25 -- FPI Production in FSC code 2541

In furtherance of the Federal Prison Industries, Inc. (FPI) Board of Directors directive that FPI seek to pursue the creation of inmate jobs without mandatory source, a notice was published in the December 21, 1998 edition of the Commerce Business Daily (CBD) regarding FPI's production of products for the Federal government on a competitive (non-mandatory) basis. The notice stated that FPI's Board of Directors had granted approval for FPI to competitively bid on products for which it did not rely on its status as a mandatory source of supply. Under this procedure, FPI would not follow the public involvement guidelines process established by 18 U.S.C. 4122(b) which is required for new products FPI offers as a mandatory source. FPI is required to publish a notice of its intentions to competitively produce a product purchased by the Federal government. This notice announces FPI's intentions to produce Humvee Door Kits and Vehicle UpArmor on a competitive basis and not use its mandatory source status. These products encompass Federal Supply Classification (FSC) code 2541 - Weapons Systems Specific Vehicular Accessories; which includes accessory kits and individual components used in the repair and/or modification of weapon system type vehicles such as tanks, personnel carriers, mobile howitzers,etc. Once a product is sold competitively by FPI, it remains a competitive product and will never be added to FPI's Schedule of Product as a mandatory source product. FPI will not attempt to exercise its mandatory source at some future point for these products, nor will it seek approval from its Board of Directors to expand production of these products by invoking the guidelines process at some later date. FPI's Board of Directors has determined that whatever share of the market FPI acquires on a competitive basis will be deemed to be a reasonable share of the market within the meaning of 18 U.S.C. 4122(b)(2). Sales of products manufactured under this procedure will be tracked and recorded separately by FPI as is the case for subcontracting and services, since such sales will not be subject to the market share limitations of FPI's expansion guidelines Interested parties have a right to comment or raise questions with FPI's Board of Directors. All written correspondence should be addressed to: Chief Administrative Officer, Research, Activation, and Corporate Support Branch, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534.