Federal
Prison Industries (FPI) is big and growing: FPI operates. a chain of
almost 100 factories, employing over 17,000 inmates at Federal
correctional facilities around the country. With sales of $489
million during
1996,
it was the 38th largest
Government contractor, just behind Texas Instruments. If won
competitively, FPI's growth would be the envy of the business community:
$29
million in
1960,
$117 million
in 1980, $240
million in
1985, $339
million in 1990, and
$459
million in
1995. FPI,
however, gets its
Government contracts without competition.
Under FPI's
1934 statute, Federal agencies are required to buy products offered by
FPI. A Federal agency must actually obtain FPI's permission to purchase
competitively. from the private sector, even if a commercially available
item better meets the agency's mission needs, can be delivered more
quickly, and costs less.
But FPI's
unfair advantages don't stop here: FPI can dictate the price to be paid
for its products. FPI, rather than its Federal agency "customers",
determines whether FPI's products and delivery schedule meets the agency's
needs. If any dispute arises between FPI and one of its agency "customers",
FPI decides whose position prevails, under the threat of an unworkable
appeal process unused since the 1930's !
* Updated
There is Hope...Real Hope
The Bill's
H.R.2758 (former)
H.R.4100 (former)
*H.R.2551 A new bill which will expand FPI's ability
Press Releases - Federal Prison Industries Competition in Contracting Act" (HR 2758) HEARING ON COLLINS' BILL: END THE UNFAIR ADVANTAGE FOR PRISON INDUSTRIES Washington, D.C. -- U.S. Representative Mac Collins (R-Hampton) welcomed today's hearing by the House Crime Subcommittee on legislation he cosponsored to end the unfair advantage that prison industries currently enjoy in the Federal procurement process.
Opening Statement of Chairman Peter Hoekstra Subcommittee on Oversight and Investigation Committee on Education and the Workforce U.S. House of Representatives HEARING PRISON INDUSTRY PROGRAMS: Effects on Inmates, Law-abiding Workers and Business August 5, 1998 10:00 a.m. OPENING STATEMENT Of Rep. Peter Hoekstra (MI-2d), Chairman Today, the Subcommittee on Oversight and Investigations will receive testimony on the impact of prison industry programs on workers and the businesses that employ them. Given the growing number of inmates in the Federal and State prison systems, our review must include the extent to which these programs actually helped former inmates successfully return to society.
Testimony of Gary Engebretson Testimony of Gary D. Engebretson, President Contract Services Association of America Before the Subcommittee on Oversight and Investigations Of the Committee on Education and the Workforce August 5, 1998 Mr. Chairman, Members of the Committee. My name is Gary Engebretson and I am the President of the Contract Services Association of America. CSA is the nation’s oldest and largest association of government service contractors. We represent more than 250 companies and tens of thousands of employees. Our members perform services of every conceivable type, from low tech to high tech, for virtually every agency of the Federal government and scores of state and local governments.
Testimony of the Honorable Carolyn B. Maloney Committee on Education and Workforce Subcommittee on Oversight and Investigations Hearing on the Federal Prison Industries and the Federal Prison Industries Competition in Contracting Act of 1997 (H.R. 2758) August 5, 1997 10:00 a.m. I appreciate this opportunity to appear before you today. I am here to testify on behalf of H.R. 2758, the Federal Prison Industries Competition in Contracting Act of 1997, of which I am a principal cosponsor.
Testimony of the Honorable Thomas E. Petri Opposing - House Committee on Education and the Workforce Subcommittee on Oversight and Investigations August 5, 1998 Chairman Hoekstra, Ranking Minority Member Mink and Members of the Committee, I appreciate the opportunity to submit testimony to discuss Federal Prison Industries (FPI), sometimes known as UNICOR, and the impact of this Federally mandated program on the business community. My district con tains both the federal prison...
