I 

114TH CONGRESS 

1ST SESSION H. R. 1699 

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 

MARCH 26, 2015 

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

New York) 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 

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


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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 2015’’. 

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 may 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) may also 

2 apply to a procurement that a Federal department or 

3 agency intends to meet by placing an order against a con4 tract maintained by the General Services Administration 

5 under the Multiple Award Schedule Contracts Program. 

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

7 shall be made using competitive procedures in accordance 

8 with the applicable evaluation factors, unless a determina9 tion is made by the Attorney General or an award using 

10 other than competitive procedures is authorized pursuant 

11 to paragraph (6). 

12 ‘‘(3) Except in the case of an award to be made, a 

13 contract award may be made with Federal Prison Indus14 tries only if the contracting officer for the procurement 

15 activity determines that— 

16 ‘‘(A) the specific product or service to be fur17 nished will meet the requirements of the procure18 ment activity (including any applicable 

19 prequalification requirements and all specified com20 mercial or governmental standards pertaining to 

21 quality, testing, safety, serviceability, and warran22 ties); 

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

24 reasonably expected; and 


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1 ‘‘(C) the contract price does not exceed a cur2 rent market price. 

3 ‘‘(4) A determination by the Attorney General may 

4 be— 

5 ‘‘(A) supported by specific findings by the war6 den of the penal or correctional institution at which 

7 a Federal Prison Industries workshop is scheduled 

8 to perform the contract; 

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

10 Prison Industries regarding why it does not expect 

11 to win the contract on a competitive basis; and 

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

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

14 of the Federal Property and Administrative Services 

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

16 ‘‘(5) If the Attorney General has not made the deter17 mination within 30 days after Federal Prison Industries 

18 has been informed of a contracting opportunity by a pro19 curement activity, the procurement activity may proceed 

20 to conduct a procurement for the product or service in 

21 accordance with the procedures generally applicable to 

22 such procurements by the procurement activity. 

23 ‘‘(6) A contract award may be made to Federal Pris24 on Industries using other than competitive procedures if 

25 such product or service is only available from Federal 


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1 Prison Industries and the contract may be awarded under 

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

3 303(c) of the Federal Property and Administrative Serv4 ices Act of 1949 (41 U.S.C. 253(c)(1)), as may be applica5 ble, and pursuant to the justification and approval re6 quirements relating to such noncompetitive procurements 

7 specified by law and the Governmentwide Federal Acquisi8 tion Regulation. 

9 ‘‘(7) A contract award may be made to Federal Pris10 on Industries using other than competitive procedures by 

11 the Federal Bureau of Prisons. 

12 ‘‘(8) A solicitation for a contract may first be made 

13 to Federal Prison Industries using other than competitive 

14 procedures if the product or service to be acquired would 

15 otherwise be furnished by a contractor performing the 

16 work outside of the United States. 

17 ‘‘(c) OFFERS FROM FEDERAL PRISON INDUS18 TRIES.—(1) A timely offer received from Federal Prison 

19 Industries to furnish a product or service to a Federal de20 partment or agency may be considered for award without 

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

22 unless the contract opportunity has been reserved for com23 petition exclusively among small business concerns pursu24 ant to section 15(a) of the Small Business Act (15 U.S.C. 

25 644(a)) and its implementing regulations. 


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

2 to furnish a product or service may exclude from the of3 fered price the following: 

4 ‘‘(i) The costs related to security of the facili5 ties at which the contract will be performed. 

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

7 prison work force performing the contract. 

8 ‘‘(iii) Excess capital costs of machinery and ex9 cess inventories used within a prison environment 

10 that are the result of the unique environment of 

11 prison life. 

12 ‘‘(iv) Other costs of performing the contract re13 sulting from the unique environment of prison facili14 ties. 

15 ‘‘(d) PERFORMANCE BY FEDERAL PRISON INDUS16 TRIES.—Federal Prison Industries shall perform its con17 tractual obligations under a contract awarded by a Fed18 eral department or agency to the same extent as any other 

19 contractor. 

20 ‘‘(e) FINALITY OF CONTRACTING OFFICER’S DECI21 SION.—(1) A decision by a contracting officer regarding 

22 the award of a contract to Federal Prison Industries or 

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

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

25 (3). 


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1 ‘‘(2)(A) The Chief Operating Officer of Federal Pris2 on Industries may protest a decision by a contracting offi3 cer not to award a contract to Federal Prison Industries 

4 pursuant to subsection (b)(3), in accordance with section 

5 33.103 (Protests to the agency), of the Federal Acquisi6 tion Regulation (48 C.F.R. 33.103). 

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

8 filed pursuant to subparagraph (A), the Assistant Attor9 ney General for Administration may request a reconsider10 ation of such adverse decision by the head of the Federal 

11 agency or department, which shall be considered de novo 

12 and the decision issued by such agency head on a non13 delegable basis. Such decision upon reconsideration by the 

14 agency head shall be final. 

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

16 and a procurement activity regarding performance of a 

17 contract shall be subject to— 

18 ‘‘(A) alternative means of dispute resolution 

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

20 or 

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

22 appeals having jurisdiction over the procurement ac23 tivity’s contract performance disputes pursuant to 

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

25 et seq.). 


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1 ‘‘(f) REPORTING OF PURCHASES.—Each Federal de2 partment or agency shall report purchases from Federal 

3 Prison Industries to the Federal Procurement Data Sys4 tem (as referred to in section 6(d)(4) of the Office of Fed5 eral Procurement Policy Act (41 U.S.C. 405(d)(4))) in the 

6 same manner as it reports to such System any acquisition 

7 in an amount in excess of the simplified acquisition thresh8 old (as defined by section 4(11) of the Office of Federal 

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

10 ‘‘(g) CATALOG OF PRODUCTS.—Federal Prison In11 dustries shall publish and maintain a catalog of all specific 

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

13 Such catalog shall be periodically revised as products and 

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

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

16 ‘‘(h) COMPLIANCE WITH STANDARDS.—Federal Pris17 on Industries shall be subject to Federal occupational, 

18 health, and safety standards with respect to the operation 

19 of its industrial operations.’’. 

20 SEC. 3. PUBLIC PARTICIPATION REGARDING EXPANSION 

21 PROPOSALS BY FEDERAL PRISON INDUS22 TRIES. 

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

24 amended— 


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1 (1) by redesignating paragraph (6) as para2 graph (13); and 

3 (2) by striking paragraphs (4) and (5) and in4 serting the following new paragraphs: 

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

6 offer a new specific product or furnish a new specific serv7 ice in response to a competitive solicitation or other pur8 chase request issued by a Federal department or agency. 

9 No subsequent offering of such product or service may be 

10 made by Federal Prison Industries until the board of di11 rectors has approved the offering for sale of such new spe12 cific product or new specific service, in conformance with 

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

14 ‘‘(B) Federal Prison Industries may produce a prod15 uct or furnish a service in excess of the authorized level 

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

17 an order placed pursuant to an existing contract with a 

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

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

20 justify the use of procedures other than competitive proce21 dures pursuant to section 2304(c)(2) of title 10 or section 

22 303(c)(2) of the Federal Property and Administrative 

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

24 applicable. 


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1 ‘‘(5) A decision to authorize Federal Prison Indus2 tries to offer a new specific product or specific service or 

3 to expand the production of an existing product or service 

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

5 board of directors in conformance with the requirements 

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

7 5, and this chapter. 

8 ‘‘(6)(A) Whenever Federal Prison Industries pro9 poses to offer for sale a new specific product or specific 

10 service or to expand production of a currently authorized 

11 product or service, the Chief Operating Officer of Federal 

12 Prison Industries shall submit an appropriate proposal to 

13 the board of directors and obtain the board’s approval be14 fore initiating any such expansion. The proposal submitted 

15 to the board shall include a detailed analysis of the prob16 able impact of the proposed expansion of sales within the 

17 Federal market by Federal Prison Industries on private 

18 sector firms and their non-inmate workers. 

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

20 shall be performed by an interagency team on a reimburs21 able basis or by a private contractor paid by Federal Pris22 on Industries. 

23 ‘‘(ii) If the analysis is to be performed by an inter24 agency team, such team shall be led by the Administrator 

25 of the Small Business Administration or the designee of 


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1 such officer with representatives of the Department of 

2 Labor, the Department of Commerce, and the Federal 

3 Procurement Data Center. 

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

5 contractor, the selection of the contractor and the admin6 istration of the contract shall be conducted by one of the 

7 entities referenced in clause (ii) as an independent execu8 tive agent for the board of directors. Maximum consider9 ation shall be given to any proposed statement of work 

10 furnished by the Chief Operating Officer of Federal Prison 

11 Industries. 

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

13 identify and consider— 

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

15 the requirements of the Federal Government for the 

16 specific product or specific service; 

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

18 market for the specific product or specific service 

19 currently furnished by small businesses during the 

20 previous 3 fiscal years; 

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

22 specific product or specific service projected for Fed23 eral Prison Industries for the fiscal year in which 

24 production or performance will commence or expand 

25 and the subsequent 4 fiscal years; 


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1 ‘‘(iv) whether the industry producing the spe2 cific product or specific service in the private sec3 tor— 

4 ‘‘(I) has an unemployment rate higher 

5 than the national average; or 

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

7 workers that has consistently shown an increase 

8 during the previous 5 years; 

9 ‘‘(v) whether the specific product is an import10 sensitive product; 

11 ‘‘(vi) the requirements of the Federal Govern12 ment and the demands of entities other than the 

13 Federal Government for the specific product or serv14 ice during the previous 3 fiscal years; 

15 ‘‘(vii) the projected growth or decline in the de16 mand of the Federal Government for the specific 

17 product or specific service; 

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

19 the Federal Government for the specific product or 

20 service to sustain both Federal Prison Industries 

21 and private vendors; and 

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

23 new product or performance of a new service will 

24 provide inmates with the maximum opportunity to 

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1 tions that will provide them with a means of earning 

2 a livelihood upon release. 

