I 
113TH CONGRESS 
1ST SESSION H. R. 2098 
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 
MAY 22, 2013 
Mr. HUIZENGA of Michigan (for himself, Mrs. CAROLYN B. MALONEY of New 
York, Mr. FRANKS of Arizona, Mr. ROYCE, Mr. SENSENBRENNER, Mr. 
JONES, Mrs. BLACKBURN, Mr. DUNCAN
of South Carolina, Mr. 
WALBERG, Mr. LOBIONDO, Mr. MULVANEY, Mr. UPTON, Mrs. MILLER 
of Michigan, and Mr. BENISHEK) 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 
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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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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 2013’’. 
(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 
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 ap-
prenticeship. 
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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SEC. 2. GOVERNMENTWIDE PROCUREMENT POLICY RELAT-
ING TO PURCHASES FROM FEDERAL PRISON 
INDUSTRIES. 
Section 4124 of title 18, United States Code, is 
amended to read as follows: 
‘‘§ 4124. Governmentwide procurement policy relat-
ing to purchases from Federal Prison In-
dustries 
‘‘(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 activ-
ity 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 accord-
ance with section 4122 of this title, and is listed in the 
catalog referred to in subsection (g), the procurement ac-
tivity 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 Of-
fice of Federal Procurement Policy Act (41 U.S.C. 
428(f))). 
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‘‘(B) The requirements of subparagraph (A) shall 
also apply to a procurement that a Federal department 
or agency intends to meet by placing an order against a 
contract maintained by the General Services Administra-
tion under the Multiple Award Schedule Contracts Pro-
gram. 
‘‘(C) Federal Prison Industries, upon its request, 
shall be listed on any Schedule, referred to in subpara-
graph (B), as offering products or services which Federal 
Prison Industries believes to be comparable to those prod-
ucts and services being offered by commercial contractors 
through the Multiple 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 determina-
tion is made by the Attorney General pursuant to para-
graph (3) or an award using other than competitive proce-
dures is authorized 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 
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‘‘(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 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 
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quirements relating to such noncompetitive procurements 
specified by law and the Governmentwide Federal Acquisi-
tion Regulation. 
‘‘(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. 
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‘‘(ii) The costs of educating and training the 
prison work force performing the contract. 
‘‘(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 
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33.103, (Protests to the agency) of the Federal Acquisi-
tion Regulation (48 CFR part 33.103). 
‘‘(B) In the event of an adverse decision of a protest 
filed pursuant to subparagraph (A), the Assistant Attor-
ney General for Administration may request a reconsider-
ation of such adverse decision by the head of the Federal 
agency or department, which shall be considered de novo 
and the decision issued by such agency head on a non- 
delegable basis. Such decision upon reconsideration by the 
agency head shall be final. 
‘‘(3) A dispute between Federal Prison Industries 
and a procurement activity regarding performance of a 
contract shall be subject to— 
‘‘(A) alternative means of dispute resolution 
pursuant to subchapter IV of chapter 5 of title 5; 
or 
‘‘(B) final resolution by the board of contract 
appeals having jurisdiction over the procurement ac-
tivity’s contract performance disputes pursuant to 
the Contract Disputes Act of 1978 (41 U.S.C. 601 
et seq.). 
‘‘(f) REPORTING OF PURCHASES.—Each Federal de-
partment or agency shall report purchases from Federal 
Prison Industries to the Federal Procurement Data Sys-
tem (as referred to in section 6(d)(4) of the Office of Fed-
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eral Procurement Policy Act (41 U.S.C. 405(d)(4))) in the 
same manner as it reports to such System any acquisition 
in an amount in excess of the simplified acquisition thresh-
old (as defined by section 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(11))). 
‘‘(g) CATALOG OF PRODUCTS.—Federal Prison In-
dustries shall publish and maintain a catalog of all specific 
products and services that it is authorized to offer for sale. 
Such catalog shall be periodically revised as products and 
services are added or deleted by its board of directors (in 
accordance with section 4122(b) of this title). 
‘‘(h) COMPLIANCE WITH STANDARDS.—Federal Pris-
on Industries shall be subject to Federal occupational, 
health, and safety standards with respect to the operation 
of its industrial operations.’’. 
SEC. 3. PUBLIC PARTICIPATION REGARDING EXPANSION 
PROPOSALS BY FEDERAL PRISON INDUS-
TRIES. 
Section 4122(b) of title 18, United States Code, is 
amended— 
(1) by redesignating paragraph (6) as para-
graph (13); and 
(2) by striking paragraphs (4) and (5) and in-
serting the following new paragraphs: 
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‘‘(4)(A) Federal Prison Industries is authorized to 
offer a new specific product or furnish a new specific serv-
ice in response to a competitive solicitation or other pur-
chase request issued by a Federal department or agency. 
No subsequent offering of such product or service may be 
made by Federal Prison Industries until the board of di-
rectors has approved the offering for sale of such new spe-
cific product or new specific service, in conformance with 
the requirements of paragraphs (5) through (9). 
