December 22, 2004—Federal Prison Industries, Inc. (FPI) lost its “mandatory source status” recently when the Consolidated Appropriations Bill, HR 4818 (the omnibus bill), was signed into law by President Bush on December 8, 2004.
The Business and Institutional Furniture Manufacturers Association (BIFMA) International says that a more competitive procurement process will bring improved product offerings to all of government as a result of this change. BIFMA and a coalition of businesses and government agencies had long sought this reform allowing US federal agencies to use the standard government purchasing process rather than being required to buy FPI’s products.
The spending bill is composed of nine appropriation bills with one of these being the FY05 Transportation/Treasury Bill containing Section 637. The key paragraph ending mandatory source status is as follows:
“Section 637. None of the funds made available under this or any other Act for fiscal year 2005 and each fiscal year thereafter shall be expended for the purchase of a product or service offered by Federal Prison Industries, Inc. unless the agency making such purchase determines that such offered product or service provides the best value to the buying agency pursuant to government-wide procurement regulations, issued pursuant to section 25(c)(1) of the Office of Federal Procurement Act (41 U.S.C. 421(c)(1)) that impose procedures, standards, and limitations of section 2410n of title 10, United States Code.”
The coalition expressed its gratitude to Senator Richard Shelby and Representative Ernest Istook for supporting the inclusion of Section 637 in the final bill, as well as Representative Peter Hoekstra, Senator Carl Levin, and other Members of Congress. BIFMA says Rep. Hoekstra has pledged to continue seeking comprehensive reform to ensure that prisoners have valid work programs and the reforms achieved thus far remain uncompromised.