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

4 proposal to authorize the production and sale of a new 

5 specific product or continued sale of a previously author6 ized product unless— 

7 ‘‘(I) the product to be furnished is a prison8 made product; or 

9 ‘‘(II) the service to be furnished is to be per10 formed by inmate workers. 

11 ‘‘(ii) The board of directors may not approve a pro12 posal to authorize the production and sale of a new prison13 made product or to expand production of a currently au14 thorized product if the product is— 

15 ‘‘(I) produced in the private sector by an indus16 try which has reflected during the previous year an 

17 unemployment rate above the national average; or 

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

19 ‘‘(iii) The board of directors may not approve a pro20 posal for inmates to provide a service in which an inmate 

21 worker has access to— 

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1 scribed, without giving prior notice to such persons 

2 or class of persons to the greatest extent practicable; 

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

4 surface and subsurface infrastructure providing com5 munications, water and electrical power distribution, 

6 pipelines for the distribution of natural gas, bulk pe7 troleum products and other commodities, and other 

8 utilities; or 

9 ‘‘(III) data that is classified. 

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

11 furnishing through inmate labor construction services, un12 less to be performed within a Federal correctional institu13 tion pursuant to the participation of an inmate in an ap14 prenticeship or other vocational education program teach15 ing the skills of the various building trades. 

16 ‘‘(II) For purposes of this clause, the term ‘construc17 tion’ has the meaning given such term by section 2.101 

18 of the Federal Acquisition Regulation (48 C.F.R. 2.101), 

19 as in effect on June 1, 2010, including the repair, alter20 ation, or maintenance of real property in being. 

21 ‘‘(7) To provide further opportunities for participa22 tion by interested parties, the board of directors shall— 

23 ‘‘(A) give additional notice of a proposal to au24 thorize the production and sale of a new product or 

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1 thorized product or service, in a publication designed 

2 to most effectively provide notice to private vendors 

3 and labor unions representing private sector workers 

4 who could reasonably be expected to be affected by 

5 approval of the proposal, which notice shall offer to 

6 furnish copies of the analysis required by paragraph 

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

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

9 by paragraph (6) from trade associations rep10 resenting vendors and labor unions representing pri11 vate sector workers who could reasonably be ex12 pected to be affected by approval of the proposal to 

13 authorize the production and sale of a new product 

14 or service (or expand the production of a currently 

15 authorized product or service); and 

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

17 representative of an established trade association, 

18 labor union, or other private sector representatives 

19 to present comments on the proposal directly to the 

20 board of directors. 

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

22 of all comments received on the expansion proposal. 

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

24 expansion proposal, the Chief Operating Officer of Federal 

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1 vised expansion proposal. If such revised proposal provides 

2 for expansion of inmate work opportunities in an industry 

3 different from that initially proposed, such revised pro4 posal shall reflect the analysis required by paragraph 

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

6 of paragraph (7). 

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

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

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

10 authorized product or service) and take any action with 

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

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

13 title 5. 

14 ‘‘(11) In conformance with the requirements of para15 graph (10) of this subsection, the board of directors 

16 may— 

17 ‘‘(A) authorize the donation of products pro18 duced or services furnished by Federal industries 

19 and available for sale; 

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

21 product or the furnishing of a new specific service 

22 for donation; or 

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

24 of a currently authorized specific product or specific 


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1 service in an amount in excess of a reasonable share 

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

3 ‘‘(i) a Federal agency or department, pur4 chasing such product or service, has requested 

5 that Federal Prison Industries be authorized to 

6 furnish such product or service in amounts that 

7 are needed by such agency or department; or 

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

9 cause and supported by at least two-thirds of 

10 the appointed members of the board.’’. 

11 SEC. 4. TRANSITIONAL MANDATORY SOURCE AUTHORITY. 

12 (a) IN GENERAL.—Notwithstanding the require13 ments of section 4124 of title 18, United States Code, a 

14 Federal department or agency having a requirement for 

15 a product that is authorized for sale by Federal Prison 

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

17 4124(g) of title 18, United States Code) may first solicit 

18 an offer from Federal Prison Industries and make pur19 chases on a noncompetitive basis in accordance with this 

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

21 United States Code, or section 318 of title III of the Fed22 eral Property and Administrative Services Act of 1949. 

23 (b) PREFERENTIAL SOURCE STATUS.—Subject to 

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

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1 dustries if the contracting officer for the procurement ac2 tivity determines that— 

3 (1) the product offered by Federal Prison In4 dustries will meet the requirements of the procure5 ment activity (including commercial or governmental 

6 standards or specifications pertaining to design, per7 formance, testing, safety, serviceability, and warran8 ties as may be imposed upon a private sector sup9 plier of the type being offered by Federal Prison In10 dustries); 

11 (2) timely performance of the contract by Fed12 eral Prison Industries can be reasonably expected; 

13 and 

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

15 and reasonable price. 

16 (c) CONTRACTUAL TERMS.—The terms and condi17 tions of the contract and the price to be paid to Federal 

18 Prison Industries shall be determined by negotiation be19 tween Federal Prison Industries and the Federal agency 

20 making the purchase. The negotiated price shall not ex21 ceed a fair and reasonable price determined in accordance 

22 with the procedures of the Federal Acquisition Regulation. 

23 (d) PERFORMANCE OF CONTRACTUAL OBLIGA24 TIONS.— 


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1 (1) IN GENERAL.—Federal Prison Industries 

2 shall perform the obligations of the contract nego3 tiated pursuant to subsection (c). 

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

5 the contracting activity and the Chief Operating Of6 ficer of Federal Prison Industries are unable to re7 solve a contract performance dispute to their mutual 

8 satisfaction, such dispute shall be resolved pursuant 

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

10 Code. 

11 (e) LIMITATIONS ON USE OF AUTHORITY.— 

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

13 made by Federal Prison Industries during the base 

14 period, the total dollar value of sales to the Govern15 ment made pursuant to subsection (b) and sub16 section (c) of this section shall not exceed— 

17 (A) 90 percent in fiscal year 2016; 

18 (B) 85 percent in fiscal year 2017; 

19 (C) 70 percent in fiscal year 2018; 

20 (D) 55 percent in fiscal year 2019; and 

21 (E) 40 percent in fiscal year 2020. 

22 (2) SALES WITHIN VARIOUS BUSINESS SEC23 TORS.—Use of the authority provided by subsections 

24 (b) and (c) shall not result in sales by Federal Pris25 on Industries to the Government that are in excess 


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1 of its total sales during the base year for each busi2 ness sector. 

3 (3) LIMITATIONS RELATING TO SPECIFIC PROD4 UCTS.—Use of the authorities provided by sub5 sections (b) and (c) shall not result in contract 

6 awards to Federal Prison Industries that are in ex7 cess of its total sales during the base period for such 

8 product. 

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

10 buying agency directs a change to the design speci11 fication for a specific product, the costs associated 

12 with the implementation of such specification change 

13 by Federal Prison Industries shall not be considered 

14 for the purposes of computing sales by Federal Pris15 on Industries for the purposes of paragraphs (2) and 

16 (3). 

17 (f) ADDITIONAL AUTHORITY TO SUSTAIN INMATE

18 EMPLOYMENT.—During the period specified in subsection 

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

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

21 used by the Board to sustain inmate employment. 

22 (g) DURATION OF AUTHORITY.—The preferential 

23 contracting authorities authorized by subsection (b) may 

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1 tive on the effective date of the final regulations issued 

2 pursuant to section 17. 

3 (h) DEFINITIONS.—For the purposes of this sec4 tion— 

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

6 sales of Federal Prison Industries during the period 

7 October 1, 2011, through September 30, 2012 (Fis8 cal Year 2012); 

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

10 seven product/service business groups identified in 

11 the 2004 Federal Prison Industries annual report as 

12 the Clothing and Textiles Business Group, the Elec13 tronics Business Group, the Fleet Management and 

14 Vehicular Components Business Group, the Indus15 trial Products Business Group, the Office Furniture 

16 Business Group, the Recycling Activities Business 

17 Group, and the Services Business Group; and 

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

19 be given the same meaning as, and be determined 

20 pursuant to, part 15.8 of the Federal Acquisition 

21 Regulation (48 C.F.R. 15.8). 

22 (i) FINDING BY ATTORNEY GENERAL WITH RE23 SPECT TO PUBLIC SAFETY.—(1) Not later than 60 days 

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

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1 ing the effects of the percentage limitation imposed by 

2 such subsection for such fiscal year and the likely effects 

3 of the limitation imposed by such subsection for the fol4 lowing fiscal year. 

