SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS
COMMITTEE ON EDUCATION AND THE WORKFORCE
U.S. HOUSE OF REPRESENTATIVES
2181 Rayburn "HOUSE OFFICE Building
WASHINGTON, DC 20515-6100
May 6,1999
The Honorable Janet Reno
Attorney General U.S. Department of Justice
Washington DC 20530
Dear Madam Attorney General:
The Subcommittee on Oversight and Investigations conducted a hearing on April 21 regarding Federal Prison Industries (FPI) and its proposed regulatory expansions, as well as its claimed authority to sell services in the commercial market. We are writing to enlist your help to remedy unsanctioned behavior by some of FPI's senior management, unexpectedly revealed at the hearing, which we are confident you too will find to be as egregious as we do.
In the aftermath of various legal proceedings, including a Federal Court
decision holding that FPI engaged in illegal expansion of its sales of
dormitory and quarters furniture, the Quarters Furniture Manufacturers
Association (QFMA) agreed to a pilot program relating to Federal agency
purchases of dorm and quarters furniture. In exchange for its
participation in the pilot Program. QFMA, with little bargaining power,
agreed to the following unequivocal preconditions set by FPI:
Simply put, FPI demanded that QFMA's members be deprived of their
Constitutional First Amendment rights to petition Congress for redress of
their grievances
We agree with QFMA's counsel that such a governmentally imposed waiver
of Constitutional rights is probably legally unenforceable- Nonetheless,
such behavior by any representative of our government, but especially by
those under the banner of the Department of Justice, warrants our joint
rebuke.
We request that you direct FPI management to cease such infringements of the Constitutional rights of American citizens. Further, we ask that you direct FPI's Chief Operating Officer to write to the President of QFMA, informing her that the association and its members are free to exercise their Constitutional rights with respect to Congress and the Executive Branch. Such communication should make explicit that FPI will not otherwise abrogate the agreement relating to the dormitory and quarters furniture pilot program, or otherwise penalize QFMA or any of its member companies, either directly or indirectly.
We also request that Stephen R. Colgate, who oversees the Department's
ethics program with respect to non-attorney personnel, investigate this
matter and take appropriate disciplinary action toward FPI's Chief
Operating Officer and other FPI staff who may have participated in this
egregious behavior.
Your personal attention to our requests to remedy this rogue behavior and
prevent any repetition will be appreciated by us and by many in the
business community and organized labor who am deeply concerned about FPI.
Sincerely
Tim Roemer
Ranking Minority Member
Subcommittee on Oversight
and investigations
Peter Hoekstra
Chairman
Subcommittee on Oversight
and Investigations
Enclosures
Cc- Stephen R. Colgate
Assistant Attorney General for Administration
January 25, 1999
VIA FACSIMILE AND FIRST CLASS MAIL
Mr. Steve Schwalb, Chief Operating Officer
U.S. Department at Justice
Federal Prison Industries Inc.
Acacia Building Room 617
320 First Street N.W.
Washington D.C. 20534
Re: QFMA/FPI Agreement
Dear Mr. Schwalb:
As requested by FPI, QFMA agrees that during the period the Agreement
concerning Voluntary Waiver of Mandatory Source for Dormitory and Quarters
Furniture is in effect, QFMA will not participate in the legislative
activities of the Competition in Contracting Coalition, and further, that
during the period this Agreement is in effect, QFMA will not seek to
legislatively remove the mandatory preference in the statute.
Should there be concerns related to this issue, please bring them to my
attention, and Stephen Ryan, our counsel.
Sincerely
Carol Snider
cc: Stephen M. Ryan. Esq.
Brand Lowell & Ryan
923 FIFTEENTH STREET N.W.
WASHINGTON D.C. 20008
February 11, 1999
VIA FACSIMILE AND FIRST CLASS MAIL
Mr. Brad Miller
Competition in Contracting Coalition
c/o The Business and Institutional Furniture
Manufacturer's Association (BIFMA)
2880 Horizon Drive, S.E.
Suite A-1
Grand Rapids, MI. 49546
Re: QFMA/FPI Agreement
Dear Brad:
OFMA has reached an agreement with FPI that requires FPI to waive mandatory source preference for dorm and quarters furniture purchases for a period of five years. As a result, and as part of that agreement, QFMA will not be participating in the Coalition's legislative activity during that period of time. A copy of the agreement is attached. I'll be glad to answer any questions you may have about the agreement
Sincerely,
Stephen M. Ryan
Enclosure
SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS
COMMITIEE ON EDUCATION AND THE WORKFORCE
U.S. HOUSE OF REPRESENTATIVES
2181 RAYBURN HOUSE OFFICE BUILDING
WASHINGTON, DC 20515 -6100
May 6, 1999
Mr. Joseph M. Aragon
Chairman Board of Directors
Federal Prison Industries, Inc.
