II 
109TH CONGRESS 
2D SESSION 
H. R. 2965 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 15, 2006 
Received; read twice and referred to the Committee on Homeland Security and 
Governmental Affairs 
SEPTEMBER 21, 2006 
Committee discharged; referred to the Committee on the Judiciary 
AN ACT 
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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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 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 
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. Restructuring the Board of Directors. 
Sec. 13. Management matters. 
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 
amended to read as follows: 
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‘‘§ 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))). 
‘‘(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. 
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‘‘(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 
‘‘(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. 
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