I 

113TH CONGRESS 

1ST SESSION H. R. 2098 

To amend title 18, United States Code, to require Federal Prison Industries 

to compete for its contracts minimizing its unfair competition with private sector firms and their non-inmate workers and empowering Federal 

agencies to get the best value for taxpayers’ dollars, to provide a fiveyear period during which Federal Prison Industries adjusts to obtaining 

inmate work opportunities through other than its mandatory source status, to enhance inmate access to remedial and vocational opportunities 

and other rehabilitative opportunities to better prepare inmates for a 

successful return to society, to authorize alternative inmate work opportunities in support of non-profit organizations and other public service 

programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 22, 2013 

Mr. HUIZENGA of Michigan (for himself, Mrs. CAROLYN B. MALONEY of New 

York, Mr. FRANKS of Arizona, Mr. ROYCE, Mr. SENSENBRENNER, Mr. 

JONES, Mrs. BLACKBURN, Mr. DUNCAN of South Carolina, Mr. 

WALBERG, Mr. LOBIONDO, Mr. MULVANEY, Mr. UPTON, Mrs. MILLER

of Michigan, and Mr. BENISHEK) introduced the following bill; which was 

referred to the Committee on the Judiciary 

A BILL 

To amend title 18, United States Code, to require Federal 

Prison Industries to compete for its contracts minimizing 

its unfair competition with private sector firms and their 

non-inmate workers and empowering Federal agencies 

to get the best value for taxpayers’ dollars, to provide 

a five-year period during which Federal Prison Industries 

adjusts to obtaining inmate work opportunities through 


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other than its mandatory source status, to enhance inmate access to remedial and vocational opportunities and 

other rehabilitative opportunities to better prepare inmates for a successful return to society, to authorize 

alternative inmate work opportunities in support of nonprofit organizations and other public service programs, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Federal Prison Industries Competition in Contracting 

6 Act of 2013’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Governmentwide procurement policy relating to purchases from Federal 

Prison Industries. 

Sec. 3. Public participation regarding expansion proposals by Federal Prison 

Industries. 

Sec. 4. Transitional mandatory source authority. 

Sec. 5. Authority to perform as a Federal subcontractor. 

Sec. 6. Inmate wages and deductions. 

Sec. 7. Clarifying amendment relating to services. 

Sec. 8. Conforming amendment. 

Sec. 9. Rules of construction relating to chapter 307. 

Sec. 10. Providing additional rehabilitative opportunities for inmates. 

Sec. 11. Re-entry employment preparation through work-based training and apprenticeship. 

Sec. 12. Director of the Bureau of Prisons. 

Sec. 13. Restructuring the Board of Directors. 

Sec. 14. Management matters. 

Sec. 15. Transitional personnel management authority. 

Sec. 16. Federal Prison Industries report to Congress. 

Sec. 17. Definitions. 

Sec. 18. Implementing regulations and procedures. 

Sec. 19. Rules of construction. 

Sec. 20. Effective date and applicability. 

Sec. 21. Clerical amendments. 


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1 SEC. 2. GOVERNMENTWIDE PROCUREMENT POLICY RELAT2 ING TO PURCHASES FROM FEDERAL PRISON 

3 INDUSTRIES. 

4 Section 4124 of title 18, United States Code, is 

5 amended to read as follows: 

6 ‘‘§ 4124. Governmentwide procurement policy relat7 ing to purchases from Federal Prison In8 dustries 

9 ‘‘(a) IN GENERAL.—Purchases from Federal Prison 

10 Industries, Incorporated, a wholly owned Government cor11 poration, as referred to in section 9101(3)(E) of title 31, 

12 may be made by a Federal department or agency only in 

13 accordance with this section. 

14 ‘‘(b) SOLICITATION AND EVALUATION OF OFFERS

15 AND CONTRACT AWARDS.—(1)(A) If a procurement activ16 ity of a Federal department or agency has a requirement 

17 for a specific product or service that is authorized to be 

18 offered for sale by Federal Prison Industries, in accord19 ance with section 4122 of this title, and is listed in the 

20 catalog referred to in subsection (g), the procurement ac21 tivity shall solicit an offer from Federal Prison Industries, 

22 if the purchase is expected to be in excess of the micro23 purchase threshold (as defined by section 32(f) of the Of24 fice of Federal Procurement Policy Act (41 U.S.C. 

25 428(f))). 


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1 ‘‘(B) The requirements of subparagraph (A) shall 

2 also apply to a procurement that a Federal department 

3 or agency intends to meet by placing an order against a 

4 contract maintained by the General Services Administra5 tion under the Multiple Award Schedule Contracts Pro6 gram. 

7 ‘‘(C) Federal Prison Industries, upon its request, 

8 shall be listed on any Schedule, referred to in subpara9 graph (B), as offering products or services which Federal 

10 Prison Industries believes to be comparable to those prod11 ucts and services being offered by commercial contractors 

12 through the Multiple Award Schedule Contracts Program. 

13 ‘‘(2) A contract award for such product or service 

14 shall be made using competitive procedures in accordance 

15 with the applicable evaluation factors, unless a determina16 tion is made by the Attorney General pursuant to para17 graph (3) or an award using other than competitive proce18 dures is authorized pursuant to paragraph (7). 

19 ‘‘(3) The procurement activity shall negotiate with 

20 Federal Prison Industries on a noncompetitive basis for 

21 the award of a contract if the Attorney General determines 

22 that— 

23 ‘‘(A) Federal Prison Industries cannot reason24 ably expect fair consideration to receive the contract 

25 award on a competitive basis; and 


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1 ‘‘(B) the contract award is necessary to main2 tain work opportunities otherwise unavailable at the 

3 penal or correctional facility at which the contract is 

4 to be performed to prevent circumstances that could 

5 reasonably be expected to significantly endanger the 

6 safe and effective administration of such facility. 

7 ‘‘(4) Except in the case of an award to be made pur8 suant to paragraph (3), a contract award shall be made 

9 with Federal Prison Industries only if the contracting offi10 cer for the procurement activity determines that— 

11 ‘‘(A) the specific product or service to be fur12 nished will meet the requirements of the procure13 ment activity (including any applicable 

14 prequalification requirements and all specified com15 mercial or governmental standards pertaining to 

16 quality, testing, safety, serviceability, and warran17 ties); 

18 ‘‘(B) timely performance of the contract can be 

19 reasonably expected; and 

20 ‘‘(C) the contract price does not exceed a cur21 rent market price. 

22 ‘‘(5) A determination by the Attorney General pursu23 ant to paragraph (3) shall be— 

24 ‘‘(A) supported by specific findings by the war25 den of the penal or correctional institution at which 


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1 a Federal Prison Industries workshop is scheduled 

2 to perform the contract; 

3 ‘‘(B) supported by specific findings by Federal 

4 Prison Industries regarding why it does not expect 

5 to win the contract on a competitive basis; and 

6 ‘‘(C) made and reported in the same manner as 

7 a determination made pursuant to section 303(c)(7) 

8 of the Federal Property and Administrative Services 

9 Act of 1949 (41 U.S.C. 253(c)(7)). 

10 ‘‘(6) If the Attorney General has not made the deter11 mination described in paragraph (3) within 30 days after 

12 Federal Prison Industries has been informed of a con13 tracting opportunity by a procurement activity, the pro14 curement activity may proceed to conduct a procurement 

15 for the product or service in accordance with the proce16 dures generally applicable to such procurements by the 

17 procurement activity. 

18 ‘‘(7) A contract award may be made to Federal Pris19 on Industries using other than competitive procedures if 

20 such product or service is only available from Federal 

21 Prison Industries and the contract may be awarded under 

22 the authority of section 2304(c)(1) of title 10 or section 

23 303(c) of the Federal Property and Administrative Serv24 ices Act of 1949 (41 U.S.C. 253(c)(1)), as may be applica25 ble, and pursuant to the justification and approval reVerDate Mar 15 2010 02:04 May 25, 2013 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2098.IH H2098

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1 quirements relating to such noncompetitive procurements 

2 specified by law and the Governmentwide Federal Acquisi3 tion Regulation. 

4 ‘‘(8) A contract award may be made to Federal Pris5 on Industries using other than competitive procedures by 

6 the Federal Bureau of Prisons. 

7 ‘‘(9) A solicitation for a contract shall first be made 

8 to Federal Prison Industries using other than competitive 

9 procedures if the product or service to be acquired would 

10 otherwise be furnished by a contractor performing the 

11 work outside of the United States. 

12 ‘‘(c) OFFERS FROM FEDERAL PRISON INDUS13 TRIES.—(1) A timely offer received from Federal Prison 

14 Industries to furnish a product or service to a Federal de15 partment or agency shall be considered for award without 

16 limitation as to the dollar value of the proposed purchase, 

17 unless the contract opportunity has been reserved for com18 petition exclusively among small business concerns pursu19 ant to section 15(a) of the Small Business Act (15 U.S.C. 

20 644(a)) and its implementing regulations. 

21 ‘‘(2)(A) Any offer made by Federal Prison Industries 

22 to furnish a product or service may exclude from the of23 fered price the following: 

24 ‘‘(i) The costs related to security of the facili25 ties at which the contract will be performed. 


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1 ‘‘(ii) The costs of educating and training the 

2 prison work force performing the contract. 

3 ‘‘(iii) Excess capital costs of machinery and ex4 cess inventories used within a prison environment 

5 that are the result of the unique environment of 

6 prison life. 

7 ‘‘(iv) Other costs of performing the contract re8 sulting from the unique environment of prison facili9 ties. 

10 ‘‘(d) PERFORMANCE BY FEDERAL PRISON INDUS11 TRIES.—Federal Prison Industries shall perform its con12 tractual obligations under a contract awarded by a Fed13 eral department or agency to the same extent as any other 

14 contractor. 

15 ‘‘(e) FINALITY OF CONTRACTING OFFICER’S DECI16 SION.—(1) A decision by a contracting officer regarding 

17 the award of a contract to Federal Prison Industries or 

18 relating to the performance of such contract shall be final, 

19 unless reversed on appeal pursuant to paragraph (2) or 

20 (3). 

21 ‘‘(2)(A) The Chief Operating Officer of Federal Pris22 on Industries may protest a decision by a contracting offi23 cer not to award a contract to Federal Prison Industries 

24 pursuant to subsection (b)(4), in accordance with section 


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1 33.103, (Protests to the agency) of the Federal Acquisi2 tion Regulation (48 CFR part 33.103). 

3 ‘‘(B) In the event of an adverse decision of a protest 

4 filed pursuant to subparagraph (A), the Assistant Attor5 ney General for Administration may request a reconsider6 ation of such adverse decision by the head of the Federal 

7 agency or department, which shall be considered de novo 

8 and the decision issued by such agency head on a non9 delegable basis. Such decision upon reconsideration by the 

10 agency head shall be final. 

11 ‘‘(3) A dispute between Federal Prison Industries 

12 and a procurement activity regarding performance of a 

13 contract shall be subject to— 

14 ‘‘(A) alternative means of dispute resolution 

15 pursuant to subchapter IV of chapter 5 of title 5; 

16 or 

17 ‘‘(B) final resolution by the board of contract 

18 appeals having jurisdiction over the procurement ac19 tivity’s contract performance disputes pursuant to 

20 the Contract Disputes Act of 1978 (41 U.S.C. 601 

21 et seq.). 

