[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1577 Reported in House (RH)]

                                                 Union Calendar No. 349
107th CONGRESS
  2d Session
                                H. R. 1577

                          [Report No. 107-583]

   To amend title 18, United States Code, to require Federal Prison 
     Industries to compete for its contracts minimizing its unfair 
competition with non-inmate workers and the firms that employ them and 
increasing the likelihood that Federal agencies get the best value for 
taxpayers dollars, to require that Federal Prison Industries fully and 
     timely perform its Government contracts by empowering Federal 
 contracting officers with the contract administration tools generally 
  available to assure full and timely performance of other Government 
     contracts, to enhance the opportunities for effective public 
 participation in decisions to expand the activities of Federal Prison 
   Industries, to provide to Federal agencies temporary preferential 
   contract award authority to ease the transition of Federal Prison 
 Industries to obtaining inmate work opportunities through other than 
 its mandatory source status, to provide additional work opportunities 
for Federal inmates by authorizing Federal Prison Industries to provide 
     inmate workers to nonprofit entities with protections against 
             commercial activities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 24, 2001

Mr. Hoekstra (for himself, Mr. Frank, Mr. Collins, Mrs. Maloney of New 
  York, Mr. Sensenbrenner, Mr. Coble, Mr. Hilleary, Ms. Baldwin, Mr. 
Jenkins, Mr. Kleczka, Mr. Tom Davis of Virginia, Mr. Rahall, Ms. Hart, 
 Mr. McGovern, Mr. Blunt, Mr. Gordon, Mr. Burr of North Carolina, Mr. 
 Smith of Washington, Mr. LaHood, Mr. Ney, Mr. Hilliard, Mr. LoBiondo, 
 Mr. Jones of North Carolina, Mr. English, Mr. Doyle, Mr. McHugh, Mr. 
 Ehlers, Ms. Carson of Indiana, Mr. Sessions, Mr. Camp, Mr. Kucinich, 
 Mr. Royce, Mr. Souder, and Mr. Tanner) introduced the following bill; 
          which was referred to the Committee on the Judiciary

                             July 16, 2002

Additional sponsors: Mr. Norwood, Mr. Deal of Georgia, Ms. Sanchez, Mr. 
   Chambliss, Mr. Bartlett of Maryland, Mr. Toomey, Ms. Granger, Mr. 
 Gillmor, Mr. Ferguson, Mr. Callahan, Mr. Maloney of Connecticut, Mr. 
Hostettler, Mr. Coyne, Mrs. Myrick, Mr. Hefley, Mr. Brady of Texas, Mr. 
    Smith of New Jersey, Mr. Borski, Mr. Knollenberg, Mr. Rogers of 
Michigan, Mr. Filner, Mr. Upton, Mr. Hill, Mr. Baldacci, Mr. McIntyre, 
Mr. Stump, Mr. Frost, Mr. Kirk, Mr. Manzullo, Mr. Olver, Ms. McKinney, 
 Mr. Duncan, Mr. Barcia, Mr. Istook, Mr. Clay, Mr. Lantos, Mr. Grucci, 
  Mr. McInnis, Mr. Roemer, Mr. Shadegg, Mr. Schaffer, Mr. Nadler, Ms. 
Woolsey, Mr. Rangel, Mr. Thornberry, Mr. LaTourette, Mrs. Northup, Mr. 
Leach, Mr. Burton of Indiana, Mr. DeMint, Mr. Ballenger, Mrs. Emerson, 
   Mr. Cantor, Mr. Pence, Mr. Kerns, Mr. Bryant, Mr. Taylor of North 
 Carolina, Mr. Wamp, Mrs. Jones of Ohio, Mr. Pickering, Ms. Velazquez, 
Mr. Nethercutt, Mr. Fletcher, Mr. Ryan of Wisconsin, Mr. Clement, Mrs. 
 Capito, Mrs. Cubin, Mr. Kingston, Mr. Quinn, Mr. Platts, Ms. Pryce of 
 Ohio, Mr. Tiahrt, Mr. McKeon, Mrs. Wilson of New Mexico, Mr. Cramer, 
Mr. Doolittle, Mr. Forbes, Mr. Terry, Mr. Edwards, Mr. Barr of Georgia, 
   Mrs. Davis of California, Mr. Latham, Ms. Lee, Mr. Langevin, Ms. 
 Schakowsky, Mr. Ganske, Mr. Bonior, Mr. Flake, Mr. Weldon of Florida, 
   Mr. Hayes, Mr. Boehlert, Mr. Goode, Mr. Oxley, Mr. Stenholm, Mr. 
 Dingell, Mr. Conyers, Mr. Watt of North Carolina, Ms. Jackson-Lee of 
Texas, Mr. Gekas, Mr. Isakson, Mr. Osborne, Mr. Brady of Pennsylvania, 
                 Mr. Udall of Colorado, and Mr. Nussle
 Deleted sponsors: Mr. Lucas of Oklahoma (added June 28, 2001; deleted 
 July 15, 2002) and Mr. Sandlin (added September 13, 2001; deleted May 
                               22, 2002)

