FAR 8.602—Policy.
Plain-English Summary
FAR 8.602 sets the core policy for buying Federal Prison Industries (FPI, also known as UNICOR) supplies and explains when agencies must compare FPI items against private-sector alternatives before buying. It covers the required market research, the written comparability determination, the rule to buy from FPI when the item is comparable, and the steps to follow when the item is not comparable in price, quality, or delivery. It also explains how FPI must be included in competitive solicitations, how this works with multiple award schedules and multiple-award delivery-order contracts, and when a waiver or exception removes the section’s procedures from use. The section further addresses special treatment when FPI and an AbilityOne participating nonprofit agency produce identical items and FPI grants a waiver for part of the requirement. Finally, it clarifies that most disputes about FPI supply characteristics are subject to statutory arbitration, but the initial comparability determination under paragraph (a)(1) is not. In practice, this section is about ensuring agencies consider FPI first where required, document their decision-making, and preserve competition and fair consideration when FPI is not the best fit for the Government’s needs.
Key Rules
Market research required first
Before buying an item listed on the FPI Schedule, the agency must conduct market research to compare the FPI item with private-sector supplies that best meet the Government’s needs for price, quality, and delivery. The contracting officer makes this comparability determination unilaterally; the arbitration process in 18 U.S.C. 4124(b) does not apply to that initial decision.
Written comparability determination
The contracting officer must prepare a written determination with supporting rationale explaining the comparison of price, quality, and time of delivery. This documentation must be based on the market research and should show why the FPI item is or is not comparable.
Comparable items must be bought from FPI
If the FPI item is found comparable, the agency must purchase it from FPI using the ordering procedures at UNICOR’s website, unless a waiver is obtained under FAR 8.604. The policy favors FPI when it can meet the Government’s needs on a comparable basis.
If not comparable, use competitive methods
If the FPI item is not comparable in one or more of the required areas, the agency must acquire the item through competitive procedures, including FAR Part 6, set-asides under FAR Part 19, or simplified acquisition procedures under FAR Part 13. If the buy is under a multiple-award delivery-order contract, the fair opportunity procedures in FAR 16.505 may be used.
FPI must be included in the solicitation process
When the item is not comparable, the agency must still include FPI in the solicitation process and consider any timely offer from FPI. If the solicitation is posted at SAM.gov, no separate copy must be sent to FPI; if it is not posted there, a copy must be provided to FPI.
Same evaluation basis for schedule and fair opportunity buys
When using a multiple award schedule under FAR Subpart 8.4 or fair opportunity procedures under FAR 16.505, the agency must give FPI the item description or specifications and the evaluation factors that will be used so FPI can compete on the same basis as the schedule holder or contract holder. A timely FPI offer must be considered.
Award to best value source
The agency must award to the source offering the item that the agency determines provides the best value to the Government. If FPI wins as a result of its response to a competitive solicitation, the agency must then follow the ordering procedures at UNICOR’s website.
Exceptions and waivers limit the policy
The procedures in paragraph (a) do not apply when an exception in FAR 8.605(b) through (g) applies. In addition, when FPI grants a waiver for part of a requirement because FPI and an AbilityOne participating nonprofit agency produce identical items, the waived portion is bought under FAR Subpart 8.7 and is not subject to paragraph (a).
Most FPI supply disputes go to arbitration
Disputes about the price, quality, character, or suitability of FPI-produced supplies are generally subject to arbitration under 18 U.S.C. 4124. The arbitration board’s decisions are final and binding, but this does not include disputes over the paragraph (a)(1) comparability determination.
Responsibilities
Contracting Officer
Conduct market research before buying an FPI-listed item, decide whether the FPI item is comparable, and document the decision in writing with supporting rationale. If the item is comparable, buy from FPI unless a waiver applies; if not comparable, use the proper competitive or fair opportunity procedures, include FPI in the solicitation process, consider timely FPI offers, and award to the best-value source.
Agency
Follow the FPI policy framework when acquiring listed items, use the required acquisition procedures when the item is comparable or not comparable, and ensure solicitations and ordering actions are handled consistently with FAR 8.602 and related provisions.
FPI / UNICOR
Provide FPI-listed supplies, respond through the UNICOR ordering procedures when selected, and participate in competitive solicitations when the agency includes FPI in the process. FPI may also grant waivers in limited circumstances, including when identical items are also produced by AbilityOne participating nonprofit agencies.
AbilityOne Participating Nonprofit Agency
When FPI grants a waiver for a portion of an identical-item requirement, the nonprofit agency may receive that portion of the requirement under the AbilityOne procedures in FAR Subpart 8.7.