22 ‘‘(f) REPORTING OF PURCHASES.—Each Federal de23 partment or agency shall report purchases from Federal 

24 Prison Industries to the Federal Procurement Data Sys25 tem (as referred to in section 6(d)(4) of the Office of FedVerDate Mar 15 2010 02:04 May 25, 2013 Jkt 029200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2098.IH H2098

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1 eral Procurement Policy Act (41 U.S.C. 405(d)(4))) in the 

2 same manner as it reports to such System any acquisition 

3 in an amount in excess of the simplified acquisition thresh4 old (as defined by section 4(11) of the Office of Federal 

5 Procurement Policy Act (41 U.S.C. 403(11))). 

6 ‘‘(g) CATALOG OF PRODUCTS.—Federal Prison In7 dustries shall publish and maintain a catalog of all specific 

8 products and services that it is authorized to offer for sale. 

9 Such catalog shall be periodically revised as products and 

10 services are added or deleted by its board of directors (in 

11 accordance with section 4122(b) of this title). 

12 ‘‘(h) COMPLIANCE WITH STANDARDS.—Federal Pris13 on Industries shall be subject to Federal occupational, 

14 health, and safety standards with respect to the operation 

15 of its industrial operations.’’. 

16 SEC. 3. PUBLIC PARTICIPATION REGARDING EXPANSION 

17 PROPOSALS BY FEDERAL PRISON INDUS18 TRIES. 

19 Section 4122(b) of title 18, United States Code, is 

20 amended— 

21 (1) by redesignating paragraph (6) as para22 graph (13); and 

23 (2) by striking paragraphs (4) and (5) and in24 serting the following new paragraphs: 


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1 ‘‘(4)(A) Federal Prison Industries is authorized to 

2 offer a new specific product or furnish a new specific serv3 ice in response to a competitive solicitation or other pur4 chase request issued by a Federal department or agency. 

5 No subsequent offering of such product or service may be 

6 made by Federal Prison Industries until the board of di7 rectors has approved the offering for sale of such new spe8 cific product or new specific service, in conformance with 

9 the requirements of paragraphs (5) through (9). 

10 ‘‘(B) Federal Prison Industries may produce a prod11 uct or furnish a service in excess of the authorized level 

12 of production for such product or service, in response to 

13 an order placed pursuant to an existing contract with a 

14 Federal department or agency, if the agency’s need for 

15 the product or service is of such an urgency that it would 

16 justify the use of procedures other than competitive proce17 dures pursuant to section 2304(c)(2) of title 10 or section 

18 303(c)(2) of the Federal Property and Administrative 

19 Services Act of 1949 (41 U.S.C. 253(c)(2)), as may be 

20 applicable. 

21 ‘‘(5) A decision to authorize Federal Prison Indus22 tries to offer a new specific product or specific service or 

23 to expand the production of an existing product or service 

24 for sale to the Federal Government shall be made by its 

25 board of directors in conformance with the requirements 


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1 of subsections (b), (c), (d), and (e) of section 553 of title 

2 5, and this chapter. 

3 ‘‘(6)(A) Whenever Federal Prison Industries pro4 poses to offer for sale a new specific product or specific 

5 service or to expand production of a currently authorized 

6 product or service, the Chief Operating Officer of Federal 

7 Prison Industries shall submit an appropriate proposal to 

8 the board of directors and obtain the board’s approval be9 fore initiating any such expansion. The proposal submitted 

10 to the board shall include a detailed analysis of the prob11 able impact of the proposed expansion of sales within the 

12 Federal market by Federal Prison Industries on private 

13 sector firms and their non-inmate workers. 

14 ‘‘(B)(i) The analysis required by subparagraph (A) 

15 shall be performed by an interagency team on a reimburs16 able basis or by a private contractor paid by Federal Pris17 on Industries. 

18 ‘‘(ii) If the analysis is to be performed by an inter19 agency team, such team shall be led by the Administrator 

20 of the Small Business Administration or the designee of 

21 such officer with representatives of the Department of 

22 Labor, the Department of Commerce, and the Federal 

23 Procurement Data Center. 

24 ‘‘(iii) If the analysis is to be performed by a private 

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1 istration of the contract shall be conducted by one of the 

2 entities referenced in clause (ii) as an independent execu3 tive agent for the board of directors. Maximum consider4 ation shall be given to any proposed statement of work 

5 furnished by the Chief Operating Officer of Federal Prison 

6 Industries. 

7 ‘‘(C) The analysis required by subparagraph (A) shall 

8 identify and consider— 

9 ‘‘(i) the number of vendors that currently meet 

10 the requirements of the Federal Government for the 

11 specific product or specific service; 

12 ‘‘(ii) the proportion of the Federal Government 

13 market for the specific product or specific service 

14 currently furnished by small businesses during the 

15 previous 3 fiscal years; 

16 ‘‘(iii) the share of the Federal market for the 

17 specific product or specific service projected for Fed18 eral Prison Industries for the fiscal year in which 

19 production or performance will commence or expand 

20 and the subsequent 4 fiscal years; 

21 ‘‘(iv) whether the industry producing the spe22 cific product or specific service in the private sec23 tor— 

24 ‘‘(I) has an unemployment rate higher 

25 than the national average; or 


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1 ‘‘(II) has a rate of unemployment for 

2 workers that has consistently shown an increase 

3 during the previous 5 years; 

4 ‘‘(v) whether the specific product is an import5 sensitive product; 

6 ‘‘(vi) the requirements of the Federal Govern7 ment and the demands of entities other than the 

8 Federal Government for the specific product or serv9 ice during the previous 3 fiscal years; 

10 ‘‘(vii) the projected growth or decline in the de11 mand of the Federal Government for the specific 

12 product or specific service; 

13 ‘‘(viii) the capability of the projected demand of 

14 the Federal Government for the specific product or 

15 service to sustain both Federal Prison Industries 

16 and private vendors; and 

17 ‘‘(ix) whether authorizing the production of the 

18 new product or performance of a new service will 

19 provide inmates with the maximum opportunity to 

20 acquire knowledge and skill in trades and occupa21 tions that will provide them with a means of earning 

22 a livelihood upon release. 

23 ‘‘(D)(i) The board of directors may not approve a 

24 proposal to authorize the production and sale of a new 


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1 specific product or continued sale of a previously author2 ized product unless— 

3 ‘‘(I) the product to be furnished is a prison4 made product; or 

5 ‘‘(II) the service to be furnished is to be per6 formed by inmate workers. 

7 ‘‘(ii) The board of directors may not approve a pro8 posal to authorize the production and sale of a new prison9 made product or to expand production of a currently au10 thorized product if the product is— 

11 ‘‘(I) produced in the private sector by an indus12 try which has reflected during the previous year an 

13 unemployment rate above the national average; or 

14 ‘‘(II) an import-sensitive product. 

15 ‘‘(iii) The board of directors may not approve a pro16 posal for inmates to provide a service in which an inmate 

17 worker has access to— 

18 ‘‘(I) personal or financial information about in19 dividual private citizens, including information relat20 ing to such person’s real property, however de21 scribed, without giving prior notice to such persons 

22 or class of persons to the greatest extent practicable; 

23 ‘‘(II) geographic data regarding the location of 

24 surface and subsurface infrastructure providing com25 munications, water and electrical power distribution, 


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1 pipelines for the distribution of natural gas, bulk pe2 troleum products and other commodities, and other 

3 utilities; or 

4 ‘‘(III) data that is classified. 

5 ‘‘(iv)(I) Federal Prison Industries is prohibited from 

6 furnishing through inmate labor construction services, un7 less to be performed within a Federal correctional institu8 tion pursuant to the participation of an inmate in an ap9 prenticeship or other vocational education program teach10 ing the skills of the various building trades. 

11 ‘‘(II) For purposes of this clause, the term ‘construc12 tion’ has the meaning given such term by section 2.101 

13 of the Federal Acquisition Regulation (48 CFR part 

14 2.101), as in effect on June 1, 2010, including the repair, 

15 alteration, or maintenance of real property in being. 

16 ‘‘(7) To provide further opportunities for participa17 tion by interested parties, the board of directors shall— 

18 ‘‘(A) give additional notice of a proposal to au19 thorize the production and sale of a new product or 

20 service, or expand the production of a currently au21 thorized product or service, in a publication designed 

22 to most effectively provide notice to private vendors 

23 and labor unions representing private sector workers 

24 who could reasonably be expected to be affected by 

25 approval of the proposal, which notice shall offer to 


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1 furnish copies of the analysis required by paragraph 

2 (6) and shall solicit comment on the analysis; 

3 ‘‘(B) solicit comments on the analysis required 

4 by paragraph (6) from trade associations rep5 resenting vendors and labor unions representing pri6 vate sector workers who could reasonably be ex7 pected to be affected by approval of the proposal to 

8 authorize the production and sale of a new product 

9 or service (or expand the production of a currently 

10 authorized product or service); and 

11 ‘‘(C) afford an opportunity, on request, for a 

12 representative of an established trade association, 

13 labor union, or other private sector representatives 

14 to present comments on the proposal directly to the 

15 board of directors. 

16 ‘‘(8) The board of directors shall be provided copies 

17 of all comments received on the expansion proposal. 

18 ‘‘(9) Based on the comments received on the initial 

19 expansion proposal, the Chief Operating Officer of Federal 

20 Prison Industries may provide the board of directors a re21 vised expansion proposal. If such revised proposal provides 

22 for expansion of inmate work opportunities in an industry 

23 different from that initially proposed, such revised pro24 posal shall reflect the analysis required by paragraph 


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1 (6)(C) and be subject to the public comment requirements 

2 of paragraph (7). 

3 ‘‘(10) The board of directors shall consider a proposal 

4 to authorize the sale of a new specific product or specific 

5 service (or to expand the volume of sales for a currently 

6 authorized product or service) and take any action with 

7 respect to such proposal, during a meeting that is open 

8 to the public, unless closed pursuant to section 552(b) of 

9 title 5. 

10 ‘‘(11) In conformance with the requirements of para11 graph (10) of this subsection, the board of directors 

12 may— 

13 ‘‘(A) authorize the donation of products pro14 duced or services furnished by Federal industries 

15 and available for sale; 

16 ‘‘(B) authorize the production of a new specific 

17 product or the furnishing of a new specific service 

18 for donation; or 

19 ‘‘(C) authorize a proposal to expand production 

20 of a currently authorized specific product or specific 

21 service in an amount in excess of a reasonable share 

22 of the market for such product or service, if— 

23 ‘‘(i) a Federal agency or department, pur24 chasing such product or service, has requested 

25 that Federal Prison Industries be authorized to 


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1 furnish such product or service in amounts that 

2 are needed by such agency or department; or 

3 ‘‘(ii) the proposal is justified for other good 

4 cause and supported by at least two-thirds of 

5 the appointed members of the board.’’. 

6 SEC. 4. TRANSITIONAL MANDATORY SOURCE AUTHORITY. 

7 (a) IN GENERAL.—Notwithstanding the require8 ments of section 4124 of title 18, United States Code, a 

9 Federal department or agency having a requirement for 

10 a product that is authorized for sale by Federal Prison 

11 Industries and is listed in its catalog (referred to in section 

12 4124(g) of title 18, United States Code) shall first solicit 

13 an offer from Federal Prison Industries and make pur14 chases on a noncompetitive basis in accordance with this 

15 section or in accordance with section 2410n of title 10, 

16 United States Code, or section 318 of title III of the Fed17 eral Property and Administrative Services Act of 1949. 

18 (b) PREFERENTIAL SOURCE STATUS.—Subject to 

19 the limitations of subsection (d), a contract award shall 

20 be made on a noncompetitive basis to Federal Prison In21 dustries if the contracting officer for the procurement ac22 tivity determines that— 

23 (1) the product offered by Federal Prison In24 dustries will meet the requirements of the procure25 ment activity (including commercial or governmental 


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1 standards or specifications pertaining to design, per2 formance, testing, safety, serviceability, and warran3 ties as may be imposed upon a private sector sup4 plier of the type being offered by Federal Prison In5 dustries); 

6 (2) timely performance of the contract by Fed7 eral Prison Industries can be reasonably expected; 

8 and 

9 (3) the negotiated price does not exceed a fair 

10 and reasonable price. 

