Federal Prison Industries/UNICOR

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Thesis: The Federal Prison System is composed of two bureaus of the Department of Justice. Both bureaus operate under the Federal penal system. They are the Bureau of Prisons (BOP) and the Federal Prison Industries, Inc. (FPI). UNICOR is the trade name for FPI. The trade name UNICOR was derived from "UNI" meaning one and "COR" meaning corporation. The BOP operates correctional institutions which house Federal inmates. UNICOR operates industrial factories within Federal correctional institutions. These UNICOR industrial factories produce goods and services that are sold only to other Federal agencies. UNICOR is an important asset to the BOP because it is very much responsible for the safety and security of Federal correctional facilities. UNICOR keeps inmates constructively occupied and gainfully employed. UNICOR is a corporation owned by the Federal Government that is entirely self-sustaining and doesn't cost the taxpayer a single cent to operate. This corporation generates thousands of private sector jobs, teaches inmates good work ethics and allows inmates to acquire job skills they may use when released from prison.

(Federal Prison Industries, Inc., 1996, pp. 10-11, para. 2, 5-8)

I. Federal Prison Industries, Inc. / UNICOR

A. Federal Government Corporation

B. Trade name is UNICOR

II. History of FPI/UNICOR

A. H.R. 7412

B. Executive Order 6917

C. FPI commences operations 1/1/35

III. Organization

A. Board of Directors

B. 8 Industrial Programs

1. Clothing & Textiles

2. Electronic

3. Fleet Management / Vehicular Components

4. Graphics

5. Industrial Products

6. Office Furniture

7. Recycling Activities

C. Customer Service Center

D. Raw Materials

IV. Inmate Workers

A. "Medical Model" of 1960's

B. Program Benefits

C. Educational Requirements

D. Inmate Pay Scale

V. Inmate Placement Program (IPP)

A. Created 1996

B. Job Search Instruction

C. Resume preparation

D. Job Searches

E. Interviews

F. Mock Job Fairs

G. Program Benefits

VI. Successful Inmate To Civilian Transition

A. Former Inmate Joe Green

B. Former Inmate Demetrio Ricciardone

C. Former Inmate Atlas Phillips

D. Current Female Inmate

E. Current Male Inmate

VII. Private Sector Issues

A. Unfair to Private Businesses & Unemployed Citizens

B. Pending Bills in the U.S. Senate

1. United States Senate Bill #346

2. United States Senate Bill #2414

VIII. Conclusion

Federal Prison Industries/UNICOR

The Federal Prison System is composed of two bureaus of the Department of Justice.

Both bureaus operate under the Federal penal system. They are the Bureau of Prisons (BOP) and the Federal Prison Industries, Inc. (FPI). UNICOR is the trade name for FPI. The trade name UNICOR was derived from "UNI" meaning one and "COR" meaning corporation. The BOP operates correctional institutions which house Federal inmates. UNICOR operates industrial factories within Federal correctional institutions. These UNICOR industrial factories produce goods and services that are sold only to other Federal agencies. UNICOR is an important asset to the BOP because it is very much responsible for the safety and security of Federal correctional facilities. UNICOR keeps inmates constructively occupied and gainfully employed. UNICOR is a corporation owned by the Federal Government that is entirely self-sustaining and doesn't cost the taxpayer a single cent to operate. This corporation generates thousands of private sector jobs, teaches inmates good work ethics and allows inmates to acquire job skills they may use when released from prison. (Federal Prison Industries, Inc., [FPI], 1996, pp.10-11, para. 2,5-8)

When did Federal Prison Industries, Inc. begin?

"Congress enacted H.R. 7412, on May 27, 1930, which defined a duty of the Attorney General to provide employment for all physically fit inmates in the United States penal and correctional institutions in such forms as will reduce to a minimum competition with private industry or free labor." (FPI, 1996, page 15, para. 2) President Franklin D. Roosevelt signed the law that authorized the establishment of Federal Prison Industries on June 23, 1934. On December 11, 1934, he issued Executive Order 6917, which formally created FPI. FPI officially started operations on January 1, 1935. ( Roosevelt, 1934, p. 1, para. 1)

