Senators Propose Abolishing Prison Labor Preference Two senators have introduced legislation to end Federal Prison Industries’ sole-source preference in federal contracting. The Federal Prison Industries Competition in Contracting Act, S. 346, is sponsored by Sen. Carl Levin (D-MI) and Sen. Craig Thomas (R-WY). “This bill is based on a straightforward premise: it is unfair for Federal Prison Industries to deny businesses in the private sector an opportunity to compete for sales to their own government,” Levin said. “This bill would do nothing more than permit private sector companies to compete for federal contracts that are paid for with their tax dollars. Levin sponsored similar legislation in 2001 that ended FPI’s mandatory source preference in Defense Department contracts. The House Judiciary Committee approved legislation to end the preference government-wide last year, but the bill never came to a vote in either house. The Bush administration has pledged to reform FPI and the Office of Management and Budget is reviewing FPI’s business practices, but the administration has stopped short of endorsing an end to the prison labor agency’s preferential status. At a November hearing before the House Small Business Committee, Angela Styles, administrator of federal procurement policy, said the need for competition in federal procurement and the need to provide work opportunities for prisoners were “equally important principles.” (SAA, 11/29/02) FPI’s new board of directories pledged to rein in some of the agency’s aggressive sales practices, but Chairman Kenneth Rocks said the board was waiting for guidance from OMB. (SAA, 1/24) Business groups and some members of Congress have long complained about FPI’s use of its preferential status to gain a virtual monopoly in some product areas, including some items of furniture, military clothing and equipment. Levin said, “Avoiding competition is the easy way out, but it isn’t the right way for FPI, it isn’t the right way for the private sector workers whose jobs FPI is taking, and it isn’t the right way for federal agencies, which too often get stuck with the bill for inferior products that can’t compete with private sector goods.” More recently complaints have centered on the agency’s expansion into services. Some critics say that is illegal because the 1934 law establishing FPI’s mission mentions only “products” and “commodities,” not services. FPI’s board has tentatively scheduled a meeting in Denver during the week of March 22 in conjunction with the National Correctional Industries Association Enterprise 2003 National Training Conference. Details will be posted at www.unicor.gov.