FENCING AS A COMPETITIVE PRODUCT FOR FEDERAL PRISON INDUSTRIES, INC. (FPI)

Notice Date

August 8, 2001

Contracting Office

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

ZIP Code

20534

Description

In furtherance of the Board of Directors directive that Federal Prison Industries, Inc. (FPI) seek to pursue the creation of inmate jobs without mandatory source, the Commerce Business Daily (CBD) published an announcement on December 21, 1998, 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 perimeter security systems and fences on a competitive basis and not use its mandatory source status. This product encompasses all items included in Federal Supply Classification (FSC) code 5660 -- Fencing, Fences, and Gates. FPI was approached pursuant to FPI's ongoing business development initiative (CBD notice February 11, 2000) and entered into a partnership with Sentinel Products of Green Bay, Wisconsin, to manufacture this product. Several small businesses are participating with Sentinel Products in furtherance of this initiative. Inmate labor will be utilized for the weaving of fencing fabric. The partner's company will provide marketing, resource management, etc. This initiative will improve prospects for this company to obtain additional business. FPI will market perimeter security systems and fences to the Federal Bureau of Prisons and other Federal agencies. This is not an exclusive arrangement for Federal agency contracts. Other companies for fencing or other business areas are welcome to participate in such initiatives pursuant to the business development initiative program. Once a product is sold competitively by FPI, it remains a competitive product and will never be added to FPI's Schedule of Product 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. Other companies interested in utilizing inmate labor for Federal agency contracts should submit a business proposal under the business development initiative. The business development proposal should be submitted to Federal Prison Industries, Inc. For further information on FPI's production of perimeter security systems, please contact John Huotari, Contracting Officer, at 202-305-7258. Interested parties have a right to comment or raise questions at anytime with FPI's Board of Directors. All written correspondence should be addressed to: Chief Administrative Officer, Research, Activation, and Corporate Support, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534.

Record

Loren Data Corp. 20010810/SPMSC003.HTM (W-220 SN50U3F9)