                             July 16, 2002

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on April 
                               24, 2001]

_______________________________________________________________________

                                 A BILL


 
   To amend title 18, United States Code, to require Federal Prison 
     Industries to compete for its contracts minimizing its unfair 
competition with non-inmate workers and the firms that employ them and 
increasing the likelihood that Federal agencies get the best value for 
taxpayers dollars, to require that Federal Prison Industries fully and 
     timely perform its Government contracts by empowering Federal 
 contracting officers with the contract administration tools generally 
  available to assure full and timely performance of other Government 
     contracts, to enhance the opportunities for effective public 
 participation in decisions to expand the activities of Federal Prison 
   Industries, to provide to Federal agencies temporary preferential 
   contract award authority to ease the transition of Federal Prison 
 Industries to obtaining inmate work opportunities through other than 
 its mandatory source status, to provide additional work opportunities 
for Federal inmates by authorizing Federal Prison Industries to provide 
     inmate workers to nonprofit entities with protections against 
             commercial activities, 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 Act of 2002''.

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 noninmate 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, 2001, 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 2004;
                    (B) 85 percent in fiscal year 2005;
                    (C) 70 percent in fiscal year 2006;
                    (D) 55 percent in fiscal year 2007; and
                    (E) 40 percent in fiscal year 2008.
            (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, 2008, 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, 2000, 
        and September 30, 2001 (Fiscal Year 2001);
            (2) the term ``business sectors'' means the eight product/
        service business groups identified in the 2001 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 Furniture Business 
        Group, the Graphics Business Group, the Industrial Products 
        Business Group, the Recycled Electronics Products and Services 
        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, 2001, 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, 2001, or
            (2) until September 30, 2004, 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 with a correctional institution operated by 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 OPPORTUNITIES FOR POST INCARCERATION 
              VOCATIONAL AND REMEDIAL EDUCATIONAL OPPORTUNITIES FOR 
              INMATES.

    (a) Federal Reentry Center Demonstration.--
            (1) Authority and establishment of demonstration project.--
        From funds made available to carry out this section, 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.
            (2) Project elements.--The project authorized by paragraph 
        (1) shall include the following core elements:
                    (A) 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.
                    (B) 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.
                    (C) 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.
            (3) Probation officers.--From funds made available to carry 
        out this section, 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.
            (4) 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.
    (b) Definitions.--For the purposes of this section, ``Appropriate 
prisoner'' shall mean a person who is considered by prison 
authorities--
            (1) to pose a medium to high risk of committing a criminal 
        act upon reentering the community, and
            (2) to lack the skills and family support network that 
        facilitate successful reintegration into the community.
    (c) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated, to remain available until 
expended--
            (1) to the Federal Bureau of Prisons--
                    (A) $1,375,000 for fiscal year 2003;
                    (B) $1,110,000 for fiscal year 2004;
                    (C) $1,130,000 for fiscal year 2005;
                    (D) $1,155,000 for fiscal year 2006; and
                    (E) $1,230,000 for fiscal year 2007;
            (2) to the Federal Judiciary--
                    (A) $3,380,000 for fiscal year 2003;
                    (B) $3,540,000 for fiscal year 2004;
                    (C) $3,720,000 for fiscal year 2005;
                    (D) $3,910,000 for fiscal year 2006; and
                    (E) $4,100,000 for fiscal year 2007.

