99 -- FPI to Offer Filtration Media

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 various filtration media on a competitive basis and not use its mandatory source status. This product encompasses all filters included in the following four Federal Supply Classification (FSC) codes: FSC code 4140 - Fans, Air Circulators and Blower Equipment; FSC code 4460 - Air Purification Equipment; FSC code 4130 - Refrigeration and Air Conditioning Components; and FSC code 4120 - Air Conditioning Equipment. FPI was approached pursuant to the corporation's ongoing business development initiative (published as a special notice in the February 11, 2000 edition of the CBD) and entered into a partnership with Filtration Services of Milwaukee, WI, to manufacture this product. Several small businesses are participating with Filtration Services in furtherance of this initiative. Inmate labor will be utilized to produce a full-range of heating, ventilating and air conditioning filters. The partner companies will provide marketing, sales, and distribution to assure the quality of the product. This initiative will improve prospects for the partner companies to obtain additional business. This is not an exclusive arrangement for Federal agency contracts. Other companies for filtration media or other business areas are welcome to participate in such initiatives pursuant to the business development initiative program. Once a product is sold competitively by FPI, it remains a competitive product and will never be added to FPI's Schedule of Products as a mandatory source product. FPI will not attempt to exercise its mandatory source at some future point in time for filters, nor will it seek approval from its Board of Directors to expand production of the product 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. Other companies interested in utilizing inmate labor for Federal agency contracts are encouraged to submit a business proposal under FPI's business development initiative. Business development proposals should be submitted to Federal Prison Industries, Inc. For further information on FPI's production of filtration media, please contact John Huotari, Contracting Officer, at +1 (555) 000-0000. Interested parties have a right to comment or raise questions at anytime 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.