of inmate labor constitutes at least 10 percent of the 
estimate unit cost to produce the item by Federal 
Prison Industries; 
‘‘(5) the term ‘manufacture’ means the process 
of fabricating from raw or prepared materials, so as 
to impart to those materials new forms, qualities, 
properties, and combinations;
‘‘(6) 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—
‘‘(A) any specific product during the 3 pre-
ceding fiscal years, that does not exceed 20 per-
cent of the Federal market for the specific 
product; and 
‘‘(B) any specific service during the 3 pre-
ceding fiscal years, that does not exceed 5 per-
cent of the Federal market for the specific serv-
ice; and 
‘‘(7) the term ‘services’ has the meaning given 
the term ‘service contract’ by section 37.101 of the 
Federal Acquisition Regulation (48 C.F.R. 36.102), 
as in effect on July 1, 2002.’’. 
SEC. 17. IMPLEMENTING REGULATIONS AND PROCEDURES. 
(a) FEDERAL ACQUISITION REGULATION.—
(1) PROPOSED REVISIONS.—Proposed revisions 
to the Governmentwide Federal Acquisition Regula-
tion to implement the amendments made by this Act 
shall be published not later than 60 days after the 
date of the enactment of this Act and provide not 
less than 60 days for public comment. 
(2) FINAL
REGULATIONS.—Final regulations 
shall be published not later than 180 days after the 
date of the enactment of this Act and shall be effec-
tive on the date that is 30 days after the date of 
publication. 
(3) PUBLIC
PARTICIPATION.—The proposed 
regulations 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). 
(b) BOARD OF DIRECTORS.—
(1) IN GENERAL.—The Board of Directors of 
Federal Prison Industries shall issue regulations de-
fining the terms specified in paragraph (2). 
(2) TERMS TO BE DEFINED.—The Board of Di-
rectors shall issue regulations for the following 
terms: 
(A) Prison-made product.
(B) Prison-furnished service. 
(C) Specific product. 
(D) Specific service. 
(3) SCHEDULE
FOR
REGULATORY
DEFINI-
TIONS.—
(A) Proposed regulations relating to the 
matter described in subsection (b)(2) shall be 
published not later than 60 days after the date 
of enactment of this Act and provide not less 
than 60 days for public comment. 
(B) Final regulations relating to the mat-
ters described in subsection (b)(2) shall be pub-
lished not less than 180 days after the date of 
enactment of this Act and shall be effective on 
the date that is 30 days after the date of publi-
cation. 
(4) ENHANCED
OPPORTUNITIES
FOR
PUBLIC 
PARTICIPATION AND SCRUTINY.—
(A) ADMINISTRATIVE PROCEDURE ACT.—
Regulations issued by the Board of Directors 
shall be subject to notice and comment rule-
making pursuant to section 553 of title 5, 
United States Code. Unless determined wholly 
impracticable or unnecessary by the Board of
Directors, the public shall be afforded 60 days 
for comment on proposed regulations. 
(B) ENHANCED
OUTREACH.—The Board 
of Directors shall use means designed to most 
effectively solicit public comment on proposed 
regulations, procedures, and policies and to in-
form the affected public of final regulations, 
procedures, and policies.
(C) OPEN
MEETING
PROCESSES.—The 
Board of Directors shall take all actions relat-
ing to the adoption of regulations, operating 
procedures, guidelines, and any other matter re-
lating to the governance and operation of Fed-
eral Prison Industries based on deliberations 
and a recorded vote conducted during a meeting 
open to the public, unless closed pursuant to 
section 552(b) of title 5, United States Code. 
SEC. 18. RULE OF CONSTRUCTION. 
Subsection (e) 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. 19. 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 or service offered by Federal 
Prison Industries needed by a Federal department or 
agency after the effective date of the final regulations 
issued pursuant to section 17(a)(2), or after September 
30, 2004, whichever is earlier. 
SEC. 20. CLERICAL AMENDMENTS. 
The table of sections for chapter 307 of title 18, 
United States Code, is amended—
(1) by amending the item relating to section 
4121 to read as follows:
‘‘4121. Federal Prison Industries; Board of Directors: executive management.’’;
(2) by amending the item relating to section 
4124 to read as follows:
‘‘4124. Governmentwide procurement policy relating to purchases from Federal 
Prison Industries.’’;
(3) by amending the item relating to section 
4127 to read as follows:
‘‘4127. Federal Prison Industries report to Congress.’’;
and
(4) by adding at the end the following new 
items:
‘‘4130. Construction of provisions. 
‘‘4131. Definitions.’’.
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