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| Federal Prison Industries Makes Concessions |
| By Holland Sentinel (Michigan) |
| Published: 11/25/2002 |
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Last month, U.S. Rep Pete Hoekstra pushed Federal Prison Industries to give furniture makers and other private companies the chance to compete for government contracts the FPI could not complete. It seems someone was listening. 'It seems to me that the message I got (from Hoekstra) was, 'You don't correct the problem, I will.' I'm working to correct (it),' Kenneth Rocks, chairman of the Federal Prison Industries board of directors, told The Sentinel this week. Hoekstra, who met with the board late last month, recently received a letter from FPI stating it was modifying or studying some of its practices that enable it to get government contracts without competition from private firms. The FPI, an arm of the Federal Bureau of Prisons, employs federal prisoners to make products like electronic components and office furniture. Federal agencies must purchase the goods from the FPI unless they receive a special waiver. One objection Hoekstra brought up at the meeting in Washington, D.C., last month was the FPI's 'pass through' policy of partnering with private companies to manufacture products for FPI when federal prisoners cannot finish a contract on time. One example he cited was FPI's relationship with Nightingale Corp. Office Seating of Mississauga, Ontario, which makes an office chair similar to Herman Miller Inc.'s Aeron chair. Hoekstra, himself a former Herman Miller executive, said that under the pass-through policy Nightingale can sell to the federal government under the FPI monopoly when U.S. furniture makers are barred from competing for the contracts. The board letter stated this policy 'has been terminated, effective immediately.' Now, customers have the option of giving FPI more time to complete the contract or go to any private companies for a bid. Hoekstra called the changes discussed in the letter a step in the right direction. 'While the announcement the board made is significant, there is still significant work to do to achieve comprehensive reform,' Hoekstra said, adding he wants more 'iron-clad' language regarding the pass-through policy. The FPI board also promised to take 'direct input from industry representatives' when analyzing market issues. Rocks said FPI will look at possibly making some of its office furniture market share available to private firms. 'We don't (want to) encroach on the commercial market place in such a fashion that it has an adverse impact,' Rocks said. The agency was formed in 1934 to let prisoners develop job skills and have something to do. Rocks, a Philadelphia police officer, said the pass through policy did not fulfill that goal. The current five-person FPI board was appointed by President Bush in May. Last year, FPI employed nearly 6,000 workers in 19 plants nationwide in producing office furniture products, with net furniture sales of nearly $175 million dollars. Herman Miller Inc. spokesman Mark Schurman, said the struggling office furniture industry could benefit from being able to compete for government jobs. 'The lost market opportunity for the industry is significant,' he said. |
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