IB 
Union Calendar No. 342 
109TH CONGRESS 
2D SESSION 
H. R. 2965 
[Report No. 109–591] 
To amend title 18, United States Code, to require Federal Prison Industries 
to compete for its contracts minimizing its unfair competition with pri-
vate 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 sta-
tus, 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 opportu-
nities in support of non-profit organizations and other public service 
programs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 17, 2005 
Mr. HOEKSTRA (for himself, Mr. FRANK of Massachusetts, Mrs. MALONEY, 
Mr. SENSENBRENNER, Mr. CONYERS, Mr. COBLE, Mr. MANZULLO, Mr. 
NADLER, Mr. EHLERS, Mr. TOM DAVIS of Virginia, Mr. DINGELL, Mr. 
JENKINS, Mr. EVERETT, Mr. RANGEL, Mr. HOSTETTLER, Mr. FEENEY, 
Mr. KINGSTON, Ms. BALDWIN, Mr. INGLIS of South Carolina, Mr. 
UPTON, Mr. EMANUEL, Mr. BARTLETT of Maryland, Mr. KNOLLENBERG, 
Mr. FORBES, Mr. FLAKE, Mr. SESSIONS, Mr. OLVER, Mr. LOBIONDO, 
Mrs. MYRICK, Mr. ROYCE, Mr. LANTOS, Mr. MCGOVERN, Mr. PENCE, 
Mr. SOUDER, Mr. CAMP, Mr. DOYLE, Mr. BOEHNER, Mr. NEY, Mr. 
CARTER, Mr. NUSSLE, Mr. WEINER, Mr. NORWOOD, Mr. ROGERS of 
Michigan, Mr. BRADY of Pennsylvania, Mr. DUNCAN, Mr. MCCOTTER, 
Mr. MCKEON, Ms. HART, Mr. KUCINICH, Mr. THORNBERRY, Mr. RYAN 
of Wisconsin, Mr. LATHAM, Mrs. MILLER of Michigan, Mr. LEACH, Mr. 
SHADEGG, Ms. WOOLSEY, Mrs. BLACKBURN, Mr. CULBERSON, Mr. 
GINGREY, Mr. TERRY, Mr. WAMP, Mr. FERGUSON, Mrs. MUSGRAVE, Mr. 
CHOCOLA, Mr. BEAUPREZ, Mr. PORTER, Mr. OSBORNE, Mr. TIBERI, 
Mrs. BIGGERT, Mr. WILSON of South Carolina, Mr. SHUSTER, Mr. 
MORAN of Kansas, Mr. HAYES, Mr. KING of Iowa, Mrs. WILSON of New 
Mexico, Mr. BARRETT of South Carolina, Mr. PLATTS, and Mr. CANTOR) 
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introduced the following bill; which was referred to the Committee on the 
Judiciary 
JULY 21, 2006 
Additional sponsors: Mr. GONZALEZ, Mrs. NORTHUP, Mr. FRANKS of Arizona, 
Mr. OXLEY, Mr. NUNES, Mrs. CUBIN, Ms. PRYCE of Ohio, Mr. TIAHRT, 
Mr. BRADY of Texas, Mr. GOHMERT, Mr. WATT, Mr. ENGLISH of Penn-
sylvania, Mr. GOODE, Mr. SMITH of New Jersey, Mr. MARCHANT, Ms. 
WATERS, and Mr. GEORGE MILLER of California 
JULY 21, 2006 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 17, 2005] 
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 in-
mate access to remedial and vocational opportunities and 
other rehabilitative opportunities to better prepare in-
mates 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. 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Federal Prison Industries Competition in Contracting Act 
of 2006’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
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 In-
dustries. 
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 ap-
prenticeship. 
Sec. 12. Restructuring the Board of Directors. 
Sec. 13. Providing additional management flexibility to Federal Prison Indus-
tries operations. 
Sec. 14. Transitional personnel management authority. 
Sec. 15. Federal Prison Industries report to Congress. 
Sec. 16. Definitions. 
Sec. 17. Implementing regulations and procedures. 
Sec. 18. Rules of construction. 
Sec. 19. Effective date and applicability. 
Sec. 20. Clerical amendments. 
SEC. 2. GOVERNMENTWIDE PROCUREMENT POLICY RELAT-
ING TO PURCHASES FROM FEDERAL PRISON 
INDUSTRIES. 
Section 4124 of title 18, United States Code, is amend-
ed to read as follows: 
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‘‘§ 4124. Governmentwide procurement policy relating 
to purchases from Federal Prison Indus-
tries 
‘‘(a) IN GENERAL.—Purchases from Federal Prison 
Industries, Incorporated, a wholly owned Government cor-
poration, as referred to in section 9101(3)(E) of title 31, 
may be made by a Federal department or agency only in 
accordance with this section. 
‘‘(b) SOLICITATION AND EVALUATION OF OFFERS AND 
CONTRACT AWARDS.—(1)(A) If a procurement activity of 
a Federal department or agency has a requirement for a 
specific product or service that is authorized to be offered 
for sale by Federal Prison Industries, in accordance with 
section 4122 of this title, and is listed in the catalog referred 
to in subsection (g), the procurement activity shall solicit 
an offer from Federal Prison Industries, if the purchase is 
expected to be in excess of the micro-purchase threshold (as 
defined by section 32(f) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 428(f))). 
‘‘(B) The requirements of subparagraph (A) shall also 
apply to a procurement that a Federal department or agen-
cy intends to meet by placing an order against a contract 
maintained by the General Services Administration under 
the Multiple Award Schedule Contracts Program. 
‘‘(C) Federal Prison Industries, upon its request, shall 
be listed on any Schedule, referred to in subparagraph (B), 
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as offering products or services which Federal Prison Indus-
tries believes to be comparable to those products and services 
being offered by commercial contractors through the Mul-
tiple Award Schedule Contracts Program. 
‘‘(2) A contract award for such product or service shall 
be made using competitive procedures in accordance with 
the applicable evaluation factors, unless a determination is 
made by the Attorney General pursuant to paragraph (3) 
or an award using other than competitive procedures is au-
thorized pursuant to paragraph (7). 
‘‘(3) The procurement activity shall negotiate with 
Federal Prison Industries on a noncompetitive basis for the 
award of a contract if the Attorney General determines 
that— 
‘‘(A) Federal Prison Industries cannot reason-
ably expect fair consideration to receive the contract 
award on a competitive basis; and 
‘‘(B) the contract award is necessary to main-
tain work opportunities otherwise unavailable at the 
penal or correctional facility at which the contract is 
to be performed to prevent circumstances that could 
reasonably be expected to significantly endanger the 
safe and effective administration of such facility. 
‘‘(4) Except in the case of an award to be made pursu-
ant to paragraph (3), a contract award shall be made with 
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