WASHINGTON – It's official. The monopoly enjoyed by Federal Prison Industries (FPI) over federal defense contracts is over. The Federal Register, the legal newspaper published by National Archives and Records Administration, today printed the rules implementing the legislation authored by Sen. Carl Levin, D-Mich., and passed by Congress last December. The new interim rules take effect immediately. The comment period on the interim rules extends until June 25, 2002.

"This law ensures that taxpayers will now get the best possible value for federal procurement dollars," said Levin. "While most people would agree that prisoners should work, I would hope that everyone also thinks that the private sector should be able to compete and offer products to its own government. This law does not end the prison industries program, or even come close. Prison industries can continue to compete for any contracts, however, now the private sector can compete as well."

Levin, chairman of the Senate Armed Services Committee, fought to break the FPI monopoly that has denied businesses in Michigan and across the country the opportunity to compete for Department of Defense (DOD) contracts, even if those businesses can provide a better product at a lower price. Levin's provision, included in the 2002 defense authorization bill, ends the FPI monopoly over federal defense contracts so that products made by commercial firms can compete with products made by prison labor. If DOD can get an equal or better product at a lower price from the private sector, the new law permits it to buy from the private bidder. The old law prohibited private companies from competing for any federal contract if FPI wanted to maintain a monopoly on that contract.

The Federal Register can be found online at: http://www.access.gpo.gov/su_docs/fedreg/frcont02.html