Federal Prison Industries Competition in Contracting Act of 2003 - (Sec. 2) Amends the Federal criminal code to replace provisions regarding the purchase of prison-made products by Federal departments with provisions establishing a Government-wide procurement policy relating to purchases from Federal Prison Industries (FPI), which shall generally require the use of competitive procedures.
Authorizes a contract award to be made to FPI using other than competitive procedures: (1) if a product or service is only available from FPI and if other requirements are met; and (2) by the Federal Bureau of Prisons (the Bureau).
Provides that a timely offer received from FPI to furnish a product or service for a Federal agency shall be considered for award without limitation as to the dollar value of the proposed purchase unless the contract opportunity has been reserved for competition exclusively among small business concerns pursuant to the Small Business Act.
(Sec. 3) Requires that an analysis of the probable impact of a proposed expansion of sales within the Federal market by FPI on private sector firms and their non-inmate workers be made whenever FPI proposes to authorize the sale of a new specific product or service or to expand production of a current product or service.
Prohibits FPI from furnishing construction services through inmate labor unless such services are to be performed within a Federal correctional facility pursuant to the participation of an inmate in an apprenticeship or other vocational education program teaching the skills of the various building trades.
Authorizes the FPI board of directors to authorize: (1) the donation of products produced or services furnished by FPI and available for sale; (2) the production of a new specific product or the furnishing of a new specific service for donation; or (3) a proposal to expand production of a currently authorized specific product or service in an amount in excess of a reasonable share of the market if a Federal agency has requested that FPI be authorized to furnish such product or service in amounts needed by such agency or if the proposal is justified for other good cause and supported by at least eight board members.
(Sec. 4) Requires a Federal agency having a requirement for a product that is authorized for sale by FPI and is listed in its catalog to first solicit an offer from FPI and make purchases on a noncompetitive basis. Requires, subject to specified limitations, a contract award to be made on a noncompetitive basis to FPI if the contracting officer determines that: (1) the FPI product will meet the procurement requirements; (2) timely performance of the contract by FPI can be reasonably expected; and (3) the negotiated price does not exceed a fair and reasonable price.
Directs that the terms and conditions of the contract and the price to be paid to FPI be determined by negotiation between FPI and the Federal agency making the purchase. Bars the negotiated price from exceeding a fair and reasonable price determined in accordance with the Federal Acquisition Regulation.
Prohibits the total dollar value of FPI sales to the Government in FY 2005 through 2009 from exceeding specified percentages of FPI sales for the base period. Sets limits regarding FPI sales within various business sectors, relating to specific products, and arising from changes in design specifications. Prohibits the use of such preferential contracting authorities on or after October 1, 2009. Requires the Attorney General to: (1) make a finding regarding the effects of such percentage limitations, including a determination whether such limitation has resulted or is likely to result in a substantial reduction in inmate industrial employment and whether such reductions, if any, present a significant risk of adverse effects on safe prison operation or public safety; and (3) advise the Congress upon finding a significant risk of adverse effects on either safe prison management or public safety.
Amends the Federal Property and Administrative Services Act of 1949 to require the head of an executive agency: (1) before purchasing a product listed in the latest edition of the FPI catalog, to conduct market research to determine whether the FPI product is comparable to products available from the private sector that best meet the executive agency's needs in terms of price, quality, and time of delivery; and (2) if such product is not comparable, to use competitive procedures or make an individual purchase under a multiple award. Provides that a contracting officer's determination as to whether an FPI product or service is comparable is not reviewable.
Provides for the protection of classified and sensitive information.
(Sec. 5) Authorizes FPI to produce products as a subcontractor or supplier in the performance of a Federal procurement contract. Makes the use of FPI a voluntary business decision by the Federal prime contractor or subcontractor, subject to any prior approval imposed by the Federal Acquisition Regulation or by the contract. Prohibits such authority from resulting in the sale in the commercial market of a product or service resulting from the labor of Federal inmate workers and requires a contractor or subcontractor using FPI to implement appropriate management procedures to prevent it.
(Sec. 6) Requires that: (1) inmate workers be paid wages for work at a basic hourly rate to be negotiated between the eligible entity and FPI and specified in the procurement agreement; and (2) wage rates set by the Director of the Bureau to be paid inmates for various institutional work assignments be specifically authorized.
Requires: (1) the Board of Directors of FPI to prescribe the rates of hourly wages to be paid inmates performing work for or through FPI; and (2) the Director of the Bureau to prescribe the rates of hourly wages for other work assignments within the various Federal correctional institutions, with increase determinations on not less than a biannual basis. Provides that, in the case of an inmate whose term of imprisonment is to expire in not more than two years: (1) wages shall be earned at an hourly rate of not less than $2.50 but paid at the same rate and in the same manner as paid to any other inmate; and (2) any amount earned but not paid shall be held in trust and paid only upon the actual expiration of the term of imprisonment.
Requires the Board: (1) not later than September 30, 2004, to increase the maximum wage rate for inmates performing work for or through FPI to an amount equal to 50 percent of the minimum wage prescribed by the Fair Labor Standards Act of 1938; (2) not later than September 30, 2009, to increase such maximum wage rate to an amount equal to such minimum wage; and (3) to request the Secretary of Labor to establish, not later than October 1, 2004, an inmate training wage pursuant to that Act.
Requires deductions of up to 80 percent of an inmate worker's wages for applicable taxes, payment of fines and restitution, support of the inmates' family, and to facilitate the inmate's assimilation back into society.
(Sec. 7) Includes services within the scope of a prohibition against transporting in interstate commerce or from a foreign country goods produced by prisoners. Authorizes any prisoner work program operated by a State or local jurisdiction of a State which is providing services for the commercial market on October 1, 2002, to continue to provide such commercial services: (1) until the expiration date specified in the contract on that date; (2) until September 30, 2005, if the prison work program is directly furnishing the services to the commercial market; or (3) after those dates if it has been certified and is in compliance with specified requirements.
(Sec. 10) Establishes within the Bureau the Enhanced In-Prison Educational and Vocational Assessment and Training Program, which shall provide: (1) in-prison assessments of inmates' needs and aptitudes; (2) educational opportunities; (3) vocational training and apprenticeships; and (4) release-readiness preparation. Authorizes appropriations. Directs that all components of the program be established in at least 25 percent of all Federal prisons within two years, 50 percent within four years, 75 percent within six years, and 100 percent within eight years.
Amends the Federal criminal code to authorize inmates with work assignments within FPI to perform work for an eligible entity pursuant to an agreement between such entity and the Inmate Work Training Administrator. Directs the Board to designate an entity as the Inmate Work Training Administrator to administer the work-based training program authorized by this section. Makes the Director of the Bureau and the Chief Operating Officer of FPI responsible only for: (1) maintaining appropriate institutional and inmate security; and (2) matters relating to the selection and payment of participating inmates.
Requires an eligible entity seeking to enter into such an agreement to submit a detailed proposal, specifying: (1) types of work to be performed; (2) the proposed duration of the agreement; (3) the number of inmate workers expected to be employed in the specified types of work during the various phases of the agreement; (4) the wage rates proposed to be paid to various classes of inmate workers; and (5) the facilities, services, and personnel (other than correctional personnel dedicated to inmate worker security) to be furnished by FPI or the Bureau and any reimbursement rates.
Sets forth provisions regarding certification of the agreement by the chief executive officer of the eligible entity, protections for non-inmate workers, approval by the Board, wage rates and deductions from inmate wages, voluntary participation by inmates, work assignments, and enforcement of protections for non-inmate workers. Authorizes appropriations.
