Description
This notice announces the decision regarding FPI’s production in Federal Supply (FS) Group 84 - Clothing, Individual Equipment, and Insignia. FPI’s new product/significant expansion guidelines were published March 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. On November 21, 2003, FPI received an official request from the Defense Supply Center, Philadelphia (DSCP). The correspondence requested FPI to fulfill DoD’s needs for physical fitness uniforms (PFU), which consist of PFU shorts, t-shirts, and sweatshirts and sweatpants for deployed Army troops. The DoD request states the U.S. Army Forces Command (FORSCOM) is coordinating an initiative to issue 200,000 off-duty uniforms for deployed troops which will consist of physical fitness shorts, short-sleeve and long-sleeve t-shirts, as well as sweatshirts and sweatpants. Following this request, FPI received an additional request for PFU trunks and t-shirts for the Air Force. In light of the military’s critical need for these items, FPI requested approval to invoke the national exigency provision of the guidelines. FPI’s BOD approved the national exigency request. Accordingly, sales in PFU shorts, t-shirts, sweatshirts, and sweatpants may temporarily exceed the guidelines ceiling without constituting a guidelines violation. FPI’s approved production level for PFUs includes limits on both sales and units. The sales ceiling for PFU shorts is $14 million and 1.2 million units. Based on DoD’s needs, the additional work will cause FPI to exceed its ceiling by over one million units and $5.4 million in FY 2005. The sales ceiling for t-shirts is $15.1 million for a total of 3.0 million units, (1.4 million units of gray t-shirts and 1.6 million units of brown undershirts). Based on DoD’s needs, the additional work will cause FPI to exceed the unit ceiling for gray t-shirts by 877,000 and the sales ceiling for t-shirts by $600,000 by FY 2005. FPI’s FY 2004 sales ceiling for sweatshirts and sweatpants is $15.6 million consisting of 200,000 sweatshirts and 200,000 sweatpants. Based on DoD’s needs, the additional work would cause FPI to exceed the sales ceiling for sweatshirts and sweatpants by $2.166 million and 51,000 units of sweatshirts and 70,000 units of sweatpants in FY 2004. It should be noted that the “national exigency” provision is temporary, allowing FPI to exceed the normal sales ceiling while the exigency is in effect. It does not authorize FPI to utilize the higher level as a future production baseline. FPI is uncertain as to how long the current exigency will last due to the ongoing military war efforts and the continuing war on terrorism. At a minimum, however, it is expected that increased production levels as a result of DoD’s expanded needs will continue through the balance of the current fiscal year and into FY 2005. Interested parties have a right to raise questions at any time with FPI. 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.