[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3745 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3745

 To amend title 18, United States Code, to minimize unfair competition 
for Federal contracting opportunities between Federal Prison Industries 
 and private firms, especially small business concerns, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 27, 1996

  Mrs. Meyers of Kansas (for herself, Mr. Hoekstra, Mr. Chrysler, Mr. 
    Manzullo, Mr. Hilleary, Mr. Barcia, Mr. Hefley, Mr. Bartlett of 
Maryland, Mr. Collins of Georgia, Mr. Oxley, Mr. Ehlers, Mr. Taylor of 
North Carolina, Mr. Ballenger, Mr. Upton, Mr. English of Pennsylvania, 
Mr. Coble, Mr. Knollenberg, Mr. Calvert, Mr. Chambliss, Mr. Cramer, Mr. 
  Barr of Georgia, Mr. Deal of Georgia, Mr. Linder, Mr. Everett, Mr. 
   Salmon, Mr. Stump, Mr. Baker of Louisiana, Mr. Flanagan, and Mr. 
   Quillen) introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To amend title 18, United States Code, to minimize unfair competition 
for Federal contracting opportunities between Federal Prison Industries 
 and private firms, especially small business concerns, 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.

    This Act may be cited as the ``Federal Prison Industries 
Competition in Contracting Corrections Act of 1996''.

SEC. 2. PURCHASE OF PRISON-MADE PRODUCTS BY FEDERAL AGENCIES.

    Section 4124 of title 18, United States Code, is amended to read as 
follows:
``Sec. 4124. Purchase of prison-made products by Federal departments 
              and agencies
    ``(a) Purchase of Prison-Made Products.--Each Federal department 
and agency shall offer to purchase prison-made products in accordance 
with this section.
    ``(b) Requirements for Prison-Made Products.--(1) When a 
procurement activity of a Federal department or agency has a 
requirement for a specific product 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 (f), 
the procurement activity shall solicit an offer from Federal Prison 
Industries.
    ``(2) A contract award for such product shall be made using 
competitive procedures in accordance with the specifications and 
evaluation factors specified in the solicitation.
    ``(3) A contract award for such product may be made to Federal 
Prison Industries if the contracting officer for the procurement 
activity determines that--
            ``(A) the prison-made product 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 as established by the competition.
    ``(c) Performance by Federal Prison Industries.--Federal Prison 
Industries shall be required to perform its contractual obligations 
under a contract awarded by a Federal department or agency to the same 
extent as any other contractor under such a contract.
    ``(d) 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 Director 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)(3). 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 
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.).
    ``(e) 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))).
    ``(f) 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).''.

SEC. 3. DEFINITIONS.

    Chapter 307 of title 18, United States Code, is amended by adding 
at the end thereof the following new section:
``Sec. 4130. Definitions
    ``As used in the chapter:
            ``(1) 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 any specific product during the 3 preceding fiscal years, 
        that does not exceed 20 percent of the Federal market for the 
        specific product.
            ``(2) The term `specific product' means a product that is 
        designed and manufactured to meet requirements distinct in 
        function and predominant material of manufacture from another 
        product, as described by--
                    ``(A) the 7-digit classification for the product in 
                the Standard Industrial Classification (SIC) Code 
                published by the Office of Management and Budget (or if 
                there is no 7-digit code classification for a product, 
                the 5-digit code classification); and
                    ``(B) the 13-digit National Stock Number assigned 
                to such product under the Federal Stock Classification 
                System (including group, part number, and section), as 
                determined by the General Services Administration.''.

SEC. 4. IMPLEMENTATION IN THE FEDERAL ACQUISITION REGULATION.

    (a) Proposed Revisions.--Proposed revisions to the government-wide 
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.
    (b) 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.
    (c) 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).

SEC. 5. RULE OF CONSTRUCTION.

    Subsection (d) 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. 6. 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 
offered by Federal Prison Industries needed by a Federal department or 
agency after the effective date of the final regulations issued 
pursuant to section 3(b), or after March 31, 1997, whichever is 
earlier.
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