10 U.S.C. § 3905 (ARMED FORCES)
§ 3905. Products of Federal Prison Industries: procedural requirements
(a) Products for Which Federal Prison Industries Does Not Have Significant Market Share.—
(1) Before purchasing a product listed in the latest edition of the Federal Prison Industries catalog under section 4124(d) of title 18 for which Federal Prison Industries does not have a significant market share, the Secretary of Defense shall conduct market research to determine whether the product is comparable to products available from the private sector that best meet the needs of the Department in terms of price, quality, and time of delivery.
(2) If the Secretary determines that a Federal Prison Industries product described in paragraph (1) is not comparable in price, quality, or time of delivery to products of the private sector that best meets the needs of the Department in terms of price, quality, and time of delivery, the Secretary shall use competitive procedures for the procurement of the product, or shall make an individual purchase under a multiple award contract in accordance with the competition requirements applicable to such contract. In conducting such a competition, the Secretary shall consider a timely offer from Federal Prison Industries.
(b) Products for Which Federal Prison Industries Has Significant Market Share.—
(1) The Secretary of Defense may purchase a product listed in the latest edition of the Federal Prison Industries catalog for which Federal Prison Industries has a significant market share only if the Secretary uses competitive procedures for the procurement of the product or makes an individual purchase under a multiple award contract in accordance with the competition requirements applicable to such contract. In conducting such a competition, the Secretary shall consider a timely offer from Federal Prison Industries.
(2) For purposes of this subsection, Federal Prison Industries shall be treated as having a significant share of the market for a product if the Secretary, in consultation with the Administrator of Federal Procurement Policy, determines that the Federal Prison Industries share of the Department of Defense market for the category of products including such product is greater than 5 percent.
(c) Implementation by Secretary of Defense.—
The Secretary of Defense shall ensure that—
(1) the Department of Defense does not purchase a Federal Prison Industries product or service unless a contracting officer of the Department determines that the product or service is comparable to products or services available from the private sector that best meet the Department’s needs in terms of price, quality, and time of delivery; and
(2) Federal Prison Industries performs its contractual obligations to the same extent as any other contractor for the Department of Defense.
(d) Market Research Determination Not Subject to Review.—
A determination by a contracting officer regarding whether a product or service offered by Federal Prison Industries is comparable to products or services available from the private sector that best meet the Department’s needs in terms of price, quality, and time of delivery shall not be subject to review pursuant to section 4124(b) of title 18.
(e) Performance as a Subcontractor.—
(1) A contractor or potential contractor of the Department of Defense may not be required to use Federal Prison Industries as a subcontractor or supplier of products or provider of services for the performance of a Department of Defense contract by any means, including means such as—
(A) a contract solicitation provision requiring a contractor to offer to make use of products or services of Federal Prison Industries in the performance of the contract;
(B) a contract specification requiring the contractor to use specific products or services (or classes of products or services) offered by Federal Prison Industries in the performance of the contract; or
(C) any contract modification directing the use of products or services of Federal Prison Industries in the performance of the contract.
(2) In this subsection, the term “contractor”, with respect to a contract, includes a subcontractor at any tier under the contract.
(f) Protection of Classified and Sensitive Information.—
The Secretary of Defense may not enter into any contract with Federal Prison Industries under which an inmate worker would have access to—
(1) any data that is classified;
(2) any geographic data regarding the location of—
(A) surface and subsurface infrastructure providing communications or water or electrical power distribution;
(B) pipelines for the distribution of natural gas, bulk petroleum products, or other commodities; or
(C) other utilities; or
(3) any personal or financial information about any individual private citizen, including information relating to such person’s real property however described, without the prior consent of the individual.
(g) Definitions.—
In this section:
(1) The term “competitive procedures” has the meaning given such term in section 3012 1 of this title.
(2) The term “market research” means obtaining specific information about the price, quality, and time of delivery of products available in the private sector through a variety of means, which may include—
(A) contacting knowledgeable individuals in government and industry;
(B) interactive communication among industry, acquisition personnel, and customers; and
(C) interchange meetings or pre-solicitation conferences with potential offerors.