CSA ENDORSES FEDERAL PRISON INDUSTRIES REFORM BILL

“CSA applauds Senators Craig Thomas and Carl Levin in their continuing efforts to curb the Federal Prison Industries,” stated Chris Jahn, President of the Contract Services Association (CSA) upon the introduction of the Thomas-Levin Federal Prison Industries (FPI) reform bill. The bill (S. 749) would eliminate FPI’s mandatory source status, for all Federal agencies, requiring FPI to compete on price, quality and time of delivery basis.

Echoing the sponsors’ sentiments that while “it is important to keep prisoners working,” Jahn said, “We must ensure that the rights of felons are NOT placed above the need for the Government to get best value for its procurement needs and above the rights of law-abiding businesses to compete for Government procurements.”

A similar version of the Thomas-Levin bill was reported favorably out of the Senate Governmental Affairs Committee in the 108th congress, and an FPI reform measure passed overwhelming in the House of Representatives last year. The bill enjoys bi-partisan congressional support, as well as broad backing from business and organized labor.

In addition, the Federal Acquisition Regulation (FAR) Council recently released an interim rule to implement Section 637 of the Consolidated Appropriations Act for Fiscal Year 2005. The rule (effective April 11, 2005) requires Government contracting officers to conduct market research before purchasing products from FPI, and to determine whether the FPI product or service is comparable in price, quality, and time of delivery to products or services available in the private sector. If the FPI product or service is not comparable, the Federal agencies must use competitive procedures to acquire the product. This authority already has been provided to the Department of Defense (in the National Defense Authorization Act for Fiscal Year 2002).

CSA actively has been working this issue for several congressional sessions – and has testified before congressional committees and provided comments on FAR rules. Unfair competition from the FPI is important to CSA members because the FPI sees services as ripe for aggressive expansion, both within Government contracting and the commercial markets – potentially threatening the livelihood of thousands of law-abiding, taxpaying workers and the firms that employ them.

“CSA believes that both industry and the Government benefit from fair competition based on the price and quality of the product in question,” noted Jahn.

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CSA is the nation’s oldest and largest association of service contractors representing over 200 companies that provide a wide array of services to Federal, state, and local governments.  CSA members perform over $40 billion in Government contracts and employ nearly 500,000 workers, with two-thirds of CSA companies using private sector union labor.  CSA members represent the diversity of the government services industry and include small businesses, 8(a)-certified companies, small disadvantaged businesses, women-owned, HubZone, Native American owned firms and global multi-billion dollar corporations.  CSA promotes Excellence in Contracting by offering significant professional development opportunities for government contractors and government employees, including the only program manager certification program for service contractors.  For more information on CSA, go to:  www.csa-dc.org.