Notes to Financial Statements
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ORGANIZATION AND MISSION
Federal Prison Industries, Inc. (FPI) was established in
1934 by an act of the United States Congress. FPI
operates under the trade name UNICOR, as a wholly
owned federal government corporation within the
Department of Justice, and functions under the
direction and control of a Board of Directors, (“the
Board”). Members of the Board are appointed by the
President and represent retailers and consumers,
agriculture, industry, labor, the Attorney General, and
the Secretary of Defense. FPI’s statutory mandate is to
provide employment and training for inmates in the
Federal Prison System while remaining self-sufficient
through the sale of its products and services.
FPI’s federal government customers include departments, agencies and bureaus such as the Department of Justice, the Department of Defense, the Postal Service, the Veterans Administration, and the General Services Administration. These and other federal organizations are required to purchase products from FPI, if its products meet the customer’s price, quality, and delivery standards, under a mandatory source preference specified in FPI’s enabling statute and the Federal Acquisition Regulation.
As of September 30, 2001, FPI had industrial operations at 106 factories located at 69 facilities within the Federal Prison System; these factories employed 22,560 inmates representing approximately 17% of the total federal inmate population.
