Mandatory Source Status FAQs
1. What is mandatory source and why must FPI rely on it?1. What is mandatory source and why must FPI rely on it?
1) To help ensure a steady work flow and partially offset some of the competitive disadvantages associated with operating in a correctional environment (e.g., lower productivity levels, labor-intensive production processes, security inefficiencies), FPI was designated a mandatory source of federal supply for the products it manufactures. This “mandatory source” designation does not apply to any of FPI’s services or recycling activities. Recent legislation has altered how FPI’s mandatory source status is applied.
The National Defense Authorization Acts for FY 2002 and for FY 2003 (Sections 811/819) require Department of Defense (DoD) contracting officers to conduct market research prior to purchasing a product of the type offered by UNICOR. If the agency's contracting official determines that FPI offers items comparable to those available from the private sector in terms of price, quality and time of delivery, mandatory source procedures are to be followed. The agency may either (1) purchase said item(s) from UNICOR, or (2) request a waiver of mandatory source for other compelling reasons. Conversely, if the contracting official deems that UNICOR's items are not comparable, competitive procurement procedures are to be initiated, while giving considerationf to a timely offer from UNICOR.
The Consolidated Spending Bill for FY 2004, Division F, Section 637, altered the process by which civilian agencies purchased UNICOR items for that fiscal year. The Bill required that civilian agencies determine whether a UNICOR product offered the best value to the procuring agency, using the same two-step process followed by the DeD, outlined above. Ultimately, Section 637 of the Consolidated Spending Bill for FY 2005, extended permanently, this two-step procedure which is applicable to all agencies.
