Overview
FAR Subpart 8.6 prescribes the policies and procedures for acquiring supplies and services from Federal Prison Industries, Inc. (FPI), also known as UNICOR. It establishes FPI as a mandatory source for certain supplies to support inmate vocational training while ensuring the government receives "best value" through mandatory market research and comparability determinations.
Key Rules
- Mandatory Market Research: Before purchasing supplies listed on the FPI Schedule, Contracting Officers must conduct market research to determine if FPI’s offerings are comparable to the private sector in terms of price, quality, and time of delivery.
- Comparability Determination:
- If FPI is comparable, the agency must purchase from FPI.
- If FPI is not comparable, the agency must conduct a competition but must still include FPI in the solicitation process.
- Purchase Priorities:
- For Supplies: FPI has first priority, followed by AbilityOne participating nonprofit agencies, then commercial sources.
- For Services: AbilityOne has first priority; FPI and commercial sources are on the same secondary level (FPI is not mandatory for services).
- Exceptions to Mandates: Purchase from FPI is not mandatory if the acquisition is at or below $3,500, involves public exigency, involves services, or if the items are for use outside the United States.
- Security Restrictions: FPI/inmate workers are strictly prohibited from accessing classified data, sensitive geographic infrastructure data (utilities/pipelines), or personal/financial information of private citizens.
- Subcontracting Prohibitions: Agencies are forbidden from requiring prime contractors or subcontractors to use FPI as a source of supply.
Responsibilities
- Contracting Officers (CO):
- Conducting unilateral market research and making the final "comparability determination."
- Preparing written determinations with supporting rationale when choosing not to use FPI.
- Evaluating FPI’s performance in accordance with FAR 42.15.
- Ensuring FPI is included in solicitations when items are deemed non-comparable.
- Federal Prison Industries (FPI/UNICOR):
- Maintaining the FPI Schedule of supplies and services.
- Granting formal or blanket waivers when they cannot fulfill a requirement.
- Participating in competitive solicitations when their items are found non-comparable.
- Arbitration Board: Responsible for resolving disputes regarding price, quality, or suitability (excluding the CO’s initial comparability determination).
Practical Implications
- Documentation is Critical: Contracting Officers cannot simply skip FPI because they prefer a commercial vendor. The "Written Determination" of non-comparability is a vital part of the contract file and must be backed by market research data (price lists, lead times, etc.).
- Leveling the Playing Field: Even if an agency determines FPI is not comparable and moves to a competitive solicitation, FPI must be given a "fair shot" to win the award. If they win the best-value competition, the agency must then use FPI’s specific ordering procedures.
- IT and Data Security Limits: Because inmates cannot access sensitive personal or infrastructure data, FPI is effectively excluded from many modern IT, cybersecurity, and sensitive utility-related contracts.
- Micro-purchases: The $3,500 threshold provides a practical "out" for administrative ease, allowing agencies to use government purchase cards for small commercial requirements without navigating the FPI comparability process.