400 First Street, NW
Washinton, DC 20534
Dear Mr. Aragon:
The Subcommittee on Oversight and Investigations conducted a hearing on
April 21, 1999, to address concerns over Federal Prison Industries (FPI)
and its proposed regulatory expansions, as well as its proposed initiative
to sell services in the commercial market. During the hearing. the
Subcommittee received disturbing testimony from 4 representative of the
Chambers Furniture Manufacturers Association (QFMA) regarding an agreement
with FPI to participate in a pilot program involving Open Competition for
Federal agency purchases of dormitory and quarters furniture. In exchange
for its participation in this program, QFMA was required by FPI to adhere
to the following restrictive pre-conditions:
The Subcommittee is concerned about FPI's imposition of these conditions
that restrict QFMA's Constitutionally protected First Amendment rights.
The Subcommittee is also concerned about decisions made by the FPI Board
of Directors that have allowed FPI to expand into areas which appear to
exceed the FPI authorizing statute. Since by statute, the Board is charged
with overseeing FPI's operations, we would like to understand how the Bond
exercises its statutory responsibilities to protect law-abiding citizens
and the firms that employ them from unfair competition by FPI. The
Subcommittee hereby requests your cooperation in providing the following
materials by close of business on May 21, 1999:
1. A chronological listings of all FPI Board meetings and telephone
conferences held during calendar years 1997, 1999, and the first quarter
of 1999.
2. Minutes of all FPI Board meetings and telephone conferences held
during calendar years 1997, 1998, and the first quarter of 1999, including
any agendas if they exist.
3. Materials prepared by FPI staff for use at FPI Board meetings held
during calendar years 1997, 1998, and the first quarter of 1999.
4. Other materials presented or circulated at FPI Board meetings held during calendar years 1997, 1999, and the first quarter of 1999.
5. Decision documents or resolutions issued or passed by the FPI Board during calendar years 1997, 1998, and the first quarter of 1999
Please deliver the relevant documents to Room 602, O'Neill House Office
Building, Washington, D,C.,20515. To minimize the volume of paper that
needs to be reproduced, for items 3 and 4 listed above, you may initially
furnish the first full page of each document and / or the table of
contents for any Board briefing or agenda book. The Subcommittee will then
notify you as to whether the full text of any documents will be requested.
If members of your staff We any questions regarding this request, they
should contact any of the following:
John Loesch, Subcommittee Counsel, at 225-1860
Ryan Dvorak, Legislative Assistant to Rep. Roemer, at 225-3915;
Chris LaGrand. Legislative Counsel to Rep. Hoekstra, at 225-4401,
We thank you in advance for your cooperation.
Sincerely,
Tim Roemer
Ranking Minority Member
Peter Hoekstra
Chairman
SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS
COMMITTEE ON EDUCATION AND THE WORKFORCE
U.S. HOUSE OF REPRESENTATIVES
2181 RAYBURN HOUSE OFFICE BUILDING
WASHINGTON, DC 20515-6100
May 6,1999
Mr. Steven B. Schwalb
Chief Operating Officer
Federal Prison Industries Inc.
400 First Street, NW
Washington, DC 20534
Dear Mr. Schwalb:
The Subcommittee on Oversight and Investigations conducted a hearing on April 21, 1999, to address concerns over Federal Prison Industries (FPI) and its proposed regulatory expansion as well as its proposed initiative to sell services in the commercial market. As you may know, during that hearing, the Subcommittee received testimony from a representative of the Quarters Furniture Manufacturers Association regarding an agreement with FPI to participate in a pilot program involving open competition for Federal agency purchases of dormitory and quarters furniture. The Subcommittee was surprised and disturbed to learn that, in exchange for its participation in this program, QFMA was required by FPI to relinquish its constitutionally protected rights to seek changes to FPI's authorizing statute.
This concerns the Subcommittee as do reports of FPI contacts with
witnesses who testified at the April 21 hearing and/or their
organizations. The Subcommittee hereby requests that you provide us with a
catalogue of contacts which you or any members of FPI staff had with the
following witnesses or the organizations which they represent:
Andrew S. Fortin
U.S. Chamber of Commerce
John M. Palatiello
Management Association for Private
Photogrammetric Surveyors
(MAPPS)
Thomas Tyson
Southern Automotive Wholesalers
Carol Snider
Quarters Furniture Manufacturers
Association
Gary Engebretson
Contract Services Association
Bryan Rossman
Associated General Contractors
Of America of America
Rich Cippele
American Apparel Manufacturers
Association
David A. Smith
AFL-CIO
(submitted statement for the record)
The catalogue should detail contacts between April 8. 1999, when the
hearing was first announced by the Committee and the start of the hearing
at 1:30 p.m. on April 21. Please identify the name and position of the FPI
employee making the contact, the date and approximate time of the contact,
the name(s) of the individual(s) contacted, and a detailed summary of the
subjects discussed. Please deliver the catalogue by close of business May
21, 1999, to Room 602, O'Neill House Office Building, Washington, D.C-,
20515.
If you or members of your staff have any questions regarding this
request, please contact any of the following
John Loesch, Subcommittee Counsel, at 223-1860;
Ryan Dvorak, Legislative Assistant to Rep. Roemer, at 225-3915;
Chris LaGrand, Legislative Counsel to Rep. Hoekstra at 225-4401,
We thank you in advance for your cooperation
Sincerely,
Tim Roemer
Ranking Minority Member
Peter Hoekstra
Chairman