U.S. Chamber Urges Lawmakers to End Monopoly

WASHINGTON, D.C.—The United States Chamber of Commerce today welcomed the House Small Business Committee's examination of unfair federal preferences for Federal Prison Industries that shut small businesses out of the competition for government business.

"Preferences for prison industries are given at the expense of small businesses," said Bruce Josten, Chamber executive vice president. "Congress must move to end the federally sponsored monopoly enjoyed by prison industries."

The Federal Prison Industries Competition in Contracting Act (H.R. 1577), bipartisan legislation sponsored by Reps. Peter Hoekstra (R-MI), Barney Frank (D-MA), Mac Collins (R-GA) and Carolyn Maloney (D-NY), would eliminate the requirement that government agencies purchase products from FPI and allow the private sector to compete fairly with FPI for federal contracts.

"Congress has a responsibility to ensure that no government entity has an unfair advantage in the federal procurement process," said Josten. "Eliminating FPI's preferences and providing more contracting opportunities to American businesses will produce quality goods and services in a timely fashion at the lowest price."

Businesses that provide better-quality products more efficiently and cheaply than FPI are shut out of millions of dollars in government business each year. Nearly 300 products and services are produced by federal prisoners, totaling nearly $600 million worth of sales to the federal government in 2000 alone, and expansion into the commercial marketplace is imminent.

The Chamber has long advocated a level playing field in the federal procurement process and is leading the Competition in Contracting Act Coalition, a group of more than 300 business and labor organizations actively seeking legislative and regulatory relief from FPI's monopolistic practices.

The U.S. Chamber of Commerce is the world's largest business federation, representing more that three million businesses and organizations of every size, sector, and region.

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