NFIB

• Main Street Secures Relief From Unfair FPI Advantage
  With the president's signing of the fiscal 2005 omnibus spending bill, small businesses can compete fairly with Federal Prison Industries for all federal contracts.

Small Business Fights for Fair Playing Field in Government Contracts

With the signing of the Fiscal Year 2005 Omnibus Spending Bill, NFIB members celebrated a victory: small businesses can now look forward to permanent, fair competition with Federal Prison Industries for government contracts. NFIB will monitor the regulatory process closely to ensure regulators follow congressional intent.

In 2006 small business came another step closer to fair competition with FPI with the passage of H.R. 2965. The bill requires FPI to compete for its contracts, minimizing unfair competition with private sector firms.

Federal Prison Industries, a government-owned corporation operated by the Federal Bureau of Prisons, has become one of the most blatant examples of unfair government competition. FPI has not had to compete; it has been a mandatory source for all federal agencies -- meaning a federal agency must obtain FPI's authorization before it can solicit competitive offers from the private sector. Instead of market-driven wages, FPI workers receive an hourly rate of $1.50. FPI can use production excess from other government agencies at no cost. With NFIB's leadership, legislation was previously signed into law to ensure small business would not be locked out of contracts with the Department of Defense. With the enactment of the FY 2005 Omnibus Spending Bill, small businesses can compete for every government contract.