5 (2) The Attorney General’s finding shall include a de6 termination whether such limitation has resulted or is like7 ly to result in a substantial reduction in inmate industrial 

8 employment and whether such reductions, if any, present 

9 a significant risk of adverse effects on safe prison oper10 ation or public safety. 

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

12 of adverse effects on either safe prison management or 

13 public safety, he shall so advise the Congress. 

14 (4) In advising the Congress pursuant to paragraph 

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

16 additional authorizations of appropriations to provide ad17 ditional alternative inmate rehabilitative opportunities and 

18 additional correctional staffing, as may be appropriate. 

19 (j) PROCEDURAL REQUIREMENTS FOR CIVILIAN

20 AGENCIES RELATING TO PRODUCTS OF FEDERAL PRISON

21 INDUSTRIES.—Title III of the Federal Property and Ad22 ministrative Services Act of 1949 (41 U.S.C. 251 et seq.) 

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


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

2 PROCEDURAL REQUIREMENTS. 

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

4 product listed in the latest edition of the Federal Prison 

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

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

7 conduct market research to determine whether the Federal 

8 Prison Industries product is comparable to products avail9 able from the private sector that best meet the executive 

10 agency’s needs in terms of price, quality, and time of deliv11 ery. 

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

13 the executive agency determines that a Federal Prison In14 dustries product is not comparable in price, quality, or 

15 time of delivery to products available from the private sec16 tor that best meet the executive agency’s needs in terms 

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

18 shall use competitive procedures for the procurement of 

19 the product or shall make an individual purchase under 

20 a multiple award contract. In conducting such a competi21 tion or making such a purchase, the agency head shall 

22 consider a timely offer from Federal Prison Industries. 

23 ‘‘(c) IMPLEMENTATION BY HEAD OF EXECUTIVE

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

25 that— 


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

2 Federal Prison Industries product or service unless 

3 a contracting officer of the agency determines that 

4 the product or service is comparable to products or 

5 services available from the private sector that best 

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

7 and time of delivery; and 

8 ‘‘(2) Federal Prison Industries performs its 

9 contractual obligations to the same extent as any 

10 other contractor for the executive agency. 

11 ‘‘(d) MARKET RESEARCH DETERMINATION NOT

12 SUBJECT TO REVIEW.—A determination by a contracting 

13 officer regarding whether a product or service offered by 

14 Federal Prison Industries is comparable to products or 

15 services available from the private sector that best meet 

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

17 time of delivery shall not be subject to review pursuant 

18 to section 4124(b) of title 18. 

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

20 contractor or potential contractor of an executive agency 

21 may not be required to use Federal Prison Industries as 

22 a subcontractor or supplier of products or provider of serv23 ices for the performance of a contract of the executive 

24 agency by any means, including means such as— 


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1 ‘‘(A) a contract solicitation provision requiring 

2 a contractor to offer to make use of products or 

3 services of Federal Prison Industries in the perform4 ance of the contract; 

5 ‘‘(B) a contract specification requiring the con6 tractor to use specific products or services (or class7 es of products or services) offered by Federal Prison 

8 Industries in the performance of the contract; or 

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

10 of products or services of Federal Prison Industries 

11 in the performance of the contract. 

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

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

14 under the contract. 

15 ‘‘(f) PROTECTION OF CLASSIFIED AND SENSITIVE

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

17 enter into any contract with Federal Prison Industries 

18 under which an inmate worker would have access to— 

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

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

21 of— 

22 ‘‘(A) surface and subsurface infrastructure 

23 providing communications or water or electrical 

24 power distribution; 


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1 ‘‘(B) pipelines for the distribution of nat2 ural gas, bulk petroleum products, or other 

3 commodities; or 

4 ‘‘(C) other utilities; or 

5 ‘‘(3) any personal or financial information 

6 about any individual private citizen, including infor7 mation relating to such person’s real property how8 ever described, without the prior consent of the indi9 vidual. 

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

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

12 meaning given such term in section 4(5) of the Of13 fice of Federal Procurement Policy Act (41 U.S.C. 

14 403(5)). 

15 ‘‘(2) The term ‘market research’ means obtain16 ing specific information about the price, quality, and 

17 time of delivery of products available in the private 

18 sector through a variety of means, which may in19 clude— 

20 ‘‘(A) contacting knowledgeable individuals 

21 in government and industry; 

22 ‘‘(B) interactive communication among in23 dustry, acquisition personnel, and customers; 

24 and 


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1 ‘‘(C) interchange meetings or pre-solicita2 tion conferences with potential offerors.’’. 

3 SEC. 5. AUTHORITY TO PERFORM AS A FEDERAL SUBCON4 TRACTOR. 

5 (a) IN GENERAL.—Federal Prison Industries is au6 thorized to enter into a contract with a Federal contractor 

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

8 produce products as a subcontractor or supplier in the per9 formance of a Federal procurement contract. The use of 

10 Federal Prison Industries as a subcontractor or supplier 

11 shall be a wholly voluntary business decision by the Fed12 eral prime contractor or subcontractor, subject to any 

13 prior approval of subcontractors or suppliers by the con14 tracting officer which may be imposed by the Federal Ac15 quisition Regulation or by the contract. 

16 (b) LIMITATIONS ON USE.—Federal Prison Indus17 tries is prohibited from being a subcontractor or supplier 

18 at any tier if— 

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

20 a Federal department or agency pursuant to section 

21 3 of the Javits-Wagner-O’Day Act (41 U.S.C. 48); 

22 or 

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

24 department or agency is subject to section 2533a of 

25 title 10, United States Code. 


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1 (c) COMMERCIAL SALES PROHIBITED.—The author2 ity provided by subsection (a) shall not result, either di3 rectly or indirectly, in the sale in the commercial market 

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

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

6 United States Code. A Federal contractor (or subcon7 tractor at any tier) using Federal Prison Industries as a 

8 subcontractor or supplier in furnishing a commercial prod9 uct pursuant to a Federal contract shall implement appro10 priate management procedures to prevent introducing an 

11 inmate-produced product into the commercial market. 

12 (d) PROHIBITIONS ON MANDATING SUBCON13 TRACTING WITH FEDERAL PRISON INDUSTRIES.—Except 

14 as authorized under the Federal Acquisition Regulation, 

15 the use of Federal Prison Industries as a subcontractor 

16 or supplier of products or provider of services shall not 

17 be imposed upon prospective or actual Federal prime con18 tractors or a subcontractors at any tier by means of— 

19 (1) a contract solicitation provision requiring a 

20 contractor to offer to make use of Federal Prison 

21 Industries, its products or services; 

22 (2) specifications requiring the contractor to 

23 use specific products or services (or classes of prod24 ucts or services) offered by Federal Prison Indus25 tries in the performance of the contract; 


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1 (3) any contract modification directing the use 

2 of Federal Prison Industries, its products or serv3 ices; or 

4 (4) any other means. 

5 SEC. 6. INMATE WAGES AND DEDUCTIONS. 

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

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

8 adding after paragraph (11) a new paragraph (12) as fol9 lows: 

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

11 Industries shall prescribe the rates of hourly wages to be 

12 paid inmates performing work for or through Federal 

13 Prison Industries. The Director of the Federal Bureau of 

14 Prisons shall prescribe the rates of hourly wages for other 

15 work assignments within the various Federal correctional 

16 institutions. In the case of an inmate whose term of im17 prisonment is to expire in not more than 2 years, wages 

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

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

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

21 shall be held in trust and paid only upon the actual expira22 tion of the term of imprisonment. 

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

24 and considered for increase on not less than a biannual 

25 basis. 


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1 ‘‘(C) The Board of Directors of Federal Prison In2 dustries shall— 

3 ‘‘(i) not later than September 30, 2016, in4 crease the maximum wage rate for inmates per5 forming work for or through Federal Prison Indus6 tries to an amount equal to 50 percent of the min7 imum wage prescribed by section 6(a)(1) of the Fair 

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

9 206(a)(1)); and 

10 ‘‘(ii) not later than September 30, 2021, in11 crease such maximum wage rate to an amount equal 

12 to such minimum wage. 

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

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

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

16 the wages due for— 

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

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

19 to court order; 

20 ‘‘(iii) payment of additional restitution for vic21 tims of the inmate’s crimes (at a rate not less than 

22 10 percent of gross wages); 

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

24 family pursuant to statute, court order, or agree25 ment with the inmate; 


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

2 to facilitate such inmate’s assimilation back into so3 ciety, payable at the conclusion of incarceration; and 

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

5 by the Director of the Bureau of Prisons. 

