U.S. Chamber Commends House Action Against Federal Prison Industries Monopoly

WASHINGTON, D.C.-The United States Chamber of Commerce today applauded the House for passing legislation that would phase out the unfair advantage of the Federal Prison Industries (FPI) over small businesses who compete for government contracts.

"It is an outrage that businesses employing hardworking, law-abiding Americans cannot compete for government contracts," said Bruce Josten, Chamber executive vice president. "Congress has a responsibility to ensure that no government entity has an unfair advantage in the federal procurement process."

H.R. 2965, The Federal Prison Industries Competition in Contracting Act of 2006, would do the following: eliminate the requirement that government agencies purchase products only from FPI, allow the private sector to compete on a level playing field for federal contracts; implement a five-year transition period for the government to phase-out FPI's "mandatory source" supplier status; provide vocational and remedial educational opportunities for inmates; and clarify that the prohibition that prevents FPI from selling products in the commercial marketplace also applies to services.

"Eliminating government subsidized preferences and providing more contracting opportunities to small businesses will produce quality goods and services in a timely fashion at the lowest price," Josten added. "This is a major victory for business, particularly small businesses, and for taxpayers."

The Chamber has long advocated for a level playing field in the federal procurement process through legislative and regulatory relief from FPI's monopolistic practices. Businesses rely on a fair, competitive process to provide the federal government with needed goods and services. American workers need relief from the unfair competitive advantage and mandatory source status of FPI.

The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

www.uschamber.com

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