Overview
FAR 8.602 establishes the policy for federal agencies purchasing supplies from Federal Prison Industries (FPI/UNICOR), requiring market research to determine if FPI items are comparable to private sector offerings. It mandates a written comparability determination and outlines the transition to competitive procedures if FPI is found to be non-competitive in price, quality, or delivery time.
Key Rules
- Mandatory Market Research: Before purchasing an item on the FPI Schedule, agencies must conduct market research to compare FPI’s price, quality, and delivery terms against the private sector.
- Unilateral Determination: The Contracting Officer (CO) has the sole discretion to make the comparability determination; this specific decision is not subject to the arbitration provisions of 18 U.S.C. 4124(b).
- Documentation: Agencies must prepare a written determination with supporting rationale explaining the assessment of price, quality, and delivery.
- Mandatory Purchase: If the FPI item is found to be comparable, the agency must purchase from FPI unless a waiver is obtained.
- Competitive Procedures: If FPI is not comparable, the agency must use competitive procedures (e.g., FAR Part 6, 13, or 19.5) and must include FPI in the solicitation process, evaluating them on the same basis as private offerors.
- Best Value Award: When competing a requirement, the award must be made to the source (FPI or private sector) that provides the best value to the Government.
- AbilityOne Interaction: If FPI and AbilityOne produce identical items and FPI grants a waiver, the agency must follow the procurement procedures in FAR Subpart 8.7.
Practical Implications
- Contracting Officers must treat FPI as a mandatory source that is subject to a "market test," requiring robust documentation to justify any decision to buy from the private sector.
- Because FPI must be included in the competitive process even if their initial market research was unfavorable, COs should ensure FPI has access to the solicitation via SAM.gov or direct delivery to avoid procedural protests.