Today, the U.S. AbilityOne Program is the largest collective source of employment for people with disabilities in the United States, currently employing nearly 40,000 people with disabilities at a time when unemployment for people with disabilities is nearly double the rate for the general population.

This study, conducted in partnership with the Virginia Tech Center for Economic and Community Engagement (CECE) and the Virginia Tech Institute for Policy and Governance (VTIPG), analyzes the federal investment in the AbilityOne Program at Melwood and its economic impact on Melwood’s employees with disabilities and on government spending.

KEY FINDINGS

By producing full-time employment opportunities and livable wages and through its lower turnover rate, employment at Melwood through the AbilityOne Program reduces government spending by $38,354 per person served per year. This return on value through Melwood’s program management is in addition to the contractual service the government is receiving from the AbilityOne contracts.

Melwood’s employees on AbilityOne contracts are on fewer government benefits than they would be otherwise. Key examples of this include Supplemental Security Income (SSI) saved due to less need by employees; Medicaid dollars saved because employees can participate in Melwood’s insurance; and SNAP benefits saved due to greater financial security. Melwood’s employees with disabilities on AbilityOne contracts are also paid at a much more competitive rate than individuals employed through traditional vocational rehabilitation programs.

Employment through the AbilityOne Program at Melwood transitions people from receiving government paid benefits into taxpayers. Annual taxes collected by state and federal government agencies from employee income and regional spending equals $9,655 per person served by Melwood’s operation of the program.

Due to fair, competitive wages through the federal government, Melwood’s employees on AbilityOne contracts have greater fiscal and economic impact. Because they earn more than they would in a private sector job, they have greater opportunity to participate in and contribute to the economy through income taxes and purchasing power. The increased labor income and regional spending from Melwood’s employees on AbilityOne contracts contribute $12,073 per person to gross regional product.

Melwood’s employees with disabilities on AbilityOne contracts are mentally and physically healthier in the long-term because they are more self-sufficient financially and physically than they would be without employment or in a less supportive, inclusive environment. This results in decreased burden on the public healthcare system and is evidenced in public healthcare savings.

Government customers receive equal or more reliable and consistent work with Melwood’s employees, resulting in lower turnover rates and a reduction in the volume of federal security check payouts.

The AbilityOne Program at Melwood alleviates mental and financial caregiving burdens, allowing family members and others in a caregiving position to more fully participate and contribute to the economy.

Melwood’s employees on AbilityOne contracts experience greater integration into society, leading to decreased stigmatization of people with intellectual and developmental disabilities.

METHODOLOGY

Melwood commissioned the Virginia Tech CECE and the VTIPG to conduct an impact study of the AbilityOne Program at Melwood. Based on Melwood’s described needs, the research team designed a cost-benefit analysis to assess the return on investment (ROI) of the program at Melwood and conducted a programmatic assessment that would inform how key components of the AbilityOne Program at Melwood contribute to public impact. The Virginia Tech research team drew from existing industry and academic literature, interviews with AbilityOne stakeholders, and Melwood operational data to identify and estimate the outcomes and impacts of the AbilityOne Program at Melwood. ROI findings represent a conservative estimate of programmatic impact, as many benefits of the AbilityOne Program could not be quantified or included in the model.

This study has not been endorsed by the U.S. AbilityOne Commission.

Download a full link to the study here.

Hear directly from Melwood’s employees on AbilityOne contracts and how the program has impacted their lives.