Requires Federal agencies to solicit an offer from FPI for the purchase of a product or service offered by FPI in excess of the micro-purchase threshold. Requires a contract to be awarded for such product or service using competitive procedures, unless: (1) the Attorney General determines that the agency shall negotiate with FPI because FPI cannot reasonably expect fair consideration on a competitive basis or because the contract award is necessary to maintain work opportunities to prevent circumstances that could significantly endanger safe administration of the penal or correctional facility; or (2) the product or service is available only from FPI.
Requires FPI to comply with Federal occupational, health, and safety standards regarding its industrial operations.
(Sec. 3) Requires FPI's Chief Operating Officer to: (1) submit for the FPI's Board of Director's approval any proposal to authorize the sale of a new specific product or specific service or to expand production of a current product or service; and (2) include an analysis of the probable impact of such proposed expansion of FPI sales on private sector firms and their non-inmate workers. Specifies criteria for Board approval. Bars the Board from approving a proposal for inmates to provide a service in which an inmate worker has access to: (1) personal or financial information about individual private citizens; (2) geographic data regarding utilities; or (3) classified data.
(Sec. 4) Provides transitional mandatory source authority. Requires a Federal department or agency having a requirement for a product that is authorized for sale by FPI and that is listed in its catalog to solicit an offer from FPI and to award the contract on a non-competitive basis to FPI if: (1) the FPI product meets procurement requirements; (2) timely performance can be expected; and (3) the negotiated price is fair and reasonable. Sets forth provisions regarding negotiation of contractual terms and resolution of performance disputes. Reduces the ceiling on the percentage of FPI sales to the Government under such provisions from 90 percent in FY 2004 to 40 percent in FY 2008.
(Sec. 5) Authorizes FPI to perform as a Federal subcontractor or supplier. Prohibits: (1) commercial sales of a product or service resulting from the labor of inmate workers in violation of labeling requirements; and (2) requiring Federal prime contractors to use FPI as a subcontractor or supplier. Requires a Federal contractor using FPI as a subcontractor to implement appropriate management procedure to prevent introducing an inmate-produced product into the commercial market.
(Sec. 6) Requires the Board of Directors to prescribe the rates of hourly wages to be paid inmates performing work for or through FPI and for other work assignments within the various Federal correctional institutions.
(Sec. 7) Allows any prisoner work program operated by a prison or jail of a State or local jurisdiction which is providing services for the commercial market through inmate labor on October 1, 2001, to continue to provide such services until: (1) the expiration date specified in the contract with a commercial partner on October 1, 2001; or (2) September 30, 2004, if the prison work program is directly furnishing the services to the commercial market. Allows it to continue to provide inmate labor for that purpose if such program has been certified and is in compliance with specified requirements.
(Sec. 8) Grants FPI explicit statutory authority to produce products and provide services (currently, to produce commodities) for prison industry consumption or for Federal departments and agencies.
(Sec. 9) Amends the Federal criminal code to provide that prison employment provisions shall not be construed to: (1) entitle any inmate to FPI employment; (2) establish that inmates are employees for the purposes of any law or program; or (3) establish any cause of action by or on behalf of any inmate against the United States or any officer, employee, or contractor thereof.
(Sec. 10) Directs the Attorney General to establish the Federal Reentry Center Demonstration Project, which shall involve appropriate prisoners from the Federal prison population and shall utilize community corrections facilities, home confinement, and a coordinate response by Federal agencies to assist participating prisoners in preparing for and adjusting to reentry into the community.
(Sec. 11) Amends the Federal judicial code regarding the Department of Justice Assets Forfeiture Fund to authorize payments to the Bureau of Prisons exclusively for the purpose of establishing: (1) the Federal Enhanced In-Prison Vocational Assessment and Training Program in all Federal institutions; and (2) a nonprofit component for inmate work in all Federal institutions.
(Sec. 12) Restructures FPI's Board of Directors by increasing it to 11 directors (currently six) appointed by the President, including three members that represent the business community, three members that represent organized labor, one member with special expertise in inmate rehabilitation techniques, one member that represents crime victims, one member that represents the interests of Federal inmate workers, and two additional members whose background and expertise the President deems appropriate.
(Sec. 13) Requires the Director of the Bureau to afford to inmates opportunities to participate in programs and activities designed to help prepare such inmates to obtain employment upon release.
(Sec. 14) Authorizes FPI to: (1) locate more than one workshop at a Federal correctional facility; and (2) operate a workshop outside of a correctional facility if all of participating inmates are minimum security inmates.
(Sec. 15) Requires FPI's annual report to Congress to include: (1) analyses of total sales for each product and service, purchases by Federal agencies, disputes submitted to the heads of the Federal agencies, the inmate workforce, and the wages paid to inmates employed; and (2) data concerning employment obtained by former inmates upon release to determine whether FPI employment enabled such former inmate to earn a livelihood.
