Dept of Justice, Fed Prison Industries, 320 1st Street NW -- Material Mgt Branch, Washington, DC 20534-0001

99 -- SOURCES SOUGHT FOR NEW PRODUCT AND SERVICE OFFERINGS TO FEDERAL AGENCIES DUE 123098 POC Gregory Wallis 202/305-7320 or Donovan Cunningham 202/305-7254 E-MAIL: click here to contact Greg Wallis via e-mail, gwallis@central.unicor.gov. INTENT: Federal Prison Industries, Inc. (FPI) is seeking proposals for new products and/or services to be sold to federal agencies and produced by FPI in alliance with the successful offerors. FPI is interested in entering into agreements with private sector firms to produce any of a variety of products and services, using federal facilities and federal inmate labor, incorporating terms similar to, though not necessarily identical to, those described below. FPI will consider all reasonable proposals for new products that support FPI's mission. The descriptive arrangements that follow are meant to be illustrative. The exact agreement that constitutes each joint venture will be negotiated on a case-by-case basis. DESCRIPTION OF FPI: FPI, which operates under the trade name UNICOR, is a wholly-owned Government Corporation within the Department of Justice, under the Federal Prison System. The Corporation was created by Congress in 1934, and provides employment, education, and training opportunities to inmates under federal custody. FPI operates more than 100 factories at 53 locations. FPI's product lines are extensive and include over 175 products and services sold exclusively to federal agencies and the Department of Defense. FPI's mission is to employ and provide skills training to the greatest practicable number of inmates in federal correctional facilities necessary to ensure the safe and secure operation of such institutions and, in doing so, to produce market priced, quality goods, in a self-sustaining manner that minimizes potential impact on private business and labor. A SAMPLE AGREEMENT FOLLOWS (CONTRACTORS MAY PROPOSE ALTERNATIVE TERMS MEETING FPI'S OBJECTIVES): SERVICES AND FACILITIES TO BE PROVIDED BY THE GOVERNMENT (this is offered as an example for illustrative purposes only): (a) a 2,500 square foot room or building, with adequate lighting, air conditioning, heating, restrooms, offices, telephone connections, cabling for computer applications, and requirements conducive to the operation, as to be delineated further in agreements between the parties. The contractor may operate on an 8-hour, 16-hour, or 24-hour work day comprising one or more shifts, as needed to provide the requisite production levels, manpower levels, and level of customer service. (b) Inmate labor (see paragraph (a) above). (c) Mandatory source: in accordance with federal law, products will be listed on FPI's schedule of products and, as such, federal departments and agencies will be required to purchase them, provided the products meet their requirements (Alternately, FPI can act as a subcontractor to a prime contractor to the Federal Government. However, this type of arrangement will probably not utilize the mandatory source.) (d) All utilities, water, telephone service, cleaning and janitorial services. (e) All tables, chairs, desks, workstations, shelving bins, and other items necessary and appropriate for the physical setup of the operation. (f) Computers, software, printers, interface equipment, and supplies necessary for theoperation of and connection to computer equipment. (g) Administrative services such as employment records for all inmates, compliance and reporting with all government agencies as may be required for the employment of inmates, and distribution/payroll services for all inmate wages. (h) Training as needed for all civilian employees of the contractor, including training in civil service matters, safety and security matters, etc. (i) Security for the safety and well-being of all contractor personnel. (j) Limited marketing and sales support. THE CONTRACTOR WILL PROVIDE THE FOLLOWING SERVICES AND EQUIPMENT (this is also offered as an example for illustrative and informational purposes only): (1) Machinery and equipment necessary to manufacture goods and/or provide services (capital outlay can be a negotiable term). (2) On-site management of such civilian personnel as may be necessary for day-to-day operations. (3) Such computer equipment and software as may be specified by the contractor for the efficient operation of the enterprise. (4)Payroll, billing, and accounting services, excluding inmate payroll. (5) Marketing and sales support. (6) Pre- and post-sales support. (7) Business plan, etc. EXCLUSIVE DEALINGS: FPI agrees that, during the term of the agreement, it will not provide inmate labor, marketing assistance, production facilities, administrative assistance, or any other services as may be described herein in support of competing products. The contractor agrees that during the term of this agreement, it will utilize FPI as its primary source in fulfilling Federal Government orders. This agreement shall be effective upon the date of execution and shall remain in effect for a period of 5 years from the date that operations commence. Upon expiration of the primary term, the agreement may be renewed automically, without action of the parties hereto, for successive one-year renewal periods unless notice is given in writing by either party to the other at least 30 days prior to expiration of the contract term. PAYMENT FOR SERVICES: Payment for services will be negotiated between FPI and the contractor, and may assume any of a number of models, including a sum dependent upon the volume of product sold, a percentage of net revenue, or some variation typically seen within joint venture agreements. MISCELLANEOUS: FPI reserves the right to accept or reject proposals received. This notice fulfills FAR publication requirements for individual proposals received. For a copy of a typical agreement, a schedule of FPI's current products and services, or other pertinent information, please call Greg Wallis or Donovan Cunningham. (0033)

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