I 
112TH CONGRESS 
1ST SESSION H. R. 3634 
To amend title 18, United States Code, to require Federal Prison Industries 
to compete for its contracts minimizing its unfair competition with pri-
vate 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 sta-
tus, to enhance inmate access to remedial and vocational opportunities 
and other rehabilitative opportunities to better prepare inmates for a 
successful return to society, to authorize alternative inmate work opportu-
nities in support of non-profit organizations and other public service 
programs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 12, 2011 
Mr. HUIZENGA of Michigan (for himself, Mr. FRANK of Massachusetts, Mrs. 
MALONEY, Mr. SENSENBRENNER, Mr. MANZULLO, Mr. ROYCE, Mr. 
TIBERI, and Mr. OLVER) introduced the following bill; which was referred 
to the Committee on the Judiciary 
A BILL 
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 
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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. 
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 2011’’. 
(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. 
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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: 
‘‘§ 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))). 
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‘‘(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. 
‘‘(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 
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‘‘(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. 
‘‘(4) Except in the case of an award to be made pur-
suant to paragraph (3), a contract award shall be made 
with Federal Prison Industries only if the contracting offi-
cer for the procurement activity determines that— 
‘‘(A) the specific product or service to be fur-
nished will meet the requirements of the procure-
ment 
activity 
(including 
any 
applicable 
prequalification requirements and all specified com-
mercial or governmental standards pertaining to 
quality, testing, safety, serviceability, and warran-
ties); 
‘‘(B) timely performance of the contract can be 
reasonably expected; and 
‘‘(C) the contract price does not exceed a cur-
rent market price. 
‘‘(5) A determination by the Attorney General pursu-
ant to paragraph (3) shall be— 
‘‘(A) supported by specific findings by the war-
den of the penal or correctional institution at which 
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a Federal Prison Industries workshop is scheduled 
to perform the contract; 
‘‘(B) supported by specific findings by Federal 
Prison Industries regarding why it does not expect 
to win the contract on a competitive basis; and 
‘‘(C) made and reported in the same manner as 
a determination made pursuant to section 303(c)(7) 
of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253(c)(7)). 
‘‘(6) If the Attorney General has not made the deter-
mination described in paragraph (3) within 30 days after 
Federal Prison Industries has been informed of a con-
tracting opportunity by a procurement activity, the pro-
curement activity may proceed to conduct a procurement 
for the product or service in accordance with the proce-
dures generally applicable to such procurements by the 
procurement activity. 
‘‘(7) A contract award may be made to Federal Pris-
on Industries using other than competitive procedures if 
such product or service is only available from Federal 
Prison Industries and the contract may be awarded under 
the authority of section 2304(c)(1) of title 10 or section 
303(c) of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 253(c)(1)), as may be applica-
ble, and pursuant to the justification and approval re-
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quirements relating to such noncompetitive procurements 
specified by law and the Governmentwide Federal Acquisi-
tion Regulation. 
‘‘(8) A contract award may be made to Federal Pris-
on Industries using other than competitive procedures by 
the Federal Bureau of Prisons. 
‘‘(9) A solicitation for a contract shall first be made 
to Federal Prison Industries using other than competitive 
procedures if the product or service to be acquired would 
otherwise be furnished by a contractor performing the 
work outside of the United States. 
‘‘(c) OFFERS
FROM
FEDERAL
PRISON
INDUS-
TRIES.—(1) A timely offer received from Federal Prison 
Industries to furnish a product or service to a Federal de-
partment or agency shall be considered for award without 
limitation as to the dollar value of the proposed purchase, 
unless the contract opportunity has been reserved for com-
petition exclusively among small business concerns pursu-
ant to section 15(a) of the Small Business Act (15 U.S.C. 
644(a)) and its implementing regulations. 
‘‘(2)(A) Any offer made by Federal Prison Industries 
to furnish a product or service may exclude from the of-
fered price the following: 
‘‘(i) The costs related to security of the facili-
ties at which the contract will be performed. 
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‘‘(ii) The costs of educating and training the 
prison work force performing the contract. 
‘‘(iii) Excess capital costs of machinery and ex-
cess inventories used within a prison environment 
that are the result of the unique environment of 
prison life. 
‘‘(iv) Other costs of performing the contract re-
sulting from the unique environment of prison facili-
ties. 
‘‘(d) PERFORMANCE BY FEDERAL PRISON INDUS-
TRIES.—Federal Prison Industries shall perform its con-
tractual obligations under a contract awarded by a Fed-
eral department or agency to the same extent as any other 
contractor. 
‘‘(e) 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)(A) The Chief Operating Officer of Federal Pris-
on Industries may protest a decision by a contracting offi-
cer not to award a contract to Federal Prison Industries 
pursuant to subsection (b)(4), in accordance with section 
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33.103, (Protests to the agency) of the Federal Acquisi-
tion Regulation (48 CFR part 33.103). 
‘‘(B) In the event of an adverse decision of a protest 
filed pursuant to subparagraph (A), the Assistant Attor-
ney General for Administration may request a reconsider-
ation of such adverse decision by the head of the Federal 
agency or department, which shall be considered de novo 
and the decision issued by such agency head on a non- 
delegable basis. Such decision upon reconsideration by the 
agency head shall be final. 
