U.S. Code » Title 18 » Part PART III— PRISONS AND PRISONERS › Chapter CHAPTER 307— EMPLOYMENT

18 U.S.C. § 4124

Purchase of prison-made products by Federal departments

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(a) The several Federal departments and agencies and all other Government institutions of the United States shall purchase at not to exceed current market prices, such products of the industries authorized by this chapter as meet their requirements and may be available.(b) Disputes as to the price, quality, character, or suitability of such products shall be arbitrated by a board consisting of the Attorney General, the Administrator of General Services, and the President, or their representatives. Their decision shall be final and binding upon all parties.(c) Each Federal department, agency, and institution subject to the requirements of subsection (a) shall separately report acquisitions of products and services from Federal Prison Industries to the Federal Procurement Data System (as referred to in section 1122(a)(4) of title 41) in the same manner as it reports other acquisitions. Each report published by the Federal Procurement Data System that contains the information collected by the System shall include a statement to accompany the information reported by the department, agency, or institution under the preceding sentence as follows: “Under current law, sales by Federal Prison Industries are considered intragovernmental transfers. The purpose of reporting sales by Federal Prison Industries is to provide a complete overview of acquisitions by the Federal Government during the reporting period.”.(d) Within 90 days after the date of the enactment of this subsection, Federal Prison Industries shall publish a catalog of all products and services which it offers for sale. This catalog shall be updated periodically to the extent necessary to ensure that the information in the catalog is complete and accurate.(June 25, 1948, ch. 645, 62 Stat. 851; Oct. 31, 1951, ch. 655, § 32, 65 Stat. 723; Pub. L. 98–216, § 3(b)(2), Feb. 14, 1984, 98 Stat. 6; Pub. L. 101–647, title XXIX, § 2901, Nov. 29, 1990, 104 Stat. 4912; Pub. L. 102–564, title III, § 303(b), Oct. 28, 1992, 106 Stat. 4262; Pub. L. 104–316, title I, § 109(b), Oct. 19, 1996, 110 Stat. 3832; Pub. L. 111–350, § 5(d)(2), Jan. 4, 2011, 124 Stat. 3847.)Historical and Revision Notes

Based on title 18, U.S.C., 1940 ed., § 744g (May 27, 1930, ch. 340, § 7, 46 Stat. 392).

The revised section substituted the Director of the Bureau of Federal Supply of the Treasury Department for the General Supply Committee, the functions of the latter having been transferred to the Procurement Division of the Treasury Department by Executive Order No. 6166, § 1, June 10, 1933, and the name of that unit having been changed to Bureau of Federal Supply by order of the Secretary of the Treasury effective January 1, 1947, 11 Federal Register No. 13,638. The Bureau of the Budget was substituted for the Bureau of Efficiency which was abolished by Act of March 3, 1933, ch. 212, § 17, 47 Stat. 1519, without transferring its functions elsewhere. However, the Bureau of the Budget performs similar duties and its Director logically should serve on the arbitration board.

Reference to authority for appropriations was omitted and words “by this chapter” substituted therefor.

The word “agencies” was substituted for “independent establishments” to avoid any possibility of ambiguity. See definition of “agency” in section 6 of this title.

Editorial NotesReferences in Text

The date of the enactment of this subsection, referred to in subsec. (d), is the date of enactment of Pub. L. 101–647, which was approved Nov. 29, 1990.

Amendments

2011—Subsec. (c). Pub. L. 111–350 substituted “section 1122(a)(4) of title 41” for “section 6(d)(4) of the Office of Federal Procurement Policy Act”.

1996—Subsec. (b). Pub. L. 104–316 substituted “Attorney General” for “Comptroller General of the United States”.

1992—Subsec. (c). Pub. L. 102–564 substituted “acquisitions of products and services from Federal Prison Industries to the Federal Procurement Data System (as referred to in section 6(d)(4) of the Office of Federal Procurement Policy Act) in the same manner as it reports other acquisitions” for “to the General Services Administration all of its acquisitions of products and services from Federal Prison Industries, and that reported information shall be entered in the Federal Procurement Data System referred to in section 6(d)(4) of the Office of Federal Procurement Policy Act”.

1990—Pub. L. 101–647 designated first and second pars. as subsecs. (a) and (b), respectively, and added subsecs. (c) and (d).

1984—Pub. L. 98–216 substituted “President” for “Director of the Bureau of the Budget” in second par.

1951—Act Oct. 31, 1951, substituted “Administrator of General Services” for “Director of the Bureau of Federal Supply, Department of the Treasury” in second par.