Board of Directors and Mission Statement

The FPI program is governed by a Board of Directors appointed by the President of the United States. The Board of Directors consists of the following: Chairman Kenneth R. Rocks, Vice Chairman David D. Spears, Director Donald R. Elliott, Director Diane K. Morales, and Director Audrey J. Roberts. (UNICOR 2002 Annual Report [AR], 2003, page 11) FPI operates on the following Mission Statement: "It is the mission of the Federal Prison, Inc. (FPI) to employ and provide job skills training to the greatest practicable number of inmates confined within the Federal Bureau of Prisons; contribute to the safety and security of our Nation's Federal correctional facilities by keeping inmates constructively occupied; produce market-priced quality goods for sale to the Federal Government; operate in a self-sustaining manner; and minimize FPI's impact on private business and labor." (UNICOR 2002 AR, 2003, p. 1)

UNICOR

UNICOR, unlike most other Federal Government programs does not rely on taxpayer dollars for its operations. Revenue is generated from the sales of products and services to Federal agencies only. There are eight industrial programs that make up UNICOR. They are Clothing and Textiles; Electronics; Fleet Management/Vehicular Components; Graphics; Industrial Products; Office Furniture; Recycling Activities; and Services. UNICOR also has a Customer Service Center Department that processes of purchase orders, waiver requests, answers questions regarding order status, and mails copies of printed catalogs. (UNICOR AR 2002, 2003, p. 1)

During fiscal year 2002, FPI purchased approximately $502 million of raw materials, supplies, equipment, and services from private sector businesses. Over 62% of FPI's purchases were from small businesses, including businesses owned by women, minorities, and those who are disadvantaged. (UNICOR 2002 AR, 2003, p. 9, para. 1-5) The materials that are purchased from private vendors are endless. Some examples are: architectural/engineering services; ADP equipment, maintenance, software and supplies; automotive supplies; building renovation equipment; camera equipment; Halfway House services; construction services; dental equipment and supplies; dictating/transcribing machines; door and window frames; electrical supplies; fence wire; fire sprinkler systems; perishable/nonperishable foods; fork lifts and lift trucks; fuel oil; garbage collection services; heating and air-conditioning service; hot water heaters; Iron; laundry/dry cleaning services; lumber; medical services/supplies; metal detecting/security equipment; office supplies; plumbing supplies; protective clothing; roofing materials; steel; work processing services; and x-ray/health service equipment. (FPI, n.d., p. 1, para. 4)

"In the 1960's, the rehabilitation philosophy called the Medical Model was identified as a theory that an inmate's criminal tendencies could be diagnosed and treated, almost, like a physical disease. If the diagnosis showed poor socialization and inadequate work skills as the factors causing a person to turn to crime, the prescription could involve a combination of

social skills counseling and vocational training." (UNICOR 2002 AR, 2003,

p. 9) For many incarcerated men and women, FPI gives them an opportunity to learn a trade and gain work experience that will substantially enhance their ability to successfully return to society following release from prison. For inmates with Life Terms, it allows them to be preoccupied and not think about the fact that they will never return to society. The IPP teaches inmates social values including the value of work, responsibility, and also teaches inmates how to respect and work with others. Many inmates gain a sense of dignity and self-worth that they had lost or had never experienced. (UNICOR 2002 AR, 2003, p. 9)

Educational Requirements

Educational requirements have been set in place for inmate to advance within FPI for higher pay grades. There are five hourly inmate pay grades: Grade 1, pays $1.15 - $1.45, Grade 2, pays .92 - 1.22, Grade 3 pays .69 - .99, Grade 4 pays .46 - .76, Grade 5 pays .23 - .53. In 1982, the BOP decided that inmates must demonstrate a sixth-grade literacy level before they could advance beyond the entry-level pay status in UNICOR. In 1986, the literacy standard was increased to 8th grade level, and in 1991, a high school diploma or GED certificate became the requirement. (Carter, 2002, p. 12)

The Inmate Placement Program & Its Benefits

One program that has proven to be a great success in Federal prisons is the Inmate Placement Program. "The Inmate Placement Programs (IPP), was created in October of 1996, out of realization that many offenders were being released to the streets lacking even the most basic skills necessary to secure and retain employment." (UNICOR 2002 AR, 2003, p. 2, para. 3) This program provides instruction on resume writing, jobs search, and interview skills. Mock Job Fairs are held at prisons so that inmates can prepare themselves through simulated job interviews. Recruiters from companies and organizations go to prisons and interview inmates that are within eighteen months of release. The recruiters not only interview inmates and review their resumes, evaluate their appearance and demeanor, then provide feedback to the inmate when the interview is completed. Mock job fairs such as these facilitate an easier and more successful transition for inmates in becoming law-abiding citizens and contributing members of society. (UNICOR 2002 AR, 2003, p. 2)