11 (c) CONTRACTUAL TERMS.—The terms and condi12 tions of the contract and the price to be paid to Federal 

13 Prison Industries shall be determined by negotiation be14 tween Federal Prison Industries and the Federal agency 

15 making the purchase. The negotiated price shall not ex16 ceed a fair and reasonable price determined in accordance 

17 with the procedures of the Federal Acquisition Regulation. 

18 (d) PERFORMANCE OF CONTRACTUAL OBLIGA19 TIONS.— 

20 (1) IN GENERAL.—Federal Prison Industries 

21 shall perform the obligations of the contract nego22 tiated pursuant to subsection (c). 

23 (2) PERFORMANCE DISPUTES.—If the head of 

24 the contracting activity and the Chief Operating Of25 ficer of Federal Prison Industries are unable to reVerDate Mar 15 2010 02:04 May 25, 2013 Jkt 029200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H2098.IH H2098

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1 solve a contract performance dispute to their mutual 

2 satisfaction, such dispute shall be resolved pursuant 

3 to section 4124(e)(3) of title 18, United States 

4 Code. 

5 (e) LIMITATIONS ON USE OF AUTHORITY.— 

6 (1) IN GENERAL.—As a percentage of the sales 

7 made by Federal Prison Industries during the base 

8 period, the total dollar value of sales to the Govern9 ment made pursuant to subsection (b) and sub10 section (c) of this section shall not exceed— 

11 (A) 90 percent in fiscal year 2014; 

12 (B) 85 percent in fiscal year 2015; 

13 (C) 70 percent in fiscal year 2016; 

14 (D) 55 percent in fiscal year 2017; and 

15 (E) 40 percent in fiscal year 2018. 

16 (2) SALES WITHIN VARIOUS BUSINESS SEC17 TORS.—Use of the authority provided by subsections 

18 (b) and (c) shall not result in sales by Federal Pris19 on Industries to the Government that are in excess 

20 of its total sales during the base year for each busi21 ness sector. 

22 (3) LIMITATIONS RELATING TO SPECIFIC PROD23 UCTS.—Use of the authorities provided by sub24 sections (b) and (c) shall not result in contract 

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1 cess of its total sales during the base period for such 

2 product. 

3 (4) CHANGES IN DESIGN SPECIFICATIONS.—If a 

4 buying agency directs a change to the design speci5 fication for a specific product, the costs associated 

6 with the implementation of such specification change 

7 by Federal Prison Industries shall not be considered 

8 for the purposes of computing sales by Federal Pris9 on Industries for the purposes of paragraphs (2) and 

10 (3). 

11 (f) ADDITIONAL AUTHORITY TO SUSTAIN INMATE

12 EMPLOYMENT.—During the period specified in subsection 

13 (g), the authority of section 4122(b)(11)(C)(ii) of title 18, 

14 United States Code (as amended by section 3), may be 

15 used by the Board to sustain inmate employment. 

16 (g) DURATION OF AUTHORITY.—The preferential 

17 contracting authorities authorized by subsection (b) may 

18 not be used on or after October 1, 2015, and become effec19 tive on the effective date of the final regulations issued 

20 pursuant to section 17. 

21 (h) DEFINITIONS.—For the purposes of this sec22 tion— 

23 (1) the term ‘‘base period’’ means the total 

24 sales of Federal Prison Industries during the period 


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1 October 1, 2011, and September 30, 2012 (Fiscal 

2 Year 2012); 

3 (2) the term ‘‘business sectors’’ means the 

4 seven product/service business groups identified in 

5 the 2004 Federal Prison Industries annual report as 

6 the Clothing and Textiles Business Group, the Elec7 tronics Business Group, the Fleet Management and 

8 Vehicular Components Business Group, the Indus9 trial Products Business Group, the Office Furniture 

10 Business Group, the Recycling Activities Business 

11 Group, and the Services Business Group; and 

12 (3) the term ‘‘fair and reasonable price’’ shall 

13 be given the same meaning as, and be determined 

14 pursuant to, part 15.8 of the Federal Acquisition 

15 Regulation (48 CFR 15.8). 

16 (i) FINDING BY ATTORNEY GENERAL WITH RE17 SPECT TO PUBLIC SAFETY.—(1) Not later than 60 days 

18 prior to the end of each fiscal year specified in subsection 

19 (e)(1), the Attorney General shall make a finding regard20 ing the effects of the percentage limitation imposed by 

21 such subsection for such fiscal year and the likely effects 

22 of the limitation imposed by such subsection for the fol23 lowing fiscal year. 

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1 ly to result in a substantial reduction in inmate industrial 

2 employment and whether such reductions, if any, present 

3 a significant risk of adverse effects on safe prison oper4 ation or public safety. 

5 (3) If the Attorney General finds a significant risk 

6 of adverse effects on either safe prison management or 

7 public safety, he shall so advise the Congress. 

8 (4) In advising the Congress pursuant to paragraph 

9 (3), the Attorney General shall make recommendations for 

10 additional authorizations of appropriations to provide ad11 ditional alternative inmate rehabilitative opportunities and 

12 additional correctional staffing, as may be appropriate. 

13 (j) PROCEDURAL REQUIREMENTS FOR CIVILIAN

14 AGENCIES RELATING TO PRODUCTS OF FEDERAL PRISON

15 INDUSTRIES.—Title III of the Federal Property and Ad16 ministrative Services Act of 1949 (41 U.S.C. 251 et seq.) 

17 is amended by adding at the end the following new section: 

18 ‘‘SEC. 318. PRODUCTS OF FEDERAL PRISON INDUSTRIES: 

19 PROCEDURAL REQUIREMENTS. 

20 ‘‘(a) MARKET RESEARCH.—Before purchasing a 

21 product listed in the latest edition of the Federal Prison 

22 Industries catalog under section 4124(g) of title 18, 

23 United States Code, the head of an executive agency shall 

24 conduct market research to determine whether the Federal 

25 Prison Industries product is comparable to products availVerDate Mar 15 2010 02:04 May 25, 2013 Jkt 029200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H2098.IH H2098

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1 able from the private sector that best meet the executive 

2 agency’s needs in terms of price, quality, and time of deliv3 ery. 

4 ‘‘(b) COMPETITION REQUIREMENT.—If the head of 

5 the executive agency determines that a Federal Prison In6 dustries product is not comparable in price, quality, or 

7 time of delivery to products available from the private sec8 tor that best meet the executive agency’s needs in terms 

9 of price, quality, and time of delivery, the agency head 

10 shall use competitive procedures for the procurement of 

11 the product or shall make an individual purchase under 

12 a multiple award contract. In conducting such a competi13 tion or making such a purchase, the agency head shall 

14 consider a timely offer from Federal Prison Industries. 

15 ‘‘(c) IMPLEMENTATION BY HEAD OF EXECUTIVE

16 AGENCY.—The head of an executive agency shall ensure 

17 that— 

18 ‘‘(1) the executive agency does not purchase a 

19 Federal Prison Industries product or service unless 

20 a contracting officer of the agency determines that 

21 the product or service is comparable to products or 

22 services available from the private sector that best 

23 meet the agency’s needs in terms of price, quality, 

24 and time of delivery; and 


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1 ‘‘(2) Federal Prison Industries performs its 

2 contractual obligations to the same extent as any 

3 other contractor for the executive agency. 

4 ‘‘(d) MARKET RESEARCH DETERMINATION NOT

5 SUBJECT TO REVIEW.—A determination by a contracting 

6 officer regarding whether a product or service offered by 

7 Federal Prison Industries is comparable to products or 

8 services available from the private sector that best meet 

9 an executive agency’s needs in terms of price, quality, and 

10 time of delivery shall not be subject to review pursuant 

11 to section 4124(b) of title 18. 

12 ‘‘(e) PERFORMANCE AS A SUBCONTRACTOR.—(1) A 

13 contractor or potential contractor of an executive agency 

14 may not be required to use Federal Prison Industries as 

15 a subcontractor or supplier of products or provider of serv16 ices for the performance of a contract of the executive 

17 agency by any means, including means such as— 

18 ‘‘(A) a contract solicitation provision requiring 

19 a contractor to offer to make use of products or 

20 services of Federal Prison Industries in the perform21 ance of the contract; 

22 ‘‘(B) a contract specification requiring the con23 tractor to use specific products or services (or class24 es of products or services) offered by Federal Prison 

25 Industries in the performance of the contract; or 


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1 ‘‘(C) any contract modification directing the use 

2 of products or services of Federal Prison Industries 

3 in the performance of the contract. 

4 ‘‘(2) In this subsection, the term ‘contractor’, with 

5 respect to a contract, includes a subcontractor at any tier 

6 under the contract. 

7 ‘‘(f) PROTECTION OF CLASSIFIED AND SENSITIVE

8 INFORMATION.—The head of an executive agency may not 

9 enter into any contract with Federal Prison Industries 

10 under which an inmate worker would have access to— 

11 ‘‘(1) any data that is classified; 

12 ‘‘(2) any geographic data regarding the location 

13 of— 

14 ‘‘(A) surface and subsurface infrastructure 

15 providing communications or water or electrical 

16 power distribution; 

17 ‘‘(B) pipelines for the distribution of nat18 ural gas, bulk petroleum products, or other 

19 commodities; or 

20 ‘‘(C) other utilities; or 

21 ‘‘(3) any personal or financial information 

22 about any individual private citizen, including infor23 mation relating to such person’s real property how24 ever described, without the prior consent of the indi25 vidual. 


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1 ‘‘(g) DEFINITIONS.—In this section: 

2 ‘‘(1) The term ‘competitive procedures’ has the 

3 meaning given such term in section 4(5) of the Of4 fice of Federal Procurement Policy Act (41 U.S.C. 

5 403(5)). 

6 ‘‘(2) The term ‘market research’ means obtain7 ing specific information about the price, quality, and 

8 time of delivery of products available in the private 

9 sector through a variety of means, which may in10 clude— 

11 ‘‘(A) contacting knowledgeable individuals 

12 in government and industry; 

13 ‘‘(B) interactive communication among in14 dustry, acquisition personnel, and customers; 

15 and 

16 ‘‘(C) interchange meetings or pre-solicita17 tion conferences with potential offerors.’’. 

18 SEC. 5. AUTHORITY TO PERFORM AS A FEDERAL SUBCON19 TRACTOR. 

20 (a) IN GENERAL.—Federal Prison Industries is au21 thorized to enter into a contract with a Federal contractor 

22 (or a subcontractor of such contractor at any tier) to 

23 produce products as a subcontractor or supplier in the per24 formance of a Federal procurement contract. The use of 

25 Federal Prison Industries as a subcontractor or supplier 


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1 shall be a wholly voluntary business decision by the Fed2 eral prime contractor or subcontractor, subject to any 

3 prior approval of subcontractors or suppliers by the con4 tracting officer which may be imposed by the Federal Ac5 quisition Regulation or by the contract. 

6 (b) LIMITATIONS ON USE.—Federal Prison Indus7 tries is prohibited from being a subcontractor or supplier 

8 at any tier if— 

9 (1) the product or service is to be acquired by 

10 a Federal department or agency pursuant to section 

11 3 of the Javits-Wagner-O’Day Act (41 U.S.C. 48); 

12 or 

13 (2) the product to be acquired by the Federal 

14 department or agency is subject to section 2533a of 

15 title 10, United States Code. 