(Sec. 17) Sets forth a time line for: (1) revisions to the Government-wide Federal Acquisition Regulation to implement the changes made by this Act; and (2) FPI regulations defining specified product and service terms.
(Sec. 21) Directs the Comptroller General to have an independent study conducted on the effects of eliminating the FPI's mandatory source authority.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1577 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 1577
To amend title 18, United States Code, to require Federal Prison
Industries to compete for its contracts minimizing its unfair
competition with non-inmate workers and the firms that employ them and
increasing the likelihood that Federal agencies get the best value for
taxpayers dollars, to require that Federal Prison Industries fully and
timely perform its Government contracts by empowering Federal
contracting officers with the contract administration tools generally
available to assure full and timely performance of other Government
contracts, to enhance the opportunities for effective public
participation in decisions to expand the activities of Federal Prison
Industries, to provide to Federal agencies temporary preferential
contract award authority to ease the transition of Federal Prison
Industries to obtaining inmate work opportunities through other than
its mandatory source status, to provide additional work opportunities
for Federal inmates by authorizing Federal Prison Industries to provide
inmate workers to nonprofit entities with protections against
commercial activities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 24, 2001
Mr. Hoekstra (for himself, Mr. Frank, Mr. Collins, Mrs. Maloney of New
York, Mr. Sensenbrenner, Mr. Coble, Mr. Hilleary, Ms. Baldwin, Mr.
Jenkins, Mr. Kleczka, Mr. Tom Davis of Virginia, Mr. Rahall, Ms. Hart,
Mr. McGovern, Mr. Blunt, Mr. Gordon, Mr. Burr of North Carolina, Mr.
Smith of Washington, Mr. LaHood, Mr. Ney, Mr. Hilliard, Mr. LoBiondo,
Mr. Jones of North Carolina, Mr. English, Mr. Doyle, Mr. McHugh, Mr.
Ehlers, Ms. Carson of Indiana, Mr. Sessions, Mr. Camp, Mr. Kucinich,
Mr. Royce, Mr. Souder, and Mr. Tanner) introduced the following bill;
which was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 18, United States Code, to require Federal Prison
Industries to compete for its contracts minimizing its unfair
competition with non-inmate workers and the firms that employ them and
increasing the likelihood that Federal agencies get the best value for
taxpayers dollars, to require that Federal Prison Industries fully and
timely perform its Government contracts by empowering Federal
contracting officers with the contract administration tools generally
available to assure full and timely performance of other Government
contracts, to enhance the opportunities for effective public
participation in decisions to expand the activities of Federal Prison
Industries, to provide to Federal agencies temporary preferential
contract award authority to ease the transition of Federal Prison
Industries to obtaining inmate work opportunities through other than
its mandatory source status, to provide additional work opportunities
for Federal inmates by authorizing Federal Prison Industries to provide
inmate workers to nonprofit entities with protections against
commercial activities, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Prison Industries
Competition in Contracting Act of 2001''.
SEC. 2. GOVERNMENTWIDE PROCUREMENT POLICY RELATING TO PURCHASES FROM
FEDERAL PRISON INDUSTRIES.
Section 4124 of title 18, United States Code, is amended to read as
follows:
``Sec. 4124. Governmentwide procurement policy relating to purchases
from Federal Prison Industries
``(a) In General.--Purchases from Federal Prison Industries,
Incorporated, a wholly owned Government corporation, as defined in
section 9101(3)(E) of title 31, may be made by a Federal department or
agency only in accordance with this section.
``(b) Solicitation and Evaluation of Offers and Contract Awards.--
(1) When a procurement activity of a Federal department or agency has a
requirement for a specific product or service that is authorized to be
offered for sale by Federal Prison Industries, in accordance with
section 4122 of this title, and is listed in the catalog referred to in
subsection (g), the procurement activity shall solicit an offer from
Federal Prison Industries, if the purchase is expected to be in excess
of the micro-purchase threshold (as defined by section 32(f) of the
Office of Federal Procurement Policy Act (41 U.S.C. 428(f))).
``(2) A contract award for such product or service shall be made
using competitive procedures in accordance with the specifications and
evaluation factors specified in the solicitation (or other request for
offers), unless a determination is made by the Attorney General
pursuant to paragraph (3).
``(3) The procurement activity shall negotiate with Federal Prison
Industries on a noncompetitive basis for the award of a contract if the
Attorney General determines that--
``(A) Federal Prison Industries cannot reasonably expect to
receive the contract award on a competitive basis; and
``(B) the contract award is necessary to maintain work
opportunities otherwise unavailable at the penal or
correctional facility at which the contract is to be performed
to prevent circumstances that could reasonably be expected to
significantly endanger the safe and effective administration of
such facility.
``(4) A contract award shall be made with Federal Prison Industries
if the contracting officer for the procurement activity determines
that--
``(A) the prison-made product or service to be furnished
will meet the requirements of the procurement activity
(including any applicable prequalification requirements and all
specified commercial or governmental standards pertaining to
quality, testing, safety, serviceability, and warranties);
``(B) timely performance of the contract can be reasonably
expected; and
``(C) the contract price does not exceed a current market
price.