FPI/UNICOR benefits inmates and society in several different ways. "In Fiscal Year 2002, inmates who worked in Federal Prison Industry factories contributed approximately three million dollars of their earnings toward meeting their financial obligations such as court-ordered fines, child support, and/or restitution. Many inmates also contributed to the support and welfare of their families by sending home a portion of their earning." (UNICOR 2002 AR, 2003, p. 9, para 2) Over the years, FPI has also proven to lower recidivism. This means that inmates will be less likely to return to a life of crime and be re-imprisoned, because they will have learned the personal and professional skills necessary to become successful citizens. Also, Inmates who participate in FPI work programs and vocational training are less likely to engage in misconduct which assists in the smooth and orderly daily operations of Federal prisons.

Inmate To Civilian Successful Transitions

An example of a former inmate who benefited from the Inmate Placement Program is

Mr. Joe Green. Mr. Joe Green was an inmate who worked in a UNICOR metals factory. While learning the metal trade he developed strong works ethics, acquired self-confidence and a positive attitude. He participated in the Inmate Placement Program where he learned how to dress for an interview, prepare a resume, and interview for a job. Mr. Green was determined to become a contributing member of society upon his release from prison, rather than return to a life of crime. Just one week after his release form Federal Correctional Institution in Terminal Island, California, Mr. Green was hired by Air Louvers, Inc., as a machine operator. He currently earns an income sufficient to pay his rent, to own a car and to maintain a savings account. He is the product of the Inmate Placement Program and is living proof that inmate to civilian transitions are made easier because of Federal Prison Industries. (UNICOR 1999 AR, 2002,

pp. 12-13)

Former inmate, Mr. Demetrio Ricciardone was interviewed for a job by the owner of a cable manufacturing company called Power Connector, Inc., in Bohemia, New York, during once the Inmate Placement Program/Mock Job Fair exercises. As a result, within a week of being released from prison, Mr. Ricciardone was hired as a Product Development Manager where "he is responsible for analyzing, costing and defining the bill of materials for cable and box assemblies and other company products". (UNICOR 2001 AR, 2002 p. 21) Mr. Ricciardone is most importantly responsible for material procurement and quality assurance for Power Connector, Inc. The company owner stated "It is clear that the skills and methods Mr. Ricciardone is utilizing on the job were developed and acquired while he was working for UNICOR. It is a distinct advantage that Mr. Ricciardone brought these skills with him to the job rather than first having to acquire them upon his arrival. The range of skills he possesses, and their appropriateness, made 'Dino' a desirable candidate for our firm." (UNICOR 2001, AR, 2002, p.21) Mr. Ricciardone learned his skills while working at the cable factories in Federal Correctional Institutions (FCI) Memphis, Tennessee; Oxford, FCI Oxford, Wisconsin; and FCI Fairton, New Jersey. He represents the quality of training provided by FPI/UNICOR. (UNICOR 2001 AR, 2002 p. 21)

Former inmate, Mr. Atlas Phillips, is a changed man after thirteen years in the Federal prison system. He formed his own company named AP Computers that is located in Cleveland, Ohio. His company sells computers and provides system upgrades, repairs, and provides training to local schools, churches, and the area residents. Mr. Phillips learned how to troubleshoot and repair computers while working in the UNICOR Recycling Department in Federal Correctional Institution Elkton, OH. Mr. Atlas states "I would not have half of the knowledge I have today if it were not for the staff taking the time to work with me and other inmates."(UNICOR 2001 AR, 2002 p. 18) Mr. Atlas's testimony is a perfect example of how, through the FPI/UNICOR, he was able to create foundations for himself, for his business and for his community.