Directs the Chief Operating Officer of FPI to develop proposals to have FPI donate products and services to eligible entities that provide products and services to low-income individuals who would likely otherwise have difficulty purchasing such products and services in the commercial market. Authorizes appropriations.
Establishes within the Bureau the Cognitive Abilities Assessment Demonstration Program to determine the effectiveness of a program that assesses the cognitive abilities and perceptual skills of Federal inmates to maximize the benefits of various rehabilitative opportunities to prepare each inmate for a successful return to society and reduce recidivism. Requires the Director to report to Congress on employment and residence stability and recidivism among inmates who participated in the program after 18 months of release. Authorizes appropriations.
Requires the Director to afford to inmates opportunities to participate in programs and activities designed to help them obtain employment upon release. Grants priority to inmates who are participating in work opportunities afforded by FPI and are within two years of release.
(Sec. 11) Provides that FPI shall be governed by a board of 11 directors. Makes the Director the Chief Executive Officer of FPI. Requires the Director to designate the Chief Operating Officer.
(Sec. 12) Authorizes FPI to: (1) locate more than one workshop at a Federal correctional facility; and (2) operate a workshop outside of a correctional facility if all of the inmates working in the workshop are classified as minimum security inmates.
(Sec. 13) Provides that any correctional officer or other FPI employee being paid with non-appropriated funds who would be separated from service because of a reduction in the net income of FPI shall be: (1) eligible for appointment (or reappointment) in the competitive service; (2) registered on a Bureau of Prisons reemployment priority list; and (3) given priority for any other position within the Bureau for which such employee is qualified.
(Sec. 14) Requires that the Board's annual report include: (1) an analysis of FPI's total sales to Federal agencies and the commercial market, total purchases by each Federal agency, and FPI's share of such total Government purchases by specific product and service, and of the number and disposition of disputes submitted to the heads of the Federal agencies; (2) an analysis of the inmate workforce that includes the number of inmates employed, the number utilized to product products or furnish services sold in the commercial market, the terms of their incarceration, and the wages paid; and (3) data concerning whether the employment provided by FPI during incarceration enabled inmates to earn a livelihood upon release. Directs that copies of the annual report be made available to the public at a price not exceeding printing cost.
(Sec. 15) Directs the Comptroller General to have an independent study conducted on the effects of eliminating the FPI mandatory source authority and to submit the results to Congress by June 30, 2004.
(Sec. 16) Expresses the sense of Congress that it is important to study the concept of implementing a "good time" release program for nonviolent criminals in the Federal prison system.
(Sec. 22) Requires the procurement of goods or services manufactured in the United States in a procurement that proceeds when the Secretary has not, within 30 days after FPI has been informed of a contracting opportunity by a procurement activity, made a determination that the procurement activity shall negotiate with FPI on a noncompetitive basis.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1829 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 1829
To amend title 18, United States Code, to require Federal Prison
Industries to compete for its contracts minimizing its unfair
competition with private sector firms and their non-inmate workers and
empowering Federal agencies to get the best value for taxpayers'
dollars, to provide a five-year period during which Federal Prison
Industries adjusts to obtaining inmate work opportunities through other
than its mandatory source status, to enhance inmate access to remedial
and vocational opportunities and other rehabilitative opportunities to
better prepare inmates for a successful return to society, to authorize
alternative inmate work opportunities in support of non-profit
organizations, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 12, 2003
Mr. Hoekstra (for himself, Mr. Frank of Massachusetts, Mr. Collins,
Mrs. Maloney, Mr. Sensenbrenner, Mr. Conyers, Mr. Coble, Mr. Watt, Mr.
Manzullo, Ms. Velazquez, Mr. Boehner, Mr. George Miller of California,
Mr. Tom Davis of Virginia, Mr. Rangel, Mr. Toomey, Mr. Nadler, Mr.
Ehlers, Mr. Dingell, Mr. LoBiondo, Mr. Cantor, Ms. Baldwin, Mr.
Norwood, Ms. Woolsey, Mr. Souder, Mr. Ferguson, Ms. Schakowsky, Mr.
Shadegg, Mr. Kingston, Ms. Hart, Ms. Lee, Mr. Hostettler, Mr. Filner,
Mr. Bartlett of Maryland, Mr. Oxley, Mr. English, Mr. McIntyre, Mr.
DeMint, Mr. Flake, Mr. Smith of New Jersey, Mr. Ryan of Wisconsin, Mr.
Culberson, Mr. Emanuel, Mr. Forbes, Mr. Goode, Mrs. Northup, Mr. Olver,
Mr. Blunt, Ms. Pryce of Ohio, Mrs. Miller of Michigan, Mr. Cramer, Mr.
Camp, Mr. Rogers of Michigan, Mr. Leach, Mr. Pence, Mr. Hill, Mr.
Upton, Mr. McCotter, Mr. Langevin, Mr. Nethercutt, Mr. Osborne, Mr.
Hayes, Mr. Wamp, Mr. Terry, Mr. Kleczka, Mrs. Myrick, Mr. Ney, Mr.
Brady of Pennsylvania, Mr. Brady of Texas, Mrs. Jones of Ohio, Mr.
Jones of North Carolina, Mr. Sessions, Mrs. Cubin, Mrs. Capito, Mr.
Burr, Mr. Clay, Mr. Knollenberg, Mr. Moran of Kansas, Mr. Tiberi, Mr.
Porter, Mr. McGovern, Mr. Ballenger, Mr. Deal of Georgia, Mr. Everett,
Mr. Kennedy of Rhode Island, Mr. McKeon, Mr. Isakson, Mr. LaTourette,
Mr. Thornberry, Mrs. Wilson of New Mexico, Mr. Royce, Mr. Kline, Mr.
Kucinich, Mr. Duncan, Mr. Tiahrt, Mr. Quinn, Mr. Wilson of South
Carolina, Mr. Doolittle, Mr. McDermott, Mrs. Biggert, Mrs. Musgrave,
Mr. Chocola, Mr. Gingrey, Mr. Nunes, and Mr. Burns) introduced the
following bill; which was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 18, United States Code, to require Federal Prison
Industries to compete for its contracts minimizing its unfair
competition with private sector firms and their non-inmate workers and
empowering Federal agencies to get the best value for taxpayers'
dollars, to provide a five-year period during which Federal Prison
Industries adjusts to obtaining inmate work opportunities through other
than its mandatory source status, to enhance inmate access to remedial
and vocational opportunities and other rehabilitative opportunities to
better prepare inmates for a successful return to society, to authorize
alternative inmate work opportunities in support of non-profit
organizations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Federal Prison
Industries Competition in Contracting Act of 2003''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Governmentwide procurement policy relating to purchases from
Federal Prison Industries.
Sec. 3. Public participation regarding expansion proposals by Federal
Prison Industries.
Sec. 4. Transitional mandatory source authority.
Sec. 5. Authority to perform as a Federal subcontractor.
Sec. 6. Inmate wages and deductions.
Sec. 7. Clarifying amendment relating to services.
Sec. 8. Conforming amendment.
Sec. 9. Rules of construction relating to chapter 307.
Sec. 10. Providing additional rehabilitative opportunities for inmates.
Sec. 11. Restructuring the Board of Directors.
Sec. 12. Providing additional management flexibility to Federal Prison
Industry operations.
Sec. 13. Transitional personnel management authority.
Sec. 14. Federal Prison Industries report to Congress.
Sec. 15. Independent study to determine the effects of eliminating the
Federal Prison Industries mandatory source
authority.
