Press Releases

Washington, DC – Today, Congressman Bill Huizenga (MI-02) announced the introduction of H.R. 2098, The Federal Prison Industries Competition in Contracting Act of 2013, the first step in a new approach to reforming Federal Prison Industries/UNICOR:

"Millions of Americans remain out of work, many through no fault of their own," said Huizenga. "As small businesses continue to struggle in the current economic environment, one thing they shouldn't have to worry about is their own government using prison labor to drive them out of business. The Federal Prison Industries Act of 2013 levels the playing field for private sector job creators by eliminating UNICOR's 'no-bid' contract status and forcing this government-owned behemoth to compete and operate in the same manner as private industry. Additionally, this legislation forces UNICOR to meet federal health and safety standards and pay a market rate for the production of goods and services provided. If UNICOR is going to act like a business, it must play by the same set of rules as a business. The status quo affords UNICOR a unique competitive advantage that simply should not exist. It's time to get the government working for people, not taking their jobs."

Lead Democrat cosponsor Carolyn Maloney (NY-12) released the following statement in support of H.R. 2098: "This bill we are introducing—versions of which I have sponsored or co-sponsored over the last dozen years— will require the Federal Prison Industries’ brands to compete with private-sector businesses on a level playing field," Rep. Maloney said. "It should improve the ability of private companies to win contracts for government work and it will improve the working conditions of FPI employees. It's a win-win for everyone involved."


Background:

UNICOR, or Federal Prison Industries, Inc. (FPI), is a government-owned corporation that employs offenders incarcerated in correctional facilities under the Federal Bureau of Prisons. UNICOR manufactures products and provides services that are sold to executive agencies in the federal government as well as the military. Examples of these products and services include clothing and textiles, office furniture, electronics, fleet and industrial products, recycling, and services such as call center and help desk support. UNICOR operates 81 factories located at 63 prison facilities across the country.

The Federal Prison Industries Competition in Contracting Act of 2013 requires FPI to compete for government contracts by minimizing unfair competition with the private sector firms and driving fair and reasonable prices. The bill will also substantially enhance the opportunity for public participation in the process by which UNICOR is authorized to produce a new product or expand production by requiring a detailed independent analysis of the impact on the private sector a UNICOR expansion would have.

The bill also makes reforms to FPI by imposing federal occupational, health, and safety standards on FPI with respect to its industrial operations; allowing inmates within FPI to work for a tax-exempt charity, religious organization, or local governmental unit or school district that has an agreement with FPI; requiring the Department of Labor to raise the hourly minimum wage rate for inmates to comply with the Fair Labor Standards Act of 1939; and establishing an enhanced in-prison educational and vocational assessment and training program to help with release readiness preparation.

The original co-sponsors on this bipartisan reform legislation aimed at boosting private sector job creation are: Rep. Carolyn Maloney (NY), Rep. Dan Benishek (MI), Rep. Marsha Blackburn (TN), Rep. Jeff Duncan (SC), Rep. Trent Franks (AZ), Rep. Walter Jones (NC), Rep. Frank LoBiondo (NJ), Rep. Candice Miller (MI), Rep. Mick Mulvaney (SC), Rep. Edward Royce (CA), Rep. Jim Sensenbrenner (WI), Rep. Fred Upton (MI), and Rep. Tim Walberg (MI).