A female inmate who currently works in the Cut & Sew Factory, at Federal Correctional Institution Dublin, California, is quoted in saying "Forty-three months ago I was sentenced to Federal prison. Only the worst of thoughts ran through my mind. At the time I did not know how anyone could survive being incarcerated. I thought God, if I ever really survive prison, how will I support my two young children as a single mother without the ability to practice nursing again?" (UNICOR 2001 AR, 2002, p. 12, para 1) This female inmate is currently able to send money home to assist in supporting her children by working in FPI/UNICOR. Since she will no longer be able to practice nursing, she is learning a marketable skill she may use when she is released from prison. (UNICOR 2001 AR, 2002, p.12 para 1)

A male inmate who works in the UNICOR Business Office at United States Penitentiary Leavenworth, Kansas, is quoted in saying "UNICOR is an equal employment business, there is no discrimination or prejudice involved. If a person wants to work, then the opportunity is available to all incarcerated individuals. UNICOR allows anyone who never had the opportunity to work to be more responsible, and more aware of what it takes to survive in the outside world." This testimony is an example of how inmates feel a sense of pride in being given the opportunity to learn a marketable skill to be able to compete for employment once released from prison. This also is a good example of how inmates look forward to being gainfully employed while imprisoned. (UNICOR 2001 AR, 2002, p. 11)

"To society FPI/UNICOR demonstrates that participation in prison industries/vocational training programs has a positive effect on post-release employment and recidivism for up to twelve years following release. Inmates who worked in prison industries or completed vocational and apprenticeship programs were 24% less likely to recidivate than non-program participants and 14% more likely to be gainfully employed. These programs had an even greater positive impact on minority offenders, who are the greatest risk of recidivism." ( UNICOR 2002 AR, 2003, p. 9, para 1) The testimonies of these former and current inmates referenced verify that industrial/vocational training programs are highly, valued, and very much needed programs within the Federal prison system. Once inmates are released they are able to compete and be hired for jobs rather than return to prison because they did not have skills necessary to survive as a civilian. Society is also able to benefit from the marketable skills that former inmates learn in the Federal prison system as they use them in working and contributing to their respective communities.

Private Sector Issues

UNICOR sold $4.1 billion in office furniture between the years 2000 and 2002. While UNICOR's office furniture line was a tremendous success, it also put tens and thousands of employees out work who worked in domestic furniture companies. UNICOR was able to make a great profit from office furniture sales because the corporation only pays the inmates, on the average, between twenty-three cents and one dollar and fifteen cents per hour. Also, since Federal agencies are only allowed to make purchases from UNICOR, it takes business away from the private sector companies. Since Federal prison wages are next to nothing compared to civilian wages and Federal agencies aren't purchasing products and services from the private sector, it makes it difficult for private companies to compete. (Kaiser, 2004, p. 1)

It has been proven that Federal Prison Industries, Inc. has been able to monopolize government contracts by cutting out small businesses because Federal agencies can only make purchases from UNICOR and because UNICOR can only make sales to government agencies. An amendment to Federal Prison Industries Competition in Contracting Act, H.R. 1829, freed Federal agencies from the requirement of purchasing anything and everything from UNICOR. As of July 25, 2003, the House Judiciary Committee, voted for Federal agencies to be allowed to shop the global market for the best possible prices for purchases of products and services; however, Federal agencies are still encouraged to purchase from UNICOR. (Gruber, 2003, pp. 1-2)

Senate Bills # 346 and # 2414

Currently there are two bills pending in the United States Senate concerning Federal

Prison Industries. The first is United States Senate Bill # 346 proposed by Senator Carl Levin (Michigan), which amends the Federal Procurement Policy Act relating to purchases from Federal Prison Industries. This bill would modify the contracting process to make FPI bid on contracts like any private sector company and make the contracting officer determine that purchasing from FPI meets the needs of the agency in price, delivery, quality, and comparability. It would also make it illegal for agencies to mandate subcontractors to make purchases from FPI on behalf of the agency. Currently some agencies like the United States Army Corps of Engineers, dictate that construction contractors order furnishings and signage from FPI for their construction projects. Finally this bill also would eliminate any service work from being performed by prisoners by modifying Title 18 U.S.C, Section 1761. This would eliminate any service work from being performed by FPI or any state, local, or private prison industry program. On June 2nd, 2004 The United States Senate Committee on Governmental Affairs ordered this bill to be reported with a favorable amendment. (United States Senate Bill 346, 2003, p. 1-4)

If this bill passes it would have a very detrimental impact upon FPI by elimination of the service work by inmates, an area where UNICOR sees potential growth expansion. Also, if this bill passes, inmates are more than likely to riot in Federal prisons nation-wide for being placed out of jobs that allowed them to pay their debts and help support their families.