Sec. 16. Definitions.
Sec. 17. Implementing regulations and procedures.
Sec. 18. Rule of construction.
Sec. 19. Effective date and applicability.
Sec. 20. Clerical amendments.
SEC. 2. GOVERNMENTWIDE PROCUREMENT POLICY RELATING TO PURCHASES FROM
FEDERAL PRISON INDUSTRIES.
Section 4124 of title 18, United States Code, is amended to read as
follows:
``Sec. 4124. Governmentwide procurement policy relating to purchases
from Federal Prison Industries
``(a) In General.--Purchases from Federal Prison Industries,
Incorporated, a wholly owned Government corporation, as referred to in
section 9101(3)(E) of title 31, may be made by a Federal department or
agency only in accordance with this section.
``(b) Solicitation and Evaluation of Offers and Contract Awards.--
(1) If a procurement activity of a Federal department or agency has a
requirement for a specific product or service that is authorized to be
offered for sale by Federal Prison Industries, in accordance with
section 4122 of this title, and is listed in the catalog referred to in
subsection (g), the procurement activity shall solicit an offer from
Federal Prison Industries, if the purchase is expected to be in excess
of the micro-purchase threshold (as defined by section 32(f) of the
Office of Federal Procurement Policy Act (41 U.S.C. 428(f))).
``(2) A contract award for such product or service shall be made
using competitive procedures in accordance with the applicable
evaluation factors, unless a determination is made by the Attorney
General pursuant to paragraph (3) or an award using other than
competitive procedures is authorized pursuant to paragraph (7).
``(3) The procurement activity shall negotiate with Federal Prison
Industries on a noncompetitive basis for the award of a contract if the
Attorney General determines that--
``(A) Federal Prison Industries cannot reasonably expect
fair consideration to receive the contract award on a
competitive basis; and
``(B) the contract award is necessary to maintain work
opportunities otherwise unavailable at the penal or
correctional facility at which the contract is to be performed
to prevent circumstances that could reasonably be expected to
significantly endanger the safe and effective administration of
such facility.
``(4) Except in the case of an award to be made pursuant to
paragraph (3), a contract award shall be made with Federal Prison
Industries only if the contracting officer for the procurement activity
determines that--
``(A) the specific product or service to be furnished will
meet the requirements of the procurement activity (including
any applicable prequalification requirements and all specified
commercial or governmental standards pertaining to quality,
testing, safety, serviceability, and warranties);
``(B) timely performance of the contract can be reasonably
expected; and
``(C) the contract price does not exceed a current market
price.
``(5) A determination by the Attorney General pursuant to paragraph
(3) shall be--
``(A) supported by specific findings by the warden of the
penal or correctional institution at which a Federal Prison
Industries workshop is scheduled to perform the contract;
``(B) supported by specific findings by Federal Prison
Industries regarding why it does not expect to win the contract
on a competitive basis; and
``(C) made and reported in the same manner as a
determination made pursuant to section 303(c)(7) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
253(c)(7)).
``(6) If the Attorney General has not made the determination
described in paragraph (3) within 30 days after Federal Prison
Industries has been informed of a contracting opportunity by a
procurement activity, the procurement activity may proceed to conduct a
procurement for the product or service in accordance with the
procedures generally applicable to such procurements by the procurement
activity.
``(7) A contract award may be made to Federal Prison Industries
using other than competitive procedures if such product or service is
only available from Federal Prison Industries and the contract may be
awarded under the authority of section 2304(c)(1) of title 10 or
section 303(c) of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 252(c)(1)), as may be applicable, and pursuant to
the justification and approval requirements relating to such
noncompetitive procurements specified by law and the Governmentwide
Federal Acquisition Regulation.
``(c) Offers From Federal Prison Industries.--A timely offer
received from Federal Prison Industries to furnish a product or service
to a Federal department or agency shall be considered for award without
limitation as to the dollar value of the proposed purchase.
``(d) Performance by Federal Prison Industries.--Federal Prison
Industries shall perform its contractual obligations under a contract
awarded by a Federal department or agency to the same extent as any
other contractor.
``(e) Finality of Contracting Officer's Decision.--(1) A decision
by a contracting officer regarding the award of a contract to Federal
Prison Industries or relating to the performance of such contract shall
be final, unless reversed on appeal pursuant to paragraph (2) or (3).
``(2) The Chief Executive Officer of Federal Prison Industries may
appeal to the head of a Federal department or agency a decision by a
contracting officer not to award a contract to Federal Prison
Industries pursuant to subsection (b)(4). The decision of the head of a
Federal department or agency on appeal shall be final.
``(3) A dispute between Federal Prison Industries and a procurement
activity regarding performance of a contract shall be subject to--
``(A) alternative means of dispute resolution pursuant to
subchapter IV of chapter 5 of title 5; or
``(B) final resolution by the board of contract appeals
having jurisdiction over the procurement activity's contract
performance disputes pursuant to the Contract Disputes Act of
1978 (41 U.S.C. 601 et seq.).
``(f) Reporting of Purchases.--Each Federal department or agency
shall report purchases from Federal Prison Industries to the Federal
Procurement Data System (as referred to in section 6(d)(4) of the
Office of Federal Procurement Policy Act (41 U.S.C. 405(d)(4))) in the
same manner as it reports to such System any acquisition in an amount
in excess of the simplified acquisition threshold (as defined by
section 4(11) of the Office of Federal Procurement Policy Act (41
U.S.C. 403(11))).
``(g) Catalog of Products.--Federal Prison Industries shall publish
and maintain a catalog of all specific products and services that it is
authorized to offer for sale. Such catalog shall be periodically
revised as products and services are added or deleted by its board of
directors (in accordance with section 4122(b) of this title).
``(h) Compliance With Standards.--Federal Prison Industries shall
comply with Federal occupational, health, and safety standards with
respect to the operation of its industrial operations.''.
SEC. 3. PUBLIC PARTICIPATION REGARDING EXPANSION PROPOSALS BY FEDERAL
PRISON INDUSTRIES.
Section 4122(b) of title 18, United States Code, is amended--
(1) by redesignating paragraph (6) as paragraph (12); and
(2) by striking paragraphs (4) and (5) and inserting the
following new paragraphs:
``(4) A decision to authorize Federal Prison Industries to offer a
new specific product or specific service or to expand the production of
an existing product or service shall be made by its board of directors
in conformance with the requirements of subsections (b), (c), (d), and
(e) of section 553 of title 5, and this chapter.
``(5)(A) Whenever Federal Prison Industries proposes to offer for
sale a new specific product or specific service or to expand production
of a currently authorized product or service, the Chief Operating
Officer of Federal Prison Industries shall submit an appropriate
proposal to the board of directors and obtain the board's approval
before initiating any such expansion. The proposal submitted to the
board shall include a detailed analysis of the probable impact of the
proposed expansion of sales within the Federal market by Federal Prison
Industries on private sector firms and their non-inmate workers.
``(B)(i) The analysis required by subparagraph (A) shall be
performed by an interagency team on a reimbursable basis or by a
private contractor paid by Federal Prison Industries.
``(ii) If the analysis is to be performed by an interagency team,
such team shall be led by the Administrator of the Small Business
Administration or the designee of such officer with representatives of
the Department of Labor, the Department of Commerce, and the Federal
Procurement Data Center.
``(iii) If the analysis is to be performed by a private contractor,
the selection of the contractor and the administration of the contract
shall be conducted by one of the entities referenced in clause (ii) as
an independent executive agent for the board of directors. Maximum
consideration shall be given to any proposed statement of work
furnished by the Chief Operating Officer of Federal Prison Industries.