``(5) A determination by the Attorney General pursuant to paragraph
(3) shall be--
``(A) supported by specific findings by the warden of the
penal or correctional institution at which a Federal Prison
Industries workshop is scheduled to perform the contract;
``(B) supported by specific findings by Federal Prison
Industries regarding why it does not expect to win the contract
on a competitive basis; and
``(C) made and reported in the same manner as a
determination made pursuant to section 303(c)(7) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
253(c)(7)).
``(6) If the Attorney General has not made the determination
described in paragraph (3) within 30 days after Federal Prison
Industries has been informed of a contracting opportunity by a
procurement activity, the procurement activity shall conduct a
procurement for the product in accordance with the procedures generally
applicable to such procurements by the procurement activity.
``(c) Competitive Offers From Federal Prison Industries.--A timely
offer made by Federal Prison Industries shall be considered for award
in accordance with the applicable specification and evaluation factors
specified in any solicitation (or other request for offers).
``(d) Performance by Federal Prison Industries.--Federal Prison
Industries shall perform its contractual obligations under a contract
awarded by a Federal department or agency to the same extent as any
other contractor.
``(e) Finality of Contracting Officer's Decision.--(1) A decision
by a contracting officer regarding the award of a contract to Federal
Prison Industries or relating to the performance of such contract shall
be final, unless reversed on appeal pursuant to paragraph (2) or (3).
``(2) The Chief Executive Officer of Federal Prison Industries may
appeal to the head of a Federal department or agency a decision by a
contracting officer not to award a contract to Federal Prison
Industries pursuant to subsection (b)(4). The decision of the head of a
Federal department or agency on appeal shall be final.
``(3) A dispute between Federal Prison Industries and a procurement
activity regarding performance of a contract shall be subject to--
``(A) alternative means of dispute resolution pursuant to
subchapter IV of chapter 5 of title 5; or
``(B) final resolution by the board of contract appeals
having jurisdiction over the procurement activity's contract
performance disputes pursuant to the Contract Disputes Act of
1978 (41 U.S.C. 601 et seq.).
``(f) Reporting of Purchases.--Each Federal department or agency
shall report purchases from Federal Prison Industries to the Federal
Procurement Data System (as referred to in section 6(d)(4) of the
Office of Federal Procurement Policy Act (41 U.S.C. 405(d)(4))) in the
same manner as it reports to such System any acquisition in an amount
in excess of the simplified acquisition threshold (as defined by
section 4(11) of the Office of Federal Procurement Policy Act (41
U.S.C. 403(11))).
``(g) Catalog of Products.--Federal Prison Industries shall publish
and maintain a catalog of all specific products and services that it is
authorized to offer for sale. Such catalog shall be periodically
revised as products and services are added or deleted by its board of
directors (in accordance with section 4122(b) of this title).
``(h) Compliance With Standards.--Federal Prison Industries shall
comply with Federal occupational, health, and safety standards with
respect to the operation of its industrial operations.''.
SEC. 3. PUBLIC PARTICIPATION REGARDING EXPANSION PROPOSALS BY FEDERAL
PRISON INDUSTRIES.
Section 4122(b) of title 18, United States Code, is amended--
(1) by redesignating paragraph (6) as paragraph (11); and
(2) by striking paragraphs (4) and (5) and inserting the
following new paragraphs:
``(4) A decision to authorize Federal Prison Industries to offer a
new specific product or service or to expand the production of an
existing product or service shall be made by its board of directors in
conformance with the requirements of subsections (b), (c), (d), and (e)
of section 553 of title 5, and this chapter.
``(5)(A) Whenever Federal Prison Industries proposes to offer for
sale a new specific product or service or to expand production of a
currently authorized product or service, the Chief Operating Officer of
Federal Prison Industries shall submit an appropriate proposal to the
board of directors and obtain the board's approval before initiating
any such expansion. The proposal submitted to the board shall include a
detailed analysis of the probable impact of the proposed expansion of
inmate-work activities by Federal Prison Industries on private sector
firms and their non inmate workers.
``(B)(i) The analysis required by subparagraph (A) shall be
performed by an interagency team on a reimbursable basis or by a
private contractor paid by Federal Prison Industries.
``(ii) If the analysis is to be performed by an interagency team,
such team shall be led by the Federal Procurement Data Center with
representatives of the Department of Labor, the Department of Commerce,
and the Small Business Administration.
``(iii) If the analysis is to be performed by a private contractor,
the selection of the contractor and the administration of the contract
shall be conducted by one of the entities referenced in clause (ii) as
an independent executive agent for the board of directors.