16 (c) COMMERCIAL SALES PROHIBITED.—The author17 ity provided by subsection (a) shall not result, either di18 rectly or indirectly, in the sale in the commercial market 

19 of a product or service resulting from the labor of Federal 

20 inmate workers in violation of section 1761(a) of title 18, 

21 United States Code. A Federal contractor (or subcon22 tractor at any tier) using Federal Prison Industries as a 

23 subcontractor or supplier in furnishing a commercial prod24 uct pursuant to a Federal contract shall implement approVerDate Mar 15 2010 02:04 May 25, 2013 Jkt 029200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H2098.IH H2098

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1 priate management procedures to prevent introducing an 

2 inmate-produced product into the commercial market. 

3 (d) PROHIBITIONS ON MANDATING SUBCON4 TRACTING WITH FEDERAL PRISON INDUSTRIES.—Except 

5 as authorized under the Federal Acquisition Regulation, 

6 the use of Federal Prison Industries as a subcontractor 

7 or supplier of products or provider of services shall not 

8 be imposed upon prospective or actual Federal prime con9 tractors or a subcontractors at any tier by means of— 

10 (1) a contract solicitation provision requiring a 

11 contractor to offer to make use of Federal Prison 

12 Industries, its products or services; 

13 (2) specifications requiring the contractor to 

14 use specific products or services (or classes of prod15 ucts or services) offered by Federal Prison Indus16 tries in the performance of the contract; 

17 (3) any contract modification directing the use 

18 of Federal Prison Industries, its products or serv19 ices; or 

20 (4) any other means. 

21 SEC. 6. INMATE WAGES AND DEDUCTIONS. 

22 Section 4122(b) of title 18, United States Code (as 

23 amended by section 3 of this Act), is further amended by 

24 adding after paragraph (11) a new paragraph (12) as fol25 lows: 


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1 ‘‘(12)(A) The Board of Directors of Federal Prison 

2 Industries shall prescribe the rates of hourly wages to be 

3 paid inmates performing work for or through Federal 

4 Prison Industries. The Director of the Federal Bureau of 

5 Prisons shall prescribe the rates of hourly wages for other 

6 work assignments within the various Federal correctional 

7 institutions. In the case of an inmate whose term of im8 prisonment is to expire in not more than 2 years, wages 

9 shall be earned at an hourly rate of not less than $2.50, 

10 but paid at the same rate and in the same manner as to 

11 any other inmate, and any amount earned but not paid 

12 shall be held in trust and paid only upon the actual expira13 tion of the term of imprisonment. 

14 ‘‘(B) The various inmate wage rates shall be reviewed 

15 and considered for increase on not less than a biannual 

16 basis. 

17 ‘‘(C) The Board of Directors of Federal Prison In18 dustries shall— 

19 ‘‘(i) not later than September 30, 2014, in20 crease the maximum wage rate for inmates per21 forming work for or through Federal Prison Indus22 tries to an amount equal to 50 percent of the min23 imum wage prescribed by section 6(a)(1) of the Fair 

24 Labor Standards Act of 1938 (29 U.S.C. 

25 206(a)(1)); and 


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1 ‘‘(ii) not later than September 30, 2019, in2 crease such maximum wage rate to an amount equal 

3 to such minimum wage. 

4 ‘‘(D) Wages earned by an inmate worker shall be paid 

5 in the name of the inmate. Deductions, aggregating to not 

6 more than 80 percent of gross wages, shall be taken from 

7 the wages due for— 

8 ‘‘(i) applicable taxes (Federal, State, and local); 

9 ‘‘(ii) payment of fines and restitution pursuant 

10 to court order; 

11 ‘‘(iii) payment of additional restitution for vic12 tims of the inmate’s crimes (at a rate not less than 

13 10 percent of gross wages); 

14 ‘‘(iv) allocations for support of the inmate’s 

15 family pursuant to statute, court order, or agree16 ment with the inmate; 

17 ‘‘(v) allocations to a fund in the inmate’s name 

18 to facilitate such inmate’s assimilation back into so19 ciety, payable at the conclusion of incarceration; and 

20 ‘‘(vi) such other deductions as may be specified 

21 by the Director of the Bureau of Prisons. 

22 ‘‘(E) Each inmate worker working for Federal Prison 

23 Industries shall indicate in writing that such person— 

24 ‘‘(i) is participating voluntarily; and 


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1 ‘‘(ii) understands and agrees to the wages to be 

2 paid and deductions to be taken from such wages.’’. 

3 SEC. 7. CLARIFYING AMENDMENT RELATING TO SERVICES. 

4 (a) IN GENERAL.—Section 1761 of title 18, United 

5 States Code, is amended in subsection (a) and (c) by strik6 ing ‘‘goods, wares, or merchandise manufactured, pro7 duced, or mined’’ each place it appears and inserting 

8 ‘‘products manufactured, services furnished, or minerals 

9 mined’’. 

10 (b) COMPLETION OF EXISTING AGREEMENTS.—Any 

11 prisoner work program operated by a prison or jail of a 

12 State or local jurisdiction of a State which is providing 

13 services for the commercial market through inmate labor 

14 on October 1, 2012, may continue to provide such com15 mercial services until— 

16 (1) the expiration date specified in the contract 

17 or other agreement with a commercial partner on 

18 October 1, 2012, or 

19 (2) until September 30, 2017, if the prison 

20 work program is directly furnishing the services to 

21 the commercial market. 

22 (c) APPROVAL REQUIRED FOR LONG-TERM OPER23 ATION.—A prison work program operated by a correc24 tional institution operated by a State or local jurisdiction 

25 of a State may continue to provide inmate labor to furnish 


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1 services for sale in the commercial market after the dates 

2 specified in subsection (b) if such program has been cer3 tified pursuant to section 1761(c)(1) of title 18, United 

4 States Code, and is in compliance with the requirements 

5 of such subsection and its implementing regulations. 

6 (d) EXISTING WORK OPPORTUNITIES FOR FEDERAL

7 INMATES.—Any private for-profit business entity having 

8 an agreement with Federal Prison Industries in effect on 

9 the date of enactment of this Act, under which Federal 

10 inmates are furnishing services that are being introduced 

11 into the commercial market, may continue to furnish such 

12 services for the duration of the term of such agreement. 

13 (e) ADDITIONAL AMENDMENT.—Section 1761 of title 

14 18, United States Code, is further amended— 

15 (1) by redesignating subsections (d) and (e) as 

16 subsections (e) and (f), respectively; and 

17 (2) by inserting after subsection (c) the fol18 lowing new subsection: 

19 ‘‘(d) This section shall not apply to services per20 formed as part of an inmate work program conducted by 

21 a State or local government to disassemble, scrap, and re22 cycle products, other than electronic products, that would 

23 otherwise be disposed of in a landfill. Recovered scrap 

24 from such program may be sold.’’. 


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1 SEC. 8. CONFORMING AMENDMENT. 

2 Section 4122(a) of title 18, United States Code, is 

3 amended by striking ‘‘production of commodities’’ and in4 serting ‘‘production of products or furnishing of services’’. 

5 SEC. 9. RULES OF CONSTRUCTION RELATING TO CHAPTER 

6 307. 

7 Chapter 307 of title 18, United States Code, is fur8 ther amended by adding at the end the following: 

9 ‘‘§ 4130. Construction of provisions 

10 ‘‘Nothing in this chapter shall be construed— 

11 ‘‘(1) to establish an entitlement of any inmate 

12 to— 

13 ‘‘(A) employment in a Federal Prison In14 dustries facility; or 

15 ‘‘(B) any particular wage, compensation, 

16 or benefit on demand, except as otherwise spe17 cifically provided by law or regulation; 

18 ‘‘(2) to establish that inmates are employees for 

19 the purposes of any law or program; or 

20 ‘‘(3) to establish any cause of action by or on 

21 behalf of any inmate against the United States or 

22 any officer, employee, or contractor thereof.’’. 

23 SEC. 10. PROVIDING ADDITIONAL REHABILITATIVE OPPOR24 TUNITIES FOR INMATES. 

25 (a) ADDITIONAL EDUCATIONAL, TRAINING, AND RE26 LEASE-PREPARATION OPPORTUNITIES.— 


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1 (1) PROGRAM ESTABLISHED.—There is hereby 

2 established the Enhanced In-Prison Educational and 

3 Vocational Assessment and Training Program within 

4 the Federal Bureau of Prisons. 

5 (2) COMPREHENSIVE PROGRAM.—In addition to 

6 such other components as the Director of the Bu7 reau of Prisons deems appropriate to reduce inmate 

8 idleness and better prepare inmates for a successful 

9 reentry into the community upon release, the pro10 gram shall provide— 

11 (A) in-prison assessments of inmates’ 

12 needs and aptitudes; 

13 (B) a full range of educational opportuni14 ties; 

15 (C) vocational training and apprentice16 ships; and 

17 (D) comprehensive release-readiness prepa18 ration. 

19 (3) AUTHORIZATION OF APPROPRIATIONS.—For 

20 the purposes of carrying out the program established 

21 by paragraph (1), $75,000,000 is authorized for 

22 each fiscal year after fiscal year 2013, to remain 

23 available until expended. It is the sense of Congress 

24 that Federal Prison Industries should use some of 


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1 its net earnings to accomplish the purposes of the 

2 program. 

3 (4) SCHEDULE FOR IMPLEMENTATION.—All 

4 components of the program shall be established— 

5 (A) in at least 25 percent of all Federal 

6 prisons not later than 2 years after the date of 

7 the enactment of this Act; 

8 (B) in at least 50 percent of all Federal 

9 prisons not later than 4 years after such date 

10 of enactment; 

11 (C) in at least 75 percent of all Federal 

12 prisons not later than 6 years after such date 

13 of enactment; and 

14 (D) in all Federal prisons not later than 8 

15 years after such date of enactment. 

16 (b) ADDITIONAL INMATE WORK OPPORTUNITIES

17 THROUGH PUBLIC SERVICE ACTIVITIES.— 

18 (1) IN GENERAL.—Chapter 307 of title 18, 

19 United States Code, is further amended by inserting 

20 after section 4124 the following new section: 

21 ‘‘§ 4124a. Additional inmate work opportunities 

22 through public service activities 

23 ‘‘(a) IN GENERAL.—Inmates with work assignments 

24 within Federal Prison Industries may perform work for 

25 an eligible entity pursuant to an agreement between such 


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1 entity and the Inmate Work Training Administrator in ac2 cordance with the requirements of this section. 

3 ‘‘(b) DEFINITION OF ELIGIBLE ENTITIES.—For the 

4 purposes of this section, the term ‘eligible entity’ means 

5 an entity— 

6 ‘‘(1) that is an organization described in section 

7 501(c)(3) of the Internal Revenue Code of 1986 and 

8 exempt from taxation under section 501(a) of such 

9 Code and that has been such an organization for a 

10 period of not less than 36 months prior to inclusion 

11 in an agreement under this section; 

12 ‘‘(2) that is a religious organization described 

13 in section 501(d) of such Code and exempt from tax14 ation under section 501(a) of such Code; or 

15 ‘‘(3) that is a unit of local government, a school 

16 district, or another special purpose district. 

17 ‘‘(c) INMATE WORK TRAINING ADMINISTRATOR.— 

18 There is hereby established the position of Inmate Work 

19 Training Administrator, who shall be responsible for fos20 tering the creation of alternative inmate work opportuni21 ties authorized by this section. The Administrator shall 

22 be designated by the Chief Executive Officer of Federal 

23 Prison Industries, with the approval of the Board of Di24 rectors, and be under the supervision of the Chief Oper25 ating Officer, but may directly report to the Board. 


