39 -- FPI - FSC Code 3990

Under the provisions of FPI's guidelines process, published March 12, 1997, in the Federal Register and March 25, 1997, in the Commerce Business Daily, FPI submits the following "good faith" announcement for public notice and comment. FPI proposes to manufacture wood pallets for sale competitively to the Department of Defense (DOD), without mandatory source. Under FPI's guidelines covering the production of new products and significant expansion of existing products, the primary determinant of what constitutes a "specific product" is an item's Federal Supply Classification (FSC) code. Wood pallets fall within Federal Supply Classification (FSC) code 3990 - Miscellaneous Materials Handling Equipment. FPI has recorded sales in this category every year since FY 1992. In addition, FPI currently provides refurbished wood pallets internally. The most appropriate SIC codes for wood pallets is SIC 2448 - Wood Pallets and Skids or NAICS code 321920 - Wood Container and Pallet Manufacturing. FPI has not made items in these SIC and NAICS codes. FPI has a history of making similar items in the FSC code for wood pallets. For this reason, FPI believes wood pallets do not meet the definition of "new product" set forth by FPI's guidelines. However, FPI recognizes that a reasonable person may construe this item to be a product separate and distinct from any other made by FPI. Under the terms of FPI's expansion guidelines, interested parties may submit comments regarding this proposed production by FPI. In submitting comments to FPI, the following guidelines will apply: 1) Comments will be due within 21 days of the date of this notice; 2) Relevant comments will focus on and address why wood pallets should be considered a new product, separate and distinct from a similar item currently produced by FPI; 3) While the primary purpose of the comments will be to determine if the item should be defined as a new product, comments related to market share and/or the impact resulting from such a production decision may also be considered relevant. All comments received in response to this announcement will be considered by FPI. All commenters will be advised when FPI makes a final determination. Any interested party has a right to raise any question at any time with FPI's Board of Directors. All comments should be addressed to: Chief Administrative Officer, Planning, Research, and Activation Branch, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534.