‘‘(3) A dispute between Federal Prison Industries 
and a procurement activity regarding performance of a 
contract shall be subject to— 
‘‘(A) alternative means of dispute resolution 
pursuant to subchapter IV of chapter 5 of title 5; 
or 
‘‘(B) final resolution by the board of contract 
appeals having jurisdiction over the procurement ac-
tivity’s contract performance disputes pursuant to 
the Contract Disputes Act of 1978 (41 U.S.C. 601 
et seq.). 
‘‘(f) 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-
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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))). 
‘‘(g) 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). 
‘‘(h) COMPLIANCE WITH STANDARDS.—Federal Pris-
on 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: 
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‘‘(4)(A) Federal Prison Industries is authorized to 
offer a new specific product or furnish a new specific serv-
ice in response to a competitive solicitation or other pur-
chase request issued by a Federal department or agency. 
No subsequent offering of such product or service may be 
made by Federal Prison Industries until the board of di-
rectors has approved the offering for sale of such new spe-
cific product or new specific service, in conformance with 
the requirements of paragraphs (5) through (9). 
‘‘(B) Federal Prison Industries may produce a prod-
uct or furnish a service in excess of the authorized level 
of production for such product or service, in response to 
an order placed pursuant to an existing contract with a 
Federal department 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 proce-
dures pursuant 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 Indus-
tries to offer a new specific product or specific service or 
to expand 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 
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of subsections (b), (c), (d), and (e) of section 553 of title 
5, and this chapter. 
‘‘(6)(A) Whenever Federal Prison Industries pro-
poses 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 be-
fore initiating any such expansion. The proposal submitted 
to the board shall include a detailed analysis of the prob-
able impact of the proposed expansion of sales within the 
Federal market by Federal Prison Industries on private 
sector firms and their non-inmate workers. 
‘‘(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 Pris-
on 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 
Procurement Data Center. 
‘‘(iii) If the analysis is to be performed by a private 
contractor, the selection of the contractor and the admin-
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istration of the contract shall be conducted by one of the 
entities referenced in clause (ii) as an independent execu-
tive agent for the board of directors. Maximum consider-
ation 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 
currently furnished by small businesses during the 
previous 3 fiscal years; 
‘‘(iii) the share of the Federal market for the 
specific product or specific service projected for Fed-
eral Prison Industries for the fiscal year in which 
production or performance will commence or expand 
and the subsequent 4 fiscal years; 
‘‘(iv) whether the industry producing the spe-
cific product or specific service in the private sec-
tor— 
‘‘(I) has an unemployment rate higher 
than the national average; or 
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‘‘(II) has a rate of unemployment for 
workers that has consistently shown an increase 
during the previous 5 years; 
‘‘(v) whether the specific product is an import- 
sensitive product; 
‘‘(vi) the requirements of the Federal Govern-
ment and the demands of entities other than the 
Federal Government for the specific product or serv-
ice during the previous 3 fiscal years; 
‘‘(vii) the projected growth or decline in the de-
mand of the Federal Government for the specific 
product or specific service; 
‘‘(viii) the capability of the projected demand of 
the Federal Government for the specific product or 
service to sustain both Federal Prison Industries 
and private vendors; and 
‘‘(ix) whether authorizing the production of the 
new product or performance of a new service will 
provide inmates with the maximum opportunity to 
acquire knowledge and skill in trades and occupa-
tions that will provide them with a means of earning 
a livelihood upon release. 
‘‘(D)(i) The board of directors may not approve a 
proposal to authorize the production and sale of a new 
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specific product or continued sale of a previously author-
ized product unless— 
‘‘(I) the product to be furnished is a prison- 
made product; or 
‘‘(II) the service to be furnished is to be per-
formed by inmate workers. 
‘‘(ii) The board of directors may not approve a pro-
posal to authorize the production and sale of a new prison- 
made product or to expand production of a currently au-
thorized product if the product is— 
‘‘(I) produced in the private sector by an indus-
try which has reflected during the previous year an 
unemployment rate above the national average; or 
‘‘(II) an import-sensitive product. 
‘‘(iii) The board of directors may not approve a pro-
posal for inmates to provide a service in which an inmate 
worker has access to— 
‘‘(I) personal or financial information about in-
dividual private citizens, including information relat-
ing to such person’s real property, however de-
scribed, without giving prior notice to such persons 
or class of persons to the greatest extent practicable; 
‘‘(II) geographic data regarding the location of 
surface and subsurface infrastructure providing com-
munications, water and electrical power distribution, 
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pipelines for the distribution of natural gas, bulk pe-
troleum products and other commodities, and other 
utilities; or 
‘‘(III) data that is classified. 
‘‘(iv)(I) Federal Prison Industries is prohibited from 
furnishing through inmate labor construction services, un-
less to be performed within a Federal correctional institu-
tion pursuant to the participation of an inmate in an ap-
prenticeship or other vocational education program teach-
ing the skills of the various building trades. 
‘‘(II) For purposes of this clause, the term ‘construc-
tion’ has the meaning given such term by section 2.101 
of the Federal Acquisition Regulation (48 CFR part 
2.101), as in effect on June 1, 2010, including the repair, 
alteration, or maintenance of real property in being. 
‘‘(7) To provide further opportunities for participa-
tion 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 
approval of the proposal, which notice shall offer to 
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furnish 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 rep-
resenting vendors and labor unions representing pri-
vate sector workers who could reasonably be ex-
pected to be affected 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 product 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 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 
expansion 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 pro-
posal shall reflect the analysis required by paragraph 
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(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 
respect 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 pro-
duced or services furnished by Federal industries 
and available for sale; 
‘‘(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 
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