Up to 55 percent is the markup AbilityOne-affiliated nonprofits can apply to goods sold to federal agencies, per General Services Administration pricing data. Average annual pay for blind workers in the program runs approximately $33,000, per National Industries for the Blind figures; executive compensation at some participating nonprofits reached more than $1 million annually, per a GSA audit letter appendix, a ratio above 30 to 1. GSA Administrator Edward Forst is now demanding a full audit after the agency found technology manufactured in China listed on federal procurement platforms with "Country of Origin: USA."
| Metric | Figure | Source |
|---|---|---|
| Max markup on gov't sales | 55% | GSA |
| Avg. blind worker salary (annual) | ~$33,000 | National Industries for the Blind |
| Executive comp, select nonprofits | $500K to >$1M | GSA appendix |
| IBVI False Claims settlement (2020) | $1.9M | Reported |
| CW Resources settlement (2021) | $600K | Reported |
| AbilityOne response deadline | Nov. 16 | GSA letter |
Forst directed the U.S. AbilityOne Commission, in a letter dated Friday to Commission Chair Christina Brandt, to verify the country of origin of every product on its Mandatory Procurement List and to conduct pricing, sourcing, and compliance checks across all goods offered through GSA channels. AbilityOne oversees a federal purchasing program intended to generate employment for people who are blind or have significant disabilities; federal agencies are generally required to buy products on its mandatory list from participating nonprofits. The letter alleged some products provide "limited or no meaningful employment or value added to the taxpayer."
How foreign goods entered the mandatory list
GSA flagged an internal policy called "Essentially the Same," which allows product substitutions for items already approved for the mandatory list. According to the audit directive, foreign-made goods displaced American products through that mechanism, continuing to benefit from preferential purchasing rules while undercutting domestic manufacturers.
The audit flows from President Donald Trump's March 2026 executive order requiring accurate "Made in America" labeling in federal procurement. Vice President JD Vance's anti-fraud task force has also taken interest. GSA said it is instructing its Senior Procurement Executive to eliminate the exception that currently permits AbilityOne to offer items originating in China and other non-allied nations.
Two prior False Claims Act cases are drawing renewed attention alongside the current findings. Industries for the Blind and Visually Impaired, a Wisconsin nonprofit, paid $1.9 million in 2020 to resolve federal allegations of false claims and kickbacks on government contracts. CW Resources, based in Connecticut, paid $600,000 in 2021 to resolve allegations of false certification of AbilityOne labor requirements. GSA's current letter treats both settlements as separate from the country-of-origin findings now under review.
AbilityOne was given until November 16 to provide corrected country-of-origin data, address products with unclear origin designations, and submit documentation on its plans for ongoing compliance reviews. Neil Romano, acting chair of the National Council on Disability, called AbilityOne "a policy relic that hasn't kept up with the needs of Americans with disabilities" in a statement Friday. The commission had not responded to requests for comment at the time this story was reported.