FEDERAL PRISON INDUSTRIES, INC. (FPI) MISCELLANEOUS PRODUCT CATEGORIES FOR CLOTHING AND TEXTILES, ELECTRONICS, GRAPHICS AND SERVICES, AND METALS FEDERAL PRISON INDUSTRIES, INC. (FPI) This notice serves to announce that the Board of Directors for FPI has formally approved the establishment of "other miscellaneous products" categories in the program areas of clothing and textiles, electronics, graphics and services, and metals. On September 25, 1998, FPI submitted a notice to the Commerce Business Daily regarding the recommendation by Urbach, Kahn & Werlin (UKW) that FPI seek Board of Directors' approval to create an "other miscellaneous products" category. The notice appeared in the September 29, 1998, printed version of the CBD. The notice explained that UKW made this recommendation because FPI's industry involvement guidelines process is lengthy and can take eight months or more to complete. In the interim, small insubstantial manufacturing opportunities are lost if the product in question meets the definition of a "new product" for FPI, since FPI may not produce a "new product" without first initiating the industry involvement guidelines process and obtaining approval from the Board of Directors. The notice explained that the creation of miscellaneous products would allow FPI to manufacture small quantity and/or dollar value items that will not negatively impact the private sector, as well as assist FPI to diversify from traditional industries. FPI concurred with UKW's recommendation, and proposed establishment of a miscellaneous products category for several of its major program areas (clothing and textiles, electronics, graphics and services, and metals). The total miscellaneous category for each of the product areas cannot exceed $2 million. This dollar threshold is established at a level that will not adversely impact on any single industry. The $2 million can be divided among several items in that product area as long as one individual item's production does not exceed $1 million. The notice requested that interested parties submit any comments regarding this matter to FPI within 45 days of the notice's publication. FPI has receivedno comments on the matter. For the reasons discussed in the earlier announcement and in light of FPI receiving no comments regarding this matter, FPI's Board of Directors formally ratified the establishment of "other miscellaneous products" categories in the program areas of clothing and textiles, electronics, graphics and services, and metals during its meeting on January 28, 1999, in Tallahassee, Florida. As discussed in FPI's expansion guidelines, any interested party has a right to raise any 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 06/03/99 (W-SN338710).

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