FPI PRODUCTION OF TRUNKS FEDERAL PRISON INDUSTRIES, INC. (FPI) The Board of Directors for FPI has established maximum levels for FPI's sales of trunks to the Federal government through FY 2003. FPI's Board of Directors first approved FPI to manufacture and sell trunks to the Federal government in 1991. At that time, the Board restricted FPI's trunk sales to $6.4 annually through FY 1993. However, FPI's Board did not establish sales limits for trunks beyond FY 1993. Since it began production, FPI's annual sales of trunks have remained less than $6 million. After reviewing the original decision approving FPI to make trunks, FPI's Board has established maximum production levels for FPI's trunk sales through FY 2003. The Board used the original decision's $6.4 million annual sales limit, then adjusted it for inflation, calculated at 3% annually, starting in FY 1994. Using this formula, FPI's sales limit for trunks is as follows: FY 1994 -- $6,592,000; FY 1995 -- 6,789,760; FY 1996 -- 6,993,453; FY 1997 -- 7,203,256;FY 1998 -- 7,419,354; FY 1999 -- 7,641,935; FY 2000 -- 7,871,193; FY 2001 -- 8,107,328; FY 2002 -- 8,350,548; and, FY 2003 -- 8,601,064. FPI's Board of Directors believe these sales limits will allow FPI to meet its inmate employment mandate by adjusting its trunk sales to keep pace with rising costs, while not increasing its impact on the industry. As discussed in FPI's industry involvement guidelines, any interested party has a right to raise a question at any time with FPI's Board of Directors. All comments should be addressed to: Manager, Planning, Research and Activation, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534. Posted 12/16/98 (W-SN280773).

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