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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: February 25, 2000

FROM: Barry McVay, CPCM

SUBJECT: Department of Defense; Expediting Federal Prison Industries (FPI) Waiver Processing and Notification Pilot

SOURCE: FPI Memorandum, dated February 7, 2000

AGENCIES: Department of Defense (DOD)

ACTION: Notice

SYNOPSIS: On February 7, 2000, FPI Chief Operating Officer Steve Schwalb issued a memorandum for DOD procurement personnel announcing that FPI is instituting an expedited waiver processing and notification pilot for all DOD waiver requests which total $2,500 or less.

EDITOR'S NOTE: On January 24, 2000, FPI issued a memorandum granting DOD an administrative waiver for orders totalling $250 or less that require delivery within 10 days (see paragraph (e) of Federal Acquisition Regulation (FAR) 8.606, Exceptions).

EFFECTIVE DATE: February 7, 2000.

SUPPLEMENTAL INFORMATION: FAR Subpart 8.6, Acquisition from Federal Prison Industries, Inc., lists the procedures for purchasing required supplies listed in the Schedule of Products Made in Federal Penal and Correctional Institutions. FAR 8.605, Clearances, states "clearance is required from FPI before supplies on the Schedule are acquired from other sources..."

Section 855 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85) required DOD and FPI to review the procurement practices that government procurement transactions between DOD and FPI, and to provide recommendations to improve the process. One of the recommendations was to initiate an expedited notification process for all DOD waiver requests for purchases of $2,500 or less. FPI has accepted this recommendation and has instituted a pilot program for DOD waiver requests only.

Under this pilot, DOD customers who submit waiver requests of $2,500 or less through the UNICOR web site at http://www.unicor.gov by UNICOR close of business (8:00 p.m. eastern time) Monday through Friday can expect a decision from FPI by close of the next business day (the waiver decision will be confirmed by e-mail or fax). If FPI does not take action by close of the next business day, the waiver request will be automatically approved. Waiver requests received after 8:00 p.m. eastern time will not be processed until the following business day.

A request must be identified as a DOD waiver not exceeding $2,500 (select "Department of Defense $2500 Program" as the department code), and must include the following information (waiver request details can be obtained through the UNICOR web site or by contacting the UNICOR Customer Service Center at 800-827-3168):

In addition, FPI included the following statements in the memorandum:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

Copyright 2000 by Panoptic Enterprises. All Rights Reserved.

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