Overview
This section outlines the specific circumstances under which federal agencies are exempt from the mandatory requirement to purchase supplies from Federal Prison Industries (FPI), allowing for procurement from the private sector without seeking a formal waiver.
Key Rules
- Comparability Determination: FPI is not mandatory if the Contracting Officer determines FPI’s supplies do not meet the government's needs regarding price, quality, or delivery time compared to the private sector (subject to procedures in 8.602(a)(4)).
- Urgency and Location: Exceptions apply during public exigencies requiring immediate delivery and for supplies used entirely outside the United States.
- Micro-purchases: Acquisitions totaling $3,500 or less are exempt from the mandatory source requirement.
- Nature of the Requirement: FPI is not a mandatory source for services, the purchase of used/excess supplies, or items that FPI specifically identifies as "competitive" on its Schedule.
Practical Implications
- Contracting Officers can bypass FPI through a documented comparability determination, which effectively allows for market-based competition to ensure "best value" for the government.
- The administrative burden of the FPI program is removed for small-dollar transactions (under $3,500) and international operations, providing agencies with greater procurement speed and flexibility.