Chapter 4115-6 Approval of Central Nonprofit Agencies

4115-6-01 Approval of central nonprofit agency(ies).

(A) An applicant for approval as a central nonprofit agency shall complete and submit to the executive director of the committee a notarized application prescribed by the committee establishing all of the following:

(1) Certification by the secretary of state as a nonprofit corporation according to sections 1702.01 to 1702.58 of the Revised Code.

(2) Certification by the "Internal Revenue Service" indicating that the organization has been accepted as a nonprofit agency for taxation purposes.

(3) Employees and/or consultant(s) sufficient in numbers, qualifications, and knowledge to provide services required to carry out the responsibilities in rule 4115-5-03 of the Administrative Code.

(4) Practical knowledge of the state use program, including but not limited to:

(a) Operation of qualified nonprofit agencies;

(b) Experience in political subdivision contracting activity;

(c) Experience in state government contracting activity.

(5) Federal identification number.

(B) The application for approval shall also include all of the following:

(1) The organization's financial statement for the past two years.

(2) A business plan which clearly demonstrates the organization's ability to provide the following:

(a) To publish and distribute an annual catalog of goods and services on the committee's procurement list;

(b) Accounting and record keeping capabilities sufficient to meet the responsibilities in rule 4115-5-03 of the Administrative Code including, but not limited to, a well-documented background in cost accounting including experience in the following:

(i) Interpreting specifications.

(ii) Preparing, documenting and justifying bills of material and the associated costs.

(iii) Preparing, documenting and justifying bills of labor and associated costs.

(iv) Preparing, documenting and justifying bills of equipment and associated costs.

(v) Providing support documentation demonstrating competitiveness of costs.

(c) Ability to implement a compliance program including, but not limited to, the following:

(i) Comparing actual cost to the original cost proposal and/or budget.

(ii) Tracking and assessing compliance on hours worked by employees of the qualified nonprofit agency.

(iii) Assessing compliance to labor budgets or estimates.

(iv) Explaining how the applicant will perform an audit of supplies and equipment.

(v) Detailing the manner in which compliance reviews will be performed in all sites throughout the state.

(vi) Detailing the proposed frequency of compliance reviews.

(vii) Detailing the manner in which noncompliance will be reported to the qualified nonprofit agency, ordering office and committee.

(viii) Detailing the manner in which noncompliance situations will be resolved.

(d) Computer/data processing capability sufficient to perform all the responsibilities in rule 4115-5-03 of the Administrative Code.

(e) Sufficient communication systems and written procedures to perform the responsibilities in rule 4115-5-03 of the Administrative Code.

(f) A plan for developing and marketing products, services priced as products and services on a statewide scale within the context of a noncompetitive, socioeconomic set aside program.

(g) A plan for public relations programs to educate government entities on the availability of, and advantages to, purchasing products and services through the state use program.

(h) A plan for providing technical assistance and training programs to qualified nonprofit agencies. Technical assistance shall include, but not be limited to:

(i) Product and site-specific service cost accounting;

(ii) United States department of labor requirements;

(iii) Occupational safety and health administration requirements;

(iv) Competitive sourcing of supplies and equipment;

(v) Product and service development;

(vi) Committee requirements;

(vii) Quality management;

(viii) Contract site compliance;

(ix) Invoicing procedures.

(i) A plan for continuous quality improvement.

(j) A detailed line item budget.

(k) A statement, signed by an authorized person, committing the applicant to recruit and employ qualified people with severe disabilities.

(1) A statement, signed by an authorized person, that representatives of the applicant will attend all meetings of the committee and that the applicant will notify all qualified nonprofit agencies and ordering offices of the date, location and time a pertinent business item will be brought before the committee.

(m) A statement signed by an authorized person that the applicant's board shall welcome no more than two representatives of the committee, as appointed by the committee chair, to attend all board meetings, with the opportunity to present matters to the board.

(n) A statement, signed by an authorized person, that the applicant will provide services on a statewide basis.

(C) The applicant shall have a fully functional office geographically located in central Ohio capable of meeting all the needs and requirements of the state use program.

(D) Initial approvals of central nonprofit agency(ies) shall be valid for up to five years from the date of issuance, contingent upon passing annual evaluations pursuant to rule 4115-6-04 of the Administrative Code.

Eff 2-1-99; 4-8-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 4115.33 , 4115.35
Rule amplifies: RC 4115.31 to 4115.35
RC 119.032 review dates: 2/1/04, 1/23/04, 4/7/08

4115-6-02 Approval procedure for central nonprofit agency(ies).

(A) A joint subcommittee of six members shall recommend, in writing, action on applications to the committee. The joint subcommittee shall be composed of three representatives of the committee, appointed by the committee chair, and three representatives of qualified nonprofit agencies, appointed by the alliance of Ohio work centers for state use.

(B) No recommendation shall be made without a concurrence of a majority of the joint subcommittee members.

(C) Final action on applications for approval of the central nonprofit agency(IES) shall be made by the committee based upon the recommendation of the joint subcommittee.

(D) There shall be no more than two certified central nonprofit agencies at any one time.

(1) On February 1, 1999, one certification shall be available for issuance. All applications received by the deadline date set by the committee shall be considered, and the certification shall be issued to the applicant that the committee determines is the best qualified, under the procedure set forth in paragraphs (A) to (C) of this rule.

(2) A second certification may be available for issuance only upon the committee's finding that the growth of or requirements of the state use program require the existence of two certified central nonprofit agencies to efficiently and effectively meet the objectives of sections 4115.31 to 4115.35 of the Revised Code.

