[Federal Register Volume 78, Number 51 (Friday, March 15, 2013)]
[Page 16479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-06091]

[[Page 16479]]



Defense Acquisition Regulations System

Acquisition of Items for Which Federal Prison Industries Has a 
Significant Market Share

AGENCY: Department of Defense (DoD).

ACTION: Notice.


SUMMARY: DoD is publishing the annual list of product categories for 
which the Federal Prison Industries' share of the DoD Market is greater 
than five percent.

DATES:  Effective Date: April 5, 2013.

FOR FURTHER INFORMATION CONTACT: Sheila Harris, telephone 703-614-1254.



    On November 19, 2009, a final rule was published at 74 FR 59914 
which amended the Defense Federal Acquisition Regulation Supplement 
(DFARS) 208.6, to implement Section 827 of the National Defense 
Authorization Act (NDAA) for Fiscal Year 2008, Public Law 110-181. 
Section 827 changed DoD competition requirements for purchases from 
Federal Prison Industries, Inc. (FPI) by requiring DoD to publish an 
annual list of product categories for which FPI's share of the DoD 
market was greater than five percent, based on the most recent fiscal 
year data available. Product categories on the current list, and the 
products within each identified product category, must be procured 
using competitive or fair opportunity procedures in accordance with 
Defense Federal Acquisition Regulation Supplement (DFARS) 208.602-70.
    This notification provides an updated list of FPI product 
categories exceeding five percent of the DoD market, based on Fiscal 
Year 2012 data obtained from the Federal Procurement Data System. An 
identical list is also found in the Director, Defense Procurement and 
Acquisition Policy (DPAP) memorandum dated March 7, 2013. (The DPAP 
memorandum with the current list of product categories for which FPI 
has a significant market share is posted at: http://www.acq.osd.mil/dpap/policy/policyvault/USA007579-12-DPAP.pdf).
    Accordingly, the updated product categories to be competed 
effective April 5, 2013, are:

     5220 (Inspection Gages and Precision Layout Tools)
 5335 (Metal Screening)
 7210 (Household Furnishings)
 7230 Draperies, Awnings, and Shades
 8405 (Outerwear, Men's)
 8415 (Clothing, Special Purpose)
 8465 (Individual Equipment)
 9905 (Signs, Advertising Displays and Identification Plates)

    The statute, as implemented also requires DoD to:
    (1) Include FPI in the solicitation process for items for which 
FPI's share of the DoD market is greater than five percent; a timely 
offer from FPI must be considered; and award procedures must be 
followed in accordance with existing policy at Federal Acquisition 
Regulation (FAR) 8.602(a)(4)(ii) through (v).
    (2) Continue to be make acquisitions, in accordance with FAR 
Subpart 8.6., for items from product categories for which FPI does not 
have a significant market share. FAR 8.602 requires agencies to conduct 
market research and make a written comparability determination, at the 
discretion of the contracting officer. Competitive or fair opportunity 
procedures are appropriate if the FPI product is not comparable in 
terms of price, quality, or time of delivery.
    (3) Section 827 allows modification of the published list if DoD 
subsequently determines that new data requires adding or omitting a 
product category from the list.

Manuel Quinones,
Editor, Defense Acquisition Regulations System.
[FR Doc. 2013-06091 Filed 3-14-13; 8:45 am]