chapter I of chapter 57 of title 5, United States Code, 
to attend meetings of the Board and, with the advance 
approval of the Chairperson of the Board, while otherwise 
away from their homes or regular places of business for 
purposes of duties as a member of the Board. 
‘‘(8)(A) The Chairperson of the Board may appoint 
and terminate any personnel that may be necessary to en-
able the Board to perform its duties. 
‘‘(B) Upon request of the Chairperson of the Board, 
a Federal agency may detail a Federal Government em-
ployee to the Board without reimbursement. Such detail 
shall be without interruption or loss of civil service status 
or privilege. 
‘‘(9) The Chairperson of the Board may procure tem-
porary and intermittent services under section 3109(b) of 
title 5, United States Code. 
‘‘(c) The Director of the Bureau of Prisons shall 
serve as Chief Executive Officer of the Corporation. The 
Director shall designate a person to serve as Chief Oper-
ating Officer of the Corporation.’’. 
(b) CONTINUED GOVERNANCE.—The members of the 
Board of Directors serving on the date of enactment of 
this Act, and the person selected by them as Chairman, 
shall continue to exercise the duties and responsibilities 
of the Board until the earlier of— 
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(1) the date on which the President has ap-
pointed at least 6 members of the Board and des-
ignated a new Chairman, pursuant to section 4121 
of title 18, United States Code (as amended by sub-
section (a)); or 
(2) the date that is 365 days after the date of 
enactment of this Act. 
SEC. 14. MANAGEMENT MATTERS. 
(a) 
ADDITIONAL
FLEXIBILITIES.—Section 
4122(b)(3) of title 18, United States Code, is amended— 
(1) by striking ‘‘(3)’’ and inserting ‘‘(3)(A)’’; 
and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(B) Federal Prison Industries may locate more than 
one workshop at a Federal correctional facility. 
‘‘(C) Federal Prison Industries may operate a work-
shop outside of a correctional facility if all of the inmates 
working in such workshop are classified as minimum secu-
rity inmates.’’. 
(b) COST ACCOUNTING SYSTEM.— 
(1) ESTABLISHMENT.—Federal Prison Indus-
tries shall establish a cost accounting system that 
meets the requirements of part 30 (Cost Accounting 
Standards Administration) of the Federal Acquisi-
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tion Regulation (48 CFR part 30). The compliance 
of the cost accounting system with such standards 
shall be annually verified as part of the independent 
audit of Federal Prison Industries, Inc., pursuant to 
section 9106(b) of title 31, United States Code. 
(2) APPLICATION
OF
RELATED
PROVISION.— 
Section 4124(c)(2) of title 18, United States Code, 
shall apply when Federal Prison Industries has been 
found to have a complaint cost accounting system 
pursuant to paragraph (1). 
SEC. 15. TRANSITIONAL PERSONNEL MANAGEMENT AU-
THORITY. 
Any correctional officer or other employee of Federal 
Prison Industries being paid with nonappropriated funds 
who would be separated from service because of a reduc-
tion in the net income of Federal Prison Industries during 
any fiscal year specified in section 4(e)(1) shall be— 
(1) eligible for appointment (or reappointment) 
in the competitive service pursuant to title 5, United 
States Code; 
(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. 
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SEC. 16. 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— 
‘‘(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; 
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‘‘(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; 
‘‘(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 
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