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Contact: Dave Yonkman
202.225.4401
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Hoekstra Works to Suspend FPI’s Preferential Contracting Status during Economic Crisis
Federal Prison Industries Continues to Enjoy Preferential Status with Federal Government Contracting Opportunities
Washington,
Dec 19, 2008 -
U.S. Rep. Pete Hoekstra, R-Holland, is requesting that the administration during the current economic crisis suspend the preferential status that allows Federal Prison Industries (FPI) to simply take federal government contracting opportunities.
He is supporting including a provision in any second stimulus package that would do so. Local furniture manufacturers are sending a letter to the Michigan congressional delegation requesting their support as well.
“As the furniture CEOs reminded us, federal contracting opportunities are a valuable at any time, but especially so when the economy is struggling,” Hoekstra said. “FPI should always be required to compete for its federal sales, rather than simply taking them as they are allowed to do today. Non-inmate workers deserve a right to compete for all of the federal contracts funded by their tax dollars now unfairly taken by FPI.”
FPI is on course for another record year with federal government contracts totaling more than $800 million. FPI’s auditors recently stated that it was on a path to becoming a “billion dollar corporation.”
Hoekstra has worked with Senator Carl Levin in past years to eliminate FPI’s sole-source status with federal government contracts and successfully passed measures that allowed procurement officers some flexibility in seeking private sector competition. However, competition is still not the rule for FPI.
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