72 -- FPI Sales in FSC Code 7210 - Updated

Modification: The following paragraph is being changed as follows. Notwithstanding the fact that customers are no longer required to purchase products from FPI as a result of the Board resolution waiving FPI's mandatory source for products in which FPI has at least a 20 percent market share, there is absolutely no restriction or prohibition against the customers continuing to purchase from FPI, should they choose to do so of their own volition. Thus, customers that currently rely on FPI to meet their product needs may continue to utilize FPI under the Board's resolution. On October 2, 2003, Federal Prison Industries, Inc. (FPI) posted a notice in the Federal Business Opportunities (FedBizOpps) regarding a decision by the FPI Board of Directors to waive FPI's status as a mandatory source of supply for items within Federal Supply Classification (FSC) code 7210 - Household Furnishings. This notice clarifies the language in the original notice. FPI will continue to produce items within FSC code 7210, however, all sales FPI obtains for those items will be through non-mandatory means. This decision was effective on October 2, 2003. This decision was the result of an earlier resolution by FPI's Board to limit the application of FPI's mandatory source to products for which FPI's share of the Federal market is less than 20 percent. Mandatory source is prescribed by law. In the past, the Board has exercised its authority to administratively determine how the statute should be applied. It is within the Board's authority to determine the conditions under which waivers of FPI's mandatory source are to be applied. The following guidance is being provided to facilitate the customer implementation of this action. ? For products where FPI has waived the application of mandatory source, the market share acquired by FPI without the benefit of the mandatory source is considered a reasonable share. ? For those FSCs where FPI's mandatory source is waived, FPI must be given full visibility of the requirement and afforded a fair and equitable opportunity to submit an offer to meet the customer's requirement, to include being provided by Federal agencies the same information and specifications (as are afforded to any private sector offeror). ? Such waiver is contingent upon FPI's ability to submit an offer for these procurements. Thus, consistent with the provisions of the Interim Rule Implementing Sections 811/819 of the Defense Authorization Act of 2003 (Federal Register, November 14, 2003), such procurements must not be set aside for other programs, e.g., small business set-aside, nor may FPI be otherwise precluded from being able to submit an offer. ? Notwithstanding the fact that customers are no longer required to purchase products from FPI as a result of the Board resolution waiving FPI's mandatory source for products in which FPI has less than a 20 percent market share, there is absolutely no restriction or prohibition against the customers continuing to purchase from FPI, should they choose to do so of their own volition. Thus, customers that currently rely on FPI to meet their product needs may continue to utilize FPI under the Board's resolution. Interested parties have a right to raise questions at any time with FPI's Board of Directors. Any correspondence should be addressed to: Chief Administrative Officer, Research, Activation, and Corporate Support, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534. Attention: FPI Board of Directors.