Description
This notice announces the decision regarding FPI’s production in Federal Supply Classification (FSC) Code - 5995 - Cable, Cord, and Wire Assemblies: Communications Equipment. FPI’s new product/significant expansion guidelines were published March 12, 1997, in the Federal Register. A provision of the guidelines allows for FPI to exceed a specific product’s expansion threshold in cases of a 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. As a result of Operation Enduring Freedom and Operation Iraqi Freedom, DoD has placed orders for electronics products far in excess of their usual requirements. In the past two fiscal years, FPI requested and obtained from the Board of Directors (BOD) permission to invoke the national exigency provision in the guidelines for electronic products under FSC codes 6220, 6135, and 5965. This originated at the request of DoD. As was the case with those products, DoD has experienced a sharp increase in the need for cable, cord and wire assemblies, listed under FSC code 5995. The FY 2004 sales ceiling for FSC code 5995 is $45.5 million. However, if DoD continues to place orders at the current rate for products under this FSC code, FPI sales may exceed $58 million by the end of FY 2004. In light of the military’s critical on-going need, FPI’s BOD approved the request to invoke the national exigency provisions of the guidelines. FPI’s sales of cable, cord and wire assemblies under FSC code 5995, will not constitute a guidelines violation based on the national exigency provision of the FPI’s rules. It should be noted that the national exigency provision of the 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. At the minimum, however, it is expected that the increased production levels as a result of ongoing military war efforts and the continuing war on terrorism, will continue through the balance of the current fiscal year and into FY 2005. Interested parties have a right to raise questions with FPI’s Board of Directors. Any 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. Attention: RACS Branch.