``(C) The analysis required by subparagraph (A) shall identify and
consider--
``(i) the number of vendors that currently meet the
requirements of the Federal Government for the specific product
or service;
``(ii) the proportion of the Federal Government market for
the specific product or service currently furnished by small
businesses during the previous 3 fiscal years;
``(iii) the share of the Federal market for the specific
product or service projected for Federal Prison Industries for
the fiscal year in which production or performance will
commence or expand and the subsequent 3 fiscal years;
``(iv) whether the industry producing the specific product
or service in the private sector--
``(I) has an unemployment rate higher than the
national average;
``(II) has a rate of employment for workers that
has consistently shown an increase during the previous
5 years; or
``(III) has an import to domestic production ratio
of 25 percent or greater;
``(v) the total volume of domestic production during each
of the 5 previous years in the industry producing the specific
product or service in the private sector;
``(vi) whether the specific product is an import-sensitive
product;
``(vii) the requirements of the Federal Government and the
demands of entities other than the Federal Government for the
specific product or service during the previous 3 fiscal years;
``(viii) the projected growth or decline in the demand of
the Federal Government for the specific product or service;
``(ix) the capability of the projected demand of the
Federal Government for the specific product or service to
sustain both Federal Prison Industries and private vendors; and
``(x) whether authorizing the production of the new product
or performance of a new service will provide inmates with the
maximum opportunity to acquire knowledge and skill in trades
and occupations that will provide them with a means of earning
a livelihood upon release.
``(C)(i) The board of directors may not approve a proposal to
authorize the production and sale of a new specific product or
continued sales of a previously authorized product unless--
``(I) the product to be furnished is a prison-made product;
or
``(II) the service to be furnished is to be performed by
inmate workers.
``(ii) The board of directors may not approve a proposal to
authorize the production and sale of a new prison-made product or to
expand production of a currently authorized product if the product is--
``(I) produced in the private sector by an industry which
has reflected during the previous year an unemployment rate
above the national average; or
``(II) an import-sensitive product.
``(iii) The board of directors may not approve a proposal for
inmates to provide a service in which an inmate worker has access to--
``(I) personal or financial information about individual
private citizens, including information relating to such
person's real property, however described, without giving prior
notice to such persons; or
``(II) data that is classified, or that will become
classified after being merged with other data.
``(iv)(I) Federal Prison Industries is prohibited from furnishing
construction services relating to buildings, structures, or other real
property.
``(II) Geographic data regarding the location of surface and
subsurface infrastructure providing communications, water and
electrical power distribution, pipelines for the distribution of
natural gas, bulk petroleum products and other commodities, and other
utilities.
``(III) For purposes of this clause, the term `construction' has
the meaning given such term by section 2.101 of the Federal Acquisition
Regulation (48 CFR part 2.101), as in effect on June 1, 2000, including
the repair, alteration, or maintenance of real property in being.
``(6) To provide further opportunities for participation by
interested parties, the board of directors shall--
``(A) give additional notice of a proposal to authorize the
production and sale of a new product or expand the production
of a currently authorized product in a publication designed to
most effectively provide notice to private vendors and labor
unions representing private sector workers who could reasonably
be expected to be affected by approval of the proposal, which
notice shall offer to furnish copies of the analysis required
by paragraph (5) and shall solicit comment on the analysis;
``(B) solicit comments on the analysis required by
paragraph (5) from trade associations representing vendors and
labor unions representing private sector workers who could
reasonably be expected to be affected by approval of the
proposal to authorize the production and sale of a new product
or expand the production of a currently authorized product; and
``(C) afford an opportunity, on request, for a
representative of an established trade association, labor
union, or other representatives of private industry to present
comments on the proposal directly to the board of directors.
``(7) The board of directors shall be provided copies of all
comments received on the expansion proposal.
``(8) Based on the comments received on the initial expansion
proposal, the Chief Operating Officer of Federal Prison Industries may
provide the board of directors a revised expansion proposal. If such
revised proposal provides for expansion of inmate work opportunities in
an industry different from that initially proposed, such revised
proposal shall be subject to the public comment requirements of
paragraph (6).
``(9) The board of directors shall consider a proposal to authorize
the sale of a new product or service (or to modify the volume of sales
for a currently authorized product or service) and take any action with
respect to such proposal, during a meeting that is open to the public,
unless closed pursuant to section 5526 of title 5.
``(10) In conformity with the requirements of paragraphs (5)
through (9) of this subsection, the board of directors may--
``(A) authorize the donation of products produced by
Federal industries and available for sale; or
``(B) authorize the production of a new specific product
for donation.''.
SEC. 4. TRANSITIONAL PREFERENTIAL CONTRACTING AUTHORITIES.
(a) Preferred Source Status.--
(1) In general.--Subject to the limitations of paragraph
(3) and subsection (c), a Federal department or agency having a
requirement for a product or service that is authorized for
sale by Federal Prison Industries and is listed in its catalog
(referred to in section 4124(g) of title 18, United States
Code) shall first solicit an offer from Federal Prison
Industries on a noncompetitive basis during the period
specified in subsection (d).
