FEDERAL PRISON INDUSTRIES, INC. (FPI) SALES CEILING FOR SYSTEMS FURNITURE FPI's Board of Directors has established a ceiling for FPI's sales of systems furniture to the Federal government during FY 2001. In February, 1996, FPI's Board of Directors established ceilings for FPI's sales of systems furniture covering FYs 1996-2000. The ceilings were as follows: FY 1996 -- $ 80 million; FY 1997 -- $ 100 million; FY 1998 -- $ 110 million; FY 1999 -- $ 120 million; and, FY 2000 -- $ 130 million. As part of its original decision, the Board allowed for FPI's sales to exceed the sales ceiling during a single year by an insubstantial amount, so long as FPI's aggregate systems furniture sales during the five-year period (FYs 1996 -- 2000) did not exceed $540 million. FPI's Board of Directors has based FPI's FY 2001 sales ceiling on the existing ceilings. Specifically, the Board has taken the FY 2000 sales ceiling, and adjusted it for inflation for FY 2001. For FY 2001, FPI's Board of Directors has increased the systems furniture sales ceiling by 3%. This adjustment is consistent with FPI's guidelines and with previous Board actions. FPI's FY 2001 systems furniture sales ceiling will be $133.9 million. Additionally, the Board has reauthorized, from its earlier decision, the provision allowing FPI's systems furniture sales to exceed the ceiling during a single year by an insubstantial amount, so long as FPI's aggregate systems furniture sales during the five-year period (FY 1997 -- 2001) do not exceed $593.9 million. FPI's Board of Directors believe this sales limit will allow FPI to meet its inmate employment mandate by adjusting its systems furniture 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 06/13/00 (W-SN464041).

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