January 9 2004 Copyright 2004 Business Research Services Inc. 202-364-6473 All rights reserved.
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Appropriations Bill Includes Limits on Prison Industries Federal Prison Industries’ contracting preference would be limited but not abolished under terms of the 2004 omnibus appropriations bill that is awaiting Senate action. The bill would allow contracting officers in civilian agencies to determine whether FPI products meet their needs; under current law, FPI decides whether it can fulfill a contract, except in the Defense Department and the CIA. FPI’s leading opponent in Congress, Rep. Pete Hoekstra (R-MI), said the provision “represents another victory toward providing interim relief from FPI’s mandatory source preference.” But he called on the Senate to pass his bill that would phase out FPI’s preference over five years. The House passed that bill, H.R. 1829, in November. It would also prohibit the prison labor corporation from bidding on small business set-aside contracts. FPI’s 2002 revenue totaled $679 million. (SAA, 11/14/03) Congress voted in 2002 to allow DOD and CIA contracting officers to decide whether to buy from FPI. The pending appropriations bill would extend that authority to all agencies. The House passed the omnibus appropriations bill Dec. 8, but the Senate held it over for the 2004 congressional session that is set to begin Jan. 20. The bill provides funding for most agencies for the fiscal year that began in October.
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