‘‘(B) Federal Prison Industries may produce a prod-
uct or furnish a service in excess of the authorized level 
of production for such product or service, in response to 
an order placed pursuant to an existing contract with a 
Federal department or agency, if the agency’s need for 
the product or service is of such an urgency that it would 
justify the use of procedures other than competitive proce-
dures pursuant to section 2304(c)(2) of title 10 or section 
303(c)(2) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253(c)(2)), as may be 
applicable. 
‘‘(5) A decision to authorize Federal Prison Indus-
tries to offer a new specific product or specific service or 
to expand the production of an existing product or service 
for sale to the Federal Government shall be made by its 
board of directors in conformance with the requirements 
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of subsections (b), (c), (d), and (e) of section 553 of title 
5, and this chapter. 
‘‘(6)(A) Whenever Federal Prison Industries pro-
poses to offer for sale a new specific product or specific 
service or to expand production of a currently authorized 
product or service, the Chief Operating Officer of Federal 
Prison Industries shall submit an appropriate proposal to 
the board of directors and obtain the board’s approval be-
fore initiating any such expansion. The proposal submitted 
to the board shall include a detailed analysis of the prob-
able impact of the proposed expansion of sales within the 
Federal market by Federal Prison Industries on private 
sector firms and their non-inmate workers. 
‘‘(B)(i) The analysis required by subparagraph (A) 
shall be performed by an interagency team on a reimburs-
able basis or by a private contractor paid by Federal Pris-
on Industries. 
‘‘(ii) If the analysis is to be performed by an inter-
agency team, such team shall be led by the Administrator 
of the Small Business Administration or the designee of 
such officer with representatives of the Department of 
Labor, the Department of Commerce, and the Federal 
Procurement Data Center. 
‘‘(iii) If the analysis is to be performed by a private 
contractor, the selection of the contractor and the admin-
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istration of the contract shall be conducted by one of the 
entities referenced in clause (ii) as an independent execu-
tive agent for the board of directors. Maximum consider-
ation shall be given to any proposed statement of work 
furnished by the Chief Operating Officer of Federal Prison 
Industries. 
‘‘(C) The analysis required by subparagraph (A) shall 
identify and consider— 
‘‘(i) the number of vendors that currently meet 
the requirements of the Federal Government for the 
specific product or specific service; 
‘‘(ii) the proportion of the Federal Government 
market for the specific product or specific service 
currently furnished by small businesses during the 
previous 3 fiscal years; 
‘‘(iii) the share of the Federal market for the 
specific product or specific service projected for Fed-
eral Prison Industries for the fiscal year in which 
production or performance will commence or expand 
and the subsequent 4 fiscal years; 
‘‘(iv) whether the industry producing the spe-
cific product or specific service in the private sec-
tor— 
‘‘(I) has an unemployment rate higher 
than the national average; or 
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‘‘(II) has a rate of unemployment for 
workers that has consistently shown an increase 
during the previous 5 years; 
‘‘(v) whether the specific product is an import- 
sensitive product; 
‘‘(vi) the requirements of the Federal Govern-
ment and the demands of entities other than the 
Federal Government for the specific product or serv-
ice during the previous 3 fiscal years; 
‘‘(vii) the projected growth or decline in the de-
mand of the Federal Government for the specific 
product or specific service; 
‘‘(viii) the capability of the projected demand of 
the Federal Government for the specific product or 
service to sustain both Federal Prison Industries 
and private vendors; and 
‘‘(ix) whether authorizing the production of the 
new product or performance of a new service will 
provide inmates with the maximum opportunity to 
acquire knowledge and skill in trades and occupa-
tions that will provide them with a means of earning 
a livelihood upon release. 
‘‘(D)(i) The board of directors may not approve a 
proposal to authorize the production and sale of a new 
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specific product or continued sale of a previously author-
ized product unless— 
‘‘(I) the product to be furnished is a prison- 
made product; or 
‘‘(II) the service to be furnished is to be per-
formed by inmate workers. 
‘‘(ii) The board of directors may not approve a pro-
posal to authorize the production and sale of a new prison- 
made product or to expand production of a currently au-
thorized product if the product is— 
‘‘(I) produced in the private sector by an indus-
try which has reflected during the previous year an 
unemployment rate above the national average; or 
‘‘(II) an import-sensitive product. 
‘‘(iii) The board of directors may not approve a pro-
posal for inmates to provide a service in which an inmate 
worker has access to— 
‘‘(I) personal or financial information about in-
dividual private citizens, including information relat-
ing to such person’s real property, however de-
scribed, without giving prior notice to such persons 
or class of persons to the greatest extent practicable; 
‘‘(II) geographic data regarding the location of 
surface and subsurface infrastructure providing com-
munications, water and electrical power distribution, 
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pipelines for the distribution of natural gas, bulk pe-
troleum products and other commodities, and other 
utilities; or 
‘‘(III) data that is classified. 
‘‘(iv)(I) Federal Prison Industries is prohibited from 
furnishing through inmate labor construction services, un-
less to be performed within a Federal correctional institu-
tion pursuant to the participation of an inmate in an ap-
prenticeship or other vocational education program teach-
ing the skills of the various building trades. 
