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Appropriations Bill Passed by the House Extends FPI Relief Now Available Only to DoD, CIA
Hoekstra Inserts Provision Allowing Federal Civilian Agencies to Determine Whether Products and Services Offered by FPI Represent Best Value for Taxpayers Dollars
Washington,
Dec 8, 2003 -
U.S. Rep. Pete Hoekstra, R-Holland, announced that the federal appropriations bill passed by the House on Monday extends to all federal civilian agencies relief from Federal Prison Industries (FPI) as a mandatory source for products and services.
“Contracting officers of civilian federal agencies will now be empowered to independently judge whether an FPI-offered product and proposed delivery schedule best meet the buying agency’s needs,” Hoekstra said. “Agencies such as the Department of Homeland Security will be able to exercise the limited authority now reserved for the Department of Defense and CIA, despite FPI’s continuing status as a sole source of supply.”
The provision was included in the Transportation, Treasury, and Independent Agencies Appropriations Act for FY 2004 and passed as part of the Consolidated Appropriations Act of 2003.
Under FPI’s 1934 authorizing statute, FPI is the mandatory source for all federal agencies, which must buy products offered by FPI unless authorized to solicit offers from the private sector. FPI, not the buying agency, determines whether its product delivery schedule and price meet the needs of the buying agency.
In November the House overwhelmingly passed Hoekstra’s Federal Prison Industries Competition in Contracting Act of 2003 (H.R. 1829), which will fundamentally and comprehensively reform FPI.
“The provision passed today represents another victory toward providing interim relief from FPI’s mandatory source preference until the Senate delivers on companion legislation to H.R. 1829,” Hoekstra said. “Until then, we remain committed to pursuing every avenue available to correct a flawed system that does not allow private sector companies to even compete for contracting opportunities funded by their own tax dollars.”
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