Comments from Congress pertaining to FPI operations May 10, 1999 Dear Sir or Madam: Enclosed are our comments on the proposed revision to Part 302 of title 28, Code of Federal Regulations, pertaining to the operations of Federal Prison Industries, Inc. (FPI),
The Meetings
House Committee on Education and the Workforce Subcommittee on Oversight and Investigations April 21, 1999
Opening Statement of Chairman Hoekstra
Testimony of Thomas Tyson Mr. Chairman, distinguished members of the committee, thank you for this opportunity to address the committee, and to relate to you the attack perpetrated on my business at the hands of Federal Prison Industries.
Testimony of Andrew S. Fortin Mr. Chairman and Members of the Committee, My name is Andrew Fortin; I am the manager of Privatization Policy for the U.S. Chamber of Commerce. I appear before you today to present the Chamber's views as well as the views of the Competition in Contracting Act Coalition on the expansion of the Federal Prison Industries into the commercial marketplace,
Testimony of Bryan Rossman The Associated General Contractors of America (AGC) is a national trade association of more than 33,000 firms, including 7,500 of America's leading general contracting firms. They are engaged in the construction of the nation's commercial buildings,
Testimony of David A Smith I am pleased to submit this statement on behalf of the more than 13 million members of the AFL-CIO and our affiliated unions.
Testimony of Carole Snider On behalf of the Quarters Furniture Manufacturers Association (QFMA)
Unbelivable aftershocks regarding QFMA
Public Hearing Federal Prison Industries Board of Directors May 25, 1999
Transcript of Board of Directors Hearing on Engine Electrical Components
Federal Prison Industries Board Of Directors Decision
Southern Automotive's Direct Involvement
Competitive Impact Study of FPI's Proposed Production of Engine Electrical Components The Main Report initially sent to us.
Southern's Initial Response Dear Mr. Grieser: I received a copy of the above report and your letter dated February 10, 1999, on Thursday February 18, 1999. Upon reading it I was astounded by both the intention of the proposal, and the inaccuracy of the information...
D.O.J. Response Dear Mr. Tyson: This is in response to your recent letter concerning the Federal Prison Industries, Inc. (FPI) proposal to manufacture new engine electrical components.
Southern's 2nd Response I have submitted a response to you upon receipt of the above mentioned proposal, dated February 23, 1999
D.O.J. reply March 4, 1999 Dear Mr. Tyson: This is in response to your recent letter concerning the Federal Prison Industries, Inc. (FPI) proposal to manufacture new engine electrical components. In your letter, you refer to certain inaccuracies. I assure you, our intentions were to be as accurate as possible.
Southern's 3rd and Final Response April 29, 1999 Please consider this my final submission in response to FPI's above proposal. I was happy to read that in this case, FPI decided to follow the rules set in place for them by Congress.
Southern's Indirect Correspondence
SOUTHERN AUTOMOTIVE WHOLESALERS INC - U.S. Army Tacom SBA - PCR Joseph Peck Tacom Warren, MI 48397-5000 I am writing to make you aware, and to ask for your assistance. Southern Automotive Wholesalers is a small business, primarily a defense contractor in Pontiac Michigan. We manufacture vehicular components such as starters, alternators and generators, etc. We have been in business for 19 years, serving as a government contractor...
D.O.J. reposonds to Southern's congressman Dear Congressman Kildee: This is in response to your recent letters to the Assistant Attorney General for Legislative Affairs and to Mr. Robert C. Grieser of my staff concerning your constituent, Mr. Thomas Tyson, of Southern Automotive Wholesalers, Inc.
Press Releases
Press release of March 24, 1999 For Immediate Release: Southern Automotive has been notified that Federal Prison Industries- UNICOR is conducting a hearing at 320 First Street, Washington D.C. 20534, on May 25th 1999, 1:00 pm.
News from Congressman Hoekstra: Federal Prison Industries expansion will cost American jobs.
*FOR IMMEDIATE RELEASE Friday, September 24, 1999 Problems with FPI are growing, subcommittee told, Prison work program seeking to expand into new areas, harming private-sector workers
Others Opinions
Competition in Contracting Act Coalition Web site
BIFMA International's government affairs page
C. E. Niehoff & Co. - another supplier of military parts Dear Mr. Grieser: Thank you for your April 12, 1999 letter and copy of the "Competitive Impact Study" I have both corrections and comments on this study. I will present in summary form.