‘‘(II) For purposes of this clause, the term ‘construc-
tion’ has the meaning given such term by section 2.101 
of the Federal Acquisition Regulation (48 CFR part 
2.101), as in effect on June 1, 2010, including the repair, 
alteration, or maintenance of real property in being. 
‘‘(7) To provide further opportunities for participa-
tion by interested parties, the board of directors shall— 
‘‘(A) give additional notice of a proposal to au-
thorize the production and sale of a new product or 
service, or expand the production of a currently au-
thorized product or service, in a publication designed 
to most effectively provide notice to private vendors 
and labor unions representing private sector workers 
who could reasonably be expected to be affected by 
approval of the proposal, which notice shall offer to 
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furnish copies of the analysis required by paragraph 
(6) and shall solicit comment on the analysis; 
‘‘(B) solicit comments on the analysis required 
by paragraph (6) from trade associations rep-
resenting vendors and labor unions representing pri-
vate sector workers who could reasonably be ex-
pected to be affected by approval of the proposal to 
authorize the production and sale of a new product 
or service (or expand the production of a currently 
authorized product or service); and 
‘‘(C) afford an opportunity, on request, for a 
representative of an established trade association, 
labor union, or other private sector representatives 
to present comments on the proposal directly to the 
board of directors. 
‘‘(8) The board of directors shall be provided copies 
of all comments received on the expansion proposal. 
‘‘(9) Based on the comments received on the initial 
expansion proposal, the Chief Operating Officer of Federal 
Prison Industries may provide the board of directors a re-
vised expansion proposal. If such revised proposal provides 
for expansion of inmate work opportunities in an industry 
different from that initially proposed, such revised pro-
posal shall reflect the analysis required by paragraph 
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(6)(C) and be subject to the public comment requirements 
of paragraph (7). 
‘‘(10) The board of directors shall consider a proposal 
to authorize the sale of a new specific product or specific 
service (or to expand the volume of sales for a currently 
authorized product or service) and take any action with 
respect to such proposal, during a meeting that is open 
to the public, unless closed pursuant to section 552(b) of 
title 5. 
‘‘(11) In conformance with the requirements of para-
graph (10) of this subsection, the board of directors 
may— 
‘‘(A) authorize the donation of products pro-
duced or services furnished by Federal industries 
and available for sale; 
‘‘(B) authorize the production of a new specific 
product or the furnishing of a new specific service 
for donation; or 
‘‘(C) authorize a proposal to expand production 
of a currently authorized specific product or specific 
service in an amount in excess of a reasonable share 
of the market for such product or service, if— 
‘‘(i) a Federal agency or department, pur-
chasing such product or service, has requested 
that Federal Prison Industries be authorized to 
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furnish such product or service in amounts that 
are needed by such agency or department; or 
‘‘(ii) the proposal is justified for other good 
cause and supported by at least two-thirds of 
the appointed members of the board.’’. 
SEC. 4. TRANSITIONAL MANDATORY SOURCE AUTHORITY. 
(a) IN
GENERAL.—Notwithstanding the require-
ments of section 4124 of title 18, United States Code, a 
Federal department or agency having a requirement for 
a product that is authorized for sale by Federal Prison 
Industries and is listed in its catalog (referred to in section 
4124(g) of title 18, United States Code) shall first solicit 
an offer from Federal Prison Industries and make pur-
chases on a noncompetitive basis in accordance with this 
section or in accordance with section 2410n of title 10, 
United States Code, or section 318 of title III of the Fed-
eral Property and Administrative Services Act of 1949. 
(b) PREFERENTIAL SOURCE STATUS.—Subject to 
the limitations of subsection (d), a contract award shall 
be made on a noncompetitive basis to Federal Prison In-
dustries if the contracting officer for the procurement ac-
tivity determines that— 
(1) the product offered by Federal Prison In-
dustries will meet the requirements of the procure-
ment activity (including commercial or governmental 
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standards or specifications pertaining to design, per-
formance, testing, safety, serviceability, and warran-
ties as may be imposed upon a private sector sup-
plier of the type being offered by Federal Prison In-
dustries); 
(2) timely performance of the contract by Fed-
eral Prison Industries can be reasonably expected; 
and 
(3) the negotiated price does not exceed a fair 
and reasonable price. 
(c) CONTRACTUAL TERMS.—The terms and condi-
tions of the contract and the price to be paid to Federal 
Prison Industries shall be determined by negotiation be-
tween Federal Prison Industries and the Federal agency 
making the purchase. The negotiated price shall not ex-
ceed a fair and reasonable price determined in accordance 
with the procedures of the Federal Acquisition Regulation. 
(d) PERFORMANCE
OF
CONTRACTUAL
OBLIGA-
TIONS.— 
(1) IN
GENERAL.—Federal Prison Industries 
shall perform the obligations of the contract nego-
tiated pursuant to subsection (c). 