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1 ‘‘(d) PROPOSED AGREEMENTS.—An eligible entity 

2 seeking to enter into an agreement pursuant to subsection 

3 (a) shall submit a detailed proposal to the Inmate Work 

4 Training Administrator. Each such agreement shall speci5 fy— 

6 ‘‘(1) types of work to be performed; 

7 ‘‘(2) the proposed duration of the agreement, 

8 specified in terms of a base year and number of op9 tion years; 

10 ‘‘(3) the number of inmate workers expected to 

11 be employed in the specified types of work during 

12 the various phases of the agreement; 

13 ‘‘(4) the wage rates proposed to be paid to var14 ious classes of inmate workers; and 

15 ‘‘(5) the facilities, services and personnel (other 

16 than correctional personnel dedicated to the security 

17 of the inmate workers) to be furnished by Federal 

18 Prison Industries or the Bureau of Prisons and the 

19 rates of reimbursement, if any, for such facilities, 

20 services, and personnel. 

21 ‘‘(e) REPRESENTATIONS.— 

22 ‘‘(1) ELEEMOSYNARY WORK ACTIVITIES.—Each 

23 proposed agreement shall be accompanied by a writ24 ten certification by the chief executive officer of the 

25 eligible entity that— 


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1 ‘‘(A) the work to be performed by the in2 mate workers will be limited to the eleemosy3 nary work of such entity in the case of an enti4 ty described in paragraph (1) or (2) of sub5 section (b); 

6 ‘‘(B) the work would not be performed in 

7 the United States but for the availability of the 

8 inmate workers; and 

9 ‘‘(C) the work performed by the inmate 

10 workers will not result, either directly or indi11 rectly, in the production of a new product or 

12 the furnishing of a service that is to be offered 

13 for other than resale or donation by the eligible 

14 entity or any affiliate of the such entity. 

15 ‘‘(2) PROTECTIONS FOR NON-INMATE WORK16 ERS.—Each proposed agreement shall also be ac17 companied by a written certification by the chief ex18 ecutive officer of the eligible entity that— 

19 ‘‘(A) no non-inmate employee (including 

20 any person performing work activities for such 

21 governmental entity pursuant to section 607 of 

22 subchapter IV of the Social Security Act (42 

23 U.S.C. 607)) of the eligible entity (or any affil24 iate of the entity) working in the United States 

25 will have his or her job abolished or work hours 


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1 reduced as a result of the entity being author2 ized to utilize inmate workers; and 

3 ‘‘(B) the work to be performed by the in4 mate workers will not supplant work currently 

5 being performed in the United States by a con6 tractor of the eligible entity. 

7 ‘‘(f) APPROVAL BY BOARD OF DIRECTORS.— 

8 ‘‘(1) IN GENERAL.—Each such proposed agree9 ment shall be presented to the Board of Directors, 

10 be subject to the same opportunities for public com11 ment, and be publicly considered and acted upon by 

12 the Board in a manner comparable to that required 

13 by paragraphs (7) and (8) of section 4122(b). 

14 ‘‘(2) MATTERS TO BE CONSIDERED.—In deter15 mining whether to approve a proposed agreement, 

16 the Board shall— 

17 ‘‘(A) give priority to an agreement that 

18 provides inmate work opportunities that will 

19 provide participating inmates with the best 

20 prospects of obtaining employment paying a liv21 able wage upon release; 

22 ‘‘(B) give priority to an agreement that 

23 provides for maximum reimbursement for in24 mate wages and for the costs of supplies and 


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1 equipment needed to perform the types of work 

2 to be performed; 

3 ‘‘(C) not approve an agreement that will 

4 result in the displacement of non-inmate work5 ers contrary to the representations required by 

6 subsection (e)(2) as determined by the Board or 

7 by the Secretary of Labor (pursuant to sub8 section (i)); and 

9 ‘‘(D) not approve an agreement that will 

10 result, either directly or indirectly, in the pro11 duction of a new product or the furnishing of 

12 a service for other than resale by an eligible en13 tity described in paragraph (1) or (2) of sub14 section (b) or donation. 

15 ‘‘(g) WAGE RATES AND DEDUCTIONS FROM INMATE

16 WAGES.— 

17 ‘‘(1) IN GENERAL.—Inmate workers shall be 

18 paid wages for work under the agreement at a basic 

19 hourly rate to be negotiated between the eligible en20 tity and Federal Prison Industries and specified in 

21 the agreement. The wage rates set by the Director 

22 of the Federal Bureau of Prisons to be paid inmates 

23 for various institutional work assignments are spe24 cifically authorized. 


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1 ‘‘(2) PAYMENT TO INMATE WORKER AND AU2 THORIZED DEDUCTIONS.—Wages shall be paid and 

3 deductions taken pursuant to section 

4 4122(b)(12)(D). 

5 ‘‘(3) VOLUNTARY PARTICIPATION BY INMATE.— 

6 Each inmate worker to be utilized by an eligible en7 tity shall indicate in writing that such person— 

8 ‘‘(A) is participating voluntarily; and 

9 ‘‘(B) understands and agrees to the wages 

10 to be paid and deductions to be taken from 

11 such wages. 

12 ‘‘(h) ASSIGNMENT TO WORK OPPORTUNITIES.—As13 signment of inmates to work under an approved agree14 ment with an eligible entity shall be subject to the Bureau 

15 of Prisons Program Statement Number 1040.10 (Non16 Discrimination Toward Inmates), as contained in section 

17 551.90 of title 28 of the Code of Federal Regulations (or 

18 any successor document). 

19 ‘‘(i) ENFORCEMENT OF PROTECTIONS FOR NON-IN20 MATE WORKERS.— 

21 ‘‘(1) PRIOR TO BOARD CONSIDERATION.—Upon 

22 request of any interested person, the Secretary of 

23 Labor may promptly verify a certification made pur24 suant subsection (e)(2) with respect to the displace25 ment of non-inmate workers so as to make the reVerDate Mar 15 2010 02:04 May 25, 2013 Jkt 029200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H2098.IH H2098

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1 sults of such inquiry available to the Board of Direc2 tors prior to the Board’s consideration of the pro3 posed agreement. The Secretary and the person re4 questing the inquiry may make recommendations to 

5 the Board regarding modifications to the proposed 

6 agreement. 

7 ‘‘(2) DURING PERFORMANCE.— 

8 ‘‘(A) IN GENERAL.—Whenever the Sec9 retary deems appropriate, upon request or oth10 erwise, the Secretary may verify whether the 

11 actual performance of the agreement is result12 ing in the displacement of non-inmate workers 

13 or the use of inmate workers in a work activity 

14 not authorized under the approved agreement. 

15 ‘‘(B) SANCTIONS.—Whenever the Sec16 retary determines that performance of the 

17 agreement has resulted in the displacement of 

18 non-inmate workers or employment of an in19 mate worker in an unauthorized work activity, 

20 the Secretary may— 

21 ‘‘(i) direct the Inmate Work Training 

22 Administrator to terminate the agreement 

23 for default, subject to the processes and 

24 appeals available to a Federal contractor 


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1 whose procurement contract has been ter2 minated for default; and 

3 ‘‘(ii) initiate proceedings to impose 

4 upon the person furnishing the certifi5 cation regarding non-displacement of non6 inmate workers required by subsection 

7 (d)(2)(B) any administrative, civil, and 

8 criminal sanctions as may be available.’’. 

9 (2) AUTHORIZATION OF APPROPRIATION.— 

10 There is authorized to be appropriated $5,000,000 

11 for each of the fiscal years 2014 through 2018 for 

12 the purposes of paying the wages of inmates and 

13 otherwise undertaking the maximum number of 

14 agreements with eligible entities pursuant to section 

15 4124a of title 18, United States Code. 

16 (3) SENSE OF CONGRESS.—For purposes of 

17 sections 4124a and 4124b of title 18, United States 

18 Code, it is the sense of Congress that an inmate 

19 training wage that is at least 50 percent of the min20 imum wage prescribed pursuant to section 6(a)(1) of 

21 the Fair Labor Standards Act of 1938 (29 U.S.C. 

22 206(a)(1)) will facilitate successful achievement of 

23 the goals of the work-based training and apprentice24 ship program authorized under such section 4124a. 


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1 (c) INMATE WORK OPPORTUNITIES IN SUPPORT OF

2 NOT-FOR-PROFIT ENTITIES.— 

3 (1) PROPOSALS FOR DONATION PROGRAMS.— 

4 The Chief Operating Officer of Federal Prison In5 dustries shall develop and present to the Board of 

6 Directors of Federal Prison Industries proposals to 

7 have Federal Prison Industries donate products and 

8 services to eligible entities that provide goods or 

9 services to low-income individuals who would likely 

10 otherwise have difficulty purchasing such products 

11 or services in the commercial market. 

12 (2) SCHEDULE FOR SUBMISSION AND CONSID13 ERATION OF DONATION PROGRAMS.— 

14 (A) INITIAL PROPOSALS.—The Chief Oper15 ating Officer shall submit the initial group of 

16 proposals for programs of the type described in 

17 paragraph (1) within 180 days after the date of 

18 the enactment of this Act. The Board of Direc19 tors of Federal Prison Industries shall consider 

20 such proposals from the Chief Operating Officer 

21 not later than the date that is 270 days after 

22 the date of the enactment of this Act. 

23 (B) ANNUAL OPERATING PLAN.—The 

24 Board of Directors of Federal Prison Industries 

25 shall consider proposals by the Chief Operating 


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1 Officer for programs of the type described in 

2 paragraph (1) as part of the annual operating 

3 plan for Federal Prison Industries. 

4 (C) OTHER PROPOSALS.—In addition to 

5 proposals submitted by the Chief Operating Of6 ficer, the Board of Directors may, from time to 

7 time, consider proposals presented by prospec8 tive eligible entities. 

9 (3) DEFINITION OF ELIGIBLE ENTITIES.—For 

10 the purposes of this subsection, the term ‘‘eligible 

11 entity’’ means an entity— 

12 (A) that is an organization described in 

13 section 501(c)(3) of the Internal Revenue Code 

14 of 1986 and exempt from taxation under sec15 tion 501(a) of such Code and that has been 

16 such an organization for a period of not less 

17 than 36 months prior to inclusion in a proposal 

18 of the type described in paragraph (1), or 

19 (B) that is a religious organization de20 scribed in section 501(d) of such Code and ex21 empt from taxation under section 501(a) of 

22 such Code. 

23 (4) AUTHORIZATION OF APPROPRIATIONS.— 

24 There are authorized to be appropriated $7,000,000 

25 for each of the fiscal years 2014 through 2018 for 


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1 the purposes of paying the wages of inmates and 

2 otherwise carrying out programs of the type de3 scribed in paragraph (1). 

4 (d) MAXIMIZING INMATE REHABILITATIVE OPPOR5 TUNITIES THROUGH COGNITIVE ABILITIES ASSESS6 MENTS.— 

7 (1) DEMONSTRATION PROGRAM AUTHORIZED.— 

8 (A) IN GENERAL.—There is hereby estab9 lished within the Federal Bureau of Prisons a 

10 program to be known as the ‘‘Cognitive Abili11 ties Assessment Demonstration Program’’. The 

12 purpose of the demonstration program is to de13 termine the effectiveness of a program that as14 sesses the cognitive abilities and perceptual 

15 skills of Federal inmates to maximize the bene16 fits of various rehabilitative opportunities de17 signed to prepare each inmate for a successful 

18 return to society and reduce recidivism. The 

19 demonstration program shall be undertaken by 

20 a contractor with a demonstrated record of ena21 bling the behavioral and academic improvement 

22 of adults through the use of research-based sys23 tems that maximize the development of both the 

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1 ticipating individual, including adults in a cor2 rectional setting. 

