To amend title 18, United States Code, to permit Federal prisoners to engage in community service projects.

Amends the Federal criminal code to authorize the chief executive officer of a Federal penal or correctional facility, as part of an inmate work program, to provide products or services to private, nonprofit organizations or to State or local governments free of charge or at minimal cost.

Requires such products to be constructed through the use of scrap or waste materials that constitute excess property and such services to be used only for the benefit of the recipient. Prohibits such products from being resold or such services from displacing or resulting in a reduction in hours, wages, or employment benefits of any employee of the recipient. Prohibits the provision of goods or services by a Federal penal or correctional facility if such provision would reduce the number of inmates employed at any Federal Prison Industries operations at that facility.