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

7 Industries shall indicate in writing that such person— 

8 ‘‘(i) is participating voluntarily; and 

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

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

11 SEC. 7. CLARIFYING AMENDMENT RELATING TO SERVICES. 

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

13 States Code, is amended in subsections (a) and (c) by 

14 striking ‘‘goods, wares, or merchandise manufactured, 

15 produced, or mined’’ each place it appears and inserting 

16 ‘‘products manufactured, services furnished, or minerals 

17 mined’’. 

18 (b) COMPLETION OF EXISTING AGREEMENTS.—Any 

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

20 State or local jurisdiction of a State which is providing 

21 services for the commercial market through inmate labor 

22 on October 1, 2012, may continue to provide such com23 mercial services until— 


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1 (1) the expiration date specified in the contract 

2 or other agreement with a commercial partner on 

3 October 1, 2012, or 

4 (2) until September 30, 2019, if the prison 

5 work program is directly furnishing the services to 

6 the commercial market. 

7 (c) APPROVAL REQUIRED FOR LONG-TERM OPER8 ATION.—A prison work program operated by a correc9 tional institution operated by a State or local jurisdiction 

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

11 services for sale in the commercial market after the dates 

12 specified in subsection (b) if such program has been cer13 tified pursuant to section 1761(c)(1) of title 18, United 

14 States Code, and is in compliance with the requirements 

15 of such subsection and its implementing regulations. 

16 (d) EXISTING WORK OPPORTUNITIES FOR FEDERAL

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

18 an agreement with Federal Prison Industries in effect on 

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

20 inmates are furnishing services that are being introduced 

21 into the commercial market, may continue to furnish such 

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

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

24 18, United States Code, is further amended— 


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

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

3 (2) by inserting after subsection (c) the fol4 lowing new subsection: 

5 ‘‘(d) This section shall not apply to services per6 formed as part of an inmate work program conducted by 

7 a State or local government to disassemble, scrap, and re8 cycle products, other than electronic products, that would 

9 otherwise be disposed of in a landfill. Recovered scrap 

10 from such program may be sold.’’. 

11 SEC. 8. CONFORMING AMENDMENT. 

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

13 amended by striking ‘‘production of commodities’’ and in14 serting ‘‘production of products or furnishing of services’’. 

15 SEC. 9. RULES OF CONSTRUCTION RELATING TO CHAPTER 

16 307. 

17 Chapter 307 of title 18, United States Code, is fur18 ther amended by adding at the end the following: 

19 ‘‘§ 4130. Construction of provisions 

20 ‘‘Nothing in this chapter shall be construed— 

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

22 to— 

23 ‘‘(A) employment in a Federal Prison In24 dustries facility; or 


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

2 or benefit on demand, except as otherwise spe3 cifically provided by law or regulation; 

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

5 the purposes of any law or program; or 

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

7 behalf of any inmate against the United States or 

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

9 SEC. 10. PROVIDING ADDITIONAL REHABILITATIVE OPPOR10 TUNITIES FOR INMATES. 

11 (a) ADDITIONAL EDUCATIONAL, TRAINING, AND RE12 LEASE-PREPARATION OPPORTUNITIES.— 

13 (1) PROGRAM ESTABLISHED.—There is hereby 

14 established the Enhanced In-Prison Educational and 

15 Vocational Assessment and Training Program within 

16 the Federal Bureau of Prisons. 

17 (2) COMPREHENSIVE PROGRAM.—In addition to 

18 such other components as the Director of the Bu19 reau of Prisons deems appropriate to reduce inmate 

20 idleness and better prepare inmates for a successful 

21 reentry into the community upon release, the pro22 gram shall provide— 

23 (A) in-prison assessments of inmates’ 

24 needs and aptitudes; 


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1 (B) a full range of educational opportuni2 ties; 

3 (C) vocational training and apprentice4 ships; and 

5 (D) comprehensive release-readiness prepa6 ration. 

7 (3) AUTHORIZATION OF APPROPRIATIONS.—For 

8 the purposes of carrying out the program established 

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

10 each fiscal year after fiscal year 2013, to remain 

11 available until expended. It is the sense of Congress 

12 that Federal Prison Industries should use some of 

13 its net earnings to accomplish the purposes of the 

14 program. 

15 (4) SCHEDULE FOR IMPLEMENTATION.—All 

16 components of the program shall be established— 

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

18 prisons not later than 2 years after the date of 

19 the enactment of this Act; 

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

21 prisons not later than 4 years after such date 

22 of enactment; 

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

24 prisons not later than 6 years after such date 

25 of enactment; and 


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

2 years after such date of enactment. 

3 (b) ADDITIONAL INMATE WORK OPPORTUNITIES

4 THROUGH PUBLIC SERVICE ACTIVITIES.— 

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

6 United States Code, is further amended by inserting 

7 after section 4124 the following new section: 

8 ‘‘§ 4124a. Additional inmate work opportunities 

9 through public service activities 

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

11 within Federal Prison Industries may perform work for 

12 an eligible entity pursuant to an agreement between such 

13 entity and the Inmate Work Training Administrator in ac14 cordance with the requirements of this section. 

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

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

17 an entity— 

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

19 501(c)(3) of the Internal Revenue Code of 1986 and 

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

21 Code and that has been such an organization for a 

22 period of not less than 36 months prior to inclusion 

23 in an agreement under this section; 


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

2 in section 501(d) of such Code and exempt from tax3 ation under section 501(a) of such Code; or 

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

5 district, or another special purpose district. 

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

7 There is hereby established the position of Inmate Work 

8 Training Administrator, who shall be responsible for fos9 tering the creation of alternative inmate work opportuni10 ties authorized by this section. The Administrator shall 

11 be designated by the Chief Executive Officer of Federal 

12 Prison Industries, with the approval of the Board of Di13 rectors, and be under the supervision of the Chief Oper14 ating Officer, but may directly report to the Board. 

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

16 seeking to enter into an agreement pursuant to subsection 

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

18 Training Administrator. Each such agreement shall speci19 fy— 

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

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

22 specified in terms of a base year and number of op23 tion years; 


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

2 be employed in the specified types of work during 

3 the various phases of the agreement; 

4 ‘‘(4) the wage rates proposed to be paid to var5 ious classes of inmate workers; and 

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

7 than correctional personnel dedicated to the security 

8 of the inmate workers) to be furnished by Federal 

9 Prison Industries or the Bureau of Prisons and the 

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

11 services, and personnel. 

12 ‘‘(e) REPRESENTATIONS.— 

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

14 proposed agreement shall be accompanied by a writ15 ten certification by the chief executive officer of the 

16 eligible entity that— 

17 ‘‘(A) the work to be performed by the in18 mate workers will be limited to the eleemosy19 nary work of such entity in the case of an enti20 ty described in paragraph (1) or (2) of sub21 section (b); 

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

23 the United States but for the availability of the 

24 inmate workers; and 


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

2 workers will not result, either directly or indi3 rectly, in the production of a new product or 

4 the furnishing of a service that is to be offered 

5 for other than resale or donation by the eligible 

6 entity or any affiliate of the such entity. 

7 ‘‘(2) PROTECTIONS FOR NON-INMATE WORK8 ERS.—Each proposed agreement shall also be ac9 companied by a written certification by the chief ex10 ecutive officer of the eligible entity that— 

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

12 any person performing work activities for such 

13 governmental entity pursuant to section 607 of 

14 subchapter IV of the Social Security Act (42 

15 U.S.C. 607)) of the eligible entity (or any affil16 iate of the entity) working in the United States 

17 will have his or her job abolished or work hours 

18 reduced as a result of the entity being author19 ized to utilize inmate workers; and 

20 ‘‘(B) the work to be performed by the in21 mate workers will not supplant work currently 

22 being performed in the United States by a con23 tractor of the eligible entity. 

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


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1 ‘‘(1) IN GENERAL.—Each such proposed agree2 ment shall be presented to the Board of Directors, 

3 be subject to the same opportunities for public com4 ment, and be publicly considered and acted upon by 

5 the Board in a manner comparable to that required 

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

7 ‘‘(2) MATTERS TO BE CONSIDERED.—In deter8 mining whether to approve a proposed agreement, 

9 the Board shall— 

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

11 provides inmate work opportunities that will 

12 provide participating inmates with the best 

13 prospects of obtaining employment paying a liv14 able wage upon release; 

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

16 provides for maximum reimbursement for in17 mate wages and for the costs of supplies and 

18 equipment needed to perform the types of work 

19 to be performed; 

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

21 result in the displacement of non-inmate work22 ers contrary to the representations required by 

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

24 by the Secretary of Labor (pursuant to sub25 section (i)); and 


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

2 result, either directly or indirectly, in the pro3 duction of a new product or the furnishing of 

4 a service for other than resale by an eligible en5 tity described in paragraph (1) or (2) of sub6 section (b) or donation. 

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

8 WAGES.— 

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

10 paid wages for work under the agreement at a basic 

11 hourly rate to be negotiated between the eligible en12 tity and Federal Prison Industries and specified in 

13 the agreement. The wage rates set by the Director 

14 of the Federal Bureau of Prisons to be paid inmates 

15 for various institutional work assignments are spe16 cifically authorized. 