(2) PERFORMANCE DISPUTES.—If the head of 
the contracting activity and the Chief Operating Of-
ficer of Federal Prison Industries are unable to re-
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solve a contract performance dispute to their mutual 
satisfaction, such dispute shall be resolved pursuant 
to section 4124(e)(3) of title 18, United States 
Code. 
(e) LIMITATIONS ON USE OF AUTHORITY.— 
(1) IN GENERAL.—As a percentage of the sales 
made by Federal Prison Industries during the base 
period, the total dollar value of sales to the Govern-
ment made pursuant to subsection (b) and sub-
section (c) of this section shall not exceed— 
(A) 90 percent in fiscal year 2014; 
(B) 85 percent in fiscal year 2015; 
(C) 70 percent in fiscal year 2016; 
(D) 55 percent in fiscal year 2017; and 
(E) 40 percent in fiscal year 2018. 
(2) SALES
WITHIN
VARIOUS
BUSINESS
SEC-
TORS.—Use of the authority provided by subsections 
(b) and (c) shall not result in sales by Federal Pris-
on Industries to the Government that are in excess 
of its total sales during the base year for each busi-
ness sector. 
(3) LIMITATIONS RELATING TO SPECIFIC PROD-
UCTS.—Use of the authorities provided by sub-
sections (b) and (c) shall not result in contract 
awards to Federal Prison Industries that are in ex-
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cess of its total sales during the base period for such 
product. 
(4) CHANGES IN DESIGN SPECIFICATIONS.—If a 
buying agency directs a change to the design speci-
fication for a specific product, the costs associated 
with the implementation of such specification change 
by Federal Prison Industries shall not be considered 
for the purposes of computing sales by Federal Pris-
on Industries for the purposes of paragraphs (2) and 
(3). 
(f) ADDITIONAL AUTHORITY TO SUSTAIN INMATE 
EMPLOYMENT.—During the period specified in subsection 
(g), the authority of section 4122(b)(11)(C)(ii) of title 18, 
United States Code (as amended by section 3), may be 
used by the Board to sustain inmate employment. 
(g) DURATION
OF AUTHORITY.—The preferential 
contracting authorities authorized by subsection (b) may 
not be used on or after October 1, 2015, and become effec-
tive on the effective date of the final regulations issued 
pursuant to section 17. 
(h) DEFINITIONS.—For the purposes of this sec-
tion— 
(1) the term ‘‘base period’’ means the total 
sales of Federal Prison Industries during the period 
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October 1, 2011, and September 30, 2012 (Fiscal 
Year 2012); 
(2) the term ‘‘business sectors’’ means the 
seven product/service business groups identified in 
the 2004 Federal Prison Industries annual report as 
the Clothing and Textiles Business Group, the Elec-
tronics Business Group, the Fleet Management and 
Vehicular Components Business Group, the Indus-
trial Products Business Group, the Office Furniture 
Business Group, the Recycling Activities Business 
Group, and the Services Business Group; and 
(3) the term ‘‘fair and reasonable price’’ shall 
be given the same meaning as, and be determined 
pursuant to, part 15.8 of the Federal Acquisition 
Regulation (48 CFR 15.8). 
(i) FINDING
BY ATTORNEY GENERAL WITH RE-
SPECT TO PUBLIC SAFETY.—(1) Not later than 60 days 
prior to the end of each fiscal year specified in subsection 
(e)(1), the Attorney General shall make a finding regard-
ing the effects of the percentage limitation imposed by 
such subsection for such fiscal year and the likely effects 
of the limitation imposed by such subsection for the fol-
lowing fiscal year. 
(2) The Attorney General’s finding shall include a de-
termination whether such limitation has resulted or is like-
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ly to result in a substantial reduction in inmate industrial 
employment and whether such reductions, if any, present 
a significant risk of adverse effects on safe prison oper-
ation or public safety. 
(3) If the Attorney General finds a significant risk 
of adverse effects on either safe prison management or 
public safety, he shall so advise the Congress. 
(4) In advising the Congress pursuant to paragraph 
(3), the Attorney General shall make recommendations for 
additional authorizations of appropriations to provide ad-
ditional alternative inmate rehabilitative opportunities and 
additional correctional staffing, as may be appropriate. 
(j) PROCEDURAL
REQUIREMENTS
FOR
CIVILIAN 
AGENCIES RELATING TO PRODUCTS OF FEDERAL PRISON 
INDUSTRIES.—Title III of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 251 et seq.) 
is amended by adding at the end the following new section: 
‘‘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-
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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— 
‘‘(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 
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‘‘(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— 
‘‘(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 
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‘‘(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; 
‘‘(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. 
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‘‘(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 
‘‘(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 
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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. 
(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-
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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; 
(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: 
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‘‘(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. 
‘‘(C) The Board of Directors of Federal Prison In-
dustries shall— 
‘‘(i) not later than September 30, 2014, 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 
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‘‘(ii) not later than September 30, 2019, 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; 
‘‘(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 
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‘‘(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 subsection (a) and (c) by strik-
ing ‘‘goods, wares, or merchandise manufactured, pro-
duced, 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— 
(1) the expiration date specified in the contract 
or other agreement with a commercial partner on 
October 1, 2012, or 
(2) until September 30, 2017, 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 
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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— 
(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.’’. 
