HR 2965 RCS 
‘‘(4) Except in the case of an award to be made pur-
suant to paragraph (3), a contract award shall be made 
with Federal Prison Industries only if the contracting offi-
cer for the procurement activity determines that— 
‘‘(A) the specific product or service to be fur-
nished will meet the requirements of the procure-
ment 
activity 
(including 
any 
applicable 
prequalification requirements and all specified com-
mercial or governmental standards pertaining to 
quality, testing, safety, serviceability, and warran-
ties); 
‘‘(B) timely performance of the contract can be 
reasonably expected; and 
‘‘(C) the contract price does not exceed a cur-
rent market price. 
‘‘(5) A determination by the Attorney General pursu-
ant to paragraph (3) shall be— 
‘‘(A) supported by specific findings by the war-
den of the penal or correctional institution at which 
a Federal Prison Industries workshop is scheduled 
to perform the contract; 
‘‘(B) supported by specific findings by Federal 
Prison Industries regarding why it does not expect 
to win the contract on a competitive basis; and 
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HR 2965 RCS 
‘‘(C) made and reported in the same manner as 
a determination made pursuant to section 303(c)(7) 
of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253(c)(7)). 
‘‘(6) If the Attorney General has not made the deter-
mination described in paragraph (3) within 30 days after 
Federal Prison Industries has been informed of a con-
tracting opportunity by a procurement activity, the pro-
curement activity may proceed to conduct a procurement 
for the product or service in accordance with the proce-
dures generally applicable to such procurements by the 
procurement activity. 
‘‘(7) A contract award may be made to Federal Pris-
on Industries using other than competitive procedures if 
such product or service is only available from Federal 
Prison Industries and the contract may be awarded under 
the authority of section 2304(c)(1) of title 10 or section 
303(c) of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 253(c)(1)), as may be applica-
ble, and pursuant to the justification and approval re-
quirements relating to such noncompetitive procurements 
specified by law and the Governmentwide Federal Acquisi-
tion Regulation. 
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‘‘(8) A contract award may be made to Federal Pris-
on Industries using other than competitive procedures by 
the Federal Bureau of Prisons. 
‘‘(9) A solicitation for a contract shall first be made 
to Federal Prison Industries using other than competitive 
procedures if the product or service to be acquired would 
otherwise be furnished by a contractor performing the 
work outside of the United States. 
‘‘(c) OFFERS
FROM
FEDERAL
PRISON
INDUS-
TRIES.—(1) A timely offer received from Federal Prison 
Industries to furnish a product or service to a Federal de-
partment or agency shall be considered for award without 
limitation as to the dollar value of the proposed purchase, 
unless the contract opportunity has been reserved for com-
petition exclusively among small business concerns pursu-
ant to section 15(a) of the Small Business Act (15 U.S.C. 
644(a)) and its implementing regulations. 
‘‘(2)(A) Any offer made by Federal Prison Industries 
to furnish a product or service may exclude from the of-
fered price the following: 
‘‘(i) The costs related to security of the facili-
ties at which the contract will be performed. 
‘‘(ii) The costs of educating and training the 
prison work force performing the contract. 
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‘‘(iii) Excess capital costs of machinery and ex-
cess inventories used within a prison environment 
that are the result of the unique environment of 
prison life. 
‘‘(iv) Other costs of performing the contract re-
sulting from the unique environment of prison facili-
ties. 
‘‘(d) PERFORMANCE BY FEDERAL PRISON INDUS-
TRIES.—Federal Prison Industries shall perform its con-
tractual obligations under a contract awarded by a Fed-
eral department or agency to the same extent as any other 
contractor. 
‘‘(e) FINALITY OF CONTRACTING OFFICER’S DECI-
SION.—(1) A decision by a contracting officer regarding 
the award of a contract to Federal Prison Industries or 
relating to the performance of such contract shall be final, 
unless reversed on appeal pursuant to paragraph (2) or 
(3). 
‘‘(2)(A) The Chief Operating Officer of Federal Pris-
on Industries may protest a decision by a contracting offi-
cer not to award a contract to Federal Prison Industries 
pursuant to subsection (b)(4), in accordance with section 
33.103, (Protests to the agency) of the Federal Acquisi-
tion Regulation (48 C.F.R. part 33.103). 
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