3 (B) SCOPE OF DEMONSTRATION PRO4 GRAM.—The demonstration program shall to 

5 the maximum extent practicable, be— 

6 (i) conducted during a period of three 

7 consecutive fiscal years, commencing dur8 ing fiscal year 2014; 

9 (ii) conducted at 12 Federal correc10 tional institutions; and 

11 (iii) offered to 6,000 inmates, who are 

12 categorized as minimum security or less, 

13 and are within five years of release. 

14 (C) REPORT ON RESULTS OF PROGRAM.— 

15 Not later than 60 days after completion of the 

16 demonstration program, the Director shall sub17 mit to Congress a report on the results of the 

18 program. At a minimum, the report shall in19 clude an analysis of employment stability, sta20 bility of residence, and rates of recidivism 

21 among inmates who participated in the program 

22 after 18 months of release. 

23 (2) AUTHORIZATION OF APPROPRIATIONS.— 

24 There is authorized to be appropriated $3,000,000 

25 in each of the three fiscal years after fiscal year 


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1 2013, to remain available until expended, for the 

2 purposes of conducting the demonstration program 

3 authorized by subsection (a). 

4 (e) PRERELEASE EMPLOYMENT ASSISTANCE.— 

5 (1) IN GENERAL.—The Director of the Federal 

6 Bureau of Prisons shall, to the maximum extent 

7 practicable, afford to inmates opportunities to par8 ticipate in programs and activities designed to help 

9 prepare such inmates to obtain employment upon re10 lease. 

11 (2) PRERELEASE EMPLOYMENT PLACEMENT

12 ASSISTANCE.—Such prerelease employment place13 ment assistance required by subsection (a) shall in14 clude— 

15 (A) training in the preparation of resumes 

16 and job applications; 

17 (B) training in interviewing skills; 

18 (C) training and assistance in job search 

19 techniques; 

20 (D) conduct of job fairs; and 

21 (E) such other methods deemed appro22 priate by the Director. 

23 (3) PRIORITY PARTICIPATION.—Priority in pro24 gram participation shall be accorded to inmates who 

25 are participating in work opportunities afforded by 


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1 Federal Prison Industries and are within 24 months 

2 of release from incarceration. 

3 SEC. 11. RE-ENTRY EMPLOYMENT PREPARATION THROUGH 

4 WORK-BASED TRAINING AND APPRENTICE5 SHIP. 

6 (a) IN GENERAL.—Chapter 307 of title 18, United 

7 States Code, is further amended by inserting after section 

8 4124a the following new section: 

9 ‘‘§ 4124b. Re-entry employment preparation through 

10 work-based training and apprenticeship 

11 ‘‘(a) PARTICIPATION AUTHORIZED.—A private for12 profit business entity shall be an eligible entity for partici13 pation in the program authorized by section 4124a of this 

14 title, if such participation conforms with the requirements 

15 and limitations of this section. 

16 ‘‘(b) REQUIREMENTS RELATING TO PRODUCTS AND

17 SERVICES.—A private for-profit business entity is eligible 

18 for such participation if such business entity proposes to 

19 train participating inmates, pursuant to subsection (c), by 

20 producing a product or performing a service, if such prod21 uct or service is of a type for which there is no production 

22 or performance within the United States by noninmate 

23 workers. 

24 ‘‘(c) REQUIREMENTS RELATING TO TRAINING.— 


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1 ‘‘(1) IN GENERAL.—For purposes of this sec2 tion, the training of participating inmates shall be 

3 work-based training that provides to a participating 

4 inmate apprenticeship training or a functionally 

5 equivalent structured program that combines hands6 on work experience with conceptual understanding of 

7 the work being performed. Other inmates with reg8 ular work assignments within Federal Prison Indus9 tries may be assigned to support the program. 

10 ‘‘(2) DOCUMENTATION OF PROGRAM PARTICIPA11 TION.— 

12 ‘‘(A) Each inmate who successfully com13 pletes participation in training undertaken pur14 suant to this section shall be provided a certifi15 cate or other written document memorializing 

16 such successful completion, providing a market17 able summary of the skills learned and an over18 all assessment of performance. 

19 ‘‘(B) Copies of such documents shall be 

20 furnished to perspective employers upon the re21 quest of the participant for a period of not less 

22 than 24 months from the date of such partici23 pant’s release from incarceration. 

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1 tion with a business entity providing an inmate 

2 work-based training at the time of his or her sched3 uled release, shall make every reasonable effort to 

4 help the inmate timely obtain such documentation 

5 (including a State government-issued photo identi6 fication card) as a person may be required to pro7 vide to a prospective employer, after such person 

8 completes an Employment Eligibility Verification 

9 (ICE Form I–9). 

10 ‘‘(d) WAGE RATES.— 

11 ‘‘(1) IN GENERAL.—Business entities partici12 pating in the program authorized by subsection (a) 

13 shall propose wages for inmates participating in the 

14 program at rates not less than the inmate training 

15 wage promulgated pursuant to section 17(c) of the 

16 Federal Prison Industries Competition in Con17 tracting Act of 2013. 

18 ‘‘(2) INMATE TRAINING WAGE.—Not more than 

19 30 days after the date of enactment of this section, 

20 the Board of Directors of Federal Prison Industries 

21 shall request the Secretary of Labor to promulgate 

22 an inmate training wage pursuant to section 14(a) 

23 of the Fair Labor Standards Act of 1938 (29 U.S.C. 

24 214(a)). 


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1 ‘‘(e) SUPPORT FOR OTHER RELEASE PREPARATION

2 PROGRAMS.—In addition to the matters listed in section 

3 4124a(d) of this title, a proposal for an agreement re4 ferred to in such section submitted by an eligible business 

5 entity shall specify an amount of any supplemental fund6 ing, specified as a per-capita amount for each inmate par7 ticipating pursuant to the agreement, that the business 

8 entity will provide for the purpose of supporting remedial, 

9 vocational, and other release preparation programs for 

10 other nonparticipating inmates. 

11 ‘‘(f) ADDITIONAL STANDARDS APPLICABLE.—In con12 sidering a proposed agreement pursuant to section 

13 4124a(f)(1) of this title, the Board of Directors shall— 

14 ‘‘(1) give preference to an agreement that pro15 poses— 

16 ‘‘(A) work-based training opportunities 

17 that provide the participating inmate the best 

18 prospects for obtaining employment paying a 

19 livable wage upon release; 

20 ‘‘(B) the highest per-capita amount pursu21 ant to subsection (e) relating to providing fi22 nancial support for release preparation for 

23 other inmates; and 

24 ‘‘(C) the highest inmate wage rates; 


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1 ‘‘(2) not approve any agreement with respect to 

2 furnishing services of the type described in section 

3 4122(b)(6)(D)(iii) of this title; 

4 ‘‘(3) not approve any agreement with respect to 

5 furnishing construction services described in section 

6 4122(b)(6)(D)(iv) of this title, unless to be per7 formed within a Federal correctional institution; 

8 ‘‘(4) not approve an agreement that does not 

9 meet the standards of subsection (b); and 

10 ‘‘(5) request a determination from the Depart11 ment of Commerce (and such other executive branch 

12 entities as may be appropriate), regarding whether a 

13 product or service is of the type being produced or 

14 performed in the United States by noninmate work15 ers, whenever the Board determines that such an ad16 ditional assessment is warranted, including upon a 

17 request from an interested party presenting informa18 tion that the Board deems to warrant such addi19 tional assessment prior to the Board’s consideration 

20 of the proposed agreement. 

21 ‘‘(g) LIMITATIONS ON THE USE OF THE AUTHOR22 ITY.— 

23 ‘‘(1) NO SALES BY FEDERAL PRISON INDUS24 TRIES.—Federal Prison Industries is prohibited 

25 from directly offering for commercial sale products 


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1 produced or services furnished by Federal inmates, 

2 including through any form of electronic commerce. 

3 ‘‘(2) DURATION.— 

4 ‘‘(A) No proposed agreement pursuant to 

5 this subsection may be approved by the Board 

6 of Directors after September 30, 2020. 

7 ‘‘(B) Performance of all such agreements 

8 shall be concluded prior to October 1, 2025.’’. 

9 (b) REVIEW AND REPORTING BY THE ATTORNEY

10 GENERAL.—Not less than biannually, beginning in fiscal 

11 year 2014, the Attorney General shall meet in person 

12 jointly with the Chairman of the Board of Directors and 

13 the Chief Executive Officer of Federal Prison Industries 

14 to review the progress that Federal Prison Industries is 

15 making in maximizing the use of the authority provided 

16 by sections 4124a and 4124b of title 18, United States 

17 Code. The Attorney General shall provide annually a writ18 ten report to the Committees on the Judiciary and Appro19 priations of the House of Representatives and the Senate 

20 addressing such progress by Federal Prison Industries. 

21 (c) GAO ASSESSMENT OF WORK-BASED TRAINING

22 PROGRAM.— 

23 (1) IN GENERAL.—The Comptroller General of 

24 the United States shall undertake an on-going asVerDate Mar 15 2010 02:04 May 25, 2013 Jkt 029200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\H2098.IH H2098

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1 sessment of the authority granted by section 4124b 

2 of title 18, United States Code. 

3 (2) MATTERS TO BE ASSESSED.—In addition to 

4 such other matters as the Comptroller General 

5 deems appropriate, the assessment shall include— 

6 (A) efforts to recruit private for-profit 

7 business entities to participate; 

8 (B) the quality of training provided to in9 mates; 

10 (C) the amounts and types of products and 

11 services that have been produced incident to the 

12 work-based training programs; 

13 (D) the types of worksite arrangement that 

14 encourage business concerns to voluntarily enter 

15 into such partnerships; 

16 (E) the extent and manner of the partici17 pation of supervisory, quality assurance, and 

18 other management employees of the partici19 pating business entity in worksites within cor20 rectional facilities of various levels of security; 

21 (F) the extent of the facilities, utilities, 

22 equipment, and personnel (other than security 

23 personnel) provided by the host correctional 

24 agency, and extent to which such resources are 

25 provided on a nonreimbursable basis; 


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1 (G) the rates of wages paid to inmate 

2 workers and the effect that such wage rates 

3 have on willingness of business entities to par4 ticipate; 

5 (H) any complaints filed regarding the dis6 placement of noninmate workers or of inmate 

7 workers being paid less than required wages 

8 and the disposition of those complaints; 

9 (I) any sanctions recommended relating to 

10 displacement of noninmate workers or payment 

11 of less than the required wages, and the dis12 position of such proposed sanctions; 

13 (J) the extent to which the new authority 

14 provided additional inmate work opportunities 

15 assisting the Bureau of Prisons in attaining its 

16 objective of providing 25 percent of the work17 eligible inmates with work opportunities within 

18 Federal Prison Industries; 

19 (K) measures of any adverse impacts of 

20 implementation of the new authority on busi21 ness concerns using noninmate workers that are 

22 engaged in providing similar types of products 

23 and services in direct competition; and 

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1 signments with Federal Prison Industries pro2 vided by— 

3 (i) sales to Federal agencies pursuant 

4 to the status of Federal Prison Industries 

5 as a mandatory source of supply during 

6 the period fiscal year 1990 through fiscal 

7 year 2012; 

8 (ii) sales to Federal agencies of serv9 ices, both through non-competitive inter10 agency transfers and as a result of direct 

11 competition from private-sector offerors 

12 during the period fiscal year 1990 though 

13 fiscal year 2012; 

14 (iii) performance as a subcontrator to 

15 a Federal prime contractor or Federal sub16 contractor at a higher tier beginning in fis17 cal year 1990; 

18 (iv) introduction of inmate-furnished 

19 services into the commercial market, begin20 ning in the second quarter of fiscal year 

21 1998; 

22 (v) alternative inmate work opportuni23 ties, beginning in fiscal year 2014, pro24 vided by agreements with— 


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1 (I) non-profit organizations, pur2 suant to section 4124a(b)(1) of title 

3 18, United States Code, and section 

4 10(c); 

5 (II) religious organizations, pur6 suant to section 4124a(b)(2) of title 

7 18, United States Code; 

8 (III) units of local governments, 

9 school districts, or other special pur10 pose districts, pursuant to section 

11 4124a(b)(3) of title 18, United States 

12 Code; 

13 (IV) work-based Employment 

14 Preparation Programs for Federal in15 mates, pursuant to section 4124b of 

16 title 18, United States Code; or 

17 (V) other means. 

