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GGD-93-51R 1 (1993-07-07)

handle is hein.gao/gaobackiz0001 and id is 1 raw text is: ,GAO United States General Accounting Office Washington, D.C. 20548 General Government Division B-251062 149548 July 7, 1993 The Honorable Jim Sasser Chairman, Subcommittee on General Services, Federalism, and the District of Columbia Committee on Governmental Affairs United States Senate Dear Mr. Chairman: This letter responds to your request for information on Federal Prison Industries, Inc.'s (FPI) production and sales of systems furniture to federal agencies. FPI's production and sales were explored during congressional hearings held between 1988 and 1991, and some private sector vendors continue to allege that FPI's systems furniture prices are higher than prevailing commercial prices. Accordingly, you asked for information on the status of FPI's efforts to (1) increase federal prison inmates' involvement in systems furniture production and (2) ensure that its systems furniture prices are competitive with those charged by private sector vendors under the General Services Administration's (GSA) multiple award schedules program. Since beginning its systems furniture efforts in 1986, FPI has increased the number of inmates used and expanded the type of work they do. FPI has plans over the next year aimed at further involving inmates in systems furniture production. FPI's systems furniture prices are higher than those of some GSA schedule vendors but are within the market price range required by law. FPI's systems furniture prices could become more competitive as a result of planned changes in its production process, lower raw material costs, and the use of negotiated discounts and/or less expensive design options. BACKGROUND FPI is a government-owned corporation managed by the Department of Justice's Bureau of Prisons (BOP). It was created by Congress in 1934 to serve as a mechanism for managing, training, and rehabilitating inmates. Under the trade name UNICOR, FPI markets more than 250 products in five major categories: (1) clothing and textiles; GAO/GGD-93-51R, FPI Systems Furniture

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