``(C) The analysis required by subparagraph (A) shall identify and
consider--
``(i) the number of vendors that currently meet the
requirements of the Federal Government for the specific product
or specific service;
``(ii) the proportion of the Federal Government market for
the specific product or specific service currently furnished by
small businesses during the previous 3 fiscal years;
``(iii) the share of the Federal market for the specific
product or specific service projected for Federal Prison
Industries for the fiscal year in which production or
performance will commence or expand and the subsequent 4 fiscal
years;
``(iv) whether the industry producing the specific product
or specific service in the private sector--
``(I) has an unemployment rate higher than the
national average; or
``(II) has a rate of unemployment for workers that
has consistently shown an increase during the previous
5 years;
``(v) whether the specific product is an import-sensitive
product;
``(vi) the requirements of the Federal Government and the
demands of entities other than the Federal Government for the
specific product or service during the previous 3 fiscal years;
``(vii) the projected growth or decline in the demand of
the Federal Government for the specific product or specific
service;
``(viii) the capability of the projected demand of the
Federal Government for the specific product or service to
sustain both Federal Prison Industries and private vendors; and
``(ix) whether authorizing the production of the new
product or performance of a new service will provide inmates
with the maximum opportunity to acquire knowledge and skill in
trades and occupations that will provide them with a means of
earning a livelihood upon release.
``(D)(i) The board of directors may not approve a proposal to
authorize the production and sale of a new specific product or
continued sales of a previously authorized product unless--
``(I) the product to be furnished is a prison-made product;
or
``(II) the service to be furnished is to be performed by
inmate workers.
``(ii) The board of directors may not approve a proposal to
authorize the production and sale of a new prison-made product or to
expand production of a currently authorized product if the product is--
``(I) produced in the private sector by an industry which
has reflected during the previous year an unemployment rate
above the national average; or
``(II) an import-sensitive product.
``(iii) The board of directors may not approve a proposal for
inmates to provide a service in which an inmate worker has access to--
``(I) personal or financial information about individual
private citizens, including information relating to such
person's real property, however described, without giving prior
notice to such persons or class of persons to the greatest
extent practicable;
``(II) geographic data regarding the location of surface
and subsurface infrastructure providing communications, water
and electrical power distribution, pipelines for the
distribution of natural gas, bulk petroleum products and other
commodities, and other utilities; or
``(III) data that is classified.
``(iv)(I) Federal Prison Industries is prohibited from furnishing
through inmate labor construction services, unless to be performed
within a Federal correctional institution pursuant to the participation
of an inmate in an apprenticeship or other vocational education program
teaching the skills of the various building trades.
``(II) For purposes of this clause, the term `construction' has the
meaning given such term by section 2.101 of the Federal Acquisition
Regulation (48 CFR part 2.101), as in effect on June 1, 2002, including
the repair, alteration, or maintenance of real property in being.
``(6) To provide further opportunities for participation by
interested parties, the board of directors shall--
``(A) give additional notice of a proposal to authorize the
production and sale of a new product or service, or expand the
production of a currently authorized product or service, in a
publication designed to most effectively provide notice to private
vendors and labor unions representing private sector workers who could
reasonably be expected to be affected by approval of the proposal,
which notice shall offer to furnish copies of the analysis required by
paragraph (5) and shall solicit comment on the analysis;
``(B) solicit comments on the analysis required by
paragraph (5) from trade associations representing vendors and
labor unions representing private sector workers who could
reasonably be expected to be affected by approval of the
proposal to authorize the production and sale of a new product
or service (or expand the production of a currently authorized
product or service); and
``(C) afford an opportunity, on request, for a
representative of an established trade association, labor
union, or other private sector representatives to present
comments on the proposal directly to the board of directors.
``(7) The board of directors shall be provided copies of all
comments received on the expansion proposal.
``(8) Based on the comments received on the initial expansion
proposal, the Chief Operating Officer of Federal Prison Industries may
provide the board of directors a revised expansion proposal. If such
revised proposal provides for expansion of inmate work opportunities in
an industry different from that initially proposed, such revised
proposal shall reflect the analysis required by paragraph (5)(C) and be
subject to the public comment requirements of paragraph (6).
``(9) The board of directors shall consider a proposal to authorize
the sale of a new specific product or specific service (or to expand
the volume of sales for a currently authorized product or service) and
take any action with respect to such proposal, during a meeting that is
open to the public, unless closed pursuant to section 552(b) of title
5.
``(10) In conformity with the requirements of paragraphs (5)
through (9) of this subsection, the board of directors may--
``(A) authorize the donation of products produced or
services furnished by Federal industries and available for
sale; or
``(B) authorize the production of a new specific product or
the furnishing of a new specific service for donation.''.
SEC. 4. TRANSITIONAL MANDATORY SOURCE AUTHORITY.
(a) In General.--Notwithstanding the requirements of section 4124
of title 18, United States Code (as amended by section 2 of this Act),
a Federal department or agency having a requirement for a product that
is authorized for sale by Federal Prison Industries and is listed in
its catalog (referred to in section 4124(g) of title 18, United States
Code) shall first solicit an offer from Federal Prison Industries and
make purchases on a noncompetitive basis in accordance with this
section.
(b) Preferential Source Status.--Subject to the limitations of
subsection (d), a contract award shall be made on a noncompetitive
basis to Federal Prison Industries if the contracting officer for the
procurement activity determines that--
(1) the product offered by Federal Prison Industries will
meet the requirements of the procurement activity (including
commercial or governmental standards or specifications
pertaining to design, performance, testing, safety,
serviceability, and warranties as may be imposed upon a private
sector supplier of the type being offered by Federal Prison
Industries);
(2) timely performance of the contract by Federal Prison
Industries can be reasonably expected; and
(3) the negotiated price does not exceed a fair and
reasonable price.
(c) Contractual Terms.--The terms and conditions of the contract
and the price to be paid to Federal Prison Industries shall be
determined by negotiation between Federal Prison Industries and the
Federal agency making the purchase. The negotiated price shall not
exceed a fair and reasonable price determined in accordance with the
procedures of the Federal Acquisition Regulation.
(d) Performance of Contractual Obligations.--
(1) In general.--Federal Prison Industries shall perform
the obligations of the contract negotiated pursuant to
subsection (c).
(2) Performance disputes.--If the head of the contracting
activity and the Chief Operating Officer of Federal Prison
Industries are unable to resolve a contract performance dispute
to their mutual satisfaction, such dispute shall be resolved
pursuant to section 4124(e)(3) of title 18, United States Code
(as added by section 2 of this Act).
(e) Limitations on Use of Authority.--
(1) In general.--As a percentage of the sales made by
Federal Prison Industries during the base period, the total
dollar value of sales to the Government made pursuant to
subsection (b) and subsection (c) of this section shall not
exceed--
(A) 90 percent in fiscal year 2005;
(B) 85 percent in fiscal year 2006;
(C) 70 percent in fiscal year 2007;
(D) 55 percent in fiscal year 2008; and
(E) 40 percent in fiscal year 2009.
(2) Sales within various business sectors.--Use of the
authority provided by subsections (b) and (c) shall not result
in sales by Federal Prison Industries to the Government that
are in excess of its total sales during the base year for each
business sector.
(3) Limitations relating to specific products.--Use of the
authorities provided by subsections (b) and (c) shall not
result in contract awards to Federal Prison Industries that are
in excess of its total sales during the base period for such
product.
