Improvements Needed In The Management Of Federal Prison Industries Factories

Witnesses: V. James Adduci, II, American Apparel Manufacturing Assoc.; Michael N. Harrell, General Manager of New Business Development, Pride Enterprises; Donald G. Heeringa, Pres., BIFMA International; Ann F. Hoffman, Legislative Director, Union of Needletrades, Industrial and Textiles Employees; Kenneth L. Mellem, Pres. and CEO, Geonex Corp.; Morgan O. Reynolds, Dir., Criminal Justice Center, National Center for Policy Analysis; Stephen M. Ryan, Quarters Furniture Manufacturing Assoc.; Robert Sanders, Div. of Prison Industries, South Carolina Dept. of Corrections; and Steve Schwalb, Chief Operating Officer, Federal Prison Industries.

This document records the oral and written testimony of witnesses at a Congressional hearing on UNICOR, Federal Prison Industries, Inc., a self-supporting government corporation created in 1934 to formalize prison management efforts to provide dependable work for the greatest number of inmates. The hearing centered on concerns about providing enough work for federal prisoners to learn from it and to be kept occupied and from private sector concerns about displacing work that can be done by private firms. Witnesses included representatives of manufacturers, labor unions, prison management associations, and government agencies. Various proposals were made to increase the labor-intensive aspects of prisoner work without displacing private companies from selling to the federal government. Industry representatives opposed mandatory preference for prison work-products for purchase by the federal government. Discussion was not conclusive. (KC)

Federal Prison Industries, Inc. (FPI) is a wholly owned government corporation and inmate reentry program operated within the Federal Bureau of Prisons (BOP) under the trade name "UNICOR." FPI's mission is to employ and provide job skills training to the greatest practicable number of inmates confined within the BOP; contribute to the safety and security of federal correctional facilities by keeping inmates constructively occupied; produce market-quality products and services; operate in a self-sustaining manner; and minimize FPI's impact on private business and labor. In fiscal year (FY) 2011, FPI had $745 million in total sales, mostly to the federal government. The U.S. Department of Defense is FPI/s largest customer, accounting for $357 million in sales, or 48 percent of total sales, in FY 2011. As shown in Exhibit 1, FPI's six business groups offer several products and services for sale.