FEDERAL PRISON INDUSTRIES, INC (FPI) "GOOD FAITH" ANNOUNCEMENT FOR WINDOW FRAMES Under the provisions of FPI's guidelines process, 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 window frames for sale to the Federal Bureau of Prisons (BOP). On June 13, 1996, FPI's Board of Directors granted approval for FPI to initiate production of steel doors and frames for sale to the BOP. FPI's Board authorized FPI to produce steel doors and frames as defined in an impact study prepared by FPI. The Board established a ceiling on FPI's steel door and frame sales of $5 million annually. When FPI completed the impact study on doors and frames, FPI did not expect to produce window frames. As a result, the impact study did not explicitly include window frames in its definition of "steel doors and frames." FPI has received approval from its Board of Directors to reexamine this issue. FPI wishes to encompass window frames within "steel doors and frames" as defined by its product guidelines. There are two primary reasons for FPI's request: 1) The impact study on steel doors and frames was completed in 1996, prior to the revision of FPI's expansion guidelines. Under the revised guidelines, the primary determinant of a "specific product" is an item's Federal Supply Classification (FSC) code, rather than an item's seven-digit Standard Industrial Classification (SIC) code. While window frames have a different seven-digit SIC code from steel doors and frames, both items are included within FSC 5670 -- Building Components, Prefabricated; 2) Under FPI's revised expansion guidelines, the secondary determinant of a "specific product" is an item's four-digit SIC code. Both window frames and steel doors and frames are included within SIC 3442 -- Metal Doors, Sash, Frames, Molding, and Trim. Since window frames share both the same FSC code and the same four-digit SIC code with steel doors and frames, FPI believes window frames do not meet the definition of a "new product" as set forth in its product guidelines. FPI believes it should be authorized to produce window frames for the BOP, with all sales counting toward the annual sales ceiling for steel doors and frames previously established by FPI's Board of Directors. However, FPI recognizes that a reasonable person may construe window frames to be a product separate and distinct from any other item supplied by FPI. Under the terms of FPI's expansion guidelines, interested parties may submit comments regarding the proposed production 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 window frames should be considered a new product, 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 item should be defined as a new product, 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. All commenters will be advised when FPI makes a final determination. 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 08/25/00 (W-SN490418).

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