(2) Contract award authority.--A contract award shall be
made to Federal Prison Industries if the contracting officer
for the procurement activity determines that--
(A) the prison-made product or service to be
furnished will meet the requirements of the procurement
activity (including commercial or governmental
standards pertaining to quality, testing, safety,
serviceability, and warranties as may be imposed upon a
private sector supplier of such product or service);
(B) timely performance of the contract can be
reasonably expected; and
(C) the negotiated contract price does not exceed a
fair and reasonable price.
(3) Limitation on use of authority.--As a percentage of the
total sales made by Federal Prison Industries during the base
period, the total dollar value of contract awards made pursuant
to this section shall not exceed--
(A) 90 percent in fiscal year 2002;
(B) 85 percent in fiscal year 2003;
(C) 70 percent in fiscal year 2004;
(D) 55 percent in fiscal year 2005; and
(E) 40 percent in fiscal year 2006.
(b) Additional Limitations on Use of Transitional Preferential
Contracting Authorities.--
(1) Sales within various business sectors.--Use of the
authority provided by subsection (a) shall not result in
contract awards to Federal Prison Industries that are in excess
of its total sales during the base year for each of its
business sectors.
(2) Limitations relating to specific products and
services.--Use of the authority provided by subsection (a)
shall not result in contract awards to Federal Prison
Industries for any specific product or service that are in
excess of its total sales during the base period for such
product or service.
(3) Total sales during each covered fiscal year.--The
preferential contracting authority provided by subsection (a)
shall not be available to make additional noncompetitive
contract awards whenever the dollar value of sales made by
Federal Prison Industries through competitive means exceed the
annual percentages specified in subsection (a)(3).
(c) Duration of Authority.--The preferential contracting authority
authorized by subsection (a) may not be used on or after October 1,
2007, and becomes effective on the effective date of the final
regulations issued pursuant to section 16(b).
(d) Definitions.--For the purposes of this section--
(1) the term ``base period'' means the total sales of
Federal Prison Industries during the period October 1, 1999 and
September 30, 2000 (Fiscal Year 2000).
(2) the term ``business sectors'' means the 5 product/
service groups identified in the 1999 Federal Prison Industries
annual report as Textile Products, Furniture Products,
Electronic Products, Metal Products, and Graphics/Services.
(3) the term ``fair and reasonable price'' shall be given
the same meaning as, and be determined pursuant to, part 15.8
of the Federal Acquisition Regulation (48 C.F.R. 15.8).
SEC. 5. INMATE WAGES AND DEDUCTIONS.
(a) In General.--The Director of the Federal Bureau of Prisons
shall prescribe the rates of hourly wages to be paid inmates performing
work for Federal Prison Industries and in other work assignments within
the various Federal correctional institutions.
(b) Periodic Adjustments to Wage Rates.--The various inmate wage
rates shall be reviewed and considered for increase on not less than a
biannual basis.
(c) Payment of Wages and Deductions.--Wages earned by an inmate
worker shall be paid in the name of the inmate. Deductions, aggregating
to not more than 80 percent of gross wages, shall be taken from the
wages due for--
(1) applicable taxes (Federal, State, and local);
(2) payment of fines and restitution pursuant to court
order;
(3) payment of additional restitution for victims of the
inmate's crimes (at a rate not less than 10 percent of gross
wages);
(4) allocations for support of the inmate's family pursuant
to statute, court order, or agreement with the inmate;
(5) allocations to a fund in the inmate's name to
facilitate such inmate's assimilation back into society,
payable at the conclusion of incarceration; and
(6) such other deductions as may be specified by the
Director of the Bureau of Prisons.
(d) Voluntary Participation in Federal Prison Industries.--Each
inmate worker working for Federal Prison Industries shall indicate in
writing that such person--
(1) is participating voluntarily; and
(2) understands and agrees to the wages to be paid and
deductions to be taken from such wages.
SEC. 6. CLARIFYING AMENDMENT.
Section 1761 of title 18, United States Code, is amended in
subsection (a), by striking ``any goods, and wares, or merchandise
manufactured, produced, mined'' and inserting ``products manufactured,
services furnished, or minerals mined''.
SEC. 7. CONFORMING AMENDMENT.
Section 4122(a) of title 18, United States Code, is amended by
striking ``production of commodities'' and inserting ``production of
products or furnishing of services''.
SEC. 8. AUTHORITY TO PERFORM AS A FEDERAL SUBCONTRACTOR.
(a) In General.--Federal Prison Industries is authorized to enter
into a contract with a Federal contractor (or a subcontractor of such
contractor at any tier) to produce products as a subcontractor or
supplier in the performance of a Federal procurement contract. The use
of Federal Prison Industries as a subcontractor or supplier shall be a
wholly voluntary business decision by the Federal prime contractor or
subcontractor, subject to any prior approval of subcontractors or
suppliers by the contracting officer which may be imposed by the
Federal Acquisition Regulation or by the contract.
