Section 508 Likely to Have Major Impact on Federal Information Technology Market
 
June 27, 2001
 

Section 508 of the Rehabilitation Act requires, as of June 25, 2001, that all electronics and information technology sold to the federal government - including hardware, software, Web sites, telecommunications equipment and automated office devices - be accessible to the disabled. Unless an agency finds that buying accessible information technology would impose an "undue burden" on the agency, or another exception applies, all federal agencies are required by law to buy accessible technology. This new requirement will have a substantial impact on the federal market for information technology.

What Technology Is Covered by Section 508?

Section 508 of the Rehabilitation Act requires that when a federal agency develops, procures, maintains or uses electronics and information technology, that technology must be accessible to the disabled, unless an undue burden would be imposed on the agency. The Architectural and Transportation Barriers Compliance Board - commonly known as the Access Board - has issued the "Access Board Standards," 65 Fed. Reg. 80500 (Dec. 21, 2000), which are available at http://www.section508.gov. Any electronics and information technology bought by the federal government are covered by the new standards, including:

• software, including operating systems

• Web pages and Internet-based applications

• telecommunications equipment

• video and multimedia equipment

• office equipment, such as kiosks and copiers

• desktop and portable computers

Thus, any manufacturer or supplier of electronics or information technology sold to the federal government should be concerned about these rules.

What Contracts Are Covered?

The Access Board Standards were unclear whether old, as well as new, contracts are covered by the standards. The FAR Council has issued a separate rule, an amendment to the Federal Acquisition Regulation (FAR) (also available at http://www.section508.gov), which addresses this and other contractual issues. 66 Fed. Reg. 20894 (Apr. 25, 2001).

The FAR rule states that the Section 508 requirements will apply to:

• all contracts awarded after June 25, 2001

• all task and delivery orders issued after June 25, 2001, on any existing Indefinite Delivery/Indefinite Quantity (IDIQ) contracts.

The FAR rule makes it clear that the GSA schedules contracts are considered to be IDIQ contracts. Thus, new orders issued against existing GSA schedules after June 25, 2001, will be covered by the new requirements. If a contractor has an existing GSA schedule contract offering electronics or information technology, the government will require that all products and services sold from the schedule be accessible.

What Exceptions Are There to Section 508?

Several important exceptions (or limits) to Section 508 include:

• Undue Burden. Agencies need not purchase accessible products if doing so will impose an "undue burden." Generally speaking, the requirements official - typically the program office - is to conduct the "undue burden" analysis, and to report any finding of undue burden to the contracting (or procuring) officials. This means that contractors should address this issue of undue burden early in their discussions with agency officials.

• National Security and Intelligence Systems. Section 508 requirements will not apply to national security and intelligence systems, but will apply to normal business systems within defense agencies, for example.

• No Commercial Availability. When an agency is buying commercial items, and no accessible products are available in the marketplace, the agency need not apply Section 508.

• Micro-purchases. Until January 1, 2002, purchases at or below the micro-purchase level ($2,500) will not be covered by Section 508.

There is a great deal of uncertainty as industry and government rush to comply with the new rules. It will take months to sort out how the rules will be interpreted and implemented. In the meantime, contractors will be well advised to be aware of the requirements and to make sure that their products are in compliance.