FEDERAL PRISON INDUSTRIES, INC. (FPI) "GOOD FAITH" NOTICE FOLLOW-UP ON CHAIN & WIRE ROPE ASSEMBLIES IN FSC 2995 On June 16, 2000, the Commerce Business Daily published a "good faith" notice regarding FPI's proposal to manufacture chain and wire rope assemblies in Federal Supply Classification (FSC) code 2995 -- Miscellaneous Engine Accessories, Non-Aircraft, for sale to the Federal government. The "good faith" notice explained that FPI has a history of producing chain & wire rope assemblies in FSC 1680 -- Miscellaneous Aircraft Accessories & Components and also in FSC 4010 -- Chain & Wire Rope. Some of these items were recently transferred to FSC 2995 -- Miscellaneous Engine Accessories, Non-Aircraft. The "good faith" notice explained that the function and manufacture of these items has not changed, only the FSC code in which they are classified. The "good faith" notice stated that while FPI did not consider chain & wire rope assemblies in FSC 2995 to be a "new product" as defined by FPI's expansion guidelines, FPI recognized that a reasonable person may construe these items to be a product separate and distinct from any other item supplied by FPI. The June 16th notice requested that interested parties submit comments regarding the FPI's production of chain & wire rope assemblies in FSC 2995. As specified by FPI's expansion guidelines, the notice stated that such comments were due within 21 days of the publication of the notice. The deadline for such comments was July 7, 2000. FPI did not receive any comments in response to the notice. Therefore, for the reasons set forth in the June 16th notice, it is FPI's determination that chain & wire rope assemblies in FSC 2995 are not a "new product" as set forth by FPI's expansion guidelines. FPI may manufacture these items for sale to the Federal government without obtaining prior approval from its Board of Directors. These items will be included within the specific product grouping "FSC 2995 -- Miscellaneous Engine Accessories, Non-Aircraft." As discussed in FPI's guidelines, any interested party has the right to raise any questionat any time with FPI's Board of Directors. Posted 08/22/00 (W-SN488664).

Loren Data Corp. http://www.ld.com (SYN# 0502 20000824\SP-0006.MSC)

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