FEDERAL PRISON INDUSTRIES, INC. (FPI) BIVY COVER CBD ANNOUNCEMENT On March 11, 1997, FEDERAL PRISON INDUSTRIES, INC. (FPI), sent a letter to all known and interested parties announcing its intent to consider production of bivy covers. The letter requested background information and data for the purpose of measuring FPI's impact on private sector bivy cover producers. FPI has received one response from its request. While information preliminary to preparation of a market study was solicited, the guidelines process has not been formally undertaken, with the announcement and promulgation of a market study. On March 12, 1997, in the Federal Register, FPI published its interim definitions, including the definition of a new product. In accordance with this interim procedure, FPI is announcing its intent to manufacture bivy covers and is requesting any information relevant to FPI manufacturing this item. After reviewing its current production, FPI has concluded it manufactures items which are classified in the same Federal Supply Classification (FSC) code as the bivy cover, FSC 8465 -- Individual Equipment, which includes bags and covers. The bivy cover is also within FPI's current capabilities and is closely related to bags and covers manufactured by FPI. These items are classified in FSC 8105 -- Bags and Sacks, and 8415 -- Clothing Special Purpose. Consistent with its interim definitions, FPI plans to classify this item -- bivy covers -- as part of its production of the specific product "Miscellaneous Bags and Covers," and therefore will not consider it production of a new product. "Good Faith" CBD Announcements -- Items not deemed by FPI to be a new product: Under the new rules as published in the Federal Register on March 12, 1997 (PP. 11465-11471), FPI committed to announce items in the CBD which an affected party may construe to be a new product, even though FPI does not consider it to be a new product. Therefore, the purpose of this announcement is to give industry an opportunity for input into the decision by FPI to produce the item and not to undertake a market study. Comments are now invited. All comments should be received within 21 days of the date of this publication. Please send your comments to: Federal Prison Industries, Planning, Research and Activation, Attn: E.J. Spear, 320 First Street, N.W., Washington, D.C. 20534. All comments will be forwarded to FPI's Board of Directors for consideration.

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