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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 
‘‘(B) any particular wage, compensation, 
or benefit on demand, except as otherwise spe-
cifically provided by law or regulation; 
‘‘(2) to establish that inmates are employees for 
the purposes of any law or program; or 
‘‘(3) to establish any cause of action by or on 
behalf of any inmate against the United States or 
any officer, employee, or contractor thereof.’’. 
SEC. 10. PROVIDING ADDITIONAL REHABILITATIVE OPPOR-
TUNITIES FOR INMATES. 
(a) ADDITIONAL EDUCATIONAL, TRAINING, AND RE-
LEASE-PREPARATION OPPORTUNITIES.— 
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(1) PROGRAM ESTABLISHED.—There is hereby 
established the Enhanced In-Prison Educational and 
Vocational Assessment and Training Program within 
the Federal Bureau of Prisons. 
(2) COMPREHENSIVE PROGRAM.—In addition to 
such other components as the Director of the Bu-
reau of Prisons deems appropriate to reduce inmate 
idleness and better prepare inmates for a successful 
reentry into the community upon release, the pro-
gram shall provide— 
(A) in-prison assessments of inmates’ 
needs and aptitudes; 
(B) a full range of educational opportuni-
ties; 
(C) vocational training and apprentice-
ships; and 
(D) comprehensive release-readiness prepa-
ration. 
(3) AUTHORIZATION OF APPROPRIATIONS.—For 
the purposes of carrying out the program established 
by paragraph (1), $75,000,000 is authorized for 
each fiscal year after fiscal year 2013, to remain 
available until expended. It is the sense of Congress 
that Federal Prison Industries should use some of 
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its net earnings to accomplish the purposes of the 
program. 
(4) SCHEDULE
FOR
IMPLEMENTATION.—All 
components of the program shall be established— 
(A) in at least 25 percent of all Federal 
prisons not later than 2 years after the date of 
the enactment of this Act; 
(B) in at least 50 percent of all Federal 
prisons not later than 4 years after such date 
of enactment; 
(C) in at least 75 percent of all Federal 
prisons not later than 6 years after such date 
of enactment; and 
(D) in all Federal prisons not later than 8 
years after such date of enactment. 
(b) ADDITIONAL INMATE WORK OPPORTUNITIES 
THROUGH PUBLIC SERVICE ACTIVITIES.— 
(1) IN
GENERAL.—Chapter 307 of title 18, 
United States Code, is further amended by inserting 
after section 4124 the following new section: 
‘‘§ 4124a. 
Additional 
inmate 
work 
opportunities 
through public service activities 
‘‘(a) IN GENERAL.—Inmates with work assignments 
within Federal Prison Industries may perform work for 
an eligible entity pursuant to an agreement between such 
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entity and the Inmate Work Training Administrator in ac-
cordance with the requirements of this section. 
‘‘(b) DEFINITION OF ELIGIBLE ENTITIES.—For the 
purposes of this section, the term ‘eligible entity’ means 
an entity— 
‘‘(1) that is an organization described in section 
501(c)(3) of the Internal Revenue Code of 1986 and 
exempt from taxation under section 501(a) of such 
Code and that has been such an organization for a 
period of not less than 36 months prior to inclusion 
in an agreement under this section; 
‘‘(2) that is a religious organization described 
in section 501(d) of such Code and exempt from tax-
ation under section 501(a) of such Code; or 
‘‘(3) that is a unit of local government, a school 
district, or another special purpose district. 
‘‘(c) INMATE WORK TRAINING ADMINISTRATOR.— 
There is hereby established the position of Inmate Work 
Training Administrator, who shall be responsible for fos-
tering the creation of alternative inmate work opportuni-
ties authorized by this section. The Administrator shall 
be designated by the Chief Executive Officer of Federal 
Prison Industries, with the approval of the Board of Di-
rectors, and be under the supervision of the Chief Oper-
ating Officer, but may directly report to the Board. 
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‘‘(d) PROPOSED AGREEMENTS.—An eligible entity 
seeking to enter into an agreement pursuant to subsection 
(a) shall submit a detailed proposal to the Inmate Work 
Training Administrator. Each such agreement shall speci-
fy— 
‘‘(1) types of work to be performed; 
‘‘(2) the proposed duration of the agreement, 
specified in terms of a base year and number of op-
tion years; 
‘‘(3) the number of inmate workers expected to 
be employed in the specified types of work during 
the various phases of the agreement; 
‘‘(4) the wage rates proposed to be paid to var-
ious classes of inmate workers; and 
‘‘(5) the facilities, services and personnel (other 
than correctional personnel dedicated to the security 
of the inmate workers) to be furnished by Federal 
Prison Industries or the Bureau of Prisons and the 
rates of reimbursement, if any, for such facilities, 
services, and personnel. 