17 ‘‘(2) PAYMENT TO INMATE WORKER AND AU18 THORIZED DEDUCTIONS.—Wages shall be paid and 

19 deductions taken pursuant to section 

20 4122(b)(12)(D). 

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

22 Each inmate worker to be utilized by an eligible en23 tity shall indicate in writing that such person— 

24 ‘‘(A) is participating voluntarily; and 


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

2 to be paid and deductions to be taken from 

3 such wages. 

4 ‘‘(h) ASSIGNMENT TO WORK OPPORTUNITIES.—As5 signment of inmates to work under an approved agree6 ment with an eligible entity shall be subject to the Bureau 

7 of Prisons Program Statement Number 1040.10 (Non8 Discrimination Toward Inmates), as contained in section 

9 551.90 of title 28 of the Code of Federal Regulations (or 

10 any successor document). 

11 ‘‘(i) ENFORCEMENT OF PROTECTIONS FOR NON-IN12 MATE WORKERS.— 

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

14 request of any interested person, the Secretary of 

15 Labor may promptly verify a certification made pur16 suant subsection (e)(2) with respect to the displace17 ment of non-inmate workers so as to make the re18 sults of such inquiry available to the Board of Direc19 tors prior to the Board’s consideration of the pro20 posed agreement. The Secretary and the person re21 questing the inquiry may make recommendations to 

22 the Board regarding modifications to the proposed 

23 agreement. 

24 ‘‘(2) DURING PERFORMANCE.— 


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1 ‘‘(A) IN GENERAL.—Whenever the Sec2 retary deems appropriate, upon request or oth3 erwise, the Secretary may verify whether the 

4 actual performance of the agreement is result5 ing in the displacement of non-inmate workers 

6 or the use of inmate workers in a work activity 

7 not authorized under the approved agreement. 

8 ‘‘(B) SANCTIONS.—Whenever the Sec9 retary determines that performance of the 

10 agreement has resulted in the displacement of 

11 non-inmate workers or employment of an in12 mate worker in an unauthorized work activity, 

13 the Secretary may— 

14 ‘‘(i) direct the Inmate Work Training 

15 Administrator to terminate the agreement 

16 for default, subject to the processes and 

17 appeals available to a Federal contractor 

18 whose procurement contract has been ter19 minated for default; and 

20 ‘‘(ii) initiate proceedings to impose 

21 upon the person furnishing the certifi22 cation regarding non-displacement of non23 inmate workers required by subsection 

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

25 criminal sanctions as may be available.’’. 


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1 (2) AUTHORIZATION OF APPROPRIATION.— 

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

3 for each of the fiscal years 2016 through 2020 for 

4 the purposes of paying the wages of inmates and 

5 otherwise undertaking the maximum number of 

6 agreements with eligible entities pursuant to section 

7 4124a of title 18, United States Code. 

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

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

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

11 training wage that is at least 50 percent of the min12 imum wage prescribed pursuant to section 6(a)(1) of 

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

14 206(a)(1)) will facilitate successful achievement of 

15 the goals of the work-based training and apprentice16 ship program authorized under such section 4124a. 

17 (c) INMATE WORK OPPORTUNITIES IN SUPPORT OF

18 NOT-FOR-PROFIT ENTITIES.— 

19 (1) PROPOSALS FOR DONATION PROGRAMS.— 

20 The Chief Operating Officer of Federal Prison In21 dustries shall develop and present to the Board of 

22 Directors of Federal Prison Industries proposals to 

23 have Federal Prison Industries donate products and 

24 services to eligible entities that provide goods or 

25 services to low-income individuals who would likely 


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1 otherwise have difficulty purchasing such products 

2 or services in the commercial market. 

3 (2) SCHEDULE FOR SUBMISSION AND CONSID4 ERATION OF DONATION PROGRAMS.— 

5 (A) INITIAL PROPOSALS.—The Chief Oper6 ating Officer shall submit the initial group of 

7 proposals for programs of the type described in 

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

9 the enactment of this Act. The Board of Direc10 tors of Federal Prison Industries shall consider 

11 such proposals from the Chief Operating Officer 

12 not later than the date that is 270 days after 

13 the date of the enactment of this Act. 

14 (B) ANNUAL OPERATING PLAN.—The 

15 Board of Directors of Federal Prison Industries 

16 shall consider proposals by the Chief Operating 

17 Officer for programs of the type described in 

18 paragraph (1) as part of the annual operating 

19 plan for Federal Prison Industries. 

20 (C) OTHER PROPOSALS.—In addition to 

21 proposals submitted by the Chief Operating Of22 ficer, the Board of Directors may, from time to 

23 time, consider proposals presented by prospec24 tive eligible entities. 


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1 (3) DEFINITION OF ELIGIBLE ENTITIES.—For 

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

3 entity’’ means an entity— 

4 (A) that is an organization described in 

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

6 of 1986 and exempt from taxation under sec7 tion 501(a) of such Code and that has been 

8 such an organization for a period of not less 

9 than 36 months prior to inclusion in a proposal 

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

11 (B) that is a religious organization de12 scribed in section 501(d) of such Code and ex13 empt from taxation under section 501(a) of 

14 such Code. 

15 (4) AUTHORIZATION OF APPROPRIATIONS.— 

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

17 for each of the fiscal years 2016 through 2020 for 

18 the purposes of paying the wages of inmates and 

19 otherwise carrying out programs of the type de20 scribed in paragraph (1). 

21 (d) MAXIMIZING INMATE REHABILITATIVE OPPOR22 TUNITIES THROUGH COGNITIVE ABILITIES ASSESS23 MENTS.— 

24 (1) DEMONSTRATION PROGRAM AUTHORIZED.— 


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1 (A) IN GENERAL.—There is hereby estab2 lished within the Federal Bureau of Prisons a 

3 program to be known as the ‘‘Cognitive Abili4 ties Assessment Demonstration Program’’. The 

5 purpose of the demonstration program is to de6 termine the effectiveness of a program that as7 sesses the cognitive abilities and perceptual 

8 skills of Federal inmates to maximize the bene9 fits of various rehabilitative opportunities de10 signed to prepare each inmate for a successful 

11 return to society and reduce recidivism. The 

12 demonstration program shall be undertaken by 

13 a contractor with a demonstrated record of ena14 bling the behavioral and academic improvement 

15 of adults through the use of research-based sys16 tems that maximize the development of both the 

17 cognitive and perceptual capabilities of a par18 ticipating individual, including adults in a cor19 rectional setting. 

20 (B) SCOPE OF DEMONSTRATION PRO21 GRAM.—The demonstration program shall to 

22 the maximum extent practicable, be— 

23 (i) conducted during a period of three 

24 consecutive fiscal years, commencing dur25 ing fiscal year 2016; 


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1 (ii) conducted at 12 Federal correc2 tional institutions; and 

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

4 categorized as minimum security or less, 

5 and are within five years of release. 

6 (C) REPORT ON RESULTS OF PROGRAM.— 

7 Not later than 60 days after completion of the 

8 demonstration program, the Director shall sub9 mit to Congress a report on the results of the 

10 program. At a minimum, the report shall in11 clude an analysis of employment stability, sta12 bility of residence, and rates of recidivism 

13 among inmates who participated in the program 

14 after 18 months of release. 

15 (2) AUTHORIZATION OF APPROPRIATIONS.— 

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

17 in each of the three fiscal years after fiscal year 

18 2013, to remain available until expended, for the 

19 purposes of conducting the demonstration program 

20 authorized by subsection (a). 

21 (e) PRERELEASE EMPLOYMENT ASSISTANCE.— 

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

23 Bureau of Prisons shall, to the maximum extent 

24 practicable, afford to inmates opportunities to par25 ticipate in programs and activities designed to help 


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1 prepare such inmates to obtain employment upon re2 lease. 

3 (2) PRERELEASE EMPLOYMENT PLACEMENT

4 ASSISTANCE.—Such prerelease employment place5 ment assistance required by subsection (a) shall in6 clude— 

7 (A) training in the preparation of resumes 

8 and job applications; 

9 (B) training in interviewing skills; 

10 (C) training and assistance in job search 

11 techniques; 

12 (D) conduct of job fairs; and 

13 (E) such other methods deemed appro14 priate by the Director. 

15 (3) PRIORITY PARTICIPATION.—Priority in pro16 gram participation shall be accorded to inmates who 

17 are participating in work opportunities afforded by 

18 Federal Prison Industries and are within 24 months 

19 of release from incarceration. 

20 SEC. 11. RE-ENTRY EMPLOYMENT PREPARATION THROUGH 

21 WORK-BASED TRAINING AND APPRENTICE22 SHIP. 

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

24 States Code, is further amended by inserting after section 

25 4124a the following new section: 


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1 ‘‘§ 4124b. Re-entry employment preparation through 

2 work-based training and apprenticeship 

3 ‘‘(a) PARTICIPATION AUTHORIZED.—A private for4 profit business entity shall be an eligible entity for partici5 pation in the program authorized by section 4124a of this 

6 title, if such participation conforms with the requirements 

7 and limitations of this section. 

