FAR 19.502-7—Inclusion of Federal Prison Industries, Inc.
Plain-English Summary
FAR 19.502-7 addresses one narrow but important procurement rule: when an agency is using the competitive procedures described in FAR 8.602(a)(4), it must include Federal Prison Industries, Inc. (FPI) in the solicitation process and evaluate any offer FPI submits on time. The section exists to ensure FPI is not excluded from competition when the acquisition method triggers this requirement, and it reinforces the Government’s obligation to treat FPI as a potential source in the specified competitive setting. In practice, this means the contracting activity must make sure FPI receives the solicitation or otherwise has a fair opportunity to compete, and that its timely offer is considered along with other offers. The rule is procedural rather than substantive: it does not guarantee award to FPI, but it does require inclusion and consideration. For contracting officers and acquisition teams, the key significance is to avoid an avoidable competition defect by confirming whether the acquisition falls under FAR 8.602(a)(4) and, if so, documenting that FPI was included and any timely response was evaluated.
Key Rules
Applies only in specified competitions
This requirement is triggered only when the agency is using competitive procedures under FAR 8.602(a)(4). If the acquisition is not being conducted under that authority, this section does not impose the same FPI inclusion requirement.
Include FPI in solicitation process
Agencies must include Federal Prison Industries, Inc. in the solicitation process. In practical terms, FPI must be given the opportunity to participate as a source, rather than being left out of the competition.
Consider timely FPI offers
If FPI submits an offer on time, the agency must consider it. The rule requires evaluation of a timely offer on the same basis as other timely offers under the applicable competition procedures.
No automatic award preference
The section requires inclusion and consideration, but it does not direct award to FPI. Award decisions still depend on the applicable evaluation criteria and the merits of the offers received.
Responsibilities
Contracting Officer
Determine whether the acquisition is being conducted under FAR 8.602(a)(4); ensure FPI is included in the solicitation process; and evaluate any FPI offer received by the deadline along with other timely offers.
Agency Acquisition Staff
Support the contracting officer by identifying when the rule applies, ensuring solicitation distribution includes FPI, and maintaining a record that FPI was afforded the required opportunity to compete.
Federal Prison Industries, Inc. (FPI)
Submit an offer within the solicitation deadline if it chooses to compete; only timely offers are required to be considered under this section.
Practical Implications
The main day-to-day task is checking whether the procurement falls under FAR 8.602(a)(4); if it does, FPI cannot be omitted from the competition.
A common pitfall is assuming FPI is optional to include because it is a government-related source; this section makes inclusion mandatory in the covered competition.
Contracting officers should document that FPI was included and that any offer received by the due date was considered, to reduce protest or audit risk.
Late FPI offers do not have to be considered under this section, so deadline control remains important.
This rule is procedural, so teams should not confuse it with a source-selection preference or mandatory award requirement for FPI.
Official Regulatory Text
When using competitive procedures in accordance with 8.602 (a)(4), agencies shall include Federal Prison Industries, Inc. (FPI), in the solicitation process and consider a timely offer from FPI.