[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR8.602]



[Page 136-137]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 8_REQUIRED SOURCES OF SUPPLIES AND SERVICES--Table of Contents

 

      Subpart 8.6_Acquisition From Federal Prison Industries, Inc.

 

Sec. 8.602  Policy.



    (a) Agencies shall use the procedures in this subpart when 

purchasing supplies of the classes listed in the FPI Schedule.

    (b) In accordance with 10 U.S.C. 2410n and Section 637 of Division H 

of the Consolidated Appropriations Act, 2005 (Pub. L. 108-447), agencies 

shall--

    (1) Before purchasing an item of supply listed in the FPI Schedule, 

conduct market research to determine whether the FPI item is comparable 

to supplies available from the private sector that best meet the 

Government's needs in terms of price, quality, and time of delivery. 

This is a unilateral determination made at the discretion of the 

contracting officer. The arbitration provisions of 18 U.S.C. 4124(b) do 

not apply;

    (2) Prepare a written determination that includes supporting 

rationale explaining the assessment of price, quality, and time of 

delivery, based on the results of market research comparing the FPI item 

to supplies available from the private sector;

    (3) If the FPI item is comparable, purchase the item from FPI 

following the ordering procedures at http://www.unicor.gov, unless a 

waiver is obtained in accordance with 8.604; and

    (4) If the FPI item is not comparable in one or more of the areas of 

price, quality, and time of delivery--



[[Page 137]]



    (i) Acquire the item using--

    (A) Competitive procedures (e.g., the procedures in 6.102, the set-

aside procedures in subpart 19.5, or competition conducted in accordance 

with part 13); or

    (B) The fair opportunity procedures in 16.505, if placing an order 

under a multiple award delivery-order contract;

    (ii) Include FPI in the solicitation process and consider a timely 

offer from FPI for award in accordance with the item description or 

specifications, and evaluation factors in the solicitation--

    (A) If the solicitation is available through the Governmentwide 

point of entry (FedBizOpps), it is not necessary to provide a separate 

copy of the solicitation to FPI;

    (B) If the solicitation is not available through FedBizOpps, provide 

a copy of the solicitation to FPI;

    (iii) When using a multiple award schedule issued under the 

procedures in Subpart 8.4 or when using the fair opportunity procedures 

in 16.505--

    (A) Establish and communicate to FPI the item description or 

specifications, and evaluation factors that will be used as the basis 

for selecting a source, so that an offer from FPI can be evaluated on 

the same basis as the contract or schedule holder; and

    (B) Consider a timely offer from FPI;

    (iv) Award to the source offering the item determined by the agency 

to provide the best value to the Government; and

    (v) When the FPI item is determined to provide the best value to the 

Government as a result of FPI's response to a competitive solicitation, 

follow the ordering procedures at http://www.unicor.gov.

    (c) The procedures in paragraph (b) of this section do not apply if 

an exception in 8.605(b) through (g) applies and the purchase is made 

from a source other than FPI.

    (d) In some cases where FPI and a JWOD participating nonprofit 

agency produce identical items (see 8.603), FPI grants a waiver to 

permit the Government to purchase a portion of its requirement from the 

JWOD participating nonprofit agency. When this occurs, the portion of 

the requirement for which FPI has granted a waiver--

    (1) Shall be purchased from the JWOD participating nonprofit agency 

using the procedures in subpart 8.7; and

    (2) Shall not be subject to the procedures in paragraph (b) of this 

section.

    (e) Disputes regarding price, quality, character, or suitability of 

supplies produced by FPI, except for determinations under paragraph 

(b)(1) of this section, are subject to arbitration as specified in 18 

U.S.C. 4124. The statute provides that the arbitration shall be 

conducted by a board consisting of the Comptroller General of the United 

States, the Administrator of General Services, and the President, or 

their representatives. The decisions of the board are final and binding 

on all parties.



[69 FR 16149, Mar. 26, 2004, as amended at 70 FR 18958, Apr. 11, 2005]