Federal Prison Industries

Let small business compete fairly for government contracts

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Letter to the Senate in Support of Provisions to End the Federal Prisons Industry's Monopoly on the Department of Defense Contracts

September 26, 2007

Dear Senators:

On behalf of the National Federation of Independent Business, the nation's leading small-business advocacy group, I urge you to support section 824 of S. 1547, the National Defense Authorization Act. We support this provision that would end the Federal Prison Industries monopoly on Department of Defense contracts and oppose the Feinstein-Specter amendment to strike this section.

Eighty-nine percent of NFIB members do not believe prisons should receive preference for federal contracts. By forcing other government agencies to purchase products and services solely from Federal Prison Industries, it has become one of the most egregious examples of unfair government competition. Section 824 will simply allow the private sector to compete for DOD contracts that are now held by FPI and will protect small businesses from FPI’s unfair competitive practices.

We also hope that you will support all efforts to broaden section 824 to include all Federal Agencies. Such a comprehensive reform of FPI will help both small businesses and prisoners.

I strongly urge you to support small business and fair competition by voting for FPI reform and to vote AGAINST weakening amendments. 


Sincerely,
 
Dan Danner
Executive Vice President
Federal Public Policy and Political

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