I
104TH CONGRESS
2D SESSION
H. R. 3745
To amend title 18, United States Code, to minimize unfair competition
for Federal contracting opportunities between Federal Prison Industries
and private firms, especially small business concerns, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
JUNE 27, 1996
Mrs. MEYERS of Kansas (for herself, Mr. HOEKSTRA, Mr. CHRYSLER, Mr.
MANZULLO, Mr. HILLEARY, Mr. BARCIA, Mr. HEFLEY, Mr. BARTLETT
of Maryland, Mr. COLLINS of Georgia, Mr. OXLEY, Mr. EHLERS, Mr.
TAYLOR of North Carolina, Mr. BALLENGER, Mr. UPTON, Mr. ENGLISH
of Pennsylvania, Mr. COBLE, Mr. KNOLLENBERG, Mr. CALVERT, Mr.
CHAMBLISS, Mr. CRAMER, Mr. BARR of Georgia, Mr. DEAL of Georgia,
Mr. LINDER, Mr. EVERETT, Mr. SALMON, Mr. STUMP, Mr. BAKER of
Louisiana, Mr. FLANAGAN, and Mr. QUILLEN) introduced the following
bill; which was referred to the Committee on the Judiciary
A BILL
To amend title 18, United States Code, to minimize unfair
competition for Federal contracting opportunities be-
tween Federal Prison Industries and private firms, espe-
cially small business concerns, 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.
This Act may be cited as the ‘‘Federal Prison Indus-
tries Competition in Contracting Corrections Act of
1996’’.
SEC. 2. PURCHASE OF PRISON-MADE PRODUCTS BY FED-
ERAL AGENCIES.
Section 4124 of title 18, United States Code, is
amended to read as follows:
‘‘§ 4124. Purchase of prison-made products by Federal
departments and agencies
‘‘(a) PURCHASE
OF PRISON-MADE PRODUCTS.—
Each Federal department and agency shall offer to pur-
chase prison-made products in accordance with this sec-
tion.
‘‘(b) REQUIREMENTS
FOR
PRISON-MADE
PROD-
UCTS.—(1) When a procurement activity of a Federal de-
partment or agency has a requirement for a specific prod-
uct that is authorized to be offered for sale by Federal
Prison Industries (in accordance with section 4122 of this
title) and is listed in the catalog referred to in subsection
(f), the procurement activity shall solicit an offer from
Federal Prison Industries.
‘‘(2) A contract award for such product shall be made
using competitive procedures in accordance with the speci-
fications and evaluation factors specified in the solicita-
tion.
‘‘(3) A contract award for such product may be made
to Federal Prison Industries if the contracting officer for
the procurement activity determines that—
‘‘(A) the prison-made product to be furnished
will meet the requirements of the procurement activ-
ity (including any applicable prequalification require-
ments and all specified commercial or governmental
standards pertaining to quality, testing, safety, serv-
iceability, and warranties);
‘‘(B) timely performance of the contract can be
reasonably expected; and
‘‘(C) the contract price does not exceed a cur-
rent market price as established by the competition.
‘‘(c) PERFORMANCE BY FEDERAL PRISON INDUS-
TRIES.—Federal Prison Industries shall be required to
perform its contractual obligations under a contract
awarded by a Federal department or agency to the same
extent as any other contractor under such a contract.
‘‘(d) 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) The Director of Federal Prison Industries may
appeal to the head of a Federal department or agency a
decision by a contracting officer not to award a contract
to Federal Prison Industries pursuant to subsection
(b)(3). The decision of the head of a Federal department
or agency on appeal shall be final.
‘‘(3) A dispute between Federal Prison Industries
and a procurement activity regarding performance of a
contract shall be subject to a final resolution by the board
of contract appeals having jurisdiction over the procure-
ment activity’s contract performance disputes pursuant to
the Contract Disputes Act of 1978 (41 U.S.C. 601 et
seq.).
‘‘(e) 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-
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))).
‘‘(f) 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).’’.
SEC. 3. DEFINITIONS.
Chapter 307 of title 18, United States Code, is
amended by adding at the end thereof the following new
section:
‘‘§ 4130. Definitions
‘‘As used in the chapter:
‘‘(1) The term ‘reasonable share of the market’
means a share of the total purchases by the Federal
departments and agencies, as reported to the Fed-
eral Procurement Data System for any specific prod-
uct during the 3 preceding fiscal years, that does not
exceed 20 percent of the Federal market for the spe-
cific product.
‘‘(2) The term ‘specific product’ means a prod-
uct that is designed and manufactured to meet re-
quirements distinct in function and predominant ma-
terial of manufacture from another product, as de-
scribed by—
‘‘(A) the 7-digit classification for the prod-
uct in the Standard Industrial Classification
(SIC) Code published by the Office of Manage-
ment and Budget (or if there is no 7-digit code
classification for a product, the 5-digit code
classification); and
‘‘(B) the 13-digit National Stock Number
assigned to such product under the Federal
Stock Classification System (including group,
part number, and section), as determined by
the General Services Administration.’’.
SEC. 4. IMPLEMENTATION IN THE FEDERAL ACQUISITION
REGULATION.
(a) PROPOSED REVISIONS.—Proposed revisions to
the government-wide Federal Acquisition Regulation to
implement the amendments made by this Act shall be pub-
lished not later than 60 days after the date of the enact-
ment of this Act and provide not less than 60 days for
public comment.
(b) FINAL REGULATIONS.—Final regulations shall be
published not later than 180 days after the date of the
enactment of this Act and shall be effective on the date
that is 30 days after the date of publication.
(c) PUBLIC PARTICIPATION.—The proposed regula-
tions required by subsection (a) and the final regulations
required by subsection (b) shall afford an opportunity for
public participation in accordance with section 22 of the
Office of Federal Procurement Policy Act (41 U.S.C.
418b).
SEC. 5. RULE OF CONSTRUCTION.
Subsection (d) of section 4124 of title 18, United
States Code, as amended by section 2, is not intended to
alter any rights of any offeror other than Federal Prison
Industries to file a bid protest in accordance with other
law or regulation in effect on the date of the enactment
of this Act.
SEC. 6. EFFECTIVE DATE AND APPLICABILITY.
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this Act and the amendments made by this
Act shall take effect on the date of enactment of this Act.
(b) APPLICABILITY.—Section 4124 of title 18, United
States Code, as amended by section 2, shall apply to any
requirement for a product offered by Federal Prison In-
dustries needed by a Federal department or agency after
the effective date of the final regulations issued pursuant
to section 3(b), or after March 31, 1997, whichever is ear-
lier.
Æ