Automotive Parts Rebuilders Association Dear Mr. Grieser: I am president of the Automotive Parts Rebuilders Association. APRA is the trade association of those companies which rebuild used motor vehicle parts for reuse and resale. The association has almost 2,000 members worldwide. Among the items rebuilt by APRA's members are generators, alternators, starters and stators. D.O.J.'s Response
Sielman S.A. The company from Greece which produces the two NSN's that FPI wants to "repatrite" This letter is in response to FPI’s Competitive Impact Study regarding FPI’s Proposed Production of Engine Electrical Components. Your making available this Study to Sielman S.A. and giving us the opportunity to comment is very much appreciated.
Detroit Free Press Work plan for inmates angers many in competing businesses June 28, 1999 BY MELANIE EVERSLEY FREE PRESS WASHINGTON STAFF WASHINGTON -- They don't just make license plates.
Detroit Free Press Prisons snatch away business, manufacturers charge November 10, 1997 BY MELANIE EVERSLEY Free Press Washington Staff WASHINGTON -- Making license plates was one thing.
Associated Press Broad coalition in U.S. House wants to overturn prison monopoly July 5, 1998 BY CATHERINE STRONG Associated Press WASHINGTON -- Some conservative House Republicans and liberal Democrats are joining forces in backing legislation to abolish a prison industry monopoly on selling products to the government.
The Flint Journal - Expansion of prison jobs fought Program called threat to private industry By Mike Magner JOURNAL NEWS SERVICE
Federal Computer Week FPI: Overstepping procurement bounds ?. By ANN COSTELLO: I pose three questions: Should a federal agency be required to get waivers from another federal agency when planning to acquire products from commercial sources? Should one agency put procedures in place that allow it to request cancellation of another agency's solicitation? Should one agency ever have the authority to determine if a product can meet another agency's needs?
Unicor and the Theft of American Jobs Imagine a corporation that operated under the following outline: 1. Rent, food expense, health care, education, utilities, and security all paid for by the taxpayer. 2. Profits of over 13 million dollars, that don't go to pay their own expenses.
Occupational Training or Slave Labor? The Department of Justice, the most powerful law enforcement agency in the U.S., runs a half-billion dollar conglomerate called UNICOR. What is the relationship between American "justice" and UNICOR's need for slave labor?
Office Products Industry Report: Commentary - March, 1999 Government News: Prison Industries Sending Mixed Signals Federal Prison Industries (FPI) officials are sending mixed signals to business and Congress on how they see the organization working with the private sector in the future, with two recent developments offering a distinctly "good news-bad news" message for companies selling to the Federal government.
The Joint Gets the Point In our spring issue, we introduced you to Federal Prison Industries and the unique advantage that Federal Prison Industries enjoys, the requirement in 18 U.S.C. § 4124 that agencies must purchase from Federal Prison Industries the goods that Federal Prison Industries chooses to offer.
Testimony of Gary Martin Testimony of Gary D. Martin, Ph. D. Before the Subcommittee on Oversight and Investigation Committee on Education and the Workforce U.S. House of Representatives August 5, 1998 Mr. Chairman, distinguished members of the committee, I appreciate this opportunity to present the highlights of my study entitled "Federal Prison Industries: Occupational Training or Slave Labor?"
National Center for Policy Analysis Answering the Critics From the earliest days of prison industries, complaints have surrounded work by prisoners - complaints about prison-made goods competing with those produced on the outside; about physical abuse
Testimony of Mr. Kenton Pattie Statement by Kenton H. Pattie President National Center for Fair Competition On behalf of Small Business Legislative Council National Emergency Equipment Dealers Association National Association of Police Equipment Distributors Before the Subcommittee on Oversight and Investigations Committee on Education and the Workforce August 5, 1998 Mr. Chairman, I appear today on behalf of the Small Business Legislative Council, the National Center for Fair Competition, the National Emergency Equipment Dealers Association and the National Association of Police Equipment Distributors
Jailhouse Capitalism Stirs Revolt NATIONAL REPORT Jailhouse Capitalism Stirs Revolt Business and labor groups join to thwart the expansion of prison manufacturing. Ron Scherer Staff writer of The Christian Science Monitor NEW YORK Tom Tabaska, a manager at John Deere & Co., had never walked a picket line in his life. But last month he was out on a street in Milwaukee, Wis., with members of the local machinists union. Their common pique: a plan to use federal prisoners to make lawn mowers.