The second bill in the United States Senate under consideration is United States Senate Bill # 2414, proposed by Senator Lindsey Graham (South Carolina). This bill would create a commission appointed by the President, United States Senate, and United States House. The commission would be composed of 9 members and would review work opportunities for Federal inmates. Some of the commission's other duties would include examining the current state of FPI, its impact upon the BOP, and the private labor markets. This bill was referred to the United States Senate Committee on the Judiciary on May 12th, 2004. (United States Senate Bill 2414, 2004, pp. 1-5)

"As of September 30, 2003, FPI had industrial operations at 112 factories located at 71 facilities within the Federal Prison System; these factories employed 20,274 inmates represented approximately 16% of the total federal inmate population." (UNICOR, n.d., page 1) Should both of these bills pass allowing drastic changes that would affect the structure or existence of

FPI/UNICOR, as many as 20,274 or more Federal inmates across the nation are likely to conduct prison riots. It is imperative the United States Senate think this Bill over very carefully.

Conclusion

In conclusion, Federal Prison Industries, Inc./UNICOR gives inmates something productive to do while incarcerated. FPI/UNICOR keeps inmates focused on self-improvement and creates a safer environment for correctional workers. Inmates are able to earn money for themselves and the federal government. At the same time, FPI/UNICOR upsets people in the private sector because they feel that inmates are paid unfairly for there work and associate this corporation as slave-labor organization and sweat-shop. On the other hand, the revenue earned from UNICOR supports every aspect of an inmate's life while incarcerated. Should Congress pass laws that would alter or put FPI/UNICOR out of business then Federal inmates will more than likely participate in a national riot. Inmates depend on being gainfully employed and correctional workers depend on FPI/UNICOR for the smooth daily operations of their prisons. One can only wait to see will happen with FPI/UNICOR in the near future.

Annotated Bibliography

Carter, A. M. (2002, June 20). U.S. department of justice UNICOR federal medical center rules

and regulations policy and general information. Retrieved from UNICOR Customer

Service Center, Lexington, KY

This Rules and Regulation Policy, signed by Associate Warden of Industries and Education, indicates general information for inmates working in UNICOR and provides an inmate pay scale. This pay scale allows me to address how much inmates are paid by the hour when working in UNICOR factories. This policy also explains the inmate promotion guidelines where inmates are required to have a high school diploma or G.E.D. in order to work in UNICOR and in order to receive certain pay grades.

Federal Prison Industries, Inc. (1996). Factories with fences, the history of federal prison

industries. Federal Prison Industries, Sandstone, MN

This book provides a brief history of how Federal Prison Industries, Inc. began and has

become one of America's most successful government program. It gives a detailed

explanation in the areas regarding work, education and public safety.

Federal Prison Industries, Inc. (n.d.) Federal prison system. Retrieved August 2, 2004, from

http://www.usdoj.gov/jmd/osdbu/prisons.htm

The source indicates the types of materials purchased from the private sector in order to make UNICOR products.

Gruber, A. (2003, July 28). Panel frees agencies from prison purchase requirement.

GOVEXEC.com. Retrieved August 10, 2004, from

http://www.govexec.com/dailyfed/0703/072803al.htm

This article states that is it has been proven that Federal Prison Industries, Inc., has been

able to monopolize government contracts by cutting out small businesses because Federal

agencies can only make purchases from UNICOR. It is explained that an amendment to Federal Prison Industries Competition in Contracting Act, H.R. 1829, freed Federal agencies from the requirement of purchasing anything and everything from UNICOR. As of July 25, 2003, the House Judiciary Committee, voted for Federal agencies to be allowed to shop the global market for the best possible prices for purchases of products and services; however, Federal agencies are still encouraged to purchase from UNICOR.