8 ‘‘(b) REQUIREMENTS RELATING TO PRODUCTS AND

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

10 for such participation if such business entity proposes to 

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

12 producing a product or performing a service, if such prod13 uct or service is of a type for which there is no production 

14 or performance within the United States by noninmate 

15 workers. 

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

17 ‘‘(1) IN GENERAL.—For purposes of this sec18 tion, the training of participating inmates shall be 

19 work-based training that provides to a participating 

20 inmate apprenticeship training or a functionally 

21 equivalent structured program that combines hands22 on work experience with conceptual understanding of 

23 the work being performed. Other inmates with reg24 ular work assignments within Federal Prison Indus25 tries may be assigned to support the program. 


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1 ‘‘(2) DOCUMENTATION OF PROGRAM PARTICIPA2 TION.— 

3 ‘‘(A) Each inmate who successfully com4 pletes participation in training undertaken pur5 suant to this section shall be provided a certifi6 cate or other written document memorializing 

7 such successful completion, providing a market8 able summary of the skills learned and an over9 all assessment of performance. 

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

11 furnished to perspective employers upon the re12 quest of the participant for a period of not less 

13 than 24 months from the date of such partici14 pant’s release from incarceration. 

15 ‘‘(3) DOCUMENTS REQUIRED FOR EMPLOY16 MENT.—The Federal Bureau of Prisons, in coopera17 tion with a business entity providing an inmate 

18 work-based training at the time of his or her sched19 uled release, shall make every reasonable effort to 

20 help the inmate timely obtain such documentation 

21 (including a State government-issued photo identi22 fication card) as a person may be required to pro23 vide to a prospective employer, after such person 

24 completes an Employment Eligibility Verification 

25 (ICE Form I–9). 


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1 ‘‘(d) WAGE RATES.— 

2 ‘‘(1) IN GENERAL.—Business entities partici3 pating in the program authorized by subsection (a) 

4 shall propose wages for inmates participating in the 

5 program at rates not less than the inmate training 

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

7 Federal Prison Industries Competition in Con8 tracting Act of 2015. 

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

10 30 days after the date of enactment of this section, 

11 the Board of Directors of Federal Prison Industries 

12 shall request the Secretary of Labor to promulgate 

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

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

15 214(a)). 

16 ‘‘(e) SUPPORT FOR OTHER RELEASE PREPARATION

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

18 4124a(d) of this title, a proposal for an agreement re19 ferred to in such section submitted by an eligible business 

20 entity shall specify an amount of any supplemental fund21 ing, specified as a per-capita amount for each inmate par22 ticipating pursuant to the agreement, that the business 

23 entity will provide for the purpose of supporting remedial, 

24 vocational, and other release preparation programs for 

25 other nonparticipating inmates. 


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1 ‘‘(f) ADDITIONAL STANDARDS APPLICABLE.—In con2 sidering a proposed agreement pursuant to section 

3 4124a(f)(1) of this title, the Board of Directors shall— 

4 ‘‘(1) give preference to an agreement that pro5 poses— 

6 ‘‘(A) work-based training opportunities 

7 that provide the participating inmate the best 

8 prospects for obtaining employment paying a 

9 livable wage upon release; 

10 ‘‘(B) the highest per-capita amount pursu11 ant to subsection (e) relating to providing fi12 nancial support for release preparation for 

13 other inmates; and 

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

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

16 furnishing services of the type described in section 

17 4122(b)(6)(D)(iii) of this title; 

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

19 furnishing construction services described in section 

20 4122(b)(6)(D)(iv) of this title, unless to be per21 formed within a Federal correctional institution; 

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

23 meet the standards of subsection (b); and 

24 ‘‘(5) request a determination from the Depart25 ment of Commerce (and such other executive branch 


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1 entities as may be appropriate), regarding whether a 

2 product or service is of the type being produced or 

3 performed in the United States by noninmate work4 ers, whenever the Board determines that such an ad5 ditional assessment is warranted, including upon a 

6 request from an interested party presenting informa7 tion that the Board deems to warrant such addi8 tional assessment prior to the Board’s consideration 

9 of the proposed agreement. 

10 ‘‘(g) LIMITATIONS ON THE USE OF THE AUTHOR11 ITY.— 

12 ‘‘(1) NO SALES BY FEDERAL PRISON INDUS13 TRIES.—Federal Prison Industries is prohibited 

14 from directly offering for commercial sale products 

15 produced or services furnished by Federal inmates, 

16 including through any form of electronic commerce. 

17 ‘‘(2) DURATION.— 

18 ‘‘(A) No proposed agreement pursuant to 

19 this subsection may be approved by the Board 

20 of Directors after September 30, 2022. 

21 ‘‘(B) Performance of all such agreements 

22 shall be concluded prior to October 1, 2027.’’. 

23 (b) REVIEW AND REPORTING BY THE ATTORNEY

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

25 year 2016, the Attorney General shall meet in person 


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1 jointly with the Chairman of the Board of Directors and 

2 the Chief Executive Officer of Federal Prison Industries 

3 to review the progress that Federal Prison Industries is 

4 making in maximizing the use of the authority provided 

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

6 Code. The Attorney General shall provide annually a writ7 ten report to the Committees on the Judiciary and Appro8 priations of the House of Representatives and the Senate 

9 addressing such progress by Federal Prison Industries. 

10 (c) GAO ASSESSMENT OF WORK-BASED TRAINING

11 PROGRAM.— 

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

13 the United States shall undertake an on-going as14 sessment of the authority granted by section 4124b 

15 of title 18, United States Code. 

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

17 such other matters as the Comptroller General 

18 deems appropriate, the assessment shall include— 

19 (A) efforts to recruit private for-profit 

20 business entities to participate; 

21 (B) the quality of training provided to in22 mates; 

23 (C) the amounts and types of products and 

24 services that have been produced incident to the 

25 work-based training programs; 


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1 (D) the types of worksite arrangement that 

2 encourage business concerns to voluntarily enter 

3 into such partnerships; 

4 (E) the extent and manner of the partici5 pation of supervisory, quality assurance, and 

6 other management employees of the partici7 pating business entity in worksites within cor8 rectional facilities of various levels of security; 

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

10 equipment, and personnel (other than security 

11 personnel) provided by the host correctional 

12 agency, and extent to which such resources are 

13 provided on a nonreimbursable basis; 

14 (G) the rates of wages paid to inmate 

15 workers and the effect that such wage rates 

16 have on willingness of business entities to par17 ticipate; 

18 (H) any complaints filed regarding the dis19 placement of noninmate workers or of inmate 

20 workers being paid less than required wages 

21 and the disposition of those complaints; 

22 (I) any sanctions recommended relating to 

23 displacement of noninmate workers or payment 

24 of less than the required wages, and the dis25 position of such proposed sanctions; 


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1 (J) the extent to which the new authority 

2 provided additional inmate work opportunities 

3 assisting the Bureau of Prisons in attaining its 

4 objective of providing 25 percent of the work5 eligible inmates with work opportunities within 

6 Federal Prison Industries; 

7 (K) measures of any adverse impacts of 

8 implementation of the new authority on busi9 ness concerns using noninmate workers that are 

10 engaged in providing similar types of products 

11 and services in direct competition; and 

12 (L) a compilation of data relating work op13 portunities for Federal inmates with work as14 signments with Federal Prison Industries pro15 vided by— 

16 (i) sales to Federal agencies pursuant 

17 to the status of Federal Prison Industries 

18 as a mandatory source of supply during 

19 the period fiscal year 1990 through fiscal 

20 year 2012; 

21 (ii) sales to Federal agencies of serv22 ices, both through non-competitive inter23 agency transfers and as a result of direct 

24 competition from private-sector offerors 


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1 during the period fiscal year 1990 through 

2 fiscal year 2012; 

3 (iii) performance as a subcontractor 

4 to a Federal prime contractor or Federal 

5 subcontractor at a higher tier beginning in 

6 fiscal year 1990; 

7 (iv) introduction of inmate-furnished 

8 services into the commercial market, begin9 ning in the second quarter of fiscal year 

10 1998; and 

11 (v) alternative inmate work opportuni12 ties, beginning in fiscal year 2016, pro13 vided by agreements with— 

14 (I) non-profit organizations, pur15 suant to section 4124a(b)(1) of title 

16 18, United States Code, and section 

17 10(c); 

18 (II) religious organizations, pur19 suant to section 4124a(b)(2) of title 

20 18, United States Code; 

21 (III) units of local governments, 

22 school districts, or other special pur23 pose districts, pursuant to section 

24 4124a(b)(3) of title 18, United States 

25 Code; 


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1 (IV) work-based Employment 

2 Preparation Programs for Federal in3 mates, pursuant to section 4124b of 

4 title 18, United States Code; or 

5 (V) other means. 

6 (3) OPPORTUNITY FOR PUBLIC COMMENT.— 

7 The Comptroller General shall provide an oppor8 tunity for public comment on the proposed scope 

9 and methodology for the assessment required by 

10 paragraph (1), making such modifications in re11 sponse to such comments as he deems appropriate. 

