Schumer Convinces Defense Department to Act on Pricing Policy, Helping Save 30 Rochester Jobs Held by Disabled Workers, Veterans-New Policy Will Allow Rochester Non-Profit Unistel to Employ Additional Vets

Press Release

Today, U.S. Senator Charles E. Schumer announced that the Department of Defense's Defense Logistics Agency (DLA) has agreed to update a spice contract with Career Development Services (CDS) subsidiary Unistel, a Rochester non-profit, to more accurately reflect the cost of spices in the world market. Through an arrangement with the National Institute for the Severally Handicapped (NISH), Unistel employs 30 individuals that perform spice packaging and preparation under a contract administered by the DLA.

In the past year, the price of raw spices has risen by as much as 80%, but because of the locked price in the contract, Unistel was losing approximately $60,000 per month on their spice operation. As a result, CDS Unistel submitted a price adjustment request to the Defense Department approximately 10 months ago, so that raw material prices could better align with market prices. Schumer's office was notified by Unistel on June 29, 2011 that without DOD action, the non-profit company may be forced to close this operation and lay off its local workforce.

In response, Schumer immediately urged the Defense Logistics Agency to address the prices at which Unistel's spices can be sold, matching overall market prices. After his push, Schumer received news that DLA will do just that, which will keep Unistel in business and keep about 30 people with disabilities and 10 to 20 support staffers on the job. Schumer also notes that this news means that Unistel can move forward with plans to bring 9 additional disabled veterans on the job through the NISH sponsored Warrior Salute Program.

"This common sense decision will keep Rochester's disabled veterans at Unistel on the job and even allow the company to add more vets to the payroll," said Schumer. "Today's agreement is a win-win as it will allow the veterans who work on Unistel's spice packaging lines to keep their jobs, and allows Unistel to continue providing high quality spices to our armed forces at home and abroad. While unemployment continues to be a serious problem for our veterans, it is important that we do everything that we can to honor their service and ease their transition into civilian life once home in New York. I applaud the Department of Defense's Defense Logistics Agency in their decision."

"We are all very grateful for Senator Schumer's support of CDS and our services to our Veterans and people with developmental disabilities," said Sankar Sewnauth, President & CEO of Continuing Development Services (CDS), "His involvement now secures jobs for these great Americans."

On June 30th, Senator Schumer's office urged the DOD's Defense Logistics Agency to swiftly accept CDS' price adjustment request on behalf of Unistel, a local non-profit government contractor in Rochester, NY. In the past year, the price of raw spices has risen by as much as 80%, and Unistel was losing approximately $60,000 per month on their spice operation. Upon being notified of Unistel's pricing issues, Schumer's urged that this price adjustment request be granted immediately. This week, Schumer's office received a favorable response from the Defense Logistics Agency, which will prevent Unistel's entire spice producing and packaging operation from being shut down, and avoid job losses for about 30 disabled individuals, veterans and non-veterans alike, as well as 10-20 support staff. Also, Schumer notes that today's news will allow Unistel to move forward with plans that are in place through the NISH sponsored Warrior Salute Program, in which Unistel will employ 9 additional disabled veterans this year.

On June 29, 2011, Senator Schumer received a letter from a local non-profit CDS Unistel that provides jobs to the disabled community-including disabled vets through the federal Ability One program. CDS functions in a variety of capacities, including work under their subsidiary, Unistel, to prepare and package spices for the Armed Services. Unistel performs this spice packaging and preparation under a contract administered by the DLA (Defense Logistical agency) through an arrangement with the National Institute for the Severally Handicapped (NISH). Unistel packages about $3.5 million worth of spices for Prime Vendors who supply these products to the military.

In the last year, the costs of these raw spices have jumped dramatically, by as much as 80%, and Unistel has been experiencing dramatic losses. In the course of about 10 months, Unistel was losing approximately $60,000 per month on their spice operation, putting them on track to lose as much as $600,000 by the end of this year. Before Schumer's involvement, Unistel's entire spice operation was on the verge of closure and set to lay off 30 to 40 people. Schumer notes that avoiding these layoffs means that these disabled individuals, including veterans, can now avoid real hardship and loss of meaningful work and paychecks. It also enables CDS Unistel to focus on its mission to produce a needed government product by providing meaningful employment to people with developmental disabilities and veterans with post traumatic stress disorder (PTSD) and traumatic brain injuries.

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