18 (3) OPPORTUNITY FOR PUBLIC COMMENT.— 

19 The Comptroller General shall provide an oppor20 tunity for public comment on the proposed scope 

21 and methodology for the assessment required by 

22 paragraph (1), making such modifications in re23 sponse to such comments as he deems appropriate. 

24 (4) REPORTS AND RECOMMENDATIONS.— 


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1 (A) IN GENERAL.—The Comptroller Gen2 eral shall submit to the Congress in accordance 

3 with this subsection two interim reports and a 

4 final report of the assessment of implementa5 tion of the new authority, including such rec6 ommendations as the Comptroller General may 

7 deem appropriate. 

8 (B) INTERIM REPORTS.—The two interim 

9 reports shall encompass the assessment of the 

10 implementation of the new authority— 

11 (i) from the effective date of the au12 thority through the end of fiscal year 

13 2016; and 

14 (ii) from the effective date of the au15 thority through the end of fiscal year 

16 2019. 

17 (C) FINAL REPORT.—The final report 

18 shall assess the implementation of the new au19 thority from the effective date of the authority 

20 through the end of fiscal year 2020. 

21 (D) SUBMISSION TO CONGRESS.—The 

22 Comptroller General shall submit the reports 

23 required by this paragraph within 6 months 

24 after the end of the fiscal years referred to in 

25 subparagraphs (B) and (C). 


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1 (d) CONFORMING AMENDMENT.—Section 1761 of 

2 title 18, United States Code, as amended by section 7, 

3 is further amended— 

4 (1) by redesignating subsection (f) as sub5 section (g); and 

6 (2) by inserting after subsection (e), as so re7 designated by section 7(e) of this Act, the following 

8 new subsection: 

9 ‘‘(f) This section shall not apply to products produced 

10 or services furnished with inmate labor incidental to the 

11 work-based training program authorized pursuant to sec12 tion 4124b of this title.’’. 

13 SEC. 12. DIRECTOR OF THE BUREAU OF PRISONS. 

14 (a) IN GENERAL.—Section 4041 of title 18, United 

15 States Code, is amended by striking ‘‘appointed by and 

16 serving directly under the Attorney General.’’ and insert17 ing the following: ‘‘who shall be appointed by the Presi18 dent by and with the advice and consent of the Senate. 

19 The Director shall serve directly under the Attorney Gen20 eral.’’. 

21 (b) INCUMBENT.—Notwithstanding the amendment 

22 made by subsection (a), the individual serving as the Di23 rector of the Bureau of Prisons on the date of enactment 

24 of this Act may serve as the Director of the Bureau of 


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1 Prisons until the date that is 3 months after the date of 

2 enactment of this Act. 

3 (c) RULE OF CONSTRUCTION.—Nothing in this Act 

4 shall be construed to limit the ability of the President to 

5 appoint the individual serving as the Director of the Bu6 reau of Prisons on the date of enactment of this Act to 

7 the position of the Director of the Bureau of Prisons in 

8 accordance with section 4041 of title 18, United States 

9 Code, as amended by subsection (a). 

10 SEC. 13. RESTRUCTURING THE BOARD OF DIRECTORS. 

11 (a) IN GENERAL.—Section 4121 of title 18, United 

12 States Code, is amended to read as follows: 

13 ‘‘§ 4121. Federal Prison Industries; Board of Direc14 tors: executive management 

15 ‘‘(a) Federal Prison Industries is a government cor16 poration of the District of Columbia organized to carry 

17 on such industrial operations in Federal correctional insti18 tutions as authorized by its Board of Directors. The man19 ner and extent to which such industrial operations are car20 ried on in the various Federal correctional institutions 

21 shall be determined by the Attorney General. 

22 ‘‘(b)(1) The corporation shall be governed by a board 

23 of 11 directors appointed by the President. 

24 ‘‘(2) In making appointments to the Board, the 

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1 ness community, 3 members represent organized labor, 1 

2 member shall have special expertise in inmate rehabilita3 tion techniques, 1 member represents victims of crime, 1 

4 member represents the interests of Federal inmate work5 ers, and 2 additional members whose background and ex6 pertise the President deems appropriate. The members of 

7 the Board representing the business community shall in8 clude, to the maximum extent practicable, representation 

9 of firms furnishing services as well as firms producing 

10 products, especially from those industry categories from 

11 which Federal Prison Industries derives substantial sales. 

12 The members of the Board representing organized labor 

13 shall, to the maximum practicable, include representation 

14 from labor unions whose members are likely to be most 

15 affected by the sales of Federal Prison Industries. 

16 ‘‘(3) Each member shall be appointed for a term of 

17 5 years, except that of members first appointed— 

18 ‘‘(A) 2 members representing the business com19 munity shall be appointed for a term of 3 years; 

20 ‘‘(B) 2 members representing labor shall be ap21 pointed for a term of 3 years; 

22 ‘‘(C) 2 members whose background and exper23 tise the President deems appropriate for a term of 

24 3 years; 


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1 ‘‘(D) 1 member representing victims of crime 

2 shall be appointed for a term of 3 years; 

3 ‘‘(E) 1 member representing the interests of 

4 Federal inmate workers shall be appointed for a 

5 term of 3 years; 

6 ‘‘(F) 1 member representing the business com7 munity shall be appointed for a term of 4 years; 

8 ‘‘(G) 1 member representing the business com9 munity shall be appointed for a term of 4 years; and 

10 ‘‘(H) the members having special expertise in 

11 inmate rehabilitation techniques shall be appointed 

12 for a term of 5 years. 

13 ‘‘(4) The President shall designate 1 member of the 

14 Board as Chairperson. The Chairperson may designate a 

15 Vice Chairperson. 

16 ‘‘(5) Members of the Board may be reappointed. 

17 ‘‘(6) Any vacancy on the Board shall be filled in the 

18 same manner as the original appointment. Any member 

19 appointed to fill a vacancy occurring before the expiration 

20 of the term for which the member’s predecessor was ap21 pointed shall be appointed for the remainder of that term. 

22 ‘‘(7) The members of the Board shall serve without 

23 compensation. The members of the Board shall be allowed 

24 travel expenses, including per diem in lieu of subsistence, 

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1 chapter I of chapter 57 of title 5, United States Code, 

2 to attend meetings of the Board and, with the advance 

3 approval of the Chairperson of the Board, while otherwise 

4 away from their homes or regular places of business for 

5 purposes of duties as a member of the Board. 

6 ‘‘(8)(A) The Chairperson of the Board may appoint 

7 and terminate any personnel that may be necessary to en8 able the Board to perform its duties. 

9 ‘‘(B) Upon request of the Chairperson of the Board, 

10 a Federal agency may detail a Federal Government em11 ployee to the Board without reimbursement. Such detail 

12 shall be without interruption or loss of civil service status 

13 or privilege. 

14 ‘‘(9) The Chairperson of the Board may procure tem15 porary and intermittent services under section 3109(b) of 

16 title 5, United States Code. 

17 ‘‘(c) The Director of the Bureau of Prisons shall 

18 serve as Chief Executive Officer of the Corporation. The 

19 Director shall designate a person to serve as Chief Oper20 ating Officer of the Corporation.’’. 

21 (b) CONTINUED GOVERNANCE.—The members of the 

22 Board of Directors serving on the date of enactment of 

23 this Act, and the person selected by them as Chairman, 

24 shall continue to exercise the duties and responsibilities 

25 of the Board until the earlier of— 


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1 (1) the date on which the President has ap2 pointed at least 6 members of the Board and des3 ignated a new Chairman, pursuant to section 4121 

4 of title 18, United States Code (as amended by sub5 section (a)); or 

6 (2) the date that is 365 days after the date of 

7 enactment of this Act. 

8 SEC. 14. MANAGEMENT MATTERS. 

9 (a) ADDITIONAL FLEXIBILITIES.—Section 

10 4122(b)(3) of title 18, United States Code, is amended— 

11 (1) by striking ‘‘(3)’’ and inserting ‘‘(3)(A)’’; 

12 and 

13 (2) by adding at the end the following new 

14 paragraphs: 

15 ‘‘(B) Federal Prison Industries may locate more than 

16 one workshop at a Federal correctional facility. 

17 ‘‘(C) Federal Prison Industries may operate a work18 shop outside of a correctional facility if all of the inmates 

19 working in such workshop are classified as minimum secu20 rity inmates.’’. 

21 (b) COST ACCOUNTING SYSTEM.— 

22 (1) ESTABLISHMENT.—Federal Prison Indus23 tries shall establish a cost accounting system that 

24 meets the requirements of part 30 (Cost Accounting 

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1 tion Regulation (48 CFR part 30). The compliance 

2 of the cost accounting system with such standards 

3 shall be annually verified as part of the independent 

4 audit of Federal Prison Industries, Inc., pursuant to 

5 section 9106(b) of title 31, United States Code. 

6 (2) APPLICATION OF RELATED PROVISION.— 

7 Section 4124(c)(2) of title 18, United States Code, 

8 shall apply when Federal Prison Industries has been 

9 found to have a complaint cost accounting system 

10 pursuant to paragraph (1). 

11 SEC. 15. TRANSITIONAL PERSONNEL MANAGEMENT AU12 THORITY. 

13 Any correctional officer or other employee of Federal 

14 Prison Industries being paid with nonappropriated funds 

15 who would be separated from service because of a reduc16 tion in the net income of Federal Prison Industries during 

17 any fiscal year specified in section 4(e)(1) shall be— 

18 (1) eligible for appointment (or reappointment) 

19 in the competitive service pursuant to title 5, United 

20 States Code; 

21 (2) registered on a Bureau of Prisons reemploy22 ment priority list; and 

23 (3) given priority for any other position within 

24 the Bureau of Prisons for which such employee is 

25 qualified. 


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1 SEC. 16. FEDERAL PRISON INDUSTRIES REPORT TO CON2 GRESS. 

3 Section 4127 of title 18, United States Code, is 

4 amended to read as follows: 

5 ‘‘§ 4127. Federal Prison Industries report to Congress 

6 ‘‘(a) IN GENERAL.—Pursuant to chapter 91 of title 

7 31, the board of directors of Federal Prison Industries 

8 shall submit an annual report to Congress on the conduct 

9 of the business of the corporation during each fiscal year 

10 and the condition of its funds during the fiscal year. 