SEC. 11. PROVIDING ADDITIONAL TRAINING AND EDUCATIONAL OPPORTUNITIES 
              FOR INMATES.

    (a) Amendment Regarding the Department of Justice Assets Forfeiture 
Fund.--Section 524(c)(1) of title 28, United States Code, is amended--
            (1) by redesignating the second appearance of subparagraph 
        (I) as subparagraph (J);
            (2) by amending subparagraph (J) (as redesignated by 
        paragraph (1)) to read as follows:
            ``(J) payments to the Bureau of Prisons exclusively for the 
        purpose of establishing the Federal Enhanced In-Prison 
        Vocational Assessment and Training Program in all Federal 
        institutions, which shall provide in-prison assessments of 
        prisoners' needs and aptitudes, enhanced work skills developed, 
        enhanced release readiness programming, and other components as 
        appropriate to reduce inmate idleness and prepare Federal 
        prisoners for release and reentry into the community;''; and
            (3) by adding at the end the following new subparagraph:
            ``(K) payments to the Bureau of Prisons exclusively for the 
        purpose of establishing a nonprofit component for inmate work 
        in all Federal institutions, in carrying out which Federal 
        Prison Industries shall (i) work actively to identify and 
        donate to nonprofit organizations that provide goods and 
        services to low income individuals who can use Federal Prison 
        Industry products and have difficulty purchasing these products 
        on their own, and (ii) focus on organizations that would not 
        otherwise be available to purchase such products.''.
    (b) Priority Established.--During each fiscal year after fiscal 
year 2002, the Attorney General shall, to carry out the programs 
described in subparagraphs (J) and (K) of section 524(c)(1) of title 
28, United States Code (as added by subsection (a)), allocate such 
funds as may be appropriate, but in no event less than $75,000,000, 
from the excess unobligated balance in the Department of Justice Assets 
Forfeiture Fund. If the unobligated balance of the Fund is less than 
such amount or such funds are otherwise unavailable from the Fund, such 
allocation shall be made from the General Treasury.

SEC. 12. 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 Oversight 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. 13. PRE-RELEASE EMPLOYMENT ASSISTANCE.

    (a) 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.
    (b) Pre-Release Employment Placement Assistance.--Such pre-release 
employment placement assistance required by subsection (a) shall 
include--
            (1) training in the preparation of resumes and job 
        applications;
            (2) training in interviewing skills;
            (3) training and assistance in job search techniques;
            (4) conduct of job fairs; and
            (5) such other methods deemed appropriate by the Director 
        of the Bureau of Prisons.
    (c) 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 12 
months of release from incarceration.

SEC. 14. 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. 15. 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. 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, 2001.''.

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 16(a)(2), or after September 30, 2003, 
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.''.

SEC. 21. 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, 2003, the Comptroller 
General shall submit the results of the study to Congress, including 
any recommendations for legislation.




                                                 Union Calendar No. 349

107th CONGRESS

  2d Session

                               H. R. 1577

                          [Report No. 107-583]

_______________________________________________________________________

                                 A BILL

   To amend title 18, United States Code, to require Federal Prison 
     Industries to compete for its contracts minimizing its unfair 
competition with non-inmate workers and the firms that employ them and 
increasing the likelihood that Federal agencies get the best value for 
taxpayers dollars, to require that Federal Prison Industries fully and 
     timely perform its Government contracts by empowering Federal 
 contracting officers with the contract administration tools generally 
  available to assure full and timely performance of other Government 
     contracts, to enhance the opportunities for effective public 
 participation in decisions to expand the activities of Federal Prison 
   Industries, to provide to Federal agencies temporary preferential 
   contract award authority to ease the transition of Federal Prison 
 Industries to obtaining inmate work opportunities through other than 
 its mandatory source status, to provide additional work opportunities 
for Federal inmates by authorizing Federal Prison Industries to provide 
     inmate workers to nonprofit entities with protections against 
             commercial activities, and for other purposes.

_______________________________________________________________________

                             July 16, 2002

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed