FPI's Sales Ceiling for Products Covered by Section 827 - Final Notice

On September 2, 2009, Federal Prison Industries, Inc. (FPI) posted a notice in the Federal Business Opportunities (FedBizOpps). In this notice, FPI explained that Section 827 of the National Defense Authorization Bill of 2008 requires FPI to compete for all DoD orders when DoD determines its market share exceeds five percent of their purchases. With the implementation of Section 827, FPI's mandatory source provision is no longer applicable to the FSC codes published in the DoD implementation memo. Products outlined in the instructions must be procured using competitive (or fair opportunity) procedures in accordance the Defense Federal Acquisition Regulation Supplement 208.602-70. On September 2, 2009, FPI recommended to its Board of Directors that products sold to DoD and obtained through competitive means are non-mandatory, and therefore the Board-determined sales ceilings in place should not apply. The notice informed the public that based on the BOD meeting held on September 2, 2009, the Board recognizes products sold to DoD and obtained through competitive means are non-mandatory, and therefore the Board-established sales ceilings in place do not apply. This is specifically applicable to those products within Federal Supply Classification Codes (FSC) identified by the Department of Defense (DoD) in response to Section 827 of the National Defense Authorization Act of 2008. Other work obtained using the mandatory source provision, including work obtained from non-DoD civilian agencies will be applied to the FPI-imposed sales ceilings. FPI received no comments from any interested party regarding this proposed change, within the 30 days allowed. Therefore, this notice is now being revised as the final notice. Interested parties have a right to raise questions at any time with the FPI's Board of Directors. Any correspondence should be addressed to: Chief, Strategic Business Development and Marketing, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534.