as in effect on June 1, 2004, including the repair, alter-
ation, or maintenance of real property in being. 
‘‘(7) To provide further opportunities for participation 
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 ap-
proval of the proposal, which notice shall offer to fur-
nish 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 representing 
vendors and labor unions representing private sector 
workers who could reasonably be expected to be af-
fected 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 prod-
uct 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 
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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 ex-
pansion 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 proposal 
shall reflect the analysis required by paragraph (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 re-
spect 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 produced 
or services furnished by Federal industries and avail-
able for sale; 
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‘‘(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 
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 requirements 
of section 4124 of title 18, United States Code (as amended 
by section 2 of this Act), 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 Indus-
tries and make purchases on a noncompetitive basis in ac-
cordance with this section or in accordance with section 
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2410n of title 10, United States Code, or section 318 of title 
III of the Federal Property and Administrative Services Act 
of 1949 (as added by subsection (i)). 
(b) PREFERENTIAL SOURCE STATUS.—Subject to the 
limitations of subsection (d), a contract award shall be 
made on a noncompetitive basis to Federal Prison Indus-
tries if the contracting officer for the procurement activity 
determines that— 
(1) the product offered by Federal Prison Indus-
tries will meet the requirements of the procurement 
activity (including commercial or governmental 
standards or specifications pertaining to design, per-
formance, testing, safety, serviceability, and warran-
ties as may be imposed upon a private sector supplier 
of the type being offered by Federal Prison Indus-
tries); 
(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 conditions 
of the contract and the price to be paid to Federal Prison 
Industries shall be determined by negotiation between Fed-
eral Prison Industries and the Federal agency making the 
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