‘‘(h) COMPLIANCE WITH STANDARDS.—Federal Prison 
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: 
‘‘(4)(A) Federal Prison Industries is authorized to offer 
a new specific product or furnish a new specific service in 
response to a competitive solicitation or other purchase re-
quest issued by a Federal department or agency. No subse-
quent offering of such product or service may be made by 
Federal Prison Industries until the board of directors has 
approved the offering for sale of such new specific product 
or new specific service, in conformance with the require-
ments of paragraphs (5) through (9). 
‘‘(B) Federal Prison Industries may produce a product 
or furnish a service in excess of the authorized level of pro-
duction for such product or service, in response to an order 
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placed pursuant to an existing contract with a Federal de-
partment 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 procedures pursu-
ant 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 Industries 
to offer a new specific product or specific service or to ex-
pand 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 of sub-
sections (b), (c), (d), and (e) of section 553 of title 5, and 
this chapter. 
‘‘(6)(A) Whenever Federal Prison Industries proposes 
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 before 
initiating any such expansion. The proposal submitted to 
the board shall include a detailed analysis of the probable 
impact of the proposed expansion of sales within the Fed-
eral market by Federal Prison Industries on private sector 
firms and their non-inmate workers. 
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‘‘(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 Prison 
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 Pro-
curement Data Center. 
‘‘(iii) If the analysis is to be performed by a private 
contractor, the selection of the contractor and the adminis-
tration of the contract shall be conducted by one of the enti-
ties referenced in clause (ii) as an independent executive 
agent for the board of directors. Maximum consideration 
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 cur-
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