84 -- FPI's Production in FS Group 84 - Army Combat Uniforms

This notice announces the decision regarding Federal Prison Industries’(FPI) production in Federal Supply (FS) Group 84 - Clothing, Individual Equipment, and Insignia. FPI’s new product/significant expansion guidelines were publishedMarch 12, 1997, in the Federal Register. A provision of the guidelines allows for FPI to exceed a specific product’s expansion threshold in cases of a public exigency, such as a national defense emergency. The guidelines require that FPI receive a specific order or request from the Department of Defense (DoD) or Executive Branch officials for this provision to be invoked. Upon invoking this provision, the guidelines allow that increased sales resulting from national exigencies will not be considered a violation of the guidelines ceiling in the year in which they occur. Recently, FPI received a request from DoD for additional Army Combat Uniforms (ACUs) for the Army. ACUs are included within FPI’s "Work Clothing" category. The request from DoD would necessitate an increase in FPI’s Work Clothing production ceiling. The Army has requested that FPI produce up to 10,000 additional ACUs per month for eight months, or up to 80,000 ACUs per year. The additional ACU production will increase the Work Clothing ceiling by approximately $5.0 million for the eight month duration. In light of the military’s critical need, FPI's Board of Directors approved the request to invoke the national exigency provision of the guidelines. It should be noted that the "national exigency" provision is temporary, allowing FPI to exceed the normal sales ceilings while the exigency is in effect. In this instance, the Army does not anticipate the additional requirements for more than eight months. The exigency does not authorize FPI to utilize the higher level as a future production baseline. Interested parties have a right to raise questions at any time with FPI’s Board of Directors. Any correspondence should be addressed to: Chief Administrative Officer, Research, Activation, and Corporate Support, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534. Attention: RACS Branch.