‘‘SEC. 318. PRODUCTS OF FEDERAL PRISON INDUSTRIES: 
PROCEDURAL REQUIREMENTS. 
‘‘(a) MARKET
RESEARCH.—Before purchasing a 
product listed in the latest edition of the Federal Prison 
Industries catalog under section 4124(g) of title 18, 
United States Code, the head of an executive agency shall 
conduct market research to determine whether the Federal 
Prison Industries product is comparable to products avail-
able from the private sector that best meet the executive 
agency’s needs in terms of price, quality, and time of deliv-
ery. 
‘‘(b) COMPETITION REQUIREMENT.—If the head of 
the executive agency determines that a Federal Prison In-
dustries product is not comparable in price, quality, or 
time of delivery to products available from the private sec-
tor that best meet the executive agency’s needs in terms 
of price, quality, and time of delivery, the agency head 
shall use competitive procedures for the procurement of 
the product or shall make an individual purchase under 
a multiple award contract. In conducting such a competi-
tion or making such a purchase, the agency head shall 
consider a timely offer from Federal Prison Industries. 
‘‘(c) IMPLEMENTATION
BY HEAD
OF EXECUTIVE 
AGENCY.—The head of an executive agency shall ensure 
that— 
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‘‘(1) the executive agency does not purchase a 
Federal Prison Industries product or service unless 
a contracting officer of the agency determines that 
the product or service is comparable to products or 
services available from the private sector that best 
meet the agency’s needs in terms of price, quality, 
and time of delivery; and 
‘‘(2) Federal Prison Industries performs its 
contractual obligations to the same extent as any 
other contractor for the executive agency. 
‘‘(d) MARKET
RESEARCH
DETERMINATION
NOT 
SUBJECT TO REVIEW.—A determination by a contracting 
officer regarding whether a product or service offered by 
Federal Prison Industries is comparable to products or 
services available from the private sector that best meet 
an executive agency’s needs in terms of price, quality, and 
time of delivery shall not be subject to review pursuant 
to section 4124(b) of title 18. 
‘‘(e) PERFORMANCE AS A SUBCONTRACTOR.—(1) A 
contractor or potential contractor of an executive agency 
may not be required to use Federal Prison Industries as 
a subcontractor or supplier of products or provider of serv-
ices for the performance of a contract of the executive 
agency by any means, including means such as— 
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‘‘(A) a contract solicitation provision requiring 
a contractor to offer to make use of products or 
services of Federal Prison Industries in the perform-
ance of the contract; 
‘‘(B) a contract specification requiring the con-
tractor to use specific products or services (or class-
es of products or services) offered by Federal Prison 
Industries in the performance of the contract; or 
‘‘(C) any contract modification directing the use 
of products or services of Federal Prison Industries 
in the performance of the contract. 
‘‘(2) In this subsection, the term ‘contractor’, with 
respect to a contract, includes a subcontractor at any tier 
under the contract. 
‘‘(f) PROTECTION OF CLASSIFIED AND SENSITIVE 
INFORMATION.—The head of an executive agency may not 
enter into any contract with Federal Prison Industries 
under which an inmate worker would have access to— 
‘‘(1) any data that is classified; 
‘‘(2) any geographic data regarding the location 
of— 
‘‘(A) surface and subsurface infrastructure 
providing communications or water or electrical 
power distribution; 
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‘‘(B) pipelines for the distribution of nat-
ural gas, bulk petroleum products, or other 
commodities; or 
‘‘(C) other utilities; or 
‘‘(3) any personal or financial information 
about any individual private citizen, including infor-
mation relating to such person’s real property how-
ever described, without the prior consent of the indi-
vidual. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘competitive procedures’ has the 
meaning given such term in section 4(5) of the Of-
fice of Federal Procurement Policy Act (41 U.S.C. 
403(5)). 
‘‘(2) The term ‘market research’ means obtain-
ing specific information about the price, quality, and 
time of delivery of products available in the private 
sector through a variety of means, which may in-
clude— 
‘‘(A) contacting knowledgeable individuals 
in government and industry; 
‘‘(B) interactive communication among in-
dustry, acquisition personnel, and customers; 
and 
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‘‘(C) interchange meetings or pre-solicita-
tion conferences with potential offerors.’’. 
