FEDERAL PRISON INDUSTRIES, INC (FPI) SALES CEILING FOR WORK CLOTHING In February, 1996, FPI's Board of Directors established ceilings for FPI's sales of work clothing covering FYs 1996-2000. The ceilings were as follows: FY 1996 -- $ 24.0 million; FY 1997 -- $ 31.3 million; FY 1998 -- $ 35.4 million; FY 1999 -- $ 38.0 million; and, FY 2000 -- $ 42.0 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 work clothing sales during the five-year period (FYs 1996 -- 2000) did not exceed $170.7 million. FPI's Board of Directors has adjusted the ceiling for FPI's sales of work clothing to the Federal government during FY 2001. The FY 2001 sales ceiling is based on the FY 2000 ceiling previously set by the Board. Specifically, the Board has taken the FY 2000 sales ceiling, and adjusted it for inflation for FY 2001. For FY 2001, FPI's work clothing sales ceiling is increased by 3%. This adjustment is consistent with FPI's guidelinesand with previous Board actions. FPI's FY 2001 work clothing sales ceiling will be $43.3 million. Additionally, the Board has reauthorized, from its earlier decision, the provision allowing FPI's work clothing sales to exceed the ceiling during a single year by an insubstantial amount, so long as FPI's aggregate work clothing sales during the five-year period (FYs 1997 -- 2001) do not exceed $190 million. FPI is currently researching the Federal market for work clothing items. Based on FPI's assessment of the market and inmate employment needs, FPI may request authorization from its Board of Directors to significantly expand production of work clothing. This would result in FPI's initiation of the public involvement guidelines process. FPI will continue to assess its potential sales for FYs 2001-2005 and will notify the Board if it appears that FY 2001 needs will exceed the current requested inflationary adjustment. 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 06/15/00 (W-SN465295).

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