‘‘(e) REPRESENTATIONS.— 
‘‘(1) ELEEMOSYNARY WORK ACTIVITIES.—Each 
proposed agreement shall be accompanied by a writ-
ten certification by the chief executive officer of the 
eligible entity that— 
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‘‘(A) the work to be performed by the in-
mate workers will be limited to the eleemosy-
nary work of such entity in the case of an enti-
ty described in paragraph (1) or (2) of sub-
section (b); 
‘‘(B) the work would not be performed in 
the United States but for the availability of the 
inmate workers; and 
‘‘(C) the work performed by the inmate 
workers will not result, either directly or indi-
rectly, in the production of a new product or 
the furnishing of a service that is to be offered 
for other than resale or donation by the eligible 
entity or any affiliate of the such entity. 
‘‘(2) PROTECTIONS
FOR
NON-INMATE
WORK-
ERS.—Each proposed agreement shall also be ac-
companied by a written certification by the chief ex-
ecutive officer of the eligible entity that— 
‘‘(A) no non-inmate employee (including 
any person performing work activities for such 
governmental entity pursuant to section 607 of 
subchapter IV of the Social Security Act (42 
U.S.C. 607)) of the eligible entity (or any affil-
iate of the entity) working in the United States 
will have his or her job abolished or work hours 
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reduced as a result of the entity being author-
ized to utilize inmate workers; and 
‘‘(B) the work to be performed by the in-
mate workers will not supplant work currently 
being performed in the United States by a con-
tractor of the eligible entity. 
‘‘(f) APPROVAL BY BOARD OF DIRECTORS.— 
‘‘(1) IN GENERAL.—Each such proposed agree-
ment shall be presented to the Board of Directors, 
be subject to the same opportunities for public com-
ment, and be publicly considered and acted upon by 
the Board in a manner comparable to that required 
by paragraphs (7) and (8) of section 4122(b). 
‘‘(2) MATTERS TO BE CONSIDERED.—In deter-
mining whether to approve a proposed agreement, 
the Board shall— 
‘‘(A) give priority to an agreement that 
provides inmate work opportunities that will 
provide participating inmates with the best 
prospects of obtaining employment paying a liv-
able wage upon release; 
‘‘(B) give priority to an agreement that 
provides for maximum reimbursement for in-
mate wages and for the costs of supplies and 
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equipment needed to perform the types of work 
to be performed; 
‘‘(C) not approve an agreement that will 
result in the displacement of non-inmate work-
ers contrary to the representations required by 
subsection (e)(2) as determined by the Board or 
by the Secretary of Labor (pursuant to sub-
section (i)); and 
‘‘(D) not approve an agreement that will 
result, either directly or indirectly, in the pro-
duction of a new product or the furnishing of 
a service for other than resale by an eligible en-
tity described in paragraph (1) or (2) of sub-
section (b) or donation. 
‘‘(g) WAGE RATES AND DEDUCTIONS FROM INMATE 
WAGES.— 
‘‘(1) IN
GENERAL.—Inmate workers shall be 
paid wages for work under the agreement at a basic 
hourly rate to be negotiated between the eligible en-
tity and Federal Prison Industries and specified in 
the agreement. The wage rates set by the Director 
of the Federal Bureau of Prisons to be paid inmates 
for various institutional work assignments are spe-
cifically authorized. 
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‘‘(2) PAYMENT TO INMATE WORKER AND AU-
THORIZED DEDUCTIONS.—Wages shall be paid and 
deductions 
taken 
pursuant 
to 
section 
4122(b)(12)(D). 
‘‘(3) VOLUNTARY PARTICIPATION BY INMATE.— 
Each inmate worker to be utilized by an eligible en-
tity shall indicate in writing that such person— 
‘‘(A) is participating voluntarily; and 
‘‘(B) understands and agrees to the wages 
to be paid and deductions to be taken from 
such wages. 
‘‘(h) ASSIGNMENT TO WORK OPPORTUNITIES.—As-
signment of inmates to work under an approved agree-
ment with an eligible entity shall be subject to the Bureau 
of Prisons Program Statement Number 1040.10 (Non- 
Discrimination Toward Inmates), as contained in section 
551.90 of title 28 of the Code of Federal Regulations (or 
any successor document). 
‘‘(i) ENFORCEMENT OF PROTECTIONS FOR NON-IN-
MATE WORKERS.— 
‘‘(1) PRIOR TO BOARD CONSIDERATION.—Upon 
request of any interested person, the Secretary of 
Labor may promptly verify a certification made pur-
suant subsection (e)(2) with respect to the displace-
ment of non-inmate workers so as to make the re-
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sults of such inquiry available to the Board of Direc-
tors prior to the Board’s consideration of the pro-
posed agreement. The Secretary and the person re-
questing the inquiry may make recommendations to 
the Board regarding modifications to the proposed 
agreement. 
