Hoekstra Reintroduces FPI Reform Legislation
Bill Builds Upon Momentum of Significant Legislative Gains in the 108th Congress
Washington,
Jun 21, 2005 -
U.S. Rep. Pete Hoekstra, R-Holland, has reintroduced comprehensive Federal Prison Industries (FPI) reform legislation in the House with strong bipartisan support, building upon significant gains in the 108th Congress.
“This remains a fundamental issue of fairness, about leveling the playing field for law-abiding, tax-paying Americans,” Hoekstra said. “Private sector companies and their employees should be provided with the opportunity to compete for contracts paid for with their tax dollars.”
The Federal Prison Industries Competition in Contracting Act of 2005 (H.R. 2965) would eliminate FPI’s sole-source status with the federal government and offer alternative rehabilitative and vocational opportunities, including work in support of non-profit, public service organizations, to better prepare inmates for a successful return to society. The House Committee on the Judiciary is expected to expeditiously report the bill favorably to the full House, where it is expected to also pass swiftly.
In the 108th Congress the House passed a nearly identical bill by an overwhelming bipartisan vote of 350 to 65.
The effort to reform FPI further gained momentum last year when U.S. Sen. Richard Shelby, R-Ala., inserted into the Omnibus Appropriations Act of 2005 a provision enabling federal agencies to determine whether FPI’s offer meets the public’s needs in terms of price, quality and speed of delivery. However, government agencies are still able to accept the product or service offered by FPI without providing private contractors with a real opportunity to compete.
“We have demonstrated that FPI reform enjoys broad support in the House of Representatives,” Hoekstra said. “We now need action in the Senate to send this comprehensive reform measure to the President’s desk.”
A depression-era law intended to keep inmates occupied requires federal agency procurement officers to purchase goods from FPI before seeking bids from the private sector, regardless of whether a private sector company could offer the same or better product at a lower cost and more efficient delivery rate. FPI also enjoys the competitive advantages of compensating inmate workers at a rate of as little as $0.23 an hour, paying no local, state or federal taxes, being exempt from OSHA regulations and not paying any benefits to its workers.
Hoekstra’s measure is expected to enjoy the broad support of the business community, including the U.S. Chamber of Commerce and the National Federation of Independent Businesses, with associations representing many types of businesses hurt by FPI’s unfair competition in the marketplace. Like his bill in the 108th Congress, Hoekstra’s bill enjoys the strong support of organized labor, led by the AFL-CIO. The bill is also supported by federal managers, represented by the Federal Managers Association.
He is again joined by U.S. Rep. Barney Frank, D-Mass., and U.S. Rep. Carolyn B. Maloney, D-N.Y., in the effort to bring fundamental fairness to competition for federal contracting opportunities.
Among the bill’s lead co-sponsors are U.S. Rep. James Sensenbrenner, R-Wisc., Chairman of the House Committee on the Judiciary, and the committee’s ranking Democrat, U.S. Rep. John Conyers (D-Mich.). Conyers is the author of most of the bill’s provisions that are designed to improve the prospects for federal inmates to successfully return to society.
Also co-sponsoring the bill is Howard Coble, R-N.C., Chairman of the Judiciary Committee Subcommittee on Crime, Terrorism and Homeland Security, which has oversight and legislative jurisdiction over FPI. The lead co-sponsors are joined by 72 bipartisan co-sponsors, 58 Republicans and 14 Democrats, including many members of the House Committee on the Judiciary.
A companion bipartisan bill has been introduced in the Senate by Senator Carl Levin, D-Mich., with Senator Craig Thomas, R-Wyo., the Senate’s leader on the issue of unfair government competition with the private sector, as the lead co-sponsor.
The Levin-Thomas bill is also co-sponsored by Senator Debbie Stabenow, D-Mich., and Senator Charles Grassley, R-Iowa, the Chairman of the Senate Committee on Finance who is a persistent supporter of FPI reform and a strong supporter of small business.
The Senate companion legislation has been referred to the Committee on Homeland Security and Governmental Affairs, chaired by Senator Susan Collins, R-Maine, with Senator Joseph Lieberman, D-Conn., as the ranking Democratic member.
“I worked closely with Senator Collins and Senator Lieberman in our negotiations over the 9-11 reform legislation passed last year,” said Hoekstra, Chairman of the House Permanent Select Committee on Intelligence. “Both practice strong oversight of the executive branch and fully grasp the need to fundamentally change how FPI operates and lessen its adverse impacts on federal agencies and on non-inmate workers and the firms that employ them.”
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