12 (4) REPORTS AND RECOMMENDATIONS.— 

13 (A) IN GENERAL.—The Comptroller Gen14 eral shall submit to the Congress in accordance 

15 with this subsection two interim reports and a 

16 final report of the assessment of implementa17 tion of the new authority, including such rec18 ommendations as the Comptroller General may 

19 deem appropriate. 

20 (B) INTERIM REPORTS.—The two interim 

21 reports shall encompass the assessment of the 

22 implementation of the new authority— 

23 (i) from the effective date of the au24 thority through the end of fiscal year 

25 2018; and 


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1 (ii) from the effective date of the au2 thority through the end of fiscal year 

3 2021. 

4 (C) FINAL REPORT.—The final report 

5 shall assess the implementation of the new au6 thority from the effective date of the authority 

7 through the end of fiscal year 2022. 

8 (D) SUBMISSION TO CONGRESS.—The 

9 Comptroller General shall submit the reports 

10 required by this paragraph within 6 months 

11 after the end of the fiscal years referred to in 

12 subparagraphs (B) and (C). 

13 (d) CONFORMING AMENDMENT.—Section 1761 of 

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

15 is further amended— 

16 (1) by redesignating subsection (f) as sub17 section (g); and 

18 (2) by inserting after subsection (e), as so re19 designated by section 7(e) of this Act, the following 

20 new subsection: 

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

22 or services furnished with inmate labor incidental to the 

23 work-based training program authorized pursuant to sec24 tion 4124b of this title.’’. 


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

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

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

4 serving directly under the Attorney General.’’ and insert5 ing the following: ‘‘who shall be appointed by the Presi6 dent by and with the advice and consent of the Senate. 

7 The Director shall serve directly under the Attorney Gen8 eral.’’. 

9 (b) INCUMBENT.—Notwithstanding the amendment 

10 made by subsection (a), the individual serving as the Di11 rector of the Bureau of Prisons on the date of enactment 

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

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

14 enactment of this Act. 

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

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

17 appoint the individual serving as the Director of the Bu18 reau of Prisons on the date of enactment of this Act to 

19 the position of the Director of the Bureau of Prisons in 

20 accordance with section 4041 of title 18, United States 

21 Code, as amended by subsection (a). 

22 SEC. 13. RESTRUCTURING THE BOARD OF DIRECTORS. 

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

24 States Code, is amended to read as follows: 


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1 ‘‘§ 4121. Federal Prison Industries; Board of Direc2 tors: executive management 

3 ‘‘(a) Federal Prison Industries is a government cor4 poration of the District of Columbia organized to carry 

5 on such industrial operations in Federal correctional insti6 tutions as authorized by its Board of Directors. The man7 ner and extent to which such industrial operations are car8 ried on in the various Federal correctional institutions 

9 shall be determined by the Attorney General. 

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

11 of 11 directors appointed by the President. 

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

13 President shall assure that 3 members represent the busi14 ness community, 3 members represent organized labor, 1 

15 member shall have special expertise in inmate rehabilita16 tion techniques, 1 member represents victims of crime, 1 

17 member represents the interests of Federal inmate work18 ers, and 2 additional members whose background and ex19 pertise the President deems appropriate. The members of 

20 the Board representing the business community shall in21 clude, to the maximum extent practicable, representation 

22 of firms furnishing services as well as firms producing 

23 products, especially from those industry categories from 

24 which Federal Prison Industries derives substantial sales. 

25 The members of the Board representing organized labor 

26 shall, to the maximum practicable, include representation 


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1 from labor unions whose members are likely to be most 

2 affected by the sales of Federal Prison Industries. 

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

4 5 years, except that of members first appointed— 

5 ‘‘(A) 2 members representing the business com6 munity shall be appointed for a term of 3 years; 

7 ‘‘(B) 2 members representing labor shall be ap8 pointed for a term of 3 years; 

9 ‘‘(C) 2 members whose background and exper10 tise the President deems appropriate for a term of 

11 3 years; 

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

13 shall be appointed for a term of 3 years; 

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

15 Federal inmate workers shall be appointed for a 

16 term of 3 years; 

17 ‘‘(F) 1 member representing the business com18 munity shall be appointed for a term of 4 years; 

19 ‘‘(G) 1 member representing the business com20 munity shall be appointed for a term of 4 years; and 

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

22 inmate rehabilitation techniques shall be appointed 

23 for a term of 5 years. 


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

2 Board as Chairperson. The Chairperson may designate a 

3 Vice Chairperson. 

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

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

6 same manner as the original appointment. Any member 

7 appointed to fill a vacancy occurring before the expiration 

8 of the term for which the member’s predecessor was ap9 pointed shall be appointed for the remainder of that term. 

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

11 compensation. The members of the Board shall be allowed 

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

13 at rates authorized for employees of agencies under sub14 chapter I of chapter 57 of title 5, United States Code, 

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

16 approval of the Chairperson of the Board, while otherwise 

17 away from their homes or regular places of business for 

18 purposes of duties as a member of the Board. 

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

20 and terminate any personnel that may be necessary to en21 able the Board to perform its duties. 

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

23 a Federal agency may detail a Federal Government em24 ployee to the Board without reimbursement. Such detail 


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1 shall be without interruption or loss of civil service status 

2 or privilege. 

3 ‘‘(9) The Chairperson of the Board may procure tem4 porary and intermittent services under section 3109(b) of 

5 title 5, United States Code. 

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

7 serve as Chief Executive Officer of the Corporation. The 

8 Director shall designate a person to serve as Chief Oper9 ating Officer of the Corporation.’’. 

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

11 Board of Directors serving on the date of enactment of 

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

13 shall continue to exercise the duties and responsibilities 

14 of the Board until the earlier of— 

15 (1) the date on which the President has ap16 pointed at least 6 members of the Board and des17 ignated a new Chairman, pursuant to section 4121 

18 of title 18, United States Code (as amended by sub19 section (a)); or 

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

21 enactment of this Act. 

22 SEC. 14. MANAGEMENT MATTERS. 

23 (a) ADDITIONAL FLEXIBILITIES.—Section 

24 4122(b)(3) of title 18, United States Code, is amended— 


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

2 and 

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

4 paragraphs: 

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

6 one workshop at a Federal correctional facility. 

7 ‘‘(C) Federal Prison Industries may operate a work8 shop outside of a correctional facility if all of the inmates 

9 working in such workshop are classified as minimum secu10 rity inmates.’’. 

11 (b) COST ACCOUNTING SYSTEM.— 

12 (1) ESTABLISHMENT.—Federal Prison Indus13 tries shall establish a cost accounting system that 

14 meets the requirements of part 30 (Cost Accounting 

15 Standards Administration) of the Federal Acquisi16 tion Regulation (48 C.F.R. 30). The compliance of 

17 the cost accounting system with such standards shall 

18 be annually verified as part of the independent audit 

19 of Federal Prison Industries, Inc., pursuant to sec20 tion 9106(b) of title 31, United States Code. 

21 (2) APPLICATION OF RELATED PROVISION.— 

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

23 shall apply when Federal Prison Industries has been 

24 found to have a complaint cost accounting system 

25 pursuant to paragraph (1). 


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1 SEC. 15. TRANSITIONAL PERSONNEL MANAGEMENT AU2 THORITY. 

3 Any correctional officer or other employee of Federal 

4 Prison Industries being paid with nonappropriated funds 

5 who would be separated from service because of a reduc6 tion in the net income of Federal Prison Industries during 

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

8 (1) eligible for appointment (or reappointment) 

9 in the competitive service pursuant to title 5, United 

10 States Code; 

11 (2) registered on a Bureau of Prisons reemploy12 ment priority list; and 

13 (3) given priority for any other position within 

14 the Bureau of Prisons for which such employee is 

15 qualified. 

16 SEC. 16. FEDERAL PRISON INDUSTRIES REPORT TO CON17 GRESS. 

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

19 amended to read as follows: 

20 ‘‘§ 4127. Federal Prison Industries report to Congress 

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

22 31, the board of directors of Federal Prison Industries 

23 shall submit an annual report to Congress on the conduct 

24 of the business of the corporation during each fiscal year 

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


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

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

3 other matters as the board considers appropriate, a report 

4 under subsection (a) shall include— 

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

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

7 the fiscal year; 

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

9 that will be issued in the following fiscal year; 

10 ‘‘(3) an analysis of— 

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

12 specific product and type of service sold to the 

13 Federal agencies and the commercial market; 

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

15 agency of each specific product and type of 

16 service; 

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

18 Federal Government purchases by specific prod19 uct and type of service; and 

20 ‘‘(D) the number and disposition of dis21 putes submitted to the heads of the Federal de22 partments and agencies pursuant to section 

23 4124(e) of this title; 

24 ‘‘(4) an allocation of the profits of the corpora25 tion, both gross and net, to— 


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1 ‘‘(A) educational, training, release-prepara2 tion opportunities for inmates; 

3 ‘‘(B) opening new factories; and 

4 ‘‘(C) improving the productivity and com5 petitiveness of existing factories; 

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

7 includes— 

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

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

10 produce products or furnish services sold in the 

11 commercial market; 

12 ‘‘(C) the number and percentage of em13 ployed inmates by the term of their incarcer14 ation; and 

15 ‘‘(D) the various hourly wages paid to in16 mates employed with respect to the production 

17 of the various specific products and types of 

18 services authorized for production and sale to 

19 Federal agencies and in the commercial market; 

20 and 

21 ‘‘(6) data concerning employment obtained by 

22 former inmates upon release to determine whether 

23 the employment provided by Federal Prison Indus24 tries during incarceration provided such inmates 

25 with knowledge and skill in a trade or occupation 


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1 that enabled such former inmate to earn a livelihood 

2 upon release. 