‘‘(2) DURING PERFORMANCE.— 
‘‘(A) IN
GENERAL.—Whenever the Sec-
retary deems appropriate, upon request or oth-
erwise, the Secretary may verify whether the 
actual performance of the agreement is result-
ing in the displacement of non-inmate workers 
or the use of inmate workers in a work activity 
not authorized under the approved agreement. 
‘‘(B) SANCTIONS.—Whenever the Sec-
retary determines that performance of the 
agreement has resulted in the displacement of 
non-inmate workers or employment of an in-
mate worker in an unauthorized work activity, 
the Secretary may— 
‘‘(i) direct the Inmate Work Training 
Administrator to terminate the agreement 
for default, subject to the processes and 
appeals available to a Federal contractor 
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whose procurement contract has been ter-
minated for default; and 
‘‘(ii) initiate proceedings to impose 
upon the person furnishing the certifi-
cation regarding non-displacement of non- 
inmate workers required by subsection 
(d)(2)(B) any administrative, civil, and 
criminal sanctions as may be available.’’. 
(2) AUTHORIZATION
OF
APPROPRIATION.— 
There is authorized to be appropriated $5,000,000 
for each of the fiscal years 2014 through 2018 for 
the purposes of paying the wages of inmates and 
otherwise undertaking the maximum number of 
agreements with eligible entities pursuant to section 
4124a of title 18, United States Code. 
(3) SENSE
OF
CONGRESS.—For purposes of 
sections 4124a and 4124b of title 18, United States 
Code, it is the sense of Congress that an inmate 
training wage that is at least 50 percent of the min-
imum wage prescribed pursuant to section 6(a)(1) of 
the Fair Labor Standards Act of 1938 (29 U.S.C. 
206(a)(1)) will facilitate successful achievement of 
the goals of the work-based training and apprentice-
ship program authorized under such section 4124a. 
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(c) INMATE WORK OPPORTUNITIES IN SUPPORT OF 
NOT-FOR-PROFIT ENTITIES.— 
(1) PROPOSALS FOR DONATION PROGRAMS.— 
The Chief Operating Officer of Federal Prison In-
dustries shall develop and present to the Board of 
Directors of Federal Prison Industries proposals to 
have Federal Prison Industries donate products and 
services to eligible entities that provide goods or 
services to low-income individuals who would likely 
otherwise have difficulty purchasing such products 
or services in the commercial market. 
(2) SCHEDULE FOR SUBMISSION AND CONSID-
ERATION OF DONATION PROGRAMS.— 
(A) INITIAL PROPOSALS.—The Chief Oper-
ating Officer shall submit the initial group of 
proposals for programs of the type described in 
paragraph (1) within 180 days after the date of 
the enactment of this Act. The Board of Direc-
tors of Federal Prison Industries shall consider 
such proposals from the Chief Operating Officer 
not later than the date that is 270 days after 
the date of the enactment of this Act. 
(B) 
ANNUAL
OPERATING
PLAN.—The 
Board of Directors of Federal Prison Industries 
shall consider proposals by the Chief Operating 
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Officer for programs of the type described in 
paragraph (1) as part of the annual operating 
plan for Federal Prison Industries. 
(C) OTHER
PROPOSALS.—In addition to 
proposals submitted by the Chief Operating Of-
ficer, the Board of Directors may, from time to 
time, consider proposals presented by prospec-
tive eligible entities. 
(3) DEFINITION OF ELIGIBLE ENTITIES.—For 
the purposes of this subsection, the term ‘‘eligible 
entity’’ means an entity— 
(A) that is an organization described in 
section 501(c)(3) of the Internal Revenue Code 
of 1986 and exempt from taxation under sec-
tion 501(a) of such Code and that has been 
such an organization for a period of not less 
than 36 months prior to inclusion in a proposal 
of the type described in paragraph (1), or 
(B) that is a religious organization de-
scribed in section 501(d) of such Code and ex-
empt from taxation under section 501(a) of 
such Code. 
(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated $7,000,000 
for each of the fiscal years 2014 through 2018 for 
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the purposes of paying the wages of inmates and 
otherwise carrying out programs of the type de-
scribed in paragraph (1). 
(d) MAXIMIZING INMATE REHABILITATIVE OPPOR-
TUNITIES
THROUGH
COGNITIVE
ABILITIES
ASSESS-
MENTS.— 
(1) DEMONSTRATION PROGRAM AUTHORIZED.— 
(A) IN GENERAL.—There is hereby estab-
lished within the Federal Bureau of Prisons a 
program to be known as the ‘‘Cognitive Abili-
ties Assessment Demonstration Program’’. The 
purpose of the demonstration program is to de-
termine the effectiveness of a program that as-
sesses the cognitive abilities and perceptual 
skills of Federal inmates to maximize the bene-
fits of various rehabilitative opportunities de-
signed to prepare each inmate for a successful 
return to society and reduce recidivism. The 
demonstration program shall be undertaken by 
a contractor with a demonstrated record of ena-
bling the behavioral and academic improvement 
of adults through the use of research-based sys-
tems that maximize the development of both the 
cognitive and perceptual capabilities of a par-
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ticipating individual, including adults in a cor-
rectional setting. 
