520 - Supplies manufactured and services performed by persons with disabilities.

     § 520.  Supplies manufactured and services performed by persons                with disabilities.        (a)  General rule.--            (1)  Contracts for supplies manufactured by and services        performed by persons with disabilities shall be entered into        in accordance with this section without the requirement for        competitive bidding. Persons with disabilities must make an        appreciable contribution in manufacturing an item or        performing a service.            (2)  When the Commonwealth enters into a contract under        this section with a cost exceeding $300,000 per year, the        department, in cooperation with the purchasing agency, shall        conduct an annual review to confirm compliance with the        contract and the requirements of this section. The annual        review shall include, but not be limited to, an assessment of        all requirements related to appreciable contribution. If the        department, in cooperation with the purchasing agency,        determines that persons with disabilities are not making an        appreciable contribution in the manufacturing of an item or        the performance of a service or an agency for persons with        disabilities is not in compliance with other requirements of        this section, the department shall give an agency for persons        with disabilities 45 days in which to remedy the deficiency.        If the agency for persons with disabilities fails to remedy        the deficiency within 45 days, the agency for persons with        disabilities shall be deemed to be in noncompliance with the        contract, and the purchasing agency may terminate the        contract and seek to procure the item or service through a        competitive bidding process. Nothing in this section shall        preclude a purchasing agency from procuring an item or        service through an emergency contract when an agency for        persons with disabilities is deemed to be in noncompliance.        (b)  Fair market price.--Upon request to the department and     notice to the purchasing agency, the department shall determine     the fair market price of any supply manufactured by or service     performed by persons with disabilities and offered for sale to     any Commonwealth agency by an agency for persons with     disabilities. The department shall revise the prices in     accordance with changing market conditions.        (c)  Distribution.--At the request of the department, the     Department of Public Welfare or a nonprofit agency with the     approval of the Department of Public Welfare shall facilitate     the distribution of orders for supplies manufactured by or     services performed by persons with disabilities among agencies     for persons with disabilities.        (d)  Procurement of supplies manufactured and services     performed by persons with disabilities.--Except as provided in     subsection (e), all supplies manufactured by and services     furnished by persons with disabilities shall be procured in     accordance with applicable specifications of the department or     other Commonwealth agencies from any agency for persons with     disabilities whenever the supplies and services are available at     a price determined by the department to be the fair market     price. The head of a purchasing agency shall annually discuss     its needs for supplies or services with any agency for persons     with disabilities.        (e)  Procurement from Commonwealth agency.--If any supply     manufactured by or any service performed by persons with     disabilities and offered for sale is available for procurement     from any Commonwealth agency and this part or any other statute     requires the procurement of the supply or service from the     Commonwealth agency, then the procurement of the supply or     service shall be made in accordance with the other provisions.        (f)  Exception.--Notwithstanding subsection (h), when the     Commonwealth enters into a contract under this section for the     operation of the Commonwealth's driver's license photo centers,     at least 70% of the amount paid by the Commonwealth shall be     used to cover payment of wages and salaries to persons with     disabilities and to cover actual manufacturing costs, real     estate lease costs, property insurance and other costs which are     specifically required by contract.        (g)  Application.--            (1)  This section shall not supersede any contract        currently in force between a Commonwealth agency and another        party.            (2)  Nothing in this section shall be construed as        conferring upon any party any right or interest in any        contract entered into with the Commonwealth.        (h)  Definitions.--As used in this section, the following     words and phrases shall have the meanings given to them in this     subsection:        "Agency for persons with disabilities."  Any charitable,     nonprofit agency incorporated under the laws of this     Commonwealth and approved by the department through which     persons with disabilities manufacture supplies or perform     services in this Commonwealth.        "Appreciable contribution."            (1)  In addition to paragraph (2), the department shall        determine whether the contribution by individuals with        disabilities is appreciable. Persons with disabilities must        make an appreciable contribution in manufacturing a supply or        performing a service.            (2)  At least 75% of the personnel either engaged in the        direct labor of manufacturing of a supply or engaged in the        direct labor in performing a service in this Commonwealth        must be visually impaired, mentally retarded or physically        disabled. In addition, at least 75% of the amount paid by the        Commonwealth agency for the supply or the service shall be        remitted to the agency for persons with disabilities to cover        payment of wages and salaries to persons with disabilities        and to cover other actual manufacturing costs incurred by the        agency for persons with disabilities in manufacturing of a        supply.        "Manufactured."  The transformation of raw materials or the     assembly of essential component parts or a combination of both     in the production of a supply which is different in form,     composition or character from the raw materials or the essential     component parts. This definition applies only to the assembly of     a supply.        "Mentally retarded."  Subaverage general intellectual     functioning which originates during the developmental period and     is associated with the impairment of maturation, learning or     social adjustment.        "Performed."  Labor provided to do the work to fulfill the     requirements of the contract.        "Persons with a disability."  A person who is visually     impaired, mentally retarded or physically disabled.        "Physically disabled."  A limitation of most activities and     functioning by virtue of a severe impairment of the various     bodily systems which cannot be eliminated, modified or     substantially reduced by the usual rehabilitation services and     which precludes competitive employment.        "Services."  While "services" is defined in section 103     (relating to definitions), for the purposes of this section, the     term specifically includes such packaging or repackaging which,     as determined by the department, provides a substantial and real     benefit to the Commonwealth agency which needs the supplies to     be packaged or repackaged. When packaging or repackaging     services are to be provided to a Commonwealth agency by an     agency for persons with disabilities, the Commonwealth agency     shall make the arrangements for the procurement of the supplies     to be packaged or repackaged. Packaging or repackaging shall not     be considered "services" if the manufacturer usually packages or     repackages the supplies in the quantity required by the agency     as a part of its manufacturing and distribution process. This     definition applies only to the packaging or repackaging of a     supply.        "Supply manufactured by or service performed by person with     disabilities."  (Deleted by amendment).        "Visually impaired."  A condition in which central visual     acuity does not exceed 20/200 in the better eye with correcting     lenses or in which the widest diameter of the visual field     subtends an angle no greater than 20 degrees.     (Dec. 9, 2002, P.L.1340, No.159, eff. 30 days)        Cross References.  Section 520 is referred to in section 511     of this title.