SEC. 5. AUTHORITY TO PERFORM AS A FEDERAL SUBCON-
TRACTOR. 
(a) IN GENERAL.—Federal Prison Industries is au-
thorized to enter into a contract with a Federal contractor 
(or a subcontractor of such contractor at any tier) to 
produce products as a subcontractor or supplier in the per-
formance of a Federal procurement contract. The use of 
Federal Prison Industries as a subcontractor or supplier 
shall be a wholly voluntary business decision by the Fed-
eral prime contractor or subcontractor, subject to any 
prior approval of subcontractors or suppliers by the con-
tracting officer which may be imposed by the Federal Ac-
quisition Regulation or by the contract. 
(b) LIMITATIONS ON USE.—Federal Prison Indus-
tries is prohibited from being a subcontractor or supplier 
at any tier if— 
(1) the product or service is to be acquired by 
a Federal department or agency pursuant to section 
3 of the Javits-Wagner-O’Day Act (41 U.S.C. 48); 
or 
(2) the product to be acquired by the Federal 
department or agency is subject to section 2533a of 
title 10, United States Code. 
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(c) COMMERCIAL SALES PROHIBITED.—The author-
ity provided by subsection (a) shall not result, either di-
rectly or indirectly, in the sale in the commercial market 
of a product or service resulting from the labor of Federal 
inmate workers in violation of section 1761(a) of title 18, 
United States Code. A Federal contractor (or subcon-
tractor at any tier) using Federal Prison Industries as a 
subcontractor or supplier in furnishing a commercial prod-
uct pursuant to a Federal contract shall implement appro-
priate management procedures to prevent introducing an 
inmate-produced product into the commercial market. 
(d) 
PROHIBITIONS
ON
MANDATING
SUBCON-
TRACTING WITH FEDERAL PRISON INDUSTRIES.—Except 
as authorized under the Federal Acquisition Regulation, 
the use of Federal Prison Industries as a subcontractor 
or supplier of products or provider of services shall not 
be imposed upon prospective or actual Federal prime con-
tractors or a subcontractors at any tier by means of— 
(1) a contract solicitation provision requiring a 
contractor to offer to make use of Federal Prison 
Industries, its products or services; 
(2) specifications requiring the contractor to 
use specific products or services (or classes of prod-
ucts or services) offered by Federal Prison Indus-
tries in the performance of the contract; 
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(3) any contract modification directing the use 
of Federal Prison Industries, its products or serv-
ices; or 
(4) any other means. 
SEC. 6. INMATE WAGES AND DEDUCTIONS. 
Section 4122(b) of title 18, United States Code (as 
amended by section 3 of this Act), is further amended by 
adding after paragraph (11) a new paragraph (12) as fol-
lows: 
‘‘(12)(A) The Board of Directors of Federal Prison 
Industries shall prescribe the rates of hourly wages to be 
paid inmates performing work for or through Federal 
Prison Industries. The Director of the Federal Bureau of 
Prisons shall prescribe the rates of hourly wages for other 
work assignments within the various Federal correctional 
institutions. In the case of an inmate whose term of im-
prisonment is to expire in not more than 2 years, wages 
shall be earned at an hourly rate of not less than $2.50, 
but paid at the same rate and in the same manner as to 
any other inmate, and any amount earned but not paid 
shall be held in trust and paid only upon the actual expira-
tion of the term of imprisonment. 
‘‘(B) The various inmate wage rates shall be reviewed 
and considered for increase on not less than a biannual 
basis. 
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‘‘(C) The Board of Directors of Federal Prison In-
dustries shall— 
‘‘(i) not later than September 30, 2016, in-
crease the maximum wage rate for inmates per-
forming work for or through Federal Prison Indus-
tries to an amount equal to 50 percent of the min-
imum wage prescribed by section 6(a)(1) of the Fair 
Labor 
Standards 
Act 
of 
1938 
(29 
U.S.C. 
