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

On July 18, 2003, FPI published an announcement in the Federal Business Opportunities regarding 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. The July 18th notice explained that this product is a new requirement for FEMA. FEMA 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. The July 18th notice stated that 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. FPI has received comments in reference to the July 18th notice however, they were from prospective partners interested in doing business with FPI. None of the comments received expressed opposition to FPI manufacturing portable housing units/disaster relief shelters for FEMA. 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. Attention: FPI Board of Directors.