53 -- FPI Production of Hardware FSC codes 5341 and 5342

In furtherance of the FPI Board of Directors? directive to pursue the creation of inmate jobs without reliance on mandatory source, a notice was published in the December 21, 1998 edition of the Commerce Business Daily (CBD) regarding FPI?s production of products for the Federal government on a competitive (non-mandatory) basis. The notice stated that the Board of Directors had granted approval for FPI to competitively bid on products for which it did not rely on its mandatory source of supply. 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 publish a notice of its intentions to competitively produce a product purchased by the Federal government. This notice announces FPI?s intentions to produce hardware, which would include brackets and mounting plates, as a subcontractor to a Department of Defense supplier on a competitive basis and not use its mandatory source status. These products encompass all hardware classified in Federal Supply Classification (FSC) code 5341 - Brackets, as well as, the items classified in FSC code 5342 - Hardware, Weapon System. Once a product is sold competitively by FPI, it remains a competitive product and will never be added to FPI?s Schedule of Products as a mandatory source product. FPI will not attempt to exercise its mandatory source at some future point in time nor seek from its Board of Directors to expand production of the product by invoking the guidelines process at some later date. It has been previously determined by the FPI Board of Directors 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. Interested parties have a right to comment or raise questions with FPI?s Board of Directors. All written correspondence should be addressed to: Chief, Strategic Business Development and Marketing Branch, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534. All comments received will be provided to the Board of Directors.