Bill Pits Prisons Against Small Businesses

September 19, 2006 by Rich | 1 Comment
In Legal, Operations, Strategy

Inc.com:

For the second time in three years, the House has approved a bill forcing prisons to compete with small businesses for federal contracts.

The Federal Prison Industries Competition in Contracting Act, which passed the House by 362-57, allows small private-sector manufacturers to vie for formerly non-competitive government contracts for office furniture, electronics, and other products and services.

Private-sector businesses, trade groups, and labor unions have long complained that the agency’s preferred procurement status is unfair and bad for business.

A similar bill introduced in the Senate in April 2005 is currently in the committee stage.

Photo by grovesa16.

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