Kaiser, R. (2004, July 18). Prison labor is cheap, tough for private companies to beat. Chicago

Tribune. Retrieved August 10, 2004, from http://www.chicagotribune.com

This article indicates that the UNICOR sold $4.1 billion in office furniture between the

years 2000 and 2002. It also states that while UNICOR's office furniture line was a

tremendous success, it also put tens and thousands of employees out work who worked in

domestic furniture companies. UNICOR was able to make a great profit from

office furniture sales because the corporation only pays the inmates, on the average,

between twenty-three cents and one dollar and fifteen cents per hour. Also, since Federal

agencies are only allowed to make purchases from UNICOR, it makes it takes business

away from the private sector companies. Since Federal prison wages are next to nothing

compared to civilian wages, it makes it difficult for private companies to compete.

Roosevelt, F.D. (1934 December 11). Appendix C: Presidential order establishing fpi executive

order creating a body corporate to known as the federal prison industries, inc. (No. 6917). Retrieved August 10, 2004, from http://kota-unicor.org/legaldocs/6917.htm

This source explains how President Franklin D. Roosevelt signed the law that authorized

the establishment of Federal Prison Industries on June 23, 1934. Then on December 11,

1934, he issued Executive order 6917, which formally created Federal Prison Industries.

This source also explains that Federal Prison Industries commenced on January 1, 1935.

UNICOR 1999 Annual Report (2000). Paying dividends to America. Federal Prison Industries,

Petersburg, VA

This source includes a summary of a former inmates names Mr. Joe Green who

successfully transitioned into society after being released from prison. It provides

information regarding the Inmate Placement Program and its benefits to inmates, staff

and inmate families.

UNICOR 2001 Annual Report (2002). Making a difference, securing a future. Federal Prison

Industries, Petersburg, VA

This source provides success stories of two former inmates that benefited from Federal

Prison Industries/UNICOR. These stories provide a good example of how the Inmate

Placement Program assists inmates to learn a trade and develop good interviewing skills.

UNICOR 2002 Annual Report (2003). Federal prison industries. Federal Prison

Industries, Petersburg, VA

This source provides information regarding the most current UNICOR Board of Directors

and the Federal Prison Industries, Inc.(FPI)/UNICOR mission statement. It also indicates

that Congress enacted H.R. 7412, on May 27, 1930. This assists in explaining when

FPI/UNICOR began. It also explains that the mission of UNICOR is to train, educate and

employ inmates.

UNICOR 2004 (2004). Schedule of products and services 2004 catalog, outfitting your

institution from a to z . Federal Prison Industries, Petersburg, VA

This source is the latest catalog for UNICOR. It shows the products and services that one

may order. In the last page it addresses that UNICOR is the trade name for Federal

Prison and industries and is a wholly owned government corporation.

UNICOR 2003 (2003) Schedule of products and services 2003 catalog, a guide to doing

business with unicorn. Federal Prison Industries, Petersburg, VA

This source provides a complete listing of the products and services of UNICOR. It

indicates the eight industrial programs. It also provides Customer Service Center

information.

UNICOR (n.d) What is unicor. Retrieved July 24, 2004, Retrieved from

http://www.unicor.gov/02financial/02notes01.htm

This source indicates that "As of September 30, 2003, FPI had industrial operations at

112 factories located at 71 facilities within the Federal Prison System; these factories

employed 20,274 inmates represented approximately 16% of the total federal inmate

population."

United States Senate Bill 346. (2003,February 11). 108th Congress, 1st session, s.346.

Retrieved August 1, 2004, from http://www.fedcure.org/documents/s346-FPI_000.pdf

Senate Bill # 346, proposed by Senator Carl Levin (MI), which amends the Federal

Procurement Policy Act relating to purchases from Federal Prison Industries. This bill

would modify the contracting process to make FPI bid on contracts like any private sector

company and make the contracting officer determine that purchasing from FPI meets the

needs of the agency in price, delivery, quality, and comparability.

United States Senate Bill 2414. (2004, May 12). 108th Congress, 2d session, s. 2414.

Retrieved August 1, 2004, from http://thomas.loc.gov/cgi-bin/query

United States Senate Bill # 2414, was proposed by Senator Lindsey Graham (South

Carolina). This bill would create a commission appointed by the President, United States

Senate, and United States House. The commission would be composed of 9 members and

would review work opportunities for Federal inmates. Some of the commission's other duties would include examining the current state of FPI, its impact upon the BOP, and the private labor markets. This bill was referred to the United States Senate Committee on the Judiciary on May 12th, 2004.