Description
This notice announces a decision by the Board of Directors for Federal Prison Industries, Inc. (FPI) regarding FPI?s production in Federal Supply Classification (FSC) code 5975 - Electrical Hardware and Supplies. A provision of the guidelines allows for FPI to exceed a specific product?s expansion threshold in cases of public exigency, such as a national defense emergency. The guidelines require that FPI receive a specific order or request from the Department of Defense (DoD) or Executive Branch officials for this provision to be invoked. Upon invoking this provision, the guidelines allow that ?increased sales resulting from national exigencies will not be considered a violation of the guidelines ceiling in the year in which they occur.? On December 11, 2006, FPI received an official request from the Department of the Army?s Program Executive Office - Command, Control, and Communications Tactical at Fort Monmouth, New Jersey. The correspondence requested FPI to fulfill DoD?s need for communication mounting assemblies in FSC code 5975. FPI?s FY 2007 sales ceiling for FSC code 5975 is $26.9 million. Based on year-to-date sales, the additional work represented by the DoD request would cause FPI to exceed the sales ceilings for FSC code 5975. The DoD request states that ? To date, UNICOR is the only known, qualified manufacturer of the FSC 5975 Mounting Assemblies.? FPI presented its Board of Directors with a request to invoke the guidelines? ?national exigency? provision. In light of the military?s critical need for this item, FPI staff requested its Board to invoke the ?national exigency? provision for FSC code 5975. On December 14, 2006, FPI's Board of Directors officially approved this request. Accordingly, FPI?s sales in FSC code 5975 may temporarily exceed the guidelines ceiling without constituting a guidelines violation. It should be noted that the national exigency provision of FPI?s guidelines is temporary. It does not authorize FPI to utilize the higher sales level as a future production baseline. FPI is not certain how long the current exigency will last due to the ongoing military operations. While the requested production levels are deemed to be on a temporary basis, at this time, DoD does not know how long the requirement for additional production in this FSC code will last. At a minimum, however, it is expected that increased production levels as a result of DoD?s expanded needs will continue as long as the Army is involved in overseas conflicts. Interested parties have a right to raise questions at any time with FPI?s Board of Directors. Any correspondence should be addressed to: Chief, Strategic Business Development and Marketing Branch, Federal Prison Industries, Inc., 320 First Street, NW, Washington, DC 20534. Attention: FPI Board of Directors.