206(a)(1)); and 
‘‘(ii) not later than September 30, 2021, in-
crease such maximum wage rate to an amount equal 
to such minimum wage. 
‘‘(D) Wages earned by an inmate worker shall be paid 
in the name of the inmate. Deductions, aggregating to not 
more than 80 percent of gross wages, shall be taken from 
the wages due for— 
‘‘(i) applicable taxes (Federal, State, and local); 
‘‘(ii) payment of fines and restitution pursuant 
to court order; 
‘‘(iii) payment of additional restitution for vic-
tims of the inmate’s crimes (at a rate not less than 
10 percent of gross wages); 
‘‘(iv) allocations for support of the inmate’s 
family pursuant to statute, court order, or agree-
ment with the inmate; 
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‘‘(v) allocations to a fund in the inmate’s name 
to facilitate such inmate’s assimilation back into so-
ciety, payable at the conclusion of incarceration; and 
‘‘(vi) such other deductions as may be specified 
by the Director of the Bureau of Prisons. 
‘‘(E) Each inmate worker working for Federal Prison 
Industries shall indicate in writing that such person— 
‘‘(i) is participating voluntarily; and 
‘‘(ii) understands and agrees to the wages to be 
paid and deductions to be taken from such wages.’’. 
SEC. 7. CLARIFYING AMENDMENT RELATING TO SERVICES. 
(a) IN GENERAL.—Section 1761 of title 18, United 
States Code, is amended in subsections (a) and (c) by 
striking ‘‘goods, wares, or merchandise manufactured, 
produced, or mined’’ each place it appears and inserting 
‘‘products manufactured, services furnished, or minerals 
mined’’. 
(b) COMPLETION OF EXISTING AGREEMENTS.—Any 
prisoner work program operated by a prison or jail of a 
State or local jurisdiction of a State which is providing 
services for the commercial market through inmate labor 
on October 1, 2012, may continue to provide such com-
mercial services until— 
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(1) the expiration date specified in the contract 
or other agreement with a commercial partner on 
October 1, 2012, or 
(2) until September 30, 2019, if the prison 
work program is directly furnishing the services to 
the commercial market. 
(c) APPROVAL REQUIRED FOR LONG-TERM OPER-
ATION.—A prison work program operated by a correc-
tional institution operated by a State or local jurisdiction 
of a State may continue to provide inmate labor to furnish 
services for sale in the commercial market after the dates 
specified in subsection (b) if such program has been cer-
tified pursuant to section 1761(c)(1) of title 18, United 
States Code, and is in compliance with the requirements 
of such subsection and its implementing regulations. 
(d) EXISTING WORK OPPORTUNITIES FOR FEDERAL 
INMATES.—Any private for-profit business entity having 
an agreement with Federal Prison Industries in effect on 
the date of enactment of this Act, under which Federal 
inmates are furnishing services that are being introduced 
into the commercial market, may continue to furnish such 
services for the duration of the term of such agreement. 
(e) ADDITIONAL AMENDMENT.—Section 1761 of title 
18, United States Code, is further amended— 
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(1) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and 
(2) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d) This section shall not apply to services per-
formed as part of an inmate work program conducted by 
a State or local government to disassemble, scrap, and re-
cycle products, other than electronic products, that would 
otherwise be disposed of in a landfill. Recovered scrap 
from such program may be sold.’’. 
SEC. 8. CONFORMING AMENDMENT. 
Section 4122(a) of title 18, United States Code, is 
amended by striking ‘‘production of commodities’’ and in-
serting ‘‘production of products or furnishing of services’’. 
SEC. 9. RULES OF CONSTRUCTION RELATING TO CHAPTER 
307. 
Chapter 307 of title 18, United States Code, is fur-
ther amended by adding at the end the following: 
‘‘§ 4130. Construction of provisions 
‘‘Nothing in this chapter shall be construed— 
‘‘(1) to establish an entitlement of any inmate 
to— 
‘‘(A) employment in a Federal Prison In-
dustries facility; or 
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