11 ‘‘(b) CONTENTS OF REPORT.—In addition to the 

12 matters required by section 9106 of title 31, and such 

13 other matters as the board considers appropriate, a report 

14 under subsection (a) shall include— 

15 ‘‘(1) a statement of the amount of obligations 

16 issued under section 4129(a)(1) of this title during 

17 the fiscal year; 

18 ‘‘(2) an estimate of the amount of obligations 

19 that will be issued in the following fiscal year; 

20 ‘‘(3) an analysis of— 

21 ‘‘(A) the corporation’s total sales for each 

22 specific product and type of service sold to the 

23 Federal agencies and the commercial market; 

24 ‘‘(B) the total purchases by each Federal 

25 agency of each specific product and type of 

26 service; 


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1 ‘‘(C) the corporation’s share of such total 

2 Federal Government purchases by specific prod3 uct and type of service; and 

4 ‘‘(D) the number and disposition of dis5 putes submitted to the heads of the Federal de6 partments and agencies pursuant to section 

7 4124(e) of this title; 

8 ‘‘(4) an allocation of the profits of the corpora9 tion, both gross and net, to— 

10 ‘‘(A) educational, training, release-prepara11 tion opportunities for inmates; 

12 ‘‘(B) opening new factories; and 

13 ‘‘(C) improving the productivity and com14 petitiveness of existing factories; 

15 ‘‘(5) an analysis of the inmate workforce that 

16 includes— 

17 ‘‘(A) the number of inmates employed; 

18 ‘‘(B) the number of inmates utilized to 

19 produce products or furnish services sold in the 

20 commercial market; 

21 ‘‘(C) the number and percentage of em22 ployed inmates by the term of their incarcer23 ation; and 

24 ‘‘(D) the various hourly wages paid to in25 mates employed with respect to the production 


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1 of the various specific products and types of 

2 services authorized for production and sale to 

3 Federal agencies and in the commercial market; 

4 and 

5 ‘‘(6) data concerning employment obtained by 

6 former inmates upon release to determine whether 

7 the employment provided by Federal Prison Indus8 tries during incarceration provided such inmates 

9 with knowledge and skill in a trade or occupation 

10 that enabled such former inmate to earn a livelihood 

11 upon release. 

12 ‘‘(c) PUBLIC AVAILABILITY.—Copies of an annual re13 port under subsection (a) shall be made available to the 

14 public at a price not exceeding the cost of printing the 

15 report.’’. 

16 SEC. 17. DEFINITIONS. 

17 Chapter 307 of title 18, United States Code, is 

18 amended by adding at the end the following new section: 

19 ‘‘§ 4131. Definitions 

20 ‘‘As used in this chapter— 

21 ‘‘(1) the term ‘assembly’ means the process of 

22 uniting or combining articles or components (includ23 ing ancillary finished components or assemblies) so 

24 as to produce a significant change in form or utility, 


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1 without necessarily changing or altering the compo2 nent parts; 

3 ‘‘(2) the term ‘current market price’ means, 

4 with respect to a specific product, the fair market 

5 price of the product within the meaning of section 

6 15(a) of the Small Business Act (15 U.S.C. 644(a)), 

7 at the time that the contract is to be awarded, 

8 verified through appropriate price analysis or cost 

9 analysis, including any costs relating to transpor10 tation or the furnishing of any ancillary services; 

11 ‘‘(3) the term ‘import-sensitive product’ means 

12 a product which, according to Department of Com13 merce data, has experienced competition from im14 ports at an import to domestic production ratio of 

15 25 percent or greater; 

16 ‘‘(4) the term ‘labor-intensive manufacture’ 

17 means a manufacturing activity in which the value 

18 of inmate labor constitutes at least 10 percent of the 

19 estimate unit cost to produce the item by Federal 

20 Prison Industries; 

21 ‘‘(5) the term ‘manufacture’ means the process 

22 of fabricating from raw or prepared materials, so as 

23 to impart to those materials new forms, qualities, 

24 properties, and combinations; 


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1 ‘‘(6) the term ‘reasonable share of the market’ 

2 means a share of the total purchases by the Federal 

3 departments and agencies, as reported to the Fed4 eral Procurement Data System for— 

5 ‘‘(A) any specific product during the 3 pre6 ceding fiscal years, that does not exceed 20 per7 cent of the Federal market for the specific 

8 product; and 

9 ‘‘(B) any specific service during the 3 pre10 ceding fiscal years, that does not exceed 5 per11 cent of the Federal market for the specific serv12 ice; and 

13 ‘‘(7) the term ‘services’ has the meaning given 

14 the term ‘service contract’ by section 37.101 of the 

15 Federal Acquisition Regulation (48 CFR 36.102), as 

16 in effect on July 1, 2010.’’. 

17 SEC. 18. IMPLEMENTING REGULATIONS AND PROCEDURES. 

18 (a) FEDERAL ACQUISITION REGULATION.— 

19 (1) PROPOSED REVISIONS.—Proposed revisions 

20 to the Governmentwide Federal Acquisition Regula21 tion to implement the amendments made by this Act 

22 shall be published not later than 60 days after the 

23 date of the enactment of this Act and provide not 

24 less than 60 days for public comment. 


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1 (2) FINAL REGULATIONS.—Final regulations 

2 shall be published not later than 180 days after the 

3 date of the enactment of this Act and shall be effec4 tive on the date that is 30 days after the date of 

5 publication. 

6 (3) PUBLIC PARTICIPATION.—The proposed 

7 regulations required by subsection (a) and the final 

8 regulations required by subsection (b) shall afford 

9 an opportunity for public participation in accordance 

10 with section 22 of the Office of Federal Procurement 

11 Policy Act (41 U.S.C. 418b). 

12 (b) BOARD OF DIRECTORS.— 

13 (1) IN GENERAL.—The Board of Directors of 

14 Federal Prison Industries shall issue regulations de15 fining the terms specified in paragraph (2). 

16 (2) TERMS TO BE DEFINED.—The Board of Di17 rectors shall issue regulations for the following 

18 terms: 

19 (A) Prison-made product. 

20 (B) Prison-furnished service. 

21 (C) Specific product. 

22 (D) Specific service. 

23 (3) SCHEDULE FOR REGULATORY DEFINI24 TIONS.— 


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1 (A) Proposed regulations relating to the 

2 matter described in subsection (b)(2) shall be 

3 published not later than 60 days after the date 

4 of enactment of this Act and provide not less 

5 than 60 days for public comment. 

6 (B) Final regulations relating to the mat7 ters described in subsection (b)(2) shall be pub8 lished not less than 180 days after the date of 

9 enactment of this Act and shall be effective on 

10 the date that is 30 days after the date of publi11 cation. 

12 (4) ENHANCED OPPORTUNITIES FOR PUBLIC

13 PARTICIPATION AND SCRUTINY.— 

14 (A) ADMINISTRATIVE PROCEDURE ACT.— 

15 Regulations issued by the Board of Directors 

16 shall be subject to notice and comment rule17 making pursuant to section 553 of title 5, 

18 United States Code. Unless determined wholly 

19 impracticable or unnecessary by the Board of 

20 Directors, the public shall be afforded 60 days 

21 for comment on proposed regulations. 

22 (B) ENHANCED OUTREACH.—The Board 

23 of Directors shall use means designed to most 

24 effectively solicit public comment on proposed 

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1 form the affected public of final regulations, 

2 procedures, and policies. 

3 (C) OPEN MEETING PROCESSES.—The 

4 Board of Directors shall take all actions relat5 ing to the adoption of regulations, operating 

6 procedures, guidelines, and any other matter re7 lating to the governance and operation of Fed8 eral Prison Industries based on deliberations 

9 and a recorded vote conducted during a meeting 

10 open to the public, unless closed pursuant to 

11 section 552(b) of title 5, United States Code. 

12 (c) SECRETARY OF LABOR.— 

13 (1) SCHEDULE FOR REGULATORY ACTION.— 

14 Upon receipt of a request from the Federal Prison 

15 Industries Board of Directors, pursuant to section 

16 11(d)(2), to establish an inmate training wage pur17 suant to section 14(a) of the Fair Labor Standards 

18 Act of 1938 (29 U.S.C. 214(a)), the Secretary of 

19 Labor, in consultation with the Attorney General, 

20 shall issue— 

21 (A) an advanced notice of proposed rule22 making within 60 days; 

23 (B) an interim regulation with concurrent 

24 request for public comments within 180 days; 

25 and 


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1 (C) a final regulation within 365 days. 

2 (2) ALTERNATIVE TO TIMELY ISSUANCE.—In 

3 the event that the Secretary of Labor fails to issue 

4 an interim inmate training wage by the date re5 quired by paragraph (1)(B), the Federal Prison In6 dustries Board of Directors may prescribe an in7 terim inmate training wage, which shall be in an 

8 amount not less than 50 percent of the amount of 

9 the minimum wage prescribed pursuant to section 

10 6(a)(1) of such Act (29 U.S.C. 206(a)(1)). 

11 (3) CONTINUED USE OF INTERIM INMATE

12 TRAINING WAGE.— 

13 (A) The interim inmate training wage 

14 issued pursuant to paragraph (1)(B) or pre15 scribed under paragraph (2) shall remain in ef16 fect until the effective date of a final regulation, 

17 issued pursuant to paragraph (1)(C). 

18 (B) An eligible entity having an approved 

19 agreement with Federal Prison Industries pur20 suant to section 4124b of title 18, United 

21 States Code, may continue to pay participating 

22 inmates at the wages prescribed in the agree23 ment for the duration of the agreement, if those 

24 wages comply with the standards of the interim 

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1 graph (1)(B) or prescribed under paragraph 

2 (2). 

3 (4) EXISTING AGREEMENTS WITH NONCON4 FORMING WAGES.—Any for-profit business concern 

5 having an agreement with Federal Prison Industries 

6 in effect on the date of enactment of this Act, under 

7 which Federal inmates are furnishing services that 

8 are being introduced into the commercial market, 

9 may continue to pay wages at rates specified in the 

10 agreement for the duration of the term of such 

11 agreement. 

12 SEC. 19. RULES OF CONSTRUCTION. 

13 (a) AGENCY BID PROTESTS.—Subsection (e) of sec14 tion 4124 of title 18, United States Code, as amended by 

15 section 2, is not intended to alter any rights of any offeror 

16 other than Federal Prison Industries to file a bid protest 

17 in accordance with other law or regulation in effect on the 

18 date of the enactment of this Act. 

19 (b) JAVITS-WAGNER-O’DAY ACT.—Nothing in this 

20 Act is intended to modify the Javits-Wagner-O’Day Act 

21 (41 U.S.C. 46 et seq.). 

22 SEC. 20. EFFECTIVE DATE AND APPLICABILITY. 

23 (a) EFFECTIVE DATE.—Except as provided in sub24 section (b), this Act and the amendments made by this 

25 Act shall take effect on the date of enactment of this Act. 


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1 (b) APPLICABILITY.—Section 4124 of title 18, United 

2 States Code, as amended by section 2, shall apply to any 

3 requirement for a product or service offered by Federal 

4 Prison Industries needed by a Federal department or 

5 agency after the effective date of the final regulations 

6 issued pursuant to section 17(a)(2), or after September 

7 30, 2014, whichever is earlier. 

8 SEC. 21. CLERICAL AMENDMENTS. 

9 The table of sections for chapter 307 of title 18, 

10 United States Code, is amended— 

11 (1) by amending the item relating to section 

12 4121 to read as follows: 

‘‘4121. Federal Prison Industries; Board of Directors: executive management.’’; 

13 (2) by amending the item relating to section 

14 4124 to read as follows: 

‘‘4124. Governmentwide procurement policy relating to purchases from Federal 

Prison Industries.’’; 

15 (3) by inserting after the item relating to sec16 tion 4124 the following new items: 

‘‘4124a. Additional inmate work opportunities through public service activities. 

‘‘4124b. Re-entry employment preparation through work-based training and apprenticeship.’’; 

17 (4) by amending the item relating to section 

18 4127 to read as follows: 

‘‘4127. Federal Prison Industries report to Congress.’’; 

19 and 

20 (5) by adding at the end the following new 

21 items: 


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‘‘4130. Construction of provisions. 

‘‘4131. Definitions.’’. 

Æ 


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