Highlights
What GAO Found
Why GAO Did This Study
What GAO Recommends
Recommendations
Recommendations for Executive Action
Number | Agency | Recommendation |
---|---|---|
1 | Department of Justice | The Director of BOP should update its program evaluation plan to set a new timeline for conducting an evaluation of FPI. (Recommendation 1) |
2 | Department of Justice | In order to help promote a meaningful program assessment, the Director of BOP should develop a goal for FPI related to recidivism reduction and measure progress toward meeting that goal. (Recommendation 2) |
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Introduction
- public entities, such as states,[5] for use in penal or correctional institutions;
- public entities for use in disaster relief or emergency response;
- the government of the District of Columbia; and
- certain tax-exempt (or “nonprofit”) organizations.[6]
- The potential size and scope of the additional markets made available to FPI under the First Step Act;
- The similarities and differences in selected requirements and business practices of FPI and private sector sellers of products and services;
- The extent to which FPI customers are satisfied with the quality, price, and timely delivery of its products and services; and
- The extent to which BOP has evaluated the effectiveness of FPI and other vocational programs in reducing recidivism.
Background
Overview of Federal Prison Industries
Note: For fiscal year 2017 and beyond, the number of inmates employed reflects the total number of inmates who worked in FPI at any point and for any length over the course of the fiscal year. Prior to fiscal year 2017, the numbers reflected only those inmates employed by FPI at the end of the fiscal year.
Laws, Regulations, and Practices Governing FPI Products and Services
- FPI sells inmate-furnished services to the private sector, including the staffing of call centers and computer-aided design services. FPI sold approximately $8.7 million in commercial market services in fiscal year 2019.
- FPI sells goods to private-sector firms if FPI repatriates the production from overseas. Specifically, FPI may manufacture goods currently made, or that otherwise would be made, outside of the United States for private sector firms. According to officials, FPI performs this work under a contract whereby FPI produces goods under the label or brand of a private firm. FPI’s board of directors must approve any product offered under this authority. FPI has approved 32 of these arrangements as of fiscal year 2019, including for the production of surgical appliances. FPI sold approximately $2.5 million in goods to the private sector under this arrangement in fiscal year 2019.
- FPI participates in the Prison Industry Enhancement Certification Program (PIECP). Under this program, federal prisoners work at the direction of private sector firms to produce items if they are paid prevailing wages for their work, among other requirements. Overall, FPI generated $2.8 million in sales under the program in fiscal year 2019.
- FPI acts as a subcontractor to private firms that provide goods or services to the federal government as a prime contractor. FPI sold approximately $12 million from such activities in 2019. For example, a company that manufacturers uniforms for DHS subcontracted some of this work to FPI to manufacture a portion of the order.
- FPI operates two farms in California and Oklahoma BOP facilities, which produce commodities such as cheese. FPI sold over $6 million worth of agricultural products in fiscal year 2019, primarily to BOP.
Major Findings
IN THIS SECTION
- Estimating Size of New Markets Is Challenging and FPI Is Taking Steps to Help Address Potential Limits to Expansion
- FPI and Private Companies Face Different Legal Frameworks, Security Environments, and Costs
- Feedback Mechanisms Suggest Customers Are Generally Satisfied with FPI’s Performance
- BOP Lacks Program Evaluation Timeline and a Recidivism Goal for FPI
Estimating Size of New Markets Is Challenging and FPI Is Taking Steps to Help Address Potential Limits to Expansion
Data on the D.C. Government Market Are Available, but Data to Estimate the Size of the Other New Markets Are Limited
Various Challenges May Affect FPI’s Ability to Expand into New Markets and FPI Has Efforts Underway to Help Address Them
FPI and Private Companies Face Different Legal Frameworks, Security Environments, and Costs
FPI and the Private Sector Operate Within Different Legal Frameworks
FPI Operates in a Unique Security Environment
FPI and Private Sector Have Different Cost Challenges
Feedback Mechanisms Suggest Customers Are Generally Satisfied with FPI’s Performance
Mechanisms Exist to Obtain Customer Feedback
Available Data Indicate Customers Are Generally Satisfied with FPI Performance in Quality and Delivery, but Satisfaction with Cost Is Largely Unknown
Note: The information outlined in this table is based on our review of all 231 performance reports available as of August 21, 2019. The percentages shown represent the number of times, out of 231 reports, Federal Prison Industries received a certain rating in the chosen categories. Rows may not equal 100 percent due to rounding.
BOP Lacks Program Evaluation Timeline and a Recidivism Goal for FPI
BOP’s Program Evaluation Plan Is Outdated and Lacks a Timeline for Conducting an FPI Evaluation
BOP Has Not Developed a Recidivism Goal for FPI
Studies Show FPI and Other Vocational Programs Generally Reduce Recidivism
Conclusions
Agency Comments
Director, Homeland Security and Justice
Director, Contracting and National Security Acquisitions
Congressional Addressees
The Honorable Lindsey Graham
Chairman
The Honorable Dianne Feinstein
Ranking Member
Committee on the Judiciary
United States Senate
The Honorable Jerrold Nadler
Chairman
The Honorable Jim Jordan
Ranking Member
Committee on the Judiciary
House of Representatives
Appendixes
IN THIS SECTION
Appendix I: Objectives, Scope and Methodology
Bookmark:Appendix II: Market Research for Federal Prison Industries (FPI) Products and Services
Bookmark:Department of Defense
Bureau of Prisons
Department of Homeland Security
Appendix III: GAO Contact and Staff Acknowledgments
Bookmark:GAO Contact
Staff Acknowledgments
References
Tables
- Table 1: Federal Prison Industries (FPI) Sales and Number of Inmates Employed, Fiscal Years 2013-2019
- Table 2: Federal Prison Industries (FPI) New Markets Authorized under the First Step Act
- Table 3: Comparison of Federal Prison Industries (FPI) and Private Sector Costs
- Table 4: Federal Prison Industries’ Contractor Performance Assessment Reporting System Ratings
Abbreviations
Abbreviation | Description |
---|---|
BOP | Bureau of Prisons |
CBP | U.S. Customs and Border Protection |
COVID-19 | Coronavirus Disease 2019 |
CPARS | Contractor Performance Assessment Reporting System |
D.C. | District of Columbia |
DHS | Department of Homeland Security |
DLA | Defense Logistics Agency |
DOD | Department of Defense |
DOJ | Department of Justice |
FAR | Federal Acquisition Regulation |
FEMA | Federal Emergency Management Agency |
FPI | Federal Prison Industries |
GPRAMA | Government Performance and Results Modernization Act of 2010 |
IRS | Internal Revenue Service |
OCP | District of Columbia (D.C.) Office of Contracting and Procurement (OCP) |
OSHA | Occupational Safety and Health Administration |
PATTERN | Prisoner Assessment Tool Targeting Estimated Risks and Needs |
PIECP | Prison Industry Enhancement Certification Program |
TSA | Transportation Security Administration |
End Notes
Contacts
Gretta L. Goodwin
Director, Homeland Security and Justice, goodwing@gao.gov, (202) 512-8777William T. Woods
Director, Contracting and National Security Acquisitions, woodsw@gao.gov, (202) 512-4841Congressional Relations
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