Policy
Before buying items listed on the FPI Schedule, agencies must conduct and document market research to determine comparability with private sector alternatives, and follow specific procedures based on the outcome.
Overview
FAR 8.602 establishes the policy for acquiring supplies from Federal Prison Industries, Inc. (FPI), also known as UNICOR. Before purchasing any item listed on the FPI Schedule, agencies must conduct market research to determine if the FPI item is comparable to private sector alternatives in price, quality, and delivery time. If comparable, the item must be purchased from FPI unless a waiver is obtained. If not comparable, agencies may use competitive procedures but must include FPI in the solicitation process and consider any timely offers from FPI. Special procedures apply when using multiple award schedules or fair opportunity procedures. Exceptions to these requirements are outlined in FAR 8.605(b)-(g). If FPI grants a waiver for items also produced by AbilityOne agencies, those items must be purchased from AbilityOne using the appropriate procedures. Disputes over FPI supplies, except for initial comparability determinations, are subject to arbitration as specified by law.
Key Rules
- Market Research Requirement
- Agencies must conduct market research to compare FPI items with private sector alternatives on price, quality, and delivery time.
- Written Determination
- A written determination with supporting rationale is required to document the comparability assessment.
- Mandatory Source
- If the FPI item is comparable, it must be purchased from FPI unless a waiver is obtained.
- Competitive Acquisition
- If not comparable, agencies may use competitive procedures but must include FPI in the solicitation and consider its offers.
- AbilityOne Waivers
- If FPI grants a waiver for items also produced by AbilityOne, those items must be purchased from AbilityOne agencies.
- Arbitration of Disputes
- Disputes (except initial comparability) are subject to binding arbitration as specified in 18 U.S.C. 4124.
Responsibilities
- Contracting Officers: Must conduct and document market research, make comparability determinations, include FPI in solicitations, and follow proper procedures for waivers and disputes.
- Contractors: Should be aware of FPI's mandatory source status and participate in competitive processes when FPI items are not comparable.
- Agencies: Must ensure compliance with FPI and AbilityOne purchasing requirements and manage dispute resolution as required.
Practical Implications
This policy ensures FPI is given priority as a source for certain supplies, but only when their products are competitive. It requires careful documentation and procedural compliance, especially regarding market research and solicitation processes. Failure to follow these steps can result in procurement delays or disputes. Contracting professionals must be diligent in applying these rules to avoid compliance issues and ensure fair competition.