A bill to amend title 18, United States Code, to revise the requirements for procurement of products of Federal Prison Industries to meet needs of Federal agencies, and for other purposes.

SECTION 1. PURCHASES FROM FEDERAL PRISON INDUSTRIES.

    (a) Revision of Preference.--Section 4124 of title 18, United 
States Code, is amended by striking subsections (a) and (b) and 
inserting the following:
    ``(a) A Federal agency that has a requirement for a specific 
product listed in the current edition of the catalog required by 
subsection (d) shall--
            ``(1) provide a copy of the notice required by section 18 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 416) 
        to Federal Prison Industries at least 15 days before the 
        issuance of a solicitation of offers for the procurement of 
        such product;
            ``(2) use competitive procedures for the procurement of 
        that product unless--
                    ``(A) the head of that agency justifies the use of 
                procedures other than competitive procedures in 
                accordance with section 2304(f) of title 10 or section 
                303(f) of the Federal Property and Administrative 
                Services Act of 1949 (41 U.S.C. 253(f)); or
                    ``(B) the Attorney General makes the determination 
                described in subsection (b)(1) within 15 days after 
                receiving a notice of the requirement pursuant to 
                paragraph (1); and
            ``(3) consider a timely offer from Federal Prison 
        Industries for award in accordance with the specifications and 
        evaluation factors specified in the solicitation.
    ``(b) A Federal agency that has a requirement for a product 
referred to in subsection (a) shall--
            ``(1) enter into negotiations with Federal Prison 
        Industries on a contract for the purchase of the product on a 
        noncompetitive basis if the Attorney General personally 
        determines, within the period described in subsection 
        (a)(2)(B), that--
                    ``(A) it is not reasonable to expect that Federal 
                Prison Industries would be selected for award of the 
                contract on a competitive basis; and
                    ``(B) it is necessary to award the contract to 
                Federal Prison Industries in order--
                            ``(i) to maintain work opportunities that 
                        are essential to the safety and effective 
                        administration of the penal facility at which 
                        the contract would be performed; or
                            ``(ii) to permit diversification into the 
                        manufacture of a new product that has been 
                        approved for sale by the Federal Prison 
                        Industries board of directors in accordance 
                        with this chapter; and
            ``(2) award the contract to Federal Prison Industries if 
        the contracting officer determines that Federal Prison 
        Industries can meet the requirements of the agency with respect 
        to the product in a timely manner and at a fair and reasonable 
        price.''.
    (b) Conforming Amendments.--Subsection (c) of such section is 
amended--
            (1) by striking ``Federal department, agency, and 
        institution'' in the first sentence and inserting ``Federal 
        agency''; and
            (2) by striking ``department, agency, or institution'' in 
        the second sentence and inserting ``Federal agency''.

SEC. 2. LIMITATION ON NEW PRODUCTS AND EXPANSION OF PRODUCTION.

    Section 4122(b) of title 18, United States Code, is amended--
            (1) by redesignating paragraphs (4), (5), and (6) as 
        paragraphs (5), (6), and (7), respectively;
            (2) by inserting after paragraph (3) the following new 
        paragraph (4):
    ``(4) Federal Prison Industries shall, to the maximum extent 
practicable, concentrate any effort to produce a new product or to 
expand significantly the production of an existing product on products 
that are otherwise produced with non-United States labor.''; and
            (3) in paragraph (6), as so redesignated, by striking out 
        ``paragraph (4)(B)'' and inserting in lieu thereof ``paragraph 
        (5)(B)''.

SEC. 3. RESTRICTION ON INMATE ACCESS TO SENSITIVE INFORMATION.