(4) Changes in design specifications.--The limitations on
sales specified in paragraphs (2) and (3) shall not be affected
by any increases in the unit cost of production of a specific
product arising from changes in the design specification of
such product directed by the buying agency.
(f) Duration of Authority.--The preferential contracting
authorities authorized by subsection (b) may not be used on or after
October 1, 2009, and become effective on the effective date of the
final regulations issued pursuant to section 17.
(g) Definitions.--For the purposes of this section--
(1) the term ``base period'' means the total sales of
Federal Prison Industries during the period October 1, 2001,
and September 30, 2002 (Fiscal Year 2002);
(2) the term ``business sectors'' means the eight product/
service business groups identified in the 2002 Federal Prison
Industries annual report as the Clothing and Textile Business
Group, the Electronics Business Group, the Fleet Management and
Vehicular Components Business Group, the Graphics Business
Group, the Industrial Products Business Group, the Office
Furniture Business Group, the Recycling Activities Business
Group, and the Services Business Group; and
(3) the term ``fair and reasonable price'' shall be given
the same meaning as, and be determined pursuant to, part 15.8
of the Federal Acquisition Regulation (48 C.F.R. 15.8).
(h) Finding by Attorney General With Respect to Public Safety.--(1)
Not later than 60 days prior to the end of each fiscal year specified
in subsection (e)(1), the Attorney General shall make a finding
regarding the effects of the percentage limitation imposed by such
subsection for such fiscal year and the likely effects of the
limitation imposed by such subsection for the following fiscal year.
(2) The Attorney General's finding shall include a determination
whether such limitation has resulted or is likely to result in a
substantial reduction in inmate industrial employment and whether such
reductions, if any, present a significant risk of adverse effects on
safe prison operation or public safety.
(3) If the Attorney General finds a significant risk of adverse
effects on either safe prison management or public safety, he shall so
advise the Congress.
(4) In advising the Congress pursuant to paragraph (3), the
Attorney General shall make recommendations for additional
authorizations of appropriations to provide additional alternative
inmate rehabilitative opportunities and additional correctional
staffing, as may be appropriate.
SEC. 5. AUTHORITY TO PERFORM AS A FEDERAL SUBCONTRACTOR.
(a) In General.--Federal Prison Industries is authorized to enter
into a contract with a Federal contractor (or a subcontractor of such
contractor at any tier) to produce products as a subcontractor or
supplier in the performance of a Federal procurement contract. The use
of Federal Prison Industries as a subcontractor or supplier shall be a
wholly voluntary business decision by the Federal prime contractor or
subcontractor, subject to any prior approval of subcontractors or
suppliers by the contracting officer which may be imposed by the
Federal Acquisition Regulation or by the contract.
(b) Commercial Sales Prohibited.--The authority provided by
subsection (a) shall not result, either directly or indirectly, in the
sale in the commercial market of a product or service resulting from
the labor of Federal inmate workers in violation of section 1762(a) of
title 18, United States Code. A Federal contractor (or subcontractor at
any tier) using Federal Prison Industries as a subcontractor or
supplier in furnishing a commercial product pursuant to a Federal
contract shall implement appropriate management procedures to prevent
introducing an inmate-produced product into the commercial market.
(c) Prohibitions on Mandating Subcontracting With Federal Prison
Industries.--Except as authorized under the Federal Acquisition
Regulation, the use of Federal Prison Industries as a subcontractor or
supplier of products or provider of services shall not be imposed upon
prospective or actual Federal prime contractors or a subcontractors at
any tier by means of--
(1) a contract solicitation provision requiring a
contractor to offer to make use of Federal Prison Industries,
its products or services;
(2) specifications requiring the contractor to use specific
products or services (or classes of products or services)
offered by Federal Prison Industries in the performance of the
contract;
(3) any contract modification directing the use of Federal
Prison Industries, its products or services; or
(4) any other means.
SEC. 6. INMATE WAGES AND DEDUCTIONS.
Section 4122(b) of title 18, United States Code (as amended by
section 3 of this Act), is further amended by adding a new paragraph
(11) as follows:
``(11)(A) The Board of Directors of Federal Prison Industries shall
prescribe the rates of hourly wages to be paid inmates performing work
for or through Federal Prison Industries. The Director of the Federal
Bureau of Prisons shall prescribe the rates of hourly wages for other
work assignments within the various Federal correctional institutions.
``(B) The various inmate wage rates shall be reviewed and
considered for increase on not less than a biannual basis.
``(C) Wages earned by an inmate worker shall be paid in the name of
the inmate. Deductions, aggregating to not more than 80 percent of
gross wages, shall be taken from the wages due for--
``(i) applicable taxes (Federal, State, and local);
``(ii) payment of fines and restitution pursuant to court
order;
``(iii) payment of additional restitution for victims of
the inmate's crimes (at a rate not less than 10 percent of
gross wages);
``(iv) allocations for support of the inmate's family
pursuant to statute, court order, or agreement with the inmate;
``(v) allocations to a fund in the inmate's name to
facilitate such inmate's assimilation back into society,
payable at the conclusion of incarceration; and
``(vi) such other deductions as may be specified by the
Director of the Bureau of Prisons.
``(D) Each inmate worker working for Federal Prison Industries
shall indicate in writing that such person--
``(i) is participating voluntarily; and
``(ii) understands and agrees to the wages to be paid and
deductions to be taken from such wages.''.
SEC. 7. CLARIFYING AMENDMENT RELATING TO SERVICES.
(a) In General.--Section 1761 of title 18, United States Code, is
amended in subsection (a), by striking ``any goods, wares, or
merchandise manufactured, produced, or mined'' and inserting ``products
manufactured, services furnished, or minerals mined''.
(b) Completion of Existing Agreements.--Any prisoner work program
operated by a prison or jail of a State or local jurisdiction of a
State which is providing services for the commercial market through
inmate labor on October 1, 2002, may continue to provide such
commercial services until--
(1) the expiration date specified in the contract or other
agreement with a commercial partner on October 1, 2002, or
(2) until September 30, 2005, if the prison work program is
directly furnishing the services to the commercial market.
(c) Approval Required for Long-Term Operation.--A prison work
program operated by a correctional institution operated by a State or
local jurisdiction of a State may continue to provide inmate labor to
furnish services for sale in the commercial market after the dates
specified in subsection (b) if such program has been certified pursuant
to section 1761(c)(1) of title 18, United States Code, and is in
compliance with the requirements of such subsection and its
implementing regulations.
SEC. 8. CONFORMING AMENDMENT.
Section 4122(a) of title 18, United States Code, is amended by
striking ``production of commodities'' and inserting ``production of
products or furnishing of services''.
SEC. 9. RULES OF CONSTRUCTION RELATING TO CHAPTER 307.
Chapter 307 of title 18, United States Code, is further amended by
adding the following:
``Sec. 4130. Construction of provisions
``Nothing in this chapter shall be construed--
``(1) to establish an entitlement of any inmate to--
``(A) employment in a Federal Prison Industries
facility; or
``(B) any particular wage, compensation, or benefit
on demand, except as otherwise specifically provided by
law or regulation;
``(2) to establish that inmates are employees for the
purposes of any law or program; or
``(3) to establish any cause of action by or on behalf of
any inmate against the United States or any officer, employee,
or contractor thereof.''.
SEC. 10. PROVIDING ADDITIONAL REHABILITATIVE OPPORTUNITIES FOR INMATES.
(a) Additional Educational, Training, and Release-Preparation
Opportunities.--
(1) Program established.--There is hereby established the
Enhanced In-Prison Educational and Vocational Assessment and
Training Program within the Bureau of Prisons.