(b) Commercial Sales Prohibited.--The authority provided by
subsection (a) shall not result, either directly or indirectly, in the
sale in the commercial market of a product or service resulting from
the labor of Federal inmate workers in violation of section 1762(a) of
title 18, United States Code. A Federal contractor (or subcontractor at
any tier) using Federal Prison Industries as a subcontractor or
supplier in furnishing a commercial product pursuant to a Federal
contract shall implement appropriate management procedures to prevent
introducing an inmate-produced product into the commercial market.
(c) Prohibitions on Mandating Subcontracting With Federal Prison
Industries.--The use of Federal Prison Industries as a subcontractor or
supplier of products or provider of services shall not be imposed upon
prospective or actual Federal prime contractors or a subcontractors at
any tier by means of--
(A) a contract solicitation provision requiring a
contractor to offer to make use of Federal Prison
Industries, its products or services;
(B) specifications requiring the contractor to use
specific products or services (or classes of products
or services) offered by Federal Prison Industries in
the performance of the contract;
(C) any contract modification directing the use of
Federal Prison Industries, its products or services; or
(D) any other means.
(d) Duration of Authority.--
(1) In general.--The authority provided by subsection (a)
may not be used to enter into a contract to perform as a
subcontractor or supplier on or after October 1, 2007, and
becomes effective on the effective date of the final
regulations issued pursuant to section 16(b).
(2) Completion of existing agreements.--Any agreement
entered into prior to the expiration date specified in
paragraph (1) may continue for the term specified in such
agreement.
SEC. 9. PROVIDING ADDITIONAL OPPORTUNITIES FOR VOCATIONAL AND REMEDIAL
EDUCATIONAL OPPORTUNITIES FOR INMATES.
(a) Amendment to the Department of Justice Assets Forfeiture
Fund.--Section 524(c)(1) of title 28, United States Code, is amended--
(1) in subparagraph (I), by inserting ``and'' after the
semicolon;
(2) by redesignating the second appearance of subparagraph
(I) as subparagraph (J); and
(3) by amending subparagraph (J) (as redesignated by
paragraph (2)) to read as follows:
``(J) payments to the Bureau of Prisons exclusively
for the purpose of providing, either directly or
through contract, additional vocational training and
remedial educational training for inmates during that
fiscal year.''.
(b) Priority Established.--During each fiscal after fiscal year
2002, the Attorney General shall allocate not less than 10 percent of
the excess unobligated balance in the Department of Justice Assets
Forfeiture Fund to the purpose specified in section 524(c)(1)(J) of
title 28, United States Code.
SEC. 10. ALLOCATION OF PROFITS TO VOCATIONAL TRAINING.
Section 4126 of title 18, United States Code (as amended by section
5) is further amended by adding at the end the following new
subsection:
``(h) Not less than 20 percent of the gross profits of the
corporation at the end of each fiscal year shall be allocated to fund
vocational training for inmates without regard to the type of work
activities to which they are assigned.''.
SEC. 11. RESTRUCTURING THE BOARD OF DIRECTORS.
Section 4121 of title 18, United States Code, is amended to read as
follows:
``Sec. 4121. Federal Prison Industries; Board of Directors: executive
management
``(a) Federal Prison Industries is a government corporation of the
District of Columbia organized to carry on such industrial operations
in Federal correctional institutions as authorized by its Board of
Directors. The manner and extent to which such industrial operations
are carried on in the various Federal correctional institutions shall
be determined by the Attorney General.
``(b)(1) The corporation shall be governed by a board of 7
directors appointed by the President with the advise and consent of the
Senate.
``(2) In making appointments to the Board, the President shall
assure that 3 members represent the business community, 3 members
represent organized labor, and 1 member shall have special expertise in
inmate rehabilitation techniques. The members of the Board representing
the business community shall include, to the maximum extent
practicable, representation of firms furnishing services as well as
firms producing products, especially from those industry categories
from which Federal Prison Industries derives substantial sales. The
members of the Board representing organized labor shall, to the maximum
practicable, include representation from labor unions whose members are
likely to be most affected by the sales of Federal Prison Industries.
``(3) Each member shall be appointed for a term of 5 years, except
that of members first appointed--
``(A) 2 members representing the business community shall
be appointed for a term of 3 years;
``(B) 2 members representing labor shall be appointed for a
term of 3 years;
``(C) 1 member representing the business community shall be
appointed for a term of 4 years;
``(D) 1 member representing the business community shall be
appointed for a term of 4 years; and
``(E) the members having special expertise in inmate
rehabilitation techniques shall be appointed for a term of 5
years.
``(4) The President shall designate 1 member of the Board as
Chairperson. The Chairperson may designate a Vice Chairperson.
``(5) Members of the Board may be reappointed.
``(6) Any vacancy on the Board shall be filled in the same manner
as the original appointment. Any member appointed to fill a vacancy
occurring before the expiration of the term for which the member's
predecessor was appointed shall be appointed for the remainder of that
term.