    (a) In General.--Chapter 307 of title 18, United States Code, is 
amended by adding at the end the following new section:
``Sec. 4130. Restriction on inmate access to sensitive information
    ``The board of directors of Federal Prison Industries may not 
approve a proposal for inmates to provide a service in which an inmate 
worker has access to any of the following information:
            ``(1) Personal or financial information about an individual 
        (including any information that relates to the individual's 
        real property, however described) unless the individual has 
        been notified that the inmate is to have access to the 
        information.
            ``(2) Any data that--
                    ``(A) is classified in the interest of national 
                defense or foreign policy; or
                    ``(B) will become classified in such interest after 
                being merged with other data.
            ``(3) Geographic data regarding the location of--
                    ``(A) any surface or subsurface infrastructure for 
                providing communications, water, or electrical power 
                distribution;
                    ``(B) any pipeline for the distribution of natural 
                gas, bulk petroleum products, or other commodity; and
                    ``(C) any other utility.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``4130. Restriction on inmate access to sensitive information.''.

SEC. 4. PROHIBITIONS ON REQUIRING SUBCONTRACTING WITH FEDERAL PRISON 
              INDUSTRIES.

    (a) In General.--Chapter 307 of title 18, United States Code, as 
amended by section 3, is further amended by adding at the end the 
following new section:
``Sec. 4131. Prohibition on requiring subcontracting with Federal 
              Prison Industries
    ``(a) A contractor or potential contractor of the United States may 
not be required to use Federal Prison Industries as a subcontractor or 
supplier of products, or as a provider of services, under a contract of 
the United States by any means, including such means as--
            ``(1) a contract solicitation of offers for a contract that 
        requires offers to contain a commitment to use Federal Prison 
        Industries, its products, or its services in the performance of 
        the contract;
            ``(2) a contract specification that requires the contractor 
        to use a specific product or service (or class of products or 
        services) offered by Federal Prison Industries in the 
        performance of the contract; and
            ``(3) any contract modification that imposes a requirement 
        to use Federal Prison Industries, its products, or its services 
        in the performance of the contract.
    ``(b) In this section, the term `contractor' includes a 
subcontractor of a contractor at any tier under a contract.''.
    (b) Clerical Amendment.--The table of sections of the beginning of 
such chapter, as amended by section 3, is further amended by adding at 
the end the following new item:

``4131. Prohibition on requiring subcontracting with Federal Prison 
                            Industries.''.

SEC. 5. UNLAWFUL TRANSPORTATION OR IMPORTATION OF PRODUCTS, SERVICES, 
              OR MINERALS RESULTING FROM CONVICT LABOR.

    Section 1761 of title 18, United States Code, is amended--
            (1) in subsection (a), by inserting after ``any goods, 
        wares, or merchandise manufactured, produced, or mined, wholly 
        or in part by convicts or prisoners,'' the following: ``or 
        sells in interstate commerce any services furnished wholly or 
        in part by convicts or prisoners,''; and
            (2) in subsection (c), by inserting ``, or services 
        furnished,'' after ``or mined'' in the matter preceding 
        paragraph (1).

SEC. 6. EFFECTIVE DATE.

    The amendments made by this Act shall take effect 180 days after 
the date of the enactment of this Act.

Summary: Amends the Federal criminal code to revise the requirements for procurement of products of Federal Prison Industries (FPI). Directs a Federal agency that has a requirement for a specific product listed in the current edition of the FPI catalog to: (1) provide a copy of the required notice to FPI at least 15 days before the issuance of a solicitation of offers for procurement of such product, (2) use competitive procedures. And (3) consider a timely offer from FPI for award in accordance with the specifications and evaluation factors specified in the solicitation. Requires the agency to: (1) enter into negotiations with FPI on a contract for the purchase of the product on a non-competitive basis if the Attorney General determines it is unreasonable to expect that FPI would be selected on a competitive basis and it is necessary to award the contract to FPI to maintain essential work opportunities or to permit diversification under specified circumstances. And (2) award the contract to FPI if the contracting officer determines that FPI can meet the agency's requirements in a timely manner, at a fair and reasonable price. Directs FPI to concentrate any effort to produce a new product, or to expand significantly the production of an existing product, on products that are otherwise produced with non-US labor. Prohibits: (1) the board of FPI from approving a proposal for inmates to provide a service in which an inmate worker has access to specified sensitive information, and (2) requiring subcontracting with FPI.