PLASTIC TARGETS AS A COMPETITIVE PRODUCT FOR FPI On December 21, 1998, the Commerce Business Daily (CBD) published an announcement from Federal Prison Industries, Inc. (FPI) regarding FPI's production of products for the Federal government on a competitive (non-mandatory) basis. The announcement stated that FPI's Board of Directors had granted approval for FPI to competitively bid on products for which it did not rely on its status as a mandatory source provider. Under this procedure, FPI would not follow the public involvement guidelines process established by 18 U.S.C. 4122(b) which is required for new products FPI offers as a mandatory source. FPI is required to submit a notice in the CBD of its intentions to competitively produce products purchased by the Federal government. This notice announces FPI's intentions to produce plastic targets on competitive basis and not use its mandatory source status. In response to a request from the customer, the United States Army Tank-Automotive and Armaments Command (TACOM) FPI was asked to submit a price quote for NSN 6920-01-164-9625, "target man." TACOM indicated that it was encountering severe backlog and quality problems with its current supplier(s). FPI submitted a competitive bid and was ultimately awarded a contract for the "target man" by TACOM. Once a product is sold competitively by FPI, it remains a competitive product and will never be added to FPI's Schedule of Products as a mandatory source product. FPI will not attempt to exercise its mandatory source at some future point in time for this product, nor will it seek Board approval to expand production of the product by invoking the guidelines process at some later date. FPI's Board of Directors has determined that whatever share of the market FPI acquires on a competitive basis will be deemed to be a reasonable share of the market within the meaning of 18 U.S.C. 4122(b)(2). Sales of products manufactured under this procedure will be tracked and recorded separately by FPI as is the case for subcontracting and services, since such sales will not be subject to the market share limitations of the guidelines. Interested parties have a right to raise questions at any time with FPI's Board of Directors. Any correspondence should be addressed to: Manager, Planning, Research and Activation, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534. Posted 01/06/00 (W-SN413717).

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