Federal Bureau of Prisons
Washington, DC 20534
April 19, 1999
William C. Gager
President
Automotive Parts Rebuilders Association
4401 Fair Lakes Court, Suite 210 Fairfax, VA 22033
Dear Mr. Gager:
This is in response to your recent letter concerning the proposal by Federal Prison Industries, Inc. (FPI) to initiate production of engine electrical components.
FPI, a government owned corporation (and a division of the Federal Bureau
of Prisons), employs approximately 20,000 inmates out of 113,000 inmates
currently incarcerated in Bureau facilities. FPI was established by
Congress in 1934, during the Depression. Congress was acutely aware of
opposition to providing inmates jobs when so many law-abiding citizens
were without work. But, in establishing FPI, Congress recognized the value
to society, as a whole, that would be derived by providing opportunities
for education and work related experiences to offenders. Furthermore, the
concept of inmates being idle has never been acceptable to the American
public, nor is it appropriate from the standpoint of sound prison
management.
As part of FPI's enabling legislation (18 U.S.C., Sections 4121-4129), Congress provided for oversight through a Board of Directors (appointed by the President of the United States), representing retail trade, industry, agriculture, labor, the U.S. Department of Defense, and the U.S. Department of Justice. This legislation also mandates that FPI:
Provide products on a economic basis, but avoid capturing more than a reasonable share of the market for any specific product.
Provide products which permit employment of the greatest number of inmates as is reasonably possible.
Diversify products so that sales are distributed among FPI's industries as broadly as possible.
Undergo a detailed public involvement process to add a new product, or significantly expand an existing product, prior to a final decision by the Board of Directors.
These mandates significantly reduce the potential of FPI's impact on
individual industries and companies. For example, the 20,000 inmate jobs
are located in approximately 100 factories, providing approximately 100
separate items and services to our Federal customers. I assure you that
FPI has always made a good faith effort to adhere to its responsibilities
regarding its impact on the private sector and free labor.
Based on the comments FPI received after publication of the
original draft impact study, FPI has modified its earlier proposal. Now,
FPI's initiative to manufacture engine electrical components is being
pursued only through repatriating Department of Defense contract work
which is currently being performed overseas.
I have enclosed the final submission from FPI to its Board of Directors,
formally proposing to initiate production of engine electrical components.
The submission includes a copy of the proposal Is
market impact study, a summary of comments received in
response to FPI's proposal along with FPI's response to each comment, and
correspondence FPI received concerning its proposal.
As mandated in FPI's public involvement procedures, a copy of this
submission is being provided to all parties who submitted comments in a
timely fashion. The Board of Directors will formally take up the matter of
FPI's proposal during its meeting on May 25, 1999, at Federal Bureau of
Prisons, Central Office, Federal Prison Industries, 400 First Street,
N.W., First Floor, Washington, DC 20534 from 1:00 p.m. to 3:30 p.m. This
package in its entirety constitutes the official record, which will be the
basis for the Board's decision.
Interested parties may make a final submission in response to FPI's
proposal. FPI's public involvement procedures state that such
submittals must be received by FPI at least fifteen (15) days prior to the
Board meeting.
Please let me know if I can be of further assistance.
Sincerely
Robert C.' Grieser Manager
Planning, Research, and Activation Branch