(2) Comprehensive program.--In addition to such other
components as the Director of the Bureau of Prisons deems
appropriate to reduce inmate idleness and better prepare
inmates for a successful reentry into the community upon
release, the program shall provide--
(A) in-prison assessments of inmates' needs and
aptitudes;
(B) a full range of educational opportunities;
(C) vocational training and apprenticeships; and
(D) comprehensive release-readiness preparation.
(3) Authorization of appropriations.--For the purposes of
carrying out the program established by paragraph (1),
$75,000,000 is authorized for each fiscal year after fiscal
year 2003, to remain available until expended. Funds shall be
allocated from the gross profits within the Federal Prison
Industries Fund, and, to the extent such amounts are
inadequate, from the General Treasury.
(b) Inmate Work Opportunities in Support of Not-for-Profit
Entities.--
(1) Proposals for donation programs.--The Chief Operating
Officer of Federal Prison Industries shall develop and present
to the Board of Directors of Federal Prison Industries
proposals to have Federal Prison Industries donate products and
services to eligible entities that provide goods or services to
low-income individuals who would likely otherwise have
difficulty purchasing such products or services in the
commercial market.
(2) Schedule for submission and consideration of donation
programs.--
(A) Initial proposals.--The Chief Operating Officer
shall submit the initial group of proposals for
programs of the type described in paragraph (1) within
180 days after the date of the enactment of this Act.
The Board of Directors of Federal Prison Industries
shall consider such proposals from the Chief Operating
Officer not later than the date that is 270 days after
the date of the enactment of this Act.
(B) Annual operating plan.--The Board of Directors
of Federal Prison Industries shall consider proposals
by the Chief Operating Officer for programs of the type
described in paragraph (1) as part of the annual
operating plan for Federal Prison Industries.
(C) Other proposals.--In addition to proposals
submitted by the Chief Operating Officer, the Board of
Directors may, from time to time, consider proposals
presented by prospective eligible entities.
(3) Definition of eligible entities.--For the purposes of
this subsection, the term ``eligible entity'' means an entity--
(A) that is an organization described in section
501(c)(3) of the Internal Revenue Code of 1986 and
exempt from taxation under section 501(a) of such Code
and that has been such an organization for a period of
not less than 36 months prior to inclusion in a
proposal of the type described in paragraph (1), or
(B) that is a religious organization described in
section 501(d) of such Code and exempt from taxation
under section 501(a) of such Code.
(4) Authorization of appropriations.--There are authorized
to be appropriated $7,000,000 for each of the fiscal years 2004
through 2008 for the purposes of paying the wages of inmates
and otherwise carrying out programs of the type described in
paragraph (1).
(c) Maximizing Inmate Rehabilitative Opportunities Through
Cognitive Abilities Assessments.--
(1) Demonstration program authorized.--
(A) In general.--There is hereby established within
the Federal Bureau of Prisons a program to be known as
the ``Cognitive Abilities Assessment Demonstration
Program''. The purpose of the demonstration program is
to determine the effectiveness of a program that
assesses the cognitive abilities and perceptual skills
of Federal inmates to maximize the benefits of various
rehabilitative opportunities designed to prepare each
inmate for a successful return to society and reduce
recidivism. The demonstration program shall be
undertaken by a contractor with a demonstrated record
of enabling the behavioral and academic improvement of
adults through the use of research-based systems that
maximize the development of both the cognitive and
perceptual capabilities of a participating individual,
including adults in a correctional setting.
(B) Scope of demonstration program.--The
demonstration program shall to the maximum extent
practicable, be--
(i) conducted during a period of three
consecutive fiscal years, commencing during
fiscal year 2004;
(ii) conducted at 12 Federal correctional
institutions; and
(iii) offered to 6,000 inmates, who are
categorized as minimum security or less, and
are within five years of release.
(2) Authorization of appropriations.--There is authorized
to be appropriated $3,000,000 in each of the three fiscal years
after fiscal year 2003, to remain available until expended, for
the purposes of conducting the demonstration program authorized
by subsection (a).
(d) Prerelease Employment Assistance.--
(1) In general.--The Director of the Bureau of Prisons
shall, to the maximum extent practicable, afford to inmates
opportunities to participate in programs and activities
designed to help prepare such inmates to obtain employment upon
release.
(2) Prerelease employment placement assistance.--Such
prerelease employment placement assistance required by
subsection (a) shall include--
(A) training in the preparation of resumes and job
applications;
(B) training in interviewing skills;
(C) training and assistance in job search
techniques;
(D) conduct of job fairs; and
(E) such other methods deemed appropriate by the
Director of the Bureau of Prisons.
(3) Priority participation.--Priority in program
participation shall be accorded to inmates who are
participating in work opportunities afforded by Federal Prison
Industries and are within 24 months of release from
incarceration.
(e) Providing Additional Opportunities for Post Incarceration
Vocational and Remedial Educational Opportunities for Inmates.--
(1) Federal reentry center demonstration.--
(A) Authority and establishment of demonstration
project.--From funds made available to carry out this
subsection, the Attorney General, in consultation with
the Director of the Administrative Office of the United
States Courts, shall establish the Federal Reentry
Center Demonstration project. The project shall involve
appropriate prisoners from the Federal prison
population and shall utilize community corrections
facilities, home confinement, and a coordinated
response by Federal agencies to assist participating
prisoners in preparing for and adjusting to reentry
into the community.
(B) Project elements.--The project authorized by
subparagraph (A) shall include the following core
elements:
(i) A Reentry Review Team for each
prisoner, consisting of representative from the
Bureau of Prisons, the United States Probation
System, the United States Parole Commission,
and the relevant community corrections
facility, who shall initially meet with the
prisoner to develop a reentry plan tailored to
the needs of the prisoner.
(ii) A system of graduated levels of
supervision within the community corrections
facility to promote community safety, provide
incentives for prisoners to complete the
reentry plan, including victim restitution, and
provide a reasonable method for imposing
sanctions for a prisoner's violation of the
conditions of participation in the project.
(iii) Substance abuse treatment and
aftercare, mental and medical health treatment
and aftercare, vocational and educational
training, life skills instruction, conflict
resolution skills training, batterer
intervention programs, assistance obtaining
suitable affordable housing, and other
programming to promote effective reintegration
into the community as needed.
(C) Probation officers.--From funds made available
to carry out this subsection, the Director of the
Administrative Office of the United States Courts shall assign one or
more probation officers from each participating judicial district to
the Reentry Demonstration project. Such officers shall be assigned to
and stationed at the community corrections facility and shall serve on
the Reentry Review Teams.
(D) Project duration.--The Reentry Center
Demonstration project shall begin not later than 6
months following the availability of funds to carry out
this subsection, and shall last 3 years.
(2) Definitions.--For the purposes of this subsection, the
term ``appropriate prisoner'' shall mean a person who is
considered by prison authorities--
(A) to pose a medium to high risk of committing a
criminal act upon reentering the community; and
(B) to lack the skills and family support network
that facilitate successful reintegration into the
community.
(3) Authorization of appropriations.--To carry out this
subsection, there are authorized to be appropriated, to remain
available until expended--
(A) to the Federal Bureau of Prisons--
(i) $1,375,000 for fiscal year 2004;
(ii) $1,110,000 for fiscal year 2005;
(iii) $1,130,000 for fiscal year 2006;
(iv) $1,155,000 for fiscal year 2007; and
(v) $1,230,000 for fiscal year 2008; and
(B) to the Federal Judiciary--
(i) $3,380,000 for fiscal year 2004;
(ii) $3,540,000 for fiscal year 2005;
(iii) $3,720,000 for fiscal year 2006;
(iv) $3,910,000 for fiscal year 2007; and
(v) $4,100,000 for fiscal year 2008.
