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Federal Prison Industries: Information on Product Pricing

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Report Type Reports and Testimonies
Report Date Aug. 24, 1998
Report No. GGD-98-151
Subject
Summary:

Federal agencies generally must buy products from Federal Prison Industries (FPI), which was established by law as a mandatory source supplier. In response to congressional concerns about FPI's pricing practices and the possibility that federal agencies may be paying higher than competitive fair market prices when they buy products from FPI, this report provides information on FPI's product pricing. GAO (1) describes the laws and regulations governing how FPI is to price its products, (2) describes the policies and procedures FPI uses to ensure that its products are priced in accordance with these laws and regulations, (3) determines whether FPI followed these policies and procedures when it set prices for selected products, and (4) compares FPI's prices with those charged by private vendors for selected products.

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