(B) SCOPE
OF
DEMONSTRATION
PRO-
GRAM.—The demonstration program shall to 
the maximum extent practicable, be— 
(i) conducted during a period of three 
consecutive fiscal years, commencing dur-
ing fiscal year 2014; 
(ii) conducted at 12 Federal correc-
tional institutions; and 
(iii) offered to 6,000 inmates, who are 
categorized as minimum security or less, 
and are within five years of release. 
(C) REPORT ON RESULTS OF PROGRAM.— 
Not later than 60 days after completion of the 
demonstration program, the Director shall sub-
mit to Congress a report on the results of the 
program. At a minimum, the report shall in-
clude an analysis of employment stability, sta-
bility of residence, and rates of recidivism 
among inmates who participated in the program 
after 18 months of release. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated $3,000,000 
in each of the three fiscal years after fiscal year 
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2013, to remain available until expended, for the 
purposes of conducting the demonstration program 
authorized by subsection (a). 
(e) PRERELEASE EMPLOYMENT ASSISTANCE.— 
(1) IN GENERAL.—The Director of the Federal 
Bureau of Prisons shall, to the maximum extent 
practicable, afford to inmates opportunities to par-
ticipate in programs and activities designed to help 
prepare such inmates to obtain employment upon re-
lease. 
(2) PRERELEASE
EMPLOYMENT
PLACEMENT 
ASSISTANCE.—Such prerelease employment place-
ment assistance required by subsection (a) shall in-
clude— 
(A) training in the preparation of resumes 
and job applications; 
(B) training in interviewing skills; 
(C) training and assistance in job search 
techniques; 
(D) conduct of job fairs; and 
(E) such other methods deemed appro-
priate by the Director. 
(3) PRIORITY PARTICIPATION.—Priority in pro-
gram participation shall be accorded to inmates who 
are participating in work opportunities afforded by 
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Federal Prison Industries and are within 24 months 
of release from incarceration. 
SEC. 11. RE-ENTRY EMPLOYMENT PREPARATION THROUGH 
WORK-BASED TRAINING AND APPRENTICE-
SHIP. 
(a) IN GENERAL.—Chapter 307 of title 18, United 
States Code, is further amended by inserting after section 
4124a the following new section: 
‘‘§ 4124b. Re-entry employment preparation through 
work-based training and apprenticeship 
‘‘(a) PARTICIPATION AUTHORIZED.—A private for- 
profit business entity shall be an eligible entity for partici-
pation in the program authorized by section 4124a of this 
title, if such participation conforms with the requirements 
and limitations of this section. 
‘‘(b) REQUIREMENTS RELATING TO PRODUCTS AND 
SERVICES.—A private for-profit business entity is eligible 
for such participation if such business entity proposes to 
train participating inmates, pursuant to subsection (c), by 
producing a product or performing a service, if such prod-
uct or service is of a type for which there is no production 
or performance within the United States by noninmate 
workers. 
‘‘(c) REQUIREMENTS RELATING TO TRAINING.— 
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‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the training of participating inmates shall be 
work-based training that provides to a participating 
inmate apprenticeship training or a functionally 
equivalent structured program that combines hands- 
on work experience with conceptual understanding of 
the work being performed. Other inmates with reg-
ular work assignments within Federal Prison Indus-
tries may be assigned to support the program. 
‘‘(2) DOCUMENTATION OF PROGRAM PARTICIPA-
TION.— 
‘‘(A) Each inmate who successfully com-
pletes participation in training undertaken pur-
suant to this section shall be provided a certifi-
cate or other written document memorializing 
such successful completion, providing a market-
able summary of the skills learned and an over-
all assessment of performance. 
‘‘(B) Copies of such documents shall be 
furnished to perspective employers upon the re-
quest of the participant for a period of not less 
than 24 months from the date of such partici-
pant’s release from incarceration. 
‘‘(3) DOCUMENTS
REQUIRED
FOR
EMPLOY-
MENT.—The Federal Bureau of Prisons, in coopera-
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tion with a business entity providing an inmate 
work-based training at the time of his or her sched-
uled release, shall make every reasonable effort to 
help the inmate timely obtain such documentation 
(including a State government-issued photo identi-
fication card) as a person may be required to pro-
vide to a prospective employer, after such person 
completes an Employment Eligibility Verification 
(ICE Form I–9). 
‘‘(d) WAGE RATES.— 
‘‘(1) IN
GENERAL.—Business entities partici-
pating in the program authorized by subsection (a) 
shall propose wages for inmates participating in the 
program at rates not less than the inmate training 
wage promulgated pursuant to section 17(c) of the 
Federal Prison Industries Competition in Con-
tracting Act of 2013. 
‘‘(2) INMATE TRAINING WAGE.—Not more than 
30 days after the date of enactment of this section, 
the Board of Directors of Federal Prison Industries 
shall request the Secretary of Labor to promulgate 
an inmate training wage pursuant to section 14(a) 
of the Fair Labor Standards Act of 1938 (29 U.S.C. 
214(a)). 
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