``(7) The members of the Board shall serve without compensation.
The members of the Oversight Board shall be allowed travel expenses,
including per diem in lieu of subsistence, at rates authorized for
employees of agencies under subchapter I of chapter 57 of title 5,
United States Code, to attend meetings of the Board and, with the
advance approval of the Chairperson of the Board, while otherwise away
from their homes or regular places of business for purposes of duties
as a member of the Board.
``(8)(A) The Chairperson of the Board may appoint and terminate any
personnel that may be necessary to enable the Board to perform its
duties.
``(B) Upon request of the Chairperson of the Board, a Federal
agency may detail a Federal Government employee to the Board without
reimbursement. Such detail shall be without interruption or loss of
civil service status or privilege.
``(9) The Chairperson of the Board may procure temporary and
intermittent services under section 3109(b) of title 5, United States
Code.
``(c) The Director of the Bureau of Prisons shall serve as Chief
Executive Officer of the Corporation. The Director shall designate a
person to serve as Chief Operating Officer of the Corporation.''.
SEC. 12. POST-RELEASE EMPLOYMENT ASSISTANCE.
(a) In General.--The Director of the Bureau of Prisons shall, to
the maximum extent practicable, afford to inmates opportunities to
participate in programs and activities designed to help prepare such
inmates to obtain employment upon release.
(b) Post-Release Employment Placement Assistance.--Such post-
release employment placement assistance required by subsection (a)
shall include--
(1) training in the preparation of resumes and job
applications;
(2) training in interviewing skills;
(3) training and assistance in job search techniques;
(4) conduct of job fairs; and
(5) such other methods deemed appropriate by the Director
of the Bureau of Prisons.
(c) Priority Participation.--Priority in program participation
shall be accorded to inmates who are participating in work
opportunities afforded by Federal Prison Industries and are within 12
months of release from incarceration.
SEC. 13. PROVIDING ADDITIONAL MANAGEMENT FLEXIBILITY TO FEDERAL PRISON
INDUSTRY OPERATIONS.
Section 4122(b)(3) of title 18, United States Code, is amended--
(1) by striking ``(3)'' and inserting ``(3)(A)''; and
(2) by adding at the end the following new paragraphs:
``(B) Federal Prison Industries may locate more than one workshop
at a Federal correctional facility.
``(C) Federal Prison Industries may operate a workshop outside of a
correctional facility if all of the inmates working in such workshop
are classified as minimum security inmates.''.
SEC. 14. FEDERAL PRISON INDUSTRIES REPORT TO CONGRESS.
Section 4127 of title 18, United States Code, is amended to read as
follows:
``Sec. 4127. Federal Prison Industries report to Congress
``(a) In General.--Pursuant to chapter 91 of title 31, the board of
directors of Federal Prison Industries shall submit an annual report to
Congress on the conduct of the business of the corporation during each
fiscal year and the condition of its funds during the fiscal year.
``(b) Contents of Report.--In addition to the matters required by
section 9106 of title 31, and such other matters as the board considers
appropriate, a report under subsection (a) shall include--
``(1) a statement of the amount of obligations issued under
section 4129(a)(1) of this title during the fiscal year;
``(2) an estimate of the amount of obligations that will be
issued in the following fiscal year;
``(3) an analysis of--
``(A) the corporation's total sales for each
specific product and type of service sold to the
Federal agencies and the commercial market;
``(B) the total purchases by each Federal agency of
each specific product and type of service;
``(C) the corporation's share of such total Federal
Government purchases by specific product and type of
service; and
``(D) the number and disposition of disputes
submitted to the heads of the Federal departments and
agencies pursuant to section 4124(e) of this title;
``(4) an analysis of the inmate workforce that includes--
``(A) the number of inmates employed;
``(B) the number of inmates utilized to produce
products or furnish services sold in the commercial
market;
``(C) the number and percentage of employed inmates
by the term of their incarceration; and
``(D) the various hourly wages paid to inmates
employed with respect to the production of the various
specific products and types of services authorized for
production and sale to Federal agencies and in the
commercial market; and
``(5) data concerning employment obtained by former inmates
upon release to determine whether the employment provided by
Federal Prison Industries during incarceration provided such
inmates with knowledge and skill in a trade or occupation that
enabled such former inmate to earn a livelihood upon release.
``(c) Public Availability.--Copies of an annual report under
subsection (a) shall be made available to the public at a price not
exceeding the cost of printing the report.''.
SEC. 15. DEFINITIONS.
