15 June 2006
Federal Prison Industries.
The Omnibus spending bill for Fiscal Year 2005 (H.R.4818) was signed into law on
December 8, 2004. Section 637 of Public Law 108-447 mandates that both civilian
agencies and the Department of Defense not purchase from Federal Prison Industries
(FPI) unless it determines that the products or services offered by FPI provide best
value to the buying agency. If FPI does not provide the best value, then the buying
agency may purchase from other sources according to government procurement
regulations. Customers can consider many factors including price, delivery time,
quality, warranty considerations, trade-in considerations, past
performance/experience, and technical qualifications when selecting best value.
Changes to FAR 8.602 will be forthcoming. This law is applicable beginning fiscal year
2005, continuing thereafter. The specific paragraph is quoted below for your review:
"SEC. 637. None of the funds made available under this or any other Act for fiscal year
2005 and each fiscal year thereafter shall be expended for the purchase of a product
or service offered by Federal Prisons Inc unless the agency making such purchase
determines that such offered product or service provides the best value to the buying
agency pursuant to government wide procurement regulations...."
Additional information may be obtained through the website: