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Federal prison industries program expects to lose millions in sales

By Real Cost of Prisons Project (The Sentencing Project)

May 8th, 2008 Federal prison industries program expects to lose millions in sales By ELISE CASTELLI The federal program that sells office furniture and other products made from prison labor expects to lose millions of dollars in sales because of a new law, officials told a House committee Tuesday. Federal Prison Industries (FPI), known by the brand name Unicor, has long been a mandatory source for federal purchases, but the 2008 Defense Authorization Act requires the Defense Department to put out for bid orders it previously would have placed with FPI. In areas where Defense buys more than 5 percent of goods or services from FPI, it now must compare what FPI sells to what the private sector sells. If FPI doesn?t offer the best quality, price and delivery time, Defense is required to open the purchase to a competition between FPI and the private sector...continue to full post

Full post as published by The Real Cost of Prisons Weblog on May 08, 2008 (boomark / email).