Mandatory Source Status FAQs

1. What is mandatory source and why must FPI rely on it?

1) To help ensure a steady work flow and partially offset some of the competitive disadvantages associated with operating in a correctional environment (e.g., lower productivity levels, labor-intensive production processes, security inefficiencies), FPI was designated a mandatory source of federal supply for the products it manufactures. This “mandatory source” designation does not apply to any of FPI’s services or recycling activities. Recent legislation has altered how FPI’s mandatory source status is applied.

Section 827 of the National Defense Authorization Act for Fiscal Year 2008, Public Law 110-181, changes competition requirements for purchases from FPI.
Effective March 31, 2008, Section 827 requires DoD contracting activities to use competitive procedures when procuring products for which FPI has significant market share (defined as being greater than 5% in any Federal Supply Code (FSC). In using these procedures, FPI must be included in the solicitation process. DoD Decision Path Procedures

The Consolidated Spending Bill for FY 2004, Division F, Section 637, altered the process by which civilian agencies purchased UNICOR items for that fiscal year. The Bill required that civilian agencies determine whether a UNICOR product offered the best value to the procuring agency, using the same two-step process followed by the DoD, outlined above. Ultimately, Section 637 of the Consolidated Spending Bill for FY 2005, extended permanently, this two-step procedure which is applicable to all agencies. Civilian Decision Path Procedures