Federal Committee Deletes Warehousing and Distribution Service from Procurement List, Impacting USDA Contracts

On October 22, 2026, the Committee for Purchase From People Who Are Blind or Severely Disabled, an independent federal agency, formally announced the deletion of a specific warehousing and distribution service from its Procurement List. This move, which becomes effective November 22, 2026, marks a significant shift in how the US Department of Agriculture's Food and Nutrition Service (USDA FNS) will procure these services in Alexandria, Virginia. The action follows a proposed notice published on September 17, 2026, and is mandated by federal statutes governing contracting with organizations employing individuals who are blind or have severe disabilities.

The Committee's Mandate and the Procurement List

The Committee for Purchase From People Who Are Blind or Severely Disabled operates under the authority of the Javits-Wagner-O'Day Act (41 U.S.C. 8501-8506), often referred to as the JWOD Act. This legislation aims to increase employment opportunities for individuals who are blind or have other severe disabilities by requiring federal agencies to purchase certain products and services from qualified nonprofit agencies that employ these individuals. The Procurement List is a catalog of these mandatory source products and services. When a service is added to this list, federal agencies are required to procure it from the designated nonprofit agency.

Deletions from this list, such as the one announced, signify a determination by the Committee that a service is "no longer suitable for procurement by the Federal Government" under the JWOD Act framework. Such decisions can arise from various factors, including changes in the nonprofit agency's capacity, modifications in the federal agency's needs, or a reassessment of the service's alignment with the Act's objectives.

Details of the Deleted Service

The specific service removed from the Procurement List is a Warehousing & Distribution Service. This service was previously mandatory for the US Department of Agriculture, Food and Nutrition Service, located at 1320 Braddock Place, Alexandria, VA. The authorized source of supply for this service had been Didlake, Inc., based in Manassas, VA. With the deletion, the USDA FNS will no longer be mandated to obtain these particular warehousing and distribution services exclusively from Didlake, Inc. This opens up the contracting process for this specific requirement.

Regulatory Impact and Future Procurement

In conjunction with the deletion, the Committee issued a Regulatory Flexibility Act Certification. This certification states that the action will not have a significant impact on a substantial number of small entities. The primary reasoning behind this certification highlights two key points. First, the deletion will not impose additional reporting, recordkeeping, or compliance requirements on small entities. Second, and crucially, the action "may result in authorizing small entities to furnish the service(s) to the Government." This suggests that the Committee anticipates the federal government may now seek bids from a broader range of providers, potentially including small businesses, for the warehousing and distribution needs of the USDA FNS in Alexandria.

The certification also noted that there are no known regulatory alternatives that would achieve the objectives of the JWOD Act in connection with the deleted service. This implies the Committee thoroughly reviewed the situation and concluded that removing the service from the mandatory Procurement List was the appropriate course of action, balancing the Act's goals with the specific circumstances of this service.

This deletion marks a procedural adjustment in federal procurement. It reflects the Committee's ongoing oversight to ensure the Procurement List remains relevant and effective in its dual mission of supporting employment for people with disabilities and meeting government needs. Federal agencies like the USDA FNS will now have increased flexibility in sourcing these particular services, while the broader objectives of the JWOD Act continue to guide the Committee's other procurement decisions.