3 ‘‘(c) PUBLIC AVAILABILITY.—Copies of an annual re4 port under subsection (a) shall be made available to the 

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

6 report.’’. 

7 SEC. 17. DEFINITIONS. 

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

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

10 ‘‘§ 4131. Definitions 

11 ‘‘As used in this chapter— 

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

13 uniting or combining articles or components (includ14 ing ancillary finished components or assemblies) so 

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

16 without necessarily changing or altering the compo17 nent parts; 

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

19 with respect to a specific product, the fair market 

20 price of the product within the meaning of section 

21 15(a) of the Small Business Act (15 U.S.C. 644(a)), 

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

23 verified through appropriate price analysis or cost 

24 analysis, including any costs relating to transpor25 tation or the furnishing of any ancillary services; 


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

2 a product which, according to Department of Com3 merce data, has experienced competition from im4 ports at an import to domestic production ratio of 

5 25 percent or greater; 

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

7 means a manufacturing activity in which the value 

8 of inmate labor constitutes at least 10 percent of the 

9 estimate unit cost to produce the item by Federal 

10 Prison Industries; 

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

12 of fabricating from raw or prepared materials, so as 

13 to impart to those materials new forms, qualities, 

14 properties, and combinations; 

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

16 means a share of the total purchases by the Federal 

17 departments and agencies, as reported to the Fed18 eral Procurement Data System for— 

19 ‘‘(A) any specific product during the 3 pre20 ceding fiscal years, that does not exceed 20 per21 cent of the Federal market for the specific 

22 product; and 

23 ‘‘(B) any specific service during the 3 pre24 ceding fiscal years, that does not exceed 5 perVerDate Sep 11 2014 00:13 Apr 03, 2015 Jkt 049200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\H1699.IH H1699

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1 cent of the Federal market for the specific serv2 ice; and 

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

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

5 Federal Acquisition Regulation (48 C.F.R. 36.102), 

6 as in effect on July 1, 2010.’’. 

7 SEC. 18. IMPLEMENTING REGULATIONS AND PROCEDURES. 

8 (a) FEDERAL ACQUISITION REGULATION.— 

9 (1) PROPOSED REVISIONS.—Proposed revisions 

10 to the Governmentwide Federal Acquisition Regula11 tion to implement the amendments made by this Act 

12 shall be published not later than 60 days after the 

13 date of the enactment of this Act and provide not 

14 less than 60 days for public comment. 

15 (2) FINAL REGULATIONS.—Final regulations 

16 shall be published not later than 180 days after the 

17 date of the enactment of this Act and shall be effec18 tive on the date that is 30 days after the date of 

19 publication. 

20 (3) PUBLIC PARTICIPATION.—The proposed 

21 regulations required by subsection (a) and the final 

22 regulations required by subsection (b) shall afford 

23 an opportunity for public participation in accordance 

24 with section 22 of the Office of Federal Procurement 

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


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1 (b) BOARD OF DIRECTORS.— 

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

3 Federal Prison Industries shall issue regulations de4 fining the terms specified in paragraph (2). 

5 (2) TERMS TO BE DEFINED.—The Board of Di6 rectors shall issue regulations for the following 

7 terms: 

8 (A) Prison-made product. 

9 (B) Prison-furnished service. 

10 (C) Specific product. 

11 (D) Specific service. 

12 (3) SCHEDULE FOR REGULATORY DEFINI13 TIONS.— 

14 (A) Proposed regulations relating to the 

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

16 published not later than 60 days after the date 

17 of enactment of this Act and provide not less 

18 than 60 days for public comment. 

19 (B) Final regulations relating to the mat20 ters described in subsection (b)(2) shall be pub21 lished not less than 180 days after the date of 

22 enactment of this Act and shall be effective on 

23 the date that is 30 days after the date of publi24 cation. 


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1 (4) ENHANCED OPPORTUNITIES FOR PUBLIC

2 PARTICIPATION AND SCRUTINY.— 

3 (A) ADMINISTRATIVE PROCEDURE ACT.— 

4 Regulations issued by the Board of Directors 

5 shall be subject to notice and comment rule6 making pursuant to section 553 of title 5, 

7 United States Code. Unless determined wholly 

8 impracticable or unnecessary by the Board of 

9 Directors, the public shall be afforded 60 days 

10 for comment on proposed regulations. 

11 (B) ENHANCED OUTREACH.—The Board 

12 of Directors shall use means designed to most 

13 effectively solicit public comment on proposed 

14 regulations, procedures, and policies and to in15 form the affected public of final regulations, 

16 procedures, and policies. 

17 (C) OPEN MEETING PROCESSES.—The 

18 Board of Directors shall take all actions relat19 ing to the adoption of regulations, operating 

20 procedures, guidelines, and any other matter re21 lating to the governance and operation of Fed22 eral Prison Industries based on deliberations 

23 and a recorded vote conducted during a meeting 

24 open to the public, unless closed pursuant to 

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


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1 (c) SECRETARY OF LABOR.— 

2 (1) SCHEDULE FOR REGULATORY ACTION.— 

3 Upon receipt of a request from the Federal Prison 

4 Industries Board of Directors, pursuant to section 

5 11(d)(2), to establish an inmate training wage pur6 suant to section 14(a) of the Fair Labor Standards 

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

8 Labor, in consultation with the Attorney General, 

9 shall issue— 

10 (A) an advanced notice of proposed rule11 making within 60 days; 

12 (B) an interim regulation with concurrent 

13 request for public comments within 180 days; 

14 and 

15 (C) a final regulation within 365 days. 

16 (2) ALTERNATIVE TO TIMELY ISSUANCE.—In 

17 the event that the Secretary of Labor fails to issue 

18 an interim inmate training wage by the date re19 quired by paragraph (1)(B), the Federal Prison In20 dustries Board of Directors may prescribe an in21 terim inmate training wage, which shall be in an 

22 amount not less than 50 percent of the amount of 

23 the minimum wage prescribed pursuant to section 

24 6(a)(1) of such Act (29 U.S.C. 206(a)(1)). 


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1 (3) CONTINUED USE OF INTERIM INMATE

2 TRAINING WAGE.— 

3 (A) The interim inmate training wage 

4 issued pursuant to paragraph (1)(B) or pre5 scribed under paragraph (2) shall remain in ef6 fect until the effective date of a final regulation, 

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

8 (B) An eligible entity having an approved 

9 agreement with Federal Prison Industries pur10 suant to section 4124b of title 18, United 

11 States Code, may continue to pay participating 

12 inmates at the wages prescribed in the agree13 ment for the duration of the agreement, if those 

14 wages comply with the standards of the interim 

15 inmate training wage issued pursuant to para16 graph (1)(B) or prescribed under paragraph 

17 (2). 

18 (4) EXISTING AGREEMENTS WITH NONCON19 FORMING WAGES.—Any for-profit business concern 

20 having an agreement with Federal Prison Industries 

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

22 which Federal inmates are furnishing services that 

23 are being introduced into the commercial market, 

24 may continue to pay wages at rates specified in the 


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1 agreement for the duration of the term of such 

2 agreement. 

3 SEC. 19. RULES OF CONSTRUCTION. 

4 (a) AGENCY BID PROTESTS.—Subsection (e) of sec5 tion 4124 of title 18, United States Code, as amended by 

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

7 other than Federal Prison Industries to file a bid protest 

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

9 date of the enactment of this Act. 

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

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

12 (41 U.S.C. 46 et seq.). 

13 SEC. 20. EFFECTIVE DATE AND APPLICABILITY. 

14 (a) EFFECTIVE DATE.—Except as provided in sub15 section (b), this Act and the amendments made by this 

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

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

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

19 requirement for a product or service offered by Federal 

20 Prison Industries needed by a Federal department or 

21 agency after the effective date of the final regulations 

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

23 30, 2016, whichever is earlier. 


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1 SEC. 21. CLERICAL AMENDMENTS. 

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

3 United States Code, is amended— 

4 (1) by amending the item relating to section 

5 4121 to read as follows: 

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

6 (2) by amending the item relating to section 

7 4124 to read as follows: 

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

Prison Industries.’’; 

8 (3) by inserting after the item relating to sec9 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.’’; 

10 (4) by amending the item relating to section 

11 4127 to read as follows: 

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

12 and 

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

14 items: 

‘‘4130. Construction of provisions. 

‘‘4131. Definitions.’’. 

Æ 


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