On February 8, the Department of Defense (DoD) published its annual updated list of products (77 FR 6549), including office furniture (Category 7110), for which Federal Prison Industries (FPI) had more than a 5% share of the federal market in fiscal year 2011 based on the Federal Procurement Data System.

For acquisitions of such products, contracting officers are generally required to apply competitive ‘best value’ considerations in selecting vendors.  Specifically, product categories on the updated list, and the products within each identified product category, must be procured using competitive or fair opportunity procedures in accordance with DFARS 208.602–70(c)(1). FPI must be included in the solicitation process and will be considered in accordance with the policy set forth in 8.602(a)(4)(ii) through (v) of the Federal Acquisition Regulation.

In the last update, FPI’s share of the federal office furniture market was 5% or less and federal contracting officers therefore had less flexibility in applying competitive ‘best value’ guidelines in procurements during FY 2011.

The updated list is also found in a memorandum issued on January 12, 2012 by the Director, Defense Procurement and Acquisition Policy, which sets an effective date of February 8, 2012.

Section 827 of the National Defense Authorization Act of Fiscal Year 2008, Public Law 110–181, amended DoD’s competition requirements for acquisition of products from Federal Prison Industries (FPI). On November 19, 2009, a final rule was published at 74 FR 59914, which amended the Defense Federal Acquisition Regulation Supplement (DFARS) at subpart 208.6 to implement section 827.

OFDA and other industry organizations and manufacturers have worked together for the last 10 years to advocate and achieve progressive liberalization of the federal market for office furniture from FPI purchasing mandates that have been in place for decades.

For further information contact: Director, Defense and Acquisition Policy, Attn: Susan Pollack, 3060 Defense Pentagon, Washington, DC 20301–3060; telephone (703) 697–8336.