(E) A central nonprofit agency may, upon its discretion, surrender its certificate of approval at any time by submitting written notice to the committee, sent by certified mail, return receipt requested. The surrender shall become effective no earlier than one hundred eighty days after receipt by the committee.

(F) Upon the revocation or surrender of a certification, a replacement central nonprofit agency shall be approved in the manner provided under rules 4115-5-03 , 4115-5-04 , and 4115-6-01 to 4115-6-05 of the Administrative Code and shall be certified for up to a five-year term commencing on the date of its predecessor's withdrawal or termination. The replacement central nonprofit agency shall operate in compliance with the requirements of Chapters 4115-1 to 4115-7 of the Administrative Code.

Eff 2-1-99; 4-8-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 4115.33 , 4115.35
Rule amplifies: RC 4115.31 to 4115.35
RC 119.032 review dates: 2/1/04, 1/23/04, 4/7/08

4115-6-03 Renewal of central nonprofit agency(ies) approval.

(A) No later than sixty days prior to expiration of approval, a central nonprofit agency shall file with the executive director of the committee a completed application for renewal on a form prescribed by the committee. An application received after the sixtieth day may be considered if the committee chair determines, based upon information filed with the executive director of the committee no later than the sixtieth day, that extenuating circumstances prevented a timely filing and the application is received no later than forty-five days prior to expiration.

(B) The joint subcommittee shall review the renewal application and recommend to the committee that a certificate of approval be either issued for a period of up to five years or denied.

(1) The joint subcommittee shall recommend issuance of an approval if the application establishes all of the following:

(a) Ordering office satisfaction;

(b) Qualified nonprofit agency satisfaction;

(c) Satisfactory annual performance reviews pursuant to rule 4115-6-04 of the Administrative Code.

(2) No recommendation shall be made without a concurrence of a majority of the joint subcommittee members.

(C) Final action on applications for renewal of approval of central nonprofit agency(ies) shall be made by the committee, based upon the recommendation of the joint subcommittee. Denials of approval shall be in compliance with Chapter 119. of the Revised Code.

Eff 2-1-99; 4-8-04
Rule promulgated under: RC 119.03
Rule authorized by: RC 4115.33 , 4115.35
Rule amplifies: RC 4115.31 to 4115.35
RC 119.032 review dates: 2/1/04, 1/23/04, 4/7/08

4115-6-04 Annual evaluation of central nonprofit agency (ies).

(A) The joint subcommittee shall, prior to December thirty-first of each year, evaluate each central nonprofit agency on the following:

(1) Continued compliance with paragraph (A) of rule 4115-6-01 of the Administrative Code and Division (B) of section 4115.35 of the Revised Code;

(2) Implementation of the business plan submitted pursuant to paragraph (B)(2) of Rule 4115-6-01 of the Administrative Code;

(3) The elements of a marketing plan for the upcoming twelve month period including, but not limited to, sales projections;

(4) Ordering office satisfaction;

(5) Qualified nonprofit agency satisfaction.

(B) The joint subcommittee shall refer non-satisfactory evaluations to the committee. The joint subcommittee may, by a concurrence of a majority of its members, recommend, in writing, actions which may include, but not be limited to, the following:

(1) Adoption of a corrective action plan.

(2) Cancellation of approval of a central nonprofit agency.

(C) Final action on non-satisfactory evaluations shall be taken by the committee based upon the recommendation of the joint subcommittee. Cancellation of approval shall be made in compliance with Chapter 119. of the Revised Code. The committee's decision shall be sent to the central nonprofit agency(ies) by certified mail, return receipt requested. A cancellation of approval shall be effective one hundred eighty days following receipt of written notification by an affected central nonprofit agency.

R.C. 119.032 review dates: 01/23/2004 and 04/07/2008

Promulgated Under: 119.03

Statutory Authority: 4115.33 , 4115.35

Rule Amplifies: 4115.31 to 4115.35

Prior Effective Dates: 2/1/99

4115-6-05 Commission fees.

(A) Each central nonprofit agency shall collect a commission fee, which may be variable, on the sale of products, services priced as products and site-specific services on the committee's procurement list.

(B) Commission fees may be received in either of the following methods:

(1) A deduction, if the ordering office payment is directed through a central nonprofit agency;

(2) Direct payment from the qualified nonprofit agency.

(C) The rate of commission fees shall be set according to a schedule, approved by the committee, and reviewed at least annually. The rate may vary based upon, but not limited to, the following criteria:

(1) Market conditions.

(2) Type of contract:

(a) Product;

(b) Site-specific service;

(c) Service priced as product.

(3) Effort required by the central nonprofit agency:

(a) To initiate a contract;

(b) To maintain a contract;

(c) To obtain a renewal.

(4) Central nonprofit agency's compliance duties required by the ordering office.

(5) Effort necessary for the central nonprofit agency(ies) to comply with invoicing requirements by the ordering office.

(D) In determining the schedule, the committee shall consider the recommendations of the central nonprofit agency(ies), qualified nonprofit agencies and ordering offices.

Replaces: 4115-7-08

R.C. 119.032 review dates: 01/23/2004 and 04/07/2008

Promulgated Under: 119.03

Statutory Authority: 4115.33 , 4115.35

Rule Amplifies: 4115.31 to 4115.35

Prior Effective Dates: 9/29/77, 10/9/97, 2/1/99