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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: March 26, 2004

SUBJECT: Federal Acquisition Circular (FAC) 2001-21, Purchases from Federal Prison Industries, Inc.

SOURCE: Federal Register, March 26, 2004, Vol. 69, No. 59, page 16147

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Interim Rule

SYNOPSIS: The Federal Acquisition Secretariat is issuing FAC 2001-21 to amend FAR Subpart 8.6, Acquisition from Federal Prison Industries, Inc., to implement Section 637 of the Consolidated Appropriations Act of 2004 (Public Law 108-199), which prohibits the expenditure of fiscal year 2004 funds for the purchase of a product or service offered by Federal Prison Industries, Inc. (FPI) unless the purchasing agency determines the offered product or service provides the best value to the buying agency.

EDITOR'S NOTE: FPI is also known by the trade name "UNICOR."

DATES: The effective date of this interim rule is March 26, 2004. Comments on the interim rule must be submitted on or before May 25, 2004.

ADDRESSES: Comments on the interim rule must be submitted to General Services Administration, FAR Secretariat (MVA), 1800 F Street, NW, Room 4035, Attn: Laurie Duarte, Washington, DC 20405; or by e-mail to farcase.2003-023@gsa.gov. Cite "FAC 2001-21, FAR case 2003-023" in correspondence related to the interim rule.

FOR FURTHER INFORMATION CONTACT: Linda Nelson, 202-501-1900. For general information, contact the FAR Secretariat, Room 4035, GS Building, Washington, DC 20405, 202-501-4755.

SUPPLEMENTAL INFORMATION: Section 637 of Public Law 108-199 provides that none of the funds made available under that or any other act for fiscal year 2004 shall be expended for the purchase of a product or service offered by Federal Prison Industries, Inc. (FPI), unless the agency making such purchase determines that the offered product or service provides the best value to the buying agency in accordance with governmentwide procurement regulations that impose procedures, standards, and limitations of Title 10 of the United States Code, Section 2410n (10 U.S.C. 2410n). (EDITOR'S NOTE: Section 811 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107) added 10 U.S.C. 2410n, which was subsequently clarified by Section 819 of the National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314). For more on the changes made to the Defense FAR Supplement (DFARS) to implement 10 U.S.C. 2410n, as amended, see the November 14, 2003, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Competition Requirements for Purchases from the Federal Prison Industries (FPI).")

To implement Section 637, the following changes are made to FAR Subpart 8.6:

In addition to the revisions to FAR Subpart 8.6, the interim rule makes the following related changes:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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