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FPI's Sales Ceiling for Products Covered by Section 827 - Final Notice

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SBDM-02-2010Federal

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Federal Prison Industries, Inc. (FPI) issued a final notice on October 26, 2009, following a September 2 announcement, regarding the implementation of Section 827 of the National Defense Authorization Act of 2008. This legislation requires FPI to compete for all Department of Defense (DoD) orders when its market share exceeds five percent of DoD purchases. As a result, FPI’s mandatory source provision no longer applies to specific Federal Supply Classification (FSC) codes identified by the DoD. Products under these FSC codes must now be procured through competitive or fair opportunity procedures in line with the Defense Federal Acquisition Regulation Supplement. The FPI Board of Directors recommended that products obtained competitively from the DoD should be classified as non-mandatory, meaning the existing FPI-imposed sales ceilings do not apply to them. The notice clarifies that while sales ceilings do not apply to competitively procured DoD products in the specified FSC codes, other work obtained through the mandatory source provision—including orders from non-DoD civilian agencies—continues to be subject to these sales ceilings. After a 30-day comment period with no feedback from interested parties, FPI finalized the notice. The Board welcomes ongoing questions from the public or stakeholders, which can be directed to the Chief of Strategic Business Development and Marketing at FPI’s headquarters in Washington, D.C. Contact details for further inquiries are provided, ensuring transparency and continued engagement with interested parties.

General Info

FPI must compete for DoD orders exceeding five percent market share under Section 827 requirements.

NAICS

339999 - All Other Miscellaneous Manufacturing

Place of Performance

N/A, DC, USA

Set-Aside

NONE

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0

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Organization & Contact Information

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AgencyDepartment Of Justice → Inc Federal Prison Industries
Contacts1 person available
OfficeWASHINGTON, DC, 20534, USA
Office AddressWASHINGTON, DC, 20534, USA
Contacts
Yvette K Hairston-Mercer

Full Description

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On September 2, 2009, Federal Prison Industries, Inc. (FPI) posted a notice in the Federal Business Opportunities (FedBizOpps). In this notice, FPI explained that Section 827 of the National Defense Authorization Bill of 2008 requires FPI to compete for all DoD orders when DoD determines its market share exceeds five percent of their purchases. With the implementation of Section 827, FPI's mandatory source provision is no longer applicable to the FSC codes published in the DoD implementation memo. Products outlined in the instructions must be procured using competitive (or fair opportunity) procedures in accordance the Defense Federal Acquisition Regulation Supplement 208.602-70. On September 2, 2009, FPI recommended to its Board of Directors that products sold to DoD and obtained through competitive means are non-mandatory, and therefore the Board-determined sales ceilings in place should not apply. The notice informed the public that based on the BOD meeting held on September 2, 2009, the Board recognizes products sold to DoD and obtained through competitive means are non-mandatory, and therefore the Board-established sales ceilings in place do not apply. This is specifically applicable to those products within Federal Supply Classification Codes (FSC) identified by the Department of Defense (DoD) in response to Section 827 of the National Defense Authorization Act of 2008. Other work obtained using the mandatory source provision, including work obtained from non-DoD civilian agencies will be applied to the FPI-imposed sales ceilings. FPI received no comments from any interested party regarding this proposed change, within the 30 days allowed. Therefore, this notice is now being revised as the final notice. Interested parties have a right to raise questions at any time with the FPI's Board of Directors. Any correspondence should be addressed to: Chief, Strategic Business Development and Marketing, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534.

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