Statutory Notes and Related SubsidiariesAgency Purchase of Federal Prison Industries Products or Services

Pub. L. 108–447, div. H, title VI, § 637, Dec. 8, 2004, 118 Stat. 3281, provided that: “None of the funds made available under this or any other Act for fiscal year 2005 and each fiscal year thereafter shall be expended for the purchase of a product or service offered by Federal Prison Industries, Inc., unless the agency making such purchase determines that such offered product or service provides the best value to the buying agency pursuant to governmentwide procurement regulations, issued pursuant to section 25(c)(1) of the Office of Federal Procurement Act ([former] 41 U.S.C. 421(c)(1)) [now 41 U.S.C. 1303(a)(1)] that impose procedures, standards, and limitations of section 2410n of title 10, United States Code [now 10 U.S.C. 3905].”

Similar provisions were contained in the following prior appropriations act:

Pub. L. 108–199, div. F, title VI, § 637, Jan. 23, 2004, 118 Stat. 358.

Purchases by Central Intelligence Agency of Products of Federal Prison Industries

Pub. L. 108–177, title IV, § 404, Dec. 13, 2003, 117 Stat. 2632, as amended by Pub. L. 108–458, title I, § 1071(g)(3)(C), Dec. 17, 2004, 118 Stat. 3692, provided that: “Notwithstanding section 4124 of title 18, United States Code, purchases by the Central Intelligence Agency from Federal Prison Industries shall be made only if the Director of the Central Intelligence Agency determines that the product or service to be purchased from Federal Prison Industries best meets the needs of the Agency.”

Notes of Decisions
Cited in 9 cases (1 in the last 5 years), 1981–2022 · leading case: Coalition for Gov't Procurement v. Fed. Prison Indus., Inc., 365 F.3d 435 (6th Cir. 2004).
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Coalition for Gov't Procurement v. Fed. Prison Indus., Inc., 365 F.3d 435 (6th Cir. 2004). · cites it 6× “” 18 U.S.C. § 4124 (a). Subsection (b) creates a dispute resolution process whereby any “[disputes as to the price quality, character, or suitability of [UNICOR] products shall be arbitrated by a board consisting of the Attorney General, the Administrator of General Services,…”
Oscar Cornelius Goodman v. Thomas F. Keohane, 663 F.2d 1044 (11th Cir. 1981). “Finally, petitioner’s claim that he should be released because the district court in its denial order mistakenly cited 18 U.S.C. § 4124 instead of id. § 4214 is frivolous.”
Ameron, Inc. v. United States Army Corps of Engineers, 809 F.2d 979 (3rd Cir. 1986). “( 18 U.S.C. § 4124 ). 7. Davis-Bacon Act Determinations 40 U.”
Nicastro v. Clinton, 882 F. Supp. 1128 (D.D.C. 1995). “" 18 U.S.C. § 4124 (c) (“sales by [FPI] are considered intergovernmental transfers .”
Coalition Govt Proc v. Fed Prison Indust (6th Cir. 2004). · cites it 4× “” Its board of directors shall provide employment for the 18 U.S.C. § 4124 (a). Subsection (b) creates a dispute greatest number of those inmates in the United States resolution process whereby any “[d]isputes as to the price penal and correctional institutions who are eligible…”
Scope of Procurement Priority Accorded to the Fed. Prison Indus. Under 18 U.S.C. § 4124 (OLC 1989). · cites it 4× “Scope of Procurement Priority Accorded to the Federal Prison Industries under 18 U.S.C. § 4124 The procurem ent priority a ccorded to “products” o f the Federal Prison Industries under 18 U.”
Goodwill Indus. of South Florida, Inc. v. United States (Fed. Cl. 2022). “Protestor alleges that because Goodwill Industries of South Florida is a qualified nonprofit agency and because the DLA 16There is an exception, however, for “an industry established under chapter 307 of title 18 and that is required under section 4124 of title 18 to be procured…”
Permissibility of Small Bus. Admin. Regulations Implementing the Historically Underutilized Bus. Zone, 8(a) Bus. Dev., & Serv.-Disabled Vet.-Owned Small Bus. Concerns Programs (OLC 2009). “If the contract is still 5 See 18 U.S.C. § 4124 (2006) (requiring purchase of prison-made products by all federal departments and agencies); 41 U.”
Prioritizing Programs to Exempt Small Bus. from Competition in Fed. Contracts (OLC 2009). “5 See 18 U.S.C. § 4124 (2006) (requiring purchase of prison-made products by all fed- eral departments and agencies); 41 U.”
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