Chapter 307 of title 18, United States Code, is amended by adding
at the end the following new section:
``Sec. 4130. Definitions
``As used in this chapter--
``(1) the term `assembly' means the process of uniting or
combining articles or components (including ancillary finished
components or assemblies) so as to produce a significant change
in form or utility, without necessarily changing or altering
the component parts;
``(2) the term `current market price' means, with respect
to a specific product, the fair market price of the product
within the meaning of section 15(a) of the Small Business Act
(15 U.S.C. 644(a)), at the time that the contract is to be
awarded, verified through appropriate price analysis or cost
analysis, including any costs relating to transportation or the
furnishing of any ancillary services;
``(3) the term `import-sensitive product' means a product
which, according to Department of Commerce data, has
experienced competition from imports at an import to domestic
production ratio of 25 percent or greater;
``(4) the term `labor-intensive manufacture' means a
manufacturing activity in the private sector in which the ratio
of the value of direct labor to the value of the product prior
to shipment exceeds 20 percent;
``(5) the term `manufacture' means the process of
fabricating from raw or prepared materials, so as to impart to
those materials new forms, qualities, properties, and
combinations;
``(6) the term `prison-made products' means specific
products that require labor-intensive manufacture or assembly
employing Federal prison inmates for not less than 75 percent
of the hours of direct labor required for the production of the
product;
``(7) the term `reasonable share of the market' means a
share of the total purchases by the Federal departments and
agencies, as reported to the Federal Procurement Data System for--
``(A) any specific product during the 3 preceding
fiscal years, that does not exceed 20 percent of the
Federal market for the specific product; and
``(B) any specific service during the 3 preceding
fiscal years, that does not exceed 5 percent of the
Federal market for the specific service;
``(8) the term `services' has the meaning given the term
`service contract' by section 37.101 of the Federal Acquisition
Regulation (48 C.F.R. 36.102), as in effect on July 1, 1997;
``(9) the term `specific product' means a product that is
designed and manufactured to meet requirements distinct in
function and predominant material of manufacture from another
product, as described by--
``(A) the 6-digit classification for the product in
the 1997 North American Industry Classification System
(or any revisions to such system) published by the
Office of Management and Budget; and
``(B) for purposes of reporting on sales by Federal
Prison Industries, the current National Stock Number
assigned to such product under the Federal Stock
Classification System (including group, part number and
section), as determined by the General Services
Administration; and
``(10) the term `specific service' means a type of service
included within one of the categories of services used by
Federal agencies in reporting to the Federal Procurement Data
System, as described in the current edition of the Product and
Service Code Manual issued by the Federal Procurement Data
Center of the General Services Administration as Executive
Agent for the Administrator for Federal Procurement Policy (as
referred to in section 6(d)(4) of the Office of Federal
Procurement Policy Act (41 U.S.C. 405(d)(4))).''.
SEC. 16. IMPLEMENTATION IN THE FEDERAL ACQUISITION REGULATION.
(a) Proposed Revisions.--Proposed revisions to the Governmentwide
Federal Acquisition Regulation to implement the amendments made by this
Act shall be published not later than 60 days after the date of the
enactment of this Act and provide not less than 60 days for public
comment.
(b) Final Regulations.--Final regulations shall be published not
later than 180 days after the date of the enactment of this Act and
shall be effective on the date that is 30 days after the date of
publication.
(c) Public Participation.--The proposed regulations required by
subsection (a) and the final regulations required by subsection (b)
shall afford an opportunity for public participation in accordance with
section 22 of the Office of Federal Procurement Policy Act (41 U.S.C.
418b).
SEC. 17. RULE OF CONSTRUCTION.
Subsection (e) of section 4124 of title 18, United States Code, as
amended by section 2, is not intended to alter any rights of any
offeror other than Federal Prison Industries to file a bid protest in
accordance with other law or regulation in effect on the date of the
enactment of this Act.
SEC. 18. EFFECTIVE DATE AND APPLICABILITY.
(a) Effective Date.--Except as provided in subsection (b), this Act
and the amendments made by this Act shall take effect on the date of
enactment of this Act.
(b) Applicability.--Section 4124 of title 18, United States Code,
as amended by section 2, shall apply to any requirement for a product
or service offered by Federal Prison Industries needed by a Federal
department or agency after the effective date of the final regulations
issued pursuant to section 16(b), or after September 30, 2002,
whichever is earlier.
SEC. 19. CLERICAL AMENDMENTS.
The table of sections for chapter 307 of title 18, United States
Code, is amended--
(1) by amending the item relating to section 4124 to read
as follows:
``4124. Governmentwide procurement policy relating to purchases from
Federal Prison Industries.'';
(2) by amending the item relating to section 4127 to read
as follows:
``4127. Federal Prison Industries report to Congress.'';
and
(3) by adding at the end the following new item:
``4130. Definitions.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
Referred to the Subcommittee on Crime.
Subcommittee Hearings Held.
Subcommittee on Crime Discharged.
Committee Consideration and Mark-up Session Held.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Voice Vote.
Reported (Amended) by the Committee on Judiciary. H. Rept. 107-583.
Reported (Amended) by the Committee on Judiciary. H. Rept. 107-583.
Placed on the Union Calendar, Calendar No. 349.
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