GOOD FAITH ANNOUNCEMENT FEDERAL PRISON INDUSTRIES, INC. (FPI) Under the terms of FPI's expansion guidelines, published March 12, 1997, in the Federal Register and March 25, 1997, in the Commerce Business Daily, FPI submits the following "good faith announcement" for public notice and comment. FPI proposes to manufacture protective wear undergarments and classify them under FSC 8415 -- Special Purpose Clothing for sale to the Federal government. This product will be considered as Protective Clothing, subject to the limitations of the Protective Clothing Board decision. The FPI Board of Directors, on March 27, 1992, granted authority to FPI to begin production of protective clothing. The Board, on February 6, 1996, further authorized expansion of FPI's protective clothing program at the request of FPI and following the congressionally-mandated industry involvement process. FPI's protective clothing category includes garments that serve to protect the body from harm and damage. Protective clothing items are primarily includedin Federal Supply Classification (FSC) codes 8415, 8470, 8475, and 6532 . FPI is considering adding protective wear undergarments to its list of protective clothing. These undergarments are manufactured with a fabric that has special insulating capabilities to help control body temperature and moisture. While this item has been manufactured and marketed by some firms in the apparel industry as a specialized T-Shirt, this is not a fabric ordinarily used to make T-Shirts and other textile products. It is specifically used for its thermal efficiency in the production of active wear garments worn next to the body. These undergarments will be worn under body armor to act as a thermal barrier between the body and the ballistic vest. The undergarments are designed to keep the wearer dry and more comfortable, protecting the body from heat stress and dampness, thereby encouraging the use of the ballistic vest. Further, FPI will strictly limit the sale of this item to use ONLY under protective wear. FPI will not utilize this classification broadly to include other items made of this special fabric or sell the undergarments for use under non-protective clothing. For these reasons, FPI believes that these undergarments, designed and fabricated to act as a thermal regulator under protective wear, should be classified under FPI Protective Clothing as protective wear undergarments, FSC 8415 -- Special Purpose Clothing, and be subject to the limitations of the FPI Board of Directors Protective Clothing decision. However, FPI recognizes that a reasonable person may construe this item to be a product that should be classified separately from the other protective clothing items supplied by FPI. Under the terms of FPI's expansion guidelines, interested parties may submit comments regarding the proposed production and classification by FPI. In submitting comments to FPI, the following guidelines will apply: 1) Comments will be due within 21 days of the date of this notice; 2) Relevant comments will focus on and address why the items should be considered new products, separate and distinct from a similar item currently produced by FPI; 3) While the primary purpose of the comments will be to determine if the items should be defined as new products, comments related to market share and/or the impact resulting from such a production decision may also be considered relevant. All comments received in response to this announcement will be considered by FPI. 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 06/16/99 (W-SN343435).

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