Offerors / Private-Sector Sources
Compete when the FPI item is determined not comparable and the agency uses competitive procedures, set-asides, simplified acquisition procedures, or fair opportunity procedures. They must be evaluated under the solicitation’s stated item description, specifications, and evaluation factors.
Dispute Resolution Board under 18 U.S.C. 4124
Arbitrate disputes about the price, quality, character, or suitability of FPI-produced supplies, except for the contracting officer’s initial comparability determination under paragraph (a)(1). Its decisions are final and binding.
Practical Implications
Contracting officers need to document the comparability analysis carefully; a bare conclusion is not enough if the decision is later questioned.
Do not confuse the initial comparability determination with a broader product-quality dispute: the former is not arbitrable, while most other FPI supply disputes are.
If FPI is not comparable, the agency still cannot ignore FPI; it must be included in the solicitation process and given a fair chance to compete.
Posting the solicitation at SAM.gov changes the notice requirement: no separate copy to FPI is needed, but FPI still must be considered if it submits a timely offer.
When using schedules or fair opportunity, the evaluation criteria must be communicated to FPI so its offer can be judged on the same basis as other sources.
If FPI wins in a competitive process, the agency does not stop at award; it must still follow the UNICOR ordering procedures.
Always check for exceptions in FAR 8.605(b) through (g) and for any FPI waiver tied to identical items with AbilityOne, because those situations change the normal buying path.
Official Regulatory Text
(a) In accordance with 10 U.S.C. 3905 and Section 637 of Division H of the Consolidated Appropriations Act, 2005 (Pub. L. 108-447) ( 18 U.S.C. 4124 note), and except as provided in paragraph (b) of this section, agencies shall- (1) Before purchasing an item of supply listed in the FPI Schedule, conduct market research to determine whether the FPI item is comparable to supplies available from the private sector that best meet the Government’s needs in terms of price, quality, and time of delivery. This is a unilateral determination made at the discretion of the contracting officer. The arbitration provisions of 18 U.S.C. 4124(b) do not apply. (2) Prepare a written determination that includes supporting rationale explaining the assessment of price, quality, and time of delivery, based on the results of market research comparing the FPI item to supplies available from the private sector. (3) If the FPI item is comparable, purchase the item from FPI following the ordering procedures at http://www.unicor.gov , unless a waiver is obtained in accordance with 8.604 ; and (4) If the FPI item is not comparable in one or more of the areas of price, quality, and time of delivery- (i) Acquire the item using- (A) Competitive procedures ( e.g., the procedures in 6.102 , the set-aside procedures in subpart 19.5 , or competition conducted in accordance with part 13 ); or (B) The fair opportunity procedures in 16.505 , if placing an order under a multiple award delivery-order contract; (ii) Include FPI in the solicitation process and consider a timely offer from FPI for award in accordance with the item description or specifications, and evaluation factors in the solicitation- (A) If the solicitation is available through the Governmentwide point of entry (Contract Opportunities at SAM.gov ), it is not necessary to provide a separate copy of the solicitation to FPI; (B) If the solicitation is not available through Contract Opportunities at SAM.gov , provide a copy of the solicitation to FPI; (iii) When using a multiple award schedule issued under the procedures in subpart 8.4 or when using the fair opportunity procedures in 16.505 - (A) Establish and communicate to FPI the item description or specifications, and evaluation factors that will be used as the basis for selecting a source, so that an offer from FPI can be evaluated on the same basis as the contract or schedule holder; and (B) Consider a timely offer from FPI; (iv) Award to the source offering the item determined by the agency to provide the best value to the Government; and (v) When the FPI item is determined to provide the best value to the Government as a result of FPI’s response to a competitive solicitation, follow the ordering procedures at http://www.unicor.gov . (b) The procedures in paragraph (a) of this section do not apply if an exception in 8.605 (b) through (g) applies. (c) In some cases where FPI and an AbilityOne participating nonprofit agency produce identical items (see 8.603 ), FPI grants a waiver to permit the Government to purchase a portion of its requirement from the AbilityOne participating nonprofit agency. When this occurs, the portion of the requirement for which FPI has granted a waiver- (1) Shall be purchased from the AbilityOne participating nonprofit agency using the procedures in subpart 8.7 ; and (2) Shall not be subject to the procedures in paragraph (a) of this section. (d) Disputes regarding price, quality, character, or suitability of supplies produced by FPI, except for determinations under paragraph (a)(1) of this section, are subject to arbitration as specified in 18 U.S.C. 4124 . The statute provides that the arbitration shall be conducted by a board consisting of the Comptroller General of the United States, the Administrator of General Services, and the President, or their representatives. The decisions of the board are final and binding on all parties.