November 16, 2001—The US Senate approved legislation in October, 2001, authored by Senator Carl Levin, (D-MI), which would end the Federal Prison Industry (FPI) monopoly over federal defense contracts so that products made by commercial firms can compete with products made by prison labor. The provision was included in the Department of Defense (DOD) authorization bill for FY02, and must be coordinated with the bill approved by the House.
The legislation would ensure that taxpayers get the best possible value for federal procurement dollars. If the Department of Defense could get an equal or better product at a lower price from the private sector, the bill would permit it to buy from the private bidder. Current law prohibits private companies from competing for any federal contract if FPI wants a monopoly.
The Competition in Contracting Act Coalition (CCAC), comprised of groups ranging from the AFL-CIO to the US Chamber of Commerce, publishes information on reform efforts of the Depression-era prison factory program at the CCAC Web site.
Based on a release prepared by US Senator Carl Levin’s office
