HR 2965 RCS 
(2) registered on a Bureau of Prisons reemploy-
ment priority list; and 
(3) given priority for any other position within 
the Bureau of Prisons for which such employee is 
qualified. 
SEC. 15. FEDERAL PRISON INDUSTRIES REPORT TO CON-
GRESS. 
Section 4127 of title 18, United States Code, is 
amended to read as follows: 
‘‘§ 4127. Federal Prison Industries report to Congress 
‘‘(a) IN GENERAL.—Pursuant to chapter 91 of title 
31, the board of directors of Federal Prison Industries 
shall submit an annual report to Congress on the conduct 
of the business of the corporation during each fiscal year 
and the condition of its funds during the fiscal year. 
‘‘(b) CONTENTS OF REPORT.—In addition to the 
matters required by section 9106 of title 31, and such 
other matters as the board considers appropriate, a report 
under subsection (a) shall include— 
‘‘(1) a statement of the amount of obligations 
issued under section 4129(a)(1) of this title during 
the fiscal year; 
‘‘(2) an estimate of the amount of obligations 
that will be issued in the following fiscal year; 
‘‘(3) an analysis of— 
VerDate Aug 31 2005 
03:20 Sep 22, 2006
Jkt 049200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6201
E:\BILLS\H2965.RCS
H2965
bajohnson on PROD1PC77 with BILLS
HR 2965 RCS 
‘‘(A) the corporation’s total sales for each 
specific product and type of service sold to the 
Federal agencies and the commercial market; 
‘‘(B) the total purchases by each Federal 
agency of each specific product and type of 
service; 
‘‘(C) the corporation’s share of such total 
Federal Government purchases by specific prod-
uct and type of service; and 
‘‘(D) the number and disposition of dis-
putes submitted to the heads of the Federal de-
partments and agencies pursuant to section 
4124(e) of this title; 
‘‘(4) an allocation of the profits of the corpora-
tion, both gross and net, to— 
‘‘(A) educational, training, release-prepara-
tion opportunities for inmates; 
‘‘(B) opening new factories; and 
‘‘(C) improving the productivity and com-
petitiveness of existing factories; 
‘‘(5) an analysis of the inmate workforce that 
includes— 
‘‘(A) the number of inmates employed; 
VerDate Aug 31 2005 
03:20 Sep 22, 2006
Jkt 049200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6201
E:\BILLS\H2965.RCS
H2965
bajohnson on PROD1PC77 with BILLS
HR 2965 RCS 
‘‘(B) the number of inmates utilized to 
produce products or furnish services sold in the 
commercial market; 
‘‘(C) the number and percentage of em-
ployed inmates by the term of their incarcer-
ation; and 
‘‘(D) the various hourly wages paid to in-
mates employed with respect to the production 
of the various specific products and types of 
services authorized for production and sale to 
Federal agencies and in the commercial market; 
and 
‘‘(6) data concerning employment obtained by 
former inmates upon release to determine whether 
the employment provided by Federal Prison Indus-
tries during incarceration provided such inmates 
with knowledge and skill in a trade or occupation 
that enabled such former inmate to earn a livelihood 
upon release. 
‘‘(c) PUBLIC AVAILABILITY.—Copies of an annual re-
port under subsection (a) shall be made available to the 
public at a price not exceeding the cost of printing the 
report.’’. 
VerDate Aug 31 2005 
03:20 Sep 22, 2006
Jkt 049200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H2965.RCS
H2965
bajohnson on PROD1PC77 with BILLS
HR 2965 RCS 
SEC. 16. DEFINITIONS. 
Chapter 307 of title 18, United States Code, is 
amended by adding at the end the following new section: 
‘‘§ 4131. Definitions 
‘‘As used in this chapter— 
‘‘(1) the term ‘assembly’ means the process of 
uniting or combining articles or components (includ-
ing ancillary finished components or assemblies) so 
as to produce a significant change in form or utility, 
without necessarily changing or altering the compo-
nent parts; 
‘‘(2) the term ‘current market price’ means, 
with respect to a specific product, the fair market 
price of the product within the meaning of section 
15(a) of the Small Business Act (15 U.S.C. 644(a)), 
at the time that the contract is to be awarded, 
verified through appropriate price analysis or cost 
analysis, including any costs relating to transpor-
tation or the furnishing of any ancillary services; 
‘‘(3) the term ‘import-sensitive product’ means 
a product which, according to Department of Com-
merce data, has experienced competition from im-
ports at an import to domestic production ratio of 
25 percent or greater; 
‘‘(4) the term ‘labor-intensive manufacture’ 
means a manufacturing activity in which the value 
VerDate Aug 31 2005 
03:20 Sep 22, 2006
Jkt 049200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H2965.RCS
H2965
bajohnson on PROD1PC77 with BILLS
HR 2965 RCS 
of inmate labor constitutes at least 10 percent of the 
estimate unit cost to produce the item by Federal 
Prison Industries; 
‘‘(5) the term ‘manufacture’ means the process 
of fabricating from raw or prepared materials, so as 
to impart to those materials new forms, qualities, 
properties, and combinations; 
‘‘(6) the term ‘reasonable share of the market’ 
means a share of the total purchases by the Federal 
departments and agencies, as reported to the Fed-
eral Procurement Data System for— 
‘‘(A) any specific product during the 3 pre-
ceding fiscal years, that does not exceed 20 per-
cent of the Federal market for the specific 
product; and 
‘‘(B) any specific service during the 3 pre-
ceding fiscal years, that does not exceed 5 per-
cent of the Federal market for the specific serv-
ice; and 
‘‘(7) the term ‘services’ has the meaning given 
the term ‘service contract’ by section 37.101 of the 
Federal Acquisition Regulation (48 C.F.R. 36.102), 
as in effect on July 1, 2004.’’. 
SEC. 17. IMPLEMENTING REGULATIONS AND PROCEDURES. 
(a) FEDERAL ACQUISITION REGULATION.— 
VerDate Aug 31 2005 
03:20 Sep 22, 2006
Jkt 049200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H2965.RCS
H2965
bajohnson on PROD1PC77 with BILLS