SEC. 11. RESTRUCTURING THE BOARD OF DIRECTORS.
Section 4121 of title 18, United States Code, is amended to read as
follows:
``Sec. 4121. Federal Prison Industries; Board of Directors: executive
management
``(a) Federal Prison Industries is a government corporation of the
District of Columbia organized to carry on such industrial operations
in Federal correctional institutions as authorized by its Board of
Directors. The manner and extent to which such industrial operations
are carried on in the various Federal correctional institutions shall
be determined by the Attorney General.
``(b)(1) The corporation shall be governed by a board of 11
directors appointed by the President.
``(2) In making appointments to the Board, the President shall
assure that 3 members represent the business community, 3 members
represent organized labor, 1 member shall have special expertise in
inmate rehabilitation techniques, 1 member represents victims of crime,
1 member represents the interests of Federal inmate workers, and 2
additional members whose background and expertise the President deems
appropriate. The members of the Board representing the business
community shall include, to the maximum extent practicable,
representation of firms furnishing services as well as firms producing
products, especially from those industry categories from which Federal
Prison Industries derives substantial sales. The members of the Board
representing organized labor shall, to the maximum practicable, include
representation from labor unions whose members are likely to be most
affected by the sales of Federal Prison Industries.
``(3) Each member shall be appointed for a term of 5 years, except
that of members first appointed--
``(A) 2 members representing the business community shall
be appointed for a term of 3 years;
``(B) 2 members representing labor shall be appointed for a
term of 3 years;
``(C) 2 members whose background and expertise the
President deems appropriate for a term of 3 years;
``(D) 1 member representing victims of crime shall be
appointed for a term of 3 years;
``(E) 1 member representing the interests of Federal inmate
workers shall be appointed for a term of 3 years;
``(F) 1 member representing the business community shall be
appointed for a term of 4 years;
``(G) 1 member representing the business community shall be
appointed for a term of 4 years; and
``(H) the members having special expertise in inmate
rehabilitation techniques shall be appointed for a term of 5
years.
``(4) The President shall designate 1 member of the Board as
Chairperson. The Chairperson may designate a Vice Chairperson.
``(5) Members of the Board may be reappointed.
``(6) Any vacancy on the Board shall be filled in the same manner
as the original appointment. Any member appointed to fill a vacancy
occurring before the expiration of the term for which the member's
predecessor was appointed shall be appointed for the remainder of that
term.
``(7) The members of the Board shall serve without compensation.
The members of the Board shall be allowed travel expenses, including
per diem in lieu of subsistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of title 5, United States
Code, to attend meetings of the Board and, with the advance approval of
the Chairperson of the Board, while otherwise away from their homes or
regular places of business for purposes of duties as a member of the
Board.
``(8)(A) The Chairperson of the Board may appoint and terminate any
personnel that may be necessary to enable the Board to perform its
duties.
``(B) Upon request of the Chairperson of the Board, a Federal
agency may detail a Federal Government employee to the Board without
reimbursement. Such detail shall be without interruption or loss of
civil service status or privilege.
``(9) The Chairperson of the Board may procure temporary and
intermittent services under section 3109(b) of title 5, United States
Code.
``(c) The Director of the Bureau of Prisons shall serve as Chief
Executive Officer of the Corporation. The Director shall designate a
person to serve as Chief Operating Officer of the Corporation.''.
SEC. 12. PROVIDING ADDITIONAL MANAGEMENT FLEXIBILITY TO FEDERAL PRISON
INDUSTRY OPERATIONS.
Section 4122(b)(3) of title 18, United States Code, is amended--
(1) by striking ``(3)'' and inserting ``(3)(A)''; and
(2) by adding at the end the following new paragraphs:
``(B) Federal Prison Industries may locate more than one workshop
at a Federal correctional facility.
``(C) Federal Prison Industries may operate a workshop outside of a
correctional facility if all of the inmates working in such workshop
are classified as minimum security inmates.''.
SEC. 13. TRANSITIONAL PERSONNEL MANAGEMENT AUTHORITY.
Any correctional officer or other employee of Federal Prison
Industries being paid with nonappropriated funds who would be separated
from service because of a reduction in the net income of Federal Prison
Industries during any fiscal year specified in section 4(e)(1) shall
be--
(1) eligible for appointment (or reappointment) in the
competitive service pursuant to title 5, United States Code;
(2) registered on a Bureau of Prisons reemployment priority
list; and
(3) given priority for any other position within the Bureau
of Prisons for which such employee is qualified.
SEC. 14. FEDERAL PRISON INDUSTRIES REPORT TO CONGRESS.
Section 4127 of title 18, United States Code, is amended to read as
follows:
``Sec. 4127. Federal Prison Industries report to Congress
``(a) In General.--Pursuant to chapter 91 of title 31, the board of
directors of Federal Prison Industries shall submit an annual report to
Congress on the conduct of the business of the corporation during each
fiscal year and the condition of its funds during the fiscal year.
``(b) Contents of Report.--In addition to the matters required by
section 9106 of title 31, and such other matters as the board considers
appropriate, a report under subsection (a) shall include--
``(1) a statement of the amount of obligations issued under
section 4129(a)(1) of this title during the fiscal year;
``(2) an estimate of the amount of obligations that will be
issued in the following fiscal year;
``(3) an analysis of--
``(A) the corporation's total sales for each
specific product and type of service sold to the
Federal agencies and the commercial market;
``(B) the total purchases by each Federal agency of
each specific product and type of service;
``(C) the corporation's share of such total Federal
Government purchases by specific product and type of
service; and
``(D) the number and disposition of disputes
submitted to the heads of the Federal departments and
agencies pursuant to section 4124(e) of this title;
``(4) an analysis of the inmate workforce that includes--
``(A) the number of inmates employed;
``(B) the number of inmates utilized to produce
products or furnish services sold in the commercial
market;
``(C) the number and percentage of employed inmates
by the term of their incarceration; and
``(D) the various hourly wages paid to inmates
employed with respect to the production of the various
specific products and types of services authorized for
production and sale to Federal agencies and in the
commercial market; and
``(5) data concerning employment obtained by former inmates
upon release to determine whether the employment provided by
Federal Prison Industries during incarceration provided such
inmates with knowledge and skill in a trade or occupation that
enabled such former inmate to earn a livelihood upon release.
``(c) Public Availability.--Copies of an annual report under
subsection (a) shall be made available to the public at a price not
exceeding the cost of printing the report.''.
SEC. 15. INDEPENDENT STUDY TO DETERMINE THE EFFECTS OF ELIMINATING THE
FEDERAL PRISON INDUSTRIES MANDATORY SOURCE AUTHORITY.
(a) Study Required.--The Comptroller General shall undertake to
have an independent study conducted on the effects of eliminating the
Federal Prison Industries mandatory source authority.
(b) Solicitation of Views.--The Comptroller General shall ensure
that in developing the statement of work and the methodology for the
study, the views and input of private industry, organized labor groups,
Members and staff of the relevant Congressional committees, officials
of the executive branch, and the public are solicited.
(c) Submission.--Not later than January 31, 2005, the Comptroller
General shall submit the results of the study to Congress, including
any recommendations for legislation.
SEC. 16. DEFINITIONS.
