Some in Congress Want to End FPI's Advantage

(MoneyWatch)  As we wrote a few months ago BAE and the Federal Prison Industries (FPI) are in competition over helmet manufacturing. U.S. government contracting rules mandate that the FPI be favored when it comes to awarding contracts. This is one of three special types of companies that receive this benefit. Now at Michigan.com the Grand Rapids Press editorializes against the advantage that FPI has for furniture contracts. The office furniture business has declined dramatically with the downturn in the economy and the U.S. government has become the major buyer. This means that the commercial companies are in a disadvantage when bidding. The editorial makes clear that several Congressman representing these companies and the states they are based in have been trying to remove this competitive advantage for the FPI. At the same time the U.S. has been expanding the role of the FPI as this article points out. The regulation allowing this advantage was made for altruistic reasons - to help the prisoners learn a trade and to help generate some revenue for the government. It will be hard to change it, even temporarily.