Certain purchase exceptions, outlined below, may impact the contracting officer's actions in that FPI's mandatory source either does not apply, or applies differently in these instances:
• Items Not Subject to Mandatory Source FPI’s Schedule of Products lists those items to which its mandatory
source applies.
Mandatory source does not apply to:
Products not listed in the Schedule, Products listed in the Schedule as non- mandatory; Services* *NOTE:
Some services provided by FPI complement the products offered.
For example, to support a comprehensive office furniture procurement,
FPI offers services such as space planning, design, and related ancillary
functions. These services are non-mandatory, thus, customers may opt to procure them separately,
or from FPI, at their discretion. The furniture products, themselves, however, are
mandatory source items and, as such, the legal and regulatory requirements detailed
throughout these procedures apply (see APPLICABLE LAWS).
• Purchases Totaling $3,000 or Less
The FPI Board of Directors announced its decision to increase the blanket waiver relating to small dollar value purchases from the previous threshold of $2,500 to a threshold of $3,000, effective April 12, 2007. Customers may, however, still purchase from FPI at, or below, this threshold, if they so choose. No waiver is required to buy from an alternative source.
• Purchase of FPI Products Having 20% or Greater Federal market share
The FPI Board has administratively waived the mandatory source in those Federal Supply Classification (FSCs) codes where FPI's share of the federal market exceeds 20 percent. However, FPI must be given a fair opportunity to compete.
Customers who rely upon FPI to meet their product needs in these FSCs may continue to purchase these administatively waived items, of their own volition (See BOARD RESOLUTIONS; Products Where Market Share is 20% or Greater). FPI will obtain such sales on a non-mandatory basis.
Updates will be made to UNICOR’s web site to reflect any product additions or deletions under this category of purchase exceptions. There are currently two FSC categories to which this resolution applies:
- FSC 7240 Household/ Commercial Utility Containers
Items such as laundry/postal carts, dollies, waste receptacles, mobile utility carts;
Please refer to FPI’s Schedule of Products for a current listing of all items by Federal Supply Classification (FSC) Code which is updated annually. Questions as to the FSC applicability of items under this administrative waiver may be directed to the FPI Constituent Relations/ Ombudsman for response.
• DoD Purchases of Products in FSCs for which FPI's share of the DoD Market is Greater than 5%
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. The FSCs which currently meet this criterion are:
- FSC 5995 Cable, cord, wire assemblies; comm equipment
- FSC 7230 Draperies, Awnings, and Shades
- FSC 8415 Clothing, Special Purpose
- FSC 8410 Outwear, Women's
- FSC 8420 Underwear and Nightwear, Men's
- FSC 8470 Armor, Personal
- FSC P100 Disposal of Surplus Property
For further details, please refer to the DoD's March 19, 2010 Memorandum: "Purchases from Federal Prison Industries; Updated List of Federal Supply Classification Codes (FSCs) to be Competed."
DoD purchases for items in FSCs not listed, above, are subject to the prevailing general procurement procedures detailed under Purchase/Waiver Procedures and Policies; APPLICABLE LAWS.
