What is “Severe Adverse Impact?
“Severe Adverse Impact” is a factor the Committee considers in determining whether a product or service is suitable for addition to the JWOD Program. It is a measure of impact such an addition would have on the current contractor for that item. The decision to place a commodity or service in a new procurement category, such as the JWOD or 8(a) Program, may have an adverse impact on the firm that currently supplies the item. The question is, “Is such impact severe?” The Committee defines severe adverse impact as the level of impact that might weaken the business base of the contractor to the extent that the firm’s viability could be jeopardized. Such a level of impact is not acceptable to the Committee. If the Committee determines that severe adverse impact might result from a proposed addition, the commodity or service in question may be dropped from consideration. Sometimes the Committee places only a portion of the Government requirement for a particular item on the Procurement List
