FEDERAL PRISON INDUSTRIES, INC. (FPI) "GOOD FAITH" NOTICE FOLLOW-UP ON WINDOW FRAMES

Notice Date

September 29, 2000

Contracting Office

Federal Bureau of Prisons, 320 First Street, N.W., UNICOR, Attn: Todd Baldau, Washington,D.C. 20534

ZIP Code

20534

Description

On August 29, 2000, the Commerce Business Daily published a "good faith" notice regarding FPI's proposal to manufacture window frames for sale to the Federal Bureau of Prisons (BOP). The notice explained that in 1996, FPI's Board of Directors granted approval for FPI to initiate production of steel doors and frames for sale to the BOP. The notice further stated that FPI's Board had authorized FPI to produce steel doors and frames as defined in an impact study prepared by FPI. As explained in the August 29th notice, when the impact study on doors and frames was completed, 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." The August 29th notice stated that FPI had received approval from its Board of Directors to reexamine this issue. As discussed in the August 29th notice, there were 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. As a result, FPI did not believe window frames met the criteria of a "new product" as set forth in FPI's expansion guidelines. However, FPI recognized that a reasonable person may construe window frames to be a product separate and distinct from any other item supplied by FPI. The August 29th notice requested that interested parties submit comments regarding the FPI's production of window frames. As specified by FPI's expansion guidelines, the August 29th notice stated that such comments were due within 21 days of the publication of the notice. The deadline for such comments was September 19th. FPI did not receive any comments in response to the notice. Therefore, for the reasons set forth in the August 29th notice, it is FPI's determination that window frames are not a "new product" as defined by FPI's expansion guidelines. FPI may manufacture window frames for sale to the BOP without obtaining prior approval from its Board of Directors. Window frames will be included within the specific product grouping "Steel Doors & Frames" and all sales will count toward the production ceiling established by the Board of Directors. As discussed in FPI's guidelines, any interested party has the right to raise any question at any time with FPI's Board of Directors.

Record

Loren Data Corp. 20001003/SPMSC005.HTM (W-273 SN502446)