Federal Prison Industries Reform Introduced in Congress

A bipartisan group of House members has introduced H.R. 3634, the "Federal Prison Industries Competition in Contracting Act of 2011".

Rep. Bill Huizenga (R-MI) offered the bill on December 12 with cosponsors that include Reps. Carolyn Maloney (D-NY), Barney Frank (D-MA), and Jim Sensenbrenner (R-WI).

This bill is virtually identical to H.R. 2965, the bill that passed the House in 2006 by a 362-57 vote (Roll no. 443).  MAPPS supported that bill.  A companion bill was approved by a Senate committee, but was not enacted into law.  However, other piecemeal FPI reforms have been put in place by Congress in recent years.

With unemployment continuing at dangerously high levels, 2012 may be the year Congress enacts a bill that has support from Republicans and Democrats, business and labor.

Like its predecessor, H.R. 3634 includes two provisions significant to MAPPS. 

First, the bill prohibits agencies from specifying Federal Prison Industries (FPI), or its products, as a source in any Federal agency synopsis/solicitation. There have been incidents where architect-engineer (A/E) contracts have required the A/E firm to specify a FPI product, such as a modular furniture system, in its designs.

Most importantly, the bill prohibits FPI and its inmate workers from having access to a variety of geospatial information, about individual citizens’ property or critical infrastructure location.  Specifically, it bans FPI from providing “a service in which an inmate worker has access to personal or financial information about individual private citizens, including information relating to such person’s real property, however described, without giving prior notice to such persons or class of persons to the greatest extent practicable; geographic data regarding the location of surface and subsurface infrastructure providing communications, water and electrical power distribution, pipelines for the distribution of natural gas, bulk petroleum products and other commodities, and other utilities; or data that is classified.” This provision would prohibit FPI from engaging in most, if not all, geospatial activities.

With regard to services, the bill eliminated FPI’s status as a preferred source.  A Federal agency can only contract with FPI for services, such as GIS, CAD, scanning, digitizing, if the buying agency’s contracting officers determines FPI’s services meet the agency’s need in a number of criteria, can perform on time, and provides the service at a fair market price.  This eliminates enormous advantages FPI has enjoyed in providing services.  With regard to products, FPI’s previous mandatory source status is ended in favor of full and open competition.

The bill also prohibits FPI from providing services in the commercial market.  Although FPI’s original 1930’s enabling law prohibited prison-made products from commercial market entry, the organization secured a legal opinion during the Clinton Administration that said since Congress mentioned products in the 1930’s, and not services, then sale of prisoner provided services must be permitted, notwithstanding that the United States did not have a service economy in the 1930s. Several state attorneys general have issued similar opinions with regard to state prisons.

Federal Prison Industries, Inc., which operates under the trade name UNICOR, is a self-supporting, wholly-owned government corporation that employs federal prison inmates.  A program of the Justice Department’s Bureau of Prisons, FPI offers hundreds of products and services, including a number of data conversion activities.

A number of state prison industry operations have extensive GIS capabilities, including Colorado, Florida, and Texas, to name a few.

A recent MAPPS legislative issues poll found 51 percent of members continue to view prison industry reform legislation as a very important or somewhat important issue.

It has been reported that FPI won a contract from the Corps of Engineers to make signs.  The funding came from the American Recovery and Reinvestment Act, ARRA, commonly known as the stimulus bill. While the bill was intended to put law-abiding, unemployed Americans back to work, not to support inmates. The expenditure of Federal ARRA funds on prison industries is being investigated by Congress.

Here is a news story about the bill. 

Under   H.R. 3634, FPI’s Unicor, would be required to submit a detailed analysis of the impact to the private sector before entering into new product markets and would not be able to sell products commercially or internationally; the only customer could be the federal government. It also prohibits agencies from contracting with FPI in which inmates would have access to sensitive or classified information.

"This bill gives the taxpayer the greatest value for their hard-earned money by forcing federal agencies to bid for fair and reasonable prices and for products that best suit their needs. The bill preserves market access for these products or services to the hard-working men and women of our districts. This is simply one more easy, common sense way to preserve jobs and help restore economic security for America," Huizenga said.

"This legislation will protect the jobs of hard-working American taxpayers while providing valuable alternative rehabilitative opportunities to better prepare inmates for a successful return to society.   It is a workable, bipartisan solution to the problem," Maloney said.

"It is time to allow for fair competition for U.S. manufacturers," Frank said.

"We should be looking to make government more efficient and cost-effective, and this bill does that. I support this legislation because it will save taxpayer money and open up the contracting process to competition by allowing businesses to bid for these contracts," Sensenbrenner said.

Other examples of the industries FPI competes in include: clothing and textiles, electronics, vehicular components and fleet management, industrial products, office furniture, electronics recycling, and services such as call center and data and document conversion.

The bill has already gathered interest from a broad coalition of business groups and has a bipartisan list of supporters in Congress from all across America. Original co-sponsors include Reps. Donald Manzullo (R-IL), Edward Royce, (R-CA), Patrick Tiberi (R-OH), and John Olver (D-MA).

In the past, studies by the Government Accountability Office (GAO) found FPI products and services did not meet agency requirements, were not delivered in a timely manner, and were at times more expensive that the private sector.