54 -- FPI to Offer Portable Housing Units/Disaster Relief Shelters

In furtherance of the Federal Prison Industries, Inc. (FPI) Board of Directors' directive that FPI seek to create inmate jobs without mandatory source, a notice was published in the December 21, 1998 edition of the Commerce Business Daily 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 bought by the Federal government. This notice announces FPI's intent to produce portable housing units/disaster relief shelters for the Federal Emergency Management Agency (FEMA) on a non-mandatory basis. Portable housing units/disaster relief shelters encompass all items in Federal Supply Classification (FSC) code 5411 - Rigid Wall Shelters. This product is a new requirement for FEMA, which approached FPI only after failing to identify any commercially available offerings which met all of the agency's needs. A preliminary analysis by FPI reveals the manufacturing process for this product will be labor-intensive, which will result in more than 20 percent of the finished product's value being added by FPI. In the manufacturing of this product, FPI will purchase all necessary materials and components from private sector suppliers. In this effort, FPI will look first to vendors currently listed on General Services Administration (GSA) schedules, and will make every effort to utilize small business suppliers. Pursuant to this proposal, once this product is sold as a non-mandatory item by FPI, it 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 portable housing units/disaster relief shelters, nor will it seek approval from its Board of Directors to expand production 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 non-mandatory 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 portable housing units/disaster relief shelters will be tracked and recorded separately by FPI. Interested parties may submit comments regarding the production of portable housing units/disaster relief shelters by FPI. To be considered by FPI's Board of Directors, all comments must be received by FPI within 21 days of the date of this notice. 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 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.