| (a) A CRP desiring to provide services under the state
use program must comply with the following requirements to obtain
approval from the Agency's executive director or deputy executive
director:
(1) A minimum of 35 percent of the contract price of
the service must be paid to the individuals with disabilities who
perform the service in the form of wages and benefits;
(2) Supply costs for the service must not exceed 20
percent of the contract price of the service;
(3) Administrative costs allocated to the service must
not exceed 10 percent of the contract price for the service. The minimum
percentage required by the Agency of the hours of direct labor for
each contract necessary to perform a service must be performed by
individuals with disabilities;
(4) The Commission may establish a different percentage
other than 75 percent for each CRP at the time of initial certification
or subsequent re-certifications if the Commission determines that
a percentage other than 75 percent for the offered service is reasonable
based on consideration of factors, including, but not limited to:
(A) past practices in a particular area;
(B) whether other CRPs providing the same or similar
services have required or achieved a different percentage requirement;
(C) whether the Commission has established a policy
goal to encourage employment of individuals with disabilities in a
particular field; and
(D) the CRP proposes to offer employment opportunities
for individuals with disabilities that meet the WIOA definition of
CIE;
(5) Any necessary subcontracted services shall be performed
to the maximum extent possible by other CRPs and in a manner that
maximizes the employment of individuals with disabilities; and
(6) A detailed report will be submitted to the Agency
providing breakdown of 100 percent of contract dollars for services.
(b) A CRP must comply with the following requirements
to obtain approval for state use products:
(1) Either 75 percent or the minimum percentage required
by the Commission of the hours of direct labor, for each contract,
necessary to reform raw materials, assemble components, manufacture,
prepare, process, and/or package a product, must be performed by individuals
with disabilities;
(2) Appreciable contribution and value added to the
product by individuals with disabilities must be determined to be
substantial on a product-by-product basis, based on requested documentation
provided to the Agency upon application for a product to be approved
for the state use program;
(3) The Commission may establish a different percentage
from 75 percent for each CRP at the time of initial certification
or subsequent re-certifications if the Commission determines that
a percentage different from the 75 percent for the offered product
is reasonable based on consideration of factors, including, but not
limited to:
(A) past practices in a particular area;
(B) whether other CRPs providing the same or similar
products have required or achieved a different percentage requirement;
(C) whether the Commission has established a policy
goal to promote workplace integration for individuals with disabilities;
(D) whether the Commission has established a policy
goal to encourage employment of individuals with disabilities in a
particular field;
(E) the CRP proposes to offer employment opportunities
for individuals with disabilities that meet the WIOA definition of
CIE; and
(4) A detailed report will be submitted to the Agency
providing breakdown of 100 percent of contract dollars for products.
(c) The rules governing the approval of products to
be offered by a CRP apply to all items that a CRP proposes to offer
to state agencies or political subdivisions, regardless of the method
of acquisition by the agency, whether by sale or lease. A CRP must
own any product it leases. A proposal by a CRP to rent or lease a
product to a state agency is a proposal to offer a product, not a
service, and the item offered must meet the requirements of these
rules. If the product is offered for lease by the CRP, the unit cost
of the product, for purposes of applying the standards set forth in
these rules, is the total cost to the state agency of leasing the
product over its expected useful life.
(d) Raw materials or components may be obtained from
companies operated for profit, but a CRP must own any product that
it offers for sale to state agencies or political subdivisions through
the state use program and make an appreciable contribution to the
product that accounts for a substantial amount of the value added
to the product.
(e) Prior to the inclusion of a product or service
in the program, a CRP must describe the product or service that will
be provided through the program in sufficient detail for the Agency
to determine the item's suitability for inclusion in the program.
The Agency may consider those factors deemed necessary to the determination
of the program suitability of a product or service, including, but
not limited to, state and federal statutes governing state agencies,
geographic saturation of CRPs providing like products and services,
and whether the products and services will generate sufficient demand
to provide employment for individuals with disabilities.
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