityOne Program projects. Only 150 of
these projects, or 5.6 percent, were held by a nonprofit agency with an
employee serving on the SourceAmerica Board of Directors. Additionally, over 93
percent of AbilityOne sales in FY15 were with nonprofit agencies that did
not have an executive/employee on the SourceAmerica Board of Directors.
This data clearly demonstrates that projects through the AbilityOne Program are
awarded to a large, broad, and diverse community of nonprofit agencies serving
people with significant disabilities.
Board of Directors' Role in AbilityOne Contract Evaluation and Recommendations
SourceAmerica's Board of Directors is not involved in the evaluation of
proposals for projects or recommendations of nonprofits for projects to the U.S.
AbilityOne Commission.
SourceAmerica staff conducts objective, robust, and detailed analyses of
proposals received from interested nonprofit agencies in its network, which may
result in recommendations to the Commission for new projects to be added to the
Procurement List (PL) and/or transfers of existing projects already on
the PL. In FY 2015, of the 120 recommendations made by SourceAmerica to the
Commission for the assignment of projects, ten (10) were attributable to a
nonprofit agency with an executive/employee on the SourceAmerica Board.
The SourceAmerica Board of Directors, consistent with best practices, is not
engaged in the organization's daily operations. The SourceAmerica Board has
no visibility into, or official role (formal or informal) or influence over
recommendations for projects. Although not required, the recommendation process
is designed to be consistent with processes utilized by the federal government
through Federal Acquisition Regulations. It is a robust, end-to-end, formal,
and controlled process with significant detail, structure, and checks and
balances to prevent undue influence from any one individual.
Portsmouth Circuit Court Ruling
On March 2, the parties in the PORTCO lawsuit (PORTCO v SourceAmerica)
participated in a critical hearing. After almost four years of litigation and
four
amended complaints on the part of PORTCO, the Court granted SourceAmerica's
Motion to Dismiss all but one of PORTCO's claims against SourceAmerica. The
court dismissed the claims for Tortious Interference, Fraud, Fraud in the
Concealment, and Specific Performance. There remains one count for breach of
contract related to an agreement dated in the 1990's.
We remain optimistic that the truth will prevail and that we will be successful
in dismissing or defending this remaining count, and ultimately protecting
the integrity of the AbilityOne Program from unsubstantiated attacks.
Court of Federal Claims Ruling
On October 28, 2015, the Court of Federal Claims unsealed a decision in favor
of SourceAmerica in a bid protest brought by NTI. The Judge's ruling reaffirmed
that SourceAmerica's nonprofit agency (NPA) recommendation process fully
complied with the law and that NTI's allegations in this case were untrue.
Key quotes from Judge Wheeler's opinion:
"The Court finds that SourceAmerica rationally evaluated the proposals, and
determined that Peckham's proposal was far superior to NTI's. SourceAmerica
adhered to the reevaluation instructions mandated by the Commission. NTI's
complaints about the procedures followed during the reevaluation are not
supported
by the administrative record. Accordingly, NTI's protest is DENIED."
"NTI has failed to meet its burden on any of its protest grounds and, in fact,
the administrative record instead supports judgment in the Government's and
Intervenors' favor. Specifically, SourceAmerica and the AbilityOne Committee's
decision to award this contract to Peckham was reasonable, coherent, and
rational based on the record evidence."
"As the record demonstrates, SourceAmerica and the AbilityOne Commission
carefully considered each proposal before selecting Peckham for this
opportunity.
By way of the nonprofit agencies' responses to SSN 2333, SourceAmerica and the
Commission evaluated the proposals according to each of the four regulatory
requirements within 41 C.F.R. § 51-2.4(a)(1)-(4). The evaluations,
recommendations, and decisions contained in the administrative record are
coherent and
provide very reasonable explanations for awarding the opportunity to Peckham.
Accordingly, the agencies' decision to add the HelpDesk Services, as performed
by Peckham, to the Procurement List was reasonable with a rational basis in
fact and law."
"The agencies made their decision in accordance with both these procedural
directives and the applicable statutory regulations."
SourceAmerica's Commitment to the People We Serve
SourceAmerica has provided employment opportunities for tens of thousands of
persons with significant disabilities for over four decades. More than 115,000
persons with significant disabilities are employed through SourceAmerica's
network of 1,157 nonprofit agencies.
SourceAmerica has conducted and continues to conduct business with the utmost
integrity and complies with all federal and state requirements, including
those related to the administration of the AbilityOne Program. Despite the
false and unsubstantiated allegations, the litigation, and the smear campaign
as spearheaded by two disgruntled nonprofits, SourceAmerica will not be
deterred from its mission to help create meaningful and integrated employment
opportunities
for persons with significant disabilities.
Last Updated: Friday, March 25, 2016
Source:
http://www.sourceamerica.org/setting-record-straight
