[Congressional Record Volume 147, Number 175 (Monday, December 17, 2001)]
[Senate]
[Page S13356]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         DEFENSE AUTHORIZATION

  Mr. THOMAS. Mr. President, I rise to commend the fiscal year 2002 
Defense authorization conferees, particularly Senator Levin and Senator 
Warner, for retaining the language adopted by the Senate with regard to 
reforming the Federal Prison Industries.
  During consideration of the Defense authorization bill, the Senate 
voted 74-24 to table an amendment that would have removed the Federal 
Prison Industries reform provision from the bill.
  Section 821 of the bill, which has now been endorsed by the 
conference and adopted overwhelmingly by both the House and the Senate, 
ends FPI's ``mandatory source'' status as a supplier of products to the 
Department of Defense, DOD. When this bill becomes law, FPI will be 
required to compete for future Department of Defense contracts that 
have been previously monopolized under FPI's ``mandatory source'' 
status dating back to 1934. Most importantly, this provision will 
enable the Department of Defense to determine, for itself, whether the 
FPI can best meet the Department's needs in terms of price, quality, 
and time of delivery. If the DOD determines that the FPI product is not 
the best one available, the Department can purchase a more competitive 
product to meet its needs.
  I would like to point out that by eliminating the Federal Prison 
Industries' mandatory source status, this reform affects another 
controversial marketing scheme that the FPI developed in recent years. 
As a result of this bill, the FPI will no longer be able to require 
Defense contractors to use their products. Let me give an example of 
what this means: when the Naval Facilities Engineering Command, NAVFAC, 
the Corps of Engineers, Air Force, or any other Defense agency issues a 
contract for architect-engineer, A/E, services, the A/E firm cannot be 
forced to specify FPI products, such as office furniture systems, in 
its designs and specifications. It is my view that architects and 
engineers should be free to specify products, such as modular office 
systems, interior design, and other products, that provide the highest 
quality design, best value, and greatest functionality to the Federal 
Government. Should the FPI continue to mandate that subcontractors use 
FPI products it would be in direct conflict with the underlying 
provisions of the Defense authorization language--in effect 
circumventing congressional intent.
  Mr. President, I also want my colleagues to know that there are still 
a number of issues related to the practices of the Federal Prison 
Industries that Congress must address in the near future. Senator Levin 
and I have introduced a broader initiative--S. 1295--that seeks to make 
a number of needed, government-wide reforms affecting the sales and 
services by FPI. We are also working with the bipartisan team of 
Representatives Hoekstra, Frank, Collins, Maloney, and Sensenbrenner of 
their companion bill, H.R. 1577. It is my hope that when we return in 
January, Congress will take up comprehensive Federal Prison Industry 
reform. It is also my strong desire that the Bush administration 
address this issue administratively. Many of the problems we are 
experiencing with the FPI have not been the result of legislative 
action, but rather administrative expansion. I look forward to working 
with Senator Levin and Senator Warner in oversight of the 
implementation of this provision in the Defense Department's 
acquisition regulations.
  I have a long record of interest in the issue of unfair government 
competition with the private sector. When the government needs 
commercially available products and services, the government should go 
to the competitive, private sector market to procure those services. 
Such full and open competition leads to the highest quality, the most 
fair and reasonable price, and the overall best value for the taxpayer. 
I am pleased the Congress is taking another step in that direction by 
enacting the FPI reforms in this bill. Once again, I commend Senator 
Levin and Senator Warner for their leadership, and I thank them for the 
cooperation they have extended to me in this matter.

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