Chapter 307 of title 18, United States Code, is amended by adding
at the end the following new section:
``Sec. 4131. Definitions
``As used in this chapter--
``(1) the term `assembly' means the process of uniting or
combining articles or components (including ancillary finished
components or assemblies) so as to produce a significant change
in form or utility, without necessarily changing or altering
the component parts;
``(2) the term `current market price' means, with respect
to a specific product, the fair market price of the product
within the meaning of section 15(a) of the Small Business Act
(15 U.S.C. 644(a)), at the time that the contract is to be
awarded, verified through appropriate price analysis or cost analysis,
including any costs relating to transportation or the furnishing of any
ancillary services;
``(3) the term `import-sensitive product' means a product
which, according to Department of Commerce data, has
experienced competition from imports at an import to domestic
production ratio of 25 percent or greater;
``(4) the term `labor-intensive manufacture' means a
manufacturing activity in which the value of inmate labor
constitutes at least 10 percent of the estimate unit cost to
produce the item by Federal Prison Industries;
``(5) the term `manufacture' means the process of
fabricating from raw or prepared materials, so as to impart to
those materials new forms, qualities, properties, and
combinations;
``(6) the term `reasonable share of the market' means a
share of the total purchases by the Federal departments and
agencies, as reported to the Federal Procurement Data System
for--
``(A) any specific product during the 3 preceding
fiscal years, that does not exceed 20 percent of the
Federal market for the specific product; and
``(B) any specific service during the 3 preceding
fiscal years, that does not exceed 5 percent of the
Federal market for the specific service; and
``(7) the term `services' has the meaning given the term
`service contract' by section 37.101 of the Federal Acquisition
Regulation (48 C.F.R. 36.102), as in effect on July 1, 2002.''.
SEC. 17. IMPLEMENTING REGULATIONS AND PROCEDURES.
(a) Federal Acquisition Regulation.--
(1) Proposed revisions.--Proposed revisions to the
Governmentwide Federal Acquisition Regulation to implement the
amendments made by this Act shall be published not later than
60 days after the date of the enactment of this Act and provide
not less than 60 days for public comment.
(2) Final regulations.--Final regulations shall be
published not later than 180 days after the date of the
enactment of this Act and shall be effective on the date that
is 30 days after the date of publication.
(3) Public participation.--The proposed regulations
required by subsection (a) and the final regulations required
by subsection (b) shall afford an opportunity for public
participation in accordance with section 22 of the Office of
Federal Procurement Policy Act (41 U.S.C. 418b).
(b) Board of Directors.--
(1) In general.--The Board of Directors of Federal Prison
Industries shall issue regulations defining the terms specified
in paragraph (2).
(2) Terms to be defined.--The Board of Directors shall
issue regulations for the following terms:
(A) Prison-made product.
(B) Prison-furnished service.
(C) Specific product.
(D) Specific service.
(3) Schedule for regulatory definitions.--
(A) Proposed regulations relating to the matter
described in subsection (b)(2) shall be published not
later than 60 days after the date of enactment of this
Act and provide not less than 60 days for public
comment.
(B) Final regulations relating to the matters
described in subsection (b)(2) shall be published not
less than 180 days after the date of enactment of this
Act and shall be effective on the date that is 30 days
after the date of publication.
(4) Enhanced opportunities for public participation and
scrutiny.--
(A) Administrative procedure act.--Regulations
issued by the Board of Directors shall be subject to
notice and comment rulemaking pursuant to section 553
of title 5, United States Code. Unless determined
wholly impracticable or unnecessary by the Board of
Directors, the public shall be afforded 60 days for
comment on proposed regulations.
(B) Enhanced outreach.--The Board of Directors
shall use means designed to most effectively solicit
public comment on proposed regulations, procedures, and
policies and to inform the affected public of final
regulations, procedures, and policies.
(C) Open meeting processes.--The Board of Directors
shall take all actions relating to the adoption of
regulations, operating procedures, guidelines, and any
other matter relating to the governance and operation
of Federal Prison Industries based on deliberations and
a recorded vote conducted during a meeting open to the
public, unless closed pursuant to section 552(b) of
title 5, United States Code.
SEC. 18. RULE OF CONSTRUCTION.
Subsection (e) of section 4124 of title 18, United States Code, as
amended by section 2, is not intended to alter any rights of any
offeror other than Federal Prison Industries to file a bid protest in
accordance with other law or regulation in effect on the date of the
enactment of this Act.
SEC. 19. EFFECTIVE DATE AND APPLICABILITY.
(a) Effective Date.--Except as provided in subsection (b), this Act
and the amendments made by this Act shall take effect on the date of
enactment of this Act.
(b) Applicability.--Section 4124 of title 18, United States Code,
as amended by section 2, shall apply to any requirement for a product
or service offered by Federal Prison Industries needed by a Federal
department or agency after the effective date of the final regulations
issued pursuant to section 17(a)(2), or after September 30, 2004,
whichever is earlier.
SEC. 20. CLERICAL AMENDMENTS.
The table of sections for chapter 307 of title 18, United States
Code, is amended--
(1) by amending the item relating to section 4121 to read
as follows:
``4121. Federal Prison Industries; Board of Directors: executive
management.'';
(2) by amending the item relating to section 4124 to read
as follows:
``4124. Governmentwide procurement policy relating to purchases from
Federal Prison Industries.'';
(3) by amending the item relating to section 4127 to read
as follows:
``4127. Federal Prison Industries report to Congress.'';
and
(4) by adding at the end the following new items:
``4130. Construction of provisions.
``4131. Definitions.''.
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DEBATE - The Committee of the Whole proceeded with debate on the Toomey amendment under the five-minute rule.
DEBATE - The Committee of the Whole proceeded with debate on the Smith (MI) amendment under the five-minute rule.
DEBATE - The Committee of the Whole proceeded with debate on the Scott (VA) amendment under the five-minute rule.
DEBATE - The Committee of the Whole proceeded with debate on the Maloney amendment under the five-minute rule.
DEBATE - The Committee of the Whole proceeded with debate on the Green (WI) amendment under the five-minute rule.
POSTPONED ROLL CALL VOTE - At the conclusion of debate on the Green (WI) amendment, the Chair put the question on adoption of the amendment and by voice vote, announced that the noes had prevailed. Mr. Green (WI) demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until later in the legislative day.
DEBATE - The Committee of the Whole proceeded with debate on the Waters amendment under the five-minute rule.
DEBATE - The Committee of the Whole proceeded with debate on the Scott (VA) amendment under the five-minute rule.
DEBATE - The Committee of the Whole proceeded with debate on the Scott (VA) amendment under the five-minute rule.
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DEBATE - The Committee of the Whole proceeded with debate on the Hoekstra amendment under the five-minute rule.
DEBATE - The Committee of the Whole proceeded with debate on the Jackson-Lee amendment under the five-minute rule.
POSTPONED ROLLCALL VOTE - At the conclusion of debate on the Jackson-Lee amendment, the Chair put the question on adoption of the amendment and by voice vote, announced that the noes had prevailed. Ms. Jackson-Lee demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until later in the legislative day.
DEBATE - The Committee of the Whole proceeded with debate on the Strickland amendment under the five-minute rule.
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 1829.
The previous question was ordered pursuant to the rule.
The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union.
Passed/agreed to in House: On passage Passed by the Yeas and Nays: 350 - 65 (Roll no. 612).
Roll Call #612 (House)On passage Passed by the Yeas and Nays: 350 - 65 (Roll no. 612).
Roll Call #612 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on the Judiciary.