The Business Products Industry Association - Comment 4/15/97 Competition from federal and state prisons is nothing new for the office supplies and office furniture industries. But that doesn't mean we have to like it. And it certainly doesn't mean we can't try to create a far more level playing field in the marketplace than exists today.
EXPLOITATION OF PRISON LABOR AFL-CIO Executive Council May 7, 1997 Statement THE EXPLOITATION OF PRISON LABOR The combination of a growing prison population in the United States and the interest of many employers in finding new sources of low-wage labor has raised important issues about the use of incarcerated workers and the sale of goods and services made by prison industries.
Federal Prison Industries, Inc. - Hoover's Company Capsule Some businesses benefit from captive audiences -- this company benefits from captive employees. Federal Prison Industries (FPI), better known by its trade name UNICOR, uses prisoners to make products and provide services, mainly for the US government. About 20,000 inmates are employed in nearly 100 FPI factories in 27 states. UNICOR, which is part of the Justice Department's Bureau of Prisons, manufactures such products as office furniture, work clothing, beds and linens, electronics equipment, traffic signs, and eyewear. It also offers such services as data entry, bulk mailing, printing, and electronics testing. Self-supporting, UNICOR is overseen by a governing board that is appointed by the US president.
News Bulletin - 1/6/98 Prison Labor Concerns Highlighted By USA Today In an article this week, USA Today highlighted the concerns of many in the business products industry--the use of prison labor and its effect on private enterprise. Longstanding concerns such as mandatory preference and waivers are mentioned, and critics also allege that private employers hiring state prison inmates have unfair advantages, such as avoiding health care costs.
Unicor's other conquests
06/25/98 Committee on the Judiciary - Lorey Statement Thank you for this opportunity to testify on behalf of the office furniture industry. I am Len Lorey of Kimball International and the chairperson of BIFMA International's Government Sales Subcommittee.
06/25/98 Committee on the Judiciary - Sullivan Statement Thank you Chairman McCollum and members of the House Subcommittee on Crime. I am Michael Sullivan, Secretary of the Wisconsin Department of Corrections and for the last three years have served as the first Chair of the American Correctional Association's Committee on Prison Industries. I appreciate the opportunity to speak to you on the subject of prison industries and specifically on H. R. 4100 as it may impact on prison industries in Wisconsin and other states.
06/25/98 Committee on the Judiciary - Sawyer Statement Mr. Chairman and Members of the Subcommittee, I appreciate the opportunity to appear before you today to discuss two bills which propose to reform prison industries, HR 4100, entitled "Free-Market Prison Industries Reform Act of 1998," and HR 2758, entitled "Federal Prison Industries Competition in Contracting Act of 1997." I am testifying today on behalf of the Department of Justice, the Bureau of Prisons (BOP), and Federal Prison Industries (FPI).
Testimony of John Palatiello Testimony of John M. Palatiello Executive Director Management Association for Private Photogrammetric Surveyors (MAPPS) Before the Subcommittee on Oversight and Investigations Committee on Education and the Workforce U.S. House of Representatives August 5, 1998 SUMMARY: Federal and State prison industries have entered the mapping services field, creating an adverse impact on private firms and their employees by diverting work away from law-abiding, tax-paying Americans.
Unicor Information
FPI's Board Of Directors Current members listing
1998 Schedule of Products and Services Unicor's List of Products and Services Arranged by Federal Supply Classification Code that the U.S. Government is required by LAW to purchase.
UNICOR-Waiver Request Procedures Because UNICOR is a mandatory source provider for items listed in its Schedule of Products, an ordering office must receive UNICOR's written authorization for clearance, prior to placing an order for a similar item through outside sources.
What You can do to help fight this injustice
* Updated
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