BAE Fights with Federal Prisoners

(MoneyWatch)  BAE makes helmets for the US military. Many are made by this company in Pennsylvania. The Federal Prison Industries (FPI) also makes helmets. Now CitizensVoice.com reports the two entities are having an argument about who should get the contracts to produce this key item of personal protection. The reasons that FPI is taking the majority of new business is two fold. First, FPI is cheaper as they are using inmate labor at a much lower cost then BAE pays its workers. Second, Federal contract regulations favor FPI over other suppliers.
When considering who to award a contract to the US government must favor entities like FPI, or Native American companies, or companies run to aid the disabled. This requirement, which is not really a loophole, has allowed FPI to get 50% of the helmet manufacturing competition. The disadvantage companies must be able to meet all of the other contract requirements. Some aspects of Federal procurement have come to be dominated by these types of companies - like stationary supplies or physical plant service contracts. The reasoning behind the requirement is altruistic, it is just in this case, the fight over the Federal budget can be nasty.