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COMMERCE BUSINESS DAILY ISSUE OF FEBRUARY 24,1999 PSA#2289

FPI COMMERCIAL MARKET SERVICES FOLLOW-UP NOTICE This notice provides further follow up information regarding a new initiative by Federal Prison Industries, Inc. (FPI) to provide services in the commercial marketplace. Earlier notices regarding this initiative were published in the CBD in September and December of 1998. FPI has received approval from its Board of Directors and legal concurrence from the U.S. Department of Justice to provide services in the commercial marketplace. This initiative is planned initially as a pilot, subject to general oversight by FPI's Board, with close involvement of the interested parties. FPI will concentrate its efforts on commercial services work that is currently being performed outside of the United States for domestic use. FPI now invites prospective business partners to submit proposals or letters of interest to partner with FPI. FPI has identified a sample list of the types of services which it expects to perform. The services identified include: sorting; packaging; data entry; light assembly; phone answering; help desk; remanufacturing; refurbishing; and, repair work. FPI is seeking commercial business partners interested in utilizing an inmate labor force in the United States to support their operations. As FPI moves forward with this initiative, it is committed to doing so in a manner which will not adversely affect the private sector, and which will be of benefit to FPI, its prospective partners, and the general domestic economy. FPI will consider partnering with private sector firms within the following categories: Category I: Repatriation of jobs. Description: Work that is currently being performed outside the United States that a prospective partner would be willing to return to the U.S. FPI will concentrate its efforts in this area making this the predominant category. Category II: Labor Shortage. Description: Certain industries have a recognized labor shortage that causes companies to outsource to foreign companies. Examples are help desk services and high technology sectors where the private sector has requested the Government to increase the number of work visas issued to foreigners in order to fill available domestic jobs. Category III: New Requirements. Description: New work that a company otherwise intends to contract to a service provider performing the required services outside the United States. Category IV: Current Inmate Work. Description: Work currently performed by non-Federal Bureau of Prisons inmates (such as District of Columbia inmates) for non-Federal agencies. The above categories illustrate the likely conditions that would not adversely impact domestic labor. Appropriate language may be developed for partnerships which will require FPI and a prospective partner to certify jointly, or individually, that the partnership will not adversely impact domestic labor or businesses. Our objective through the Commercial Market Services Program is to implement service-based operations to help create new civilian jobs and to provide skills training and employment for Federal inmates. FPI plans to have its first agreement in place by the Spring of 1999. DESCRIPTION OF FEDERAL PRISON INDUSTRIES: Federal Prison Industries, Inc. (FPI), which operates under the trade name UNICOR, is a wholly-owned government corporation within the Department of Justice, Federal Bureau of Prisons. The corporation was created by Congress in 1934, and provides employment, education, and training opportunities to inmates under Federal custody. UNICOR'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 facilities, and in doing so, to produce market priced, quality goods in a self-sustaining manner that minimizes potential impact on private business and labor. FPI produces more than 150 separate items at over 100 factory locations and provides these products as well as services to Federal agencies, including the Department of Defense. MISCELLANEOUS: If you are interested in submitting a proposal or letter of interest as a prospective offer or would like to provide comments on this initiative, please contact: Tom Burkett, Federal Prison Industries, Inc., 320 First Street, NW, BLDG. 400-6, Washington, DC 20534, Telephone: (202) 514-1898, Fax: (202) 305-7356, E-Mail: tburkett@central.unicor.gov Posted 02/22/99 (W-SN300697).

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