BOP Program Statement 8041.03 § 5

guidelines set forth in the Factory Construction and Activation

Manual, and any subsequent revisions, when designing,

constructing, activating, deactivating, and modifying FPI

facilities.

/s/

Kathleen M. Hawk

Director

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Table of Contents, Page 1

FPI FACTORY CONSTRUCTION AND ACTIVATION MANUAL

TABLE OF CONTENTS

CHAPTER 1 - LIAISON WITH BUREAU OF PRISONS

FACILITIES COMPONENTS

Bureau Design and Construction Branch. . . . . . . . . . . . 1.1

Design Phase. . . . . . . . . . . . . . . . . . . . . 1.1.1

Construction Phase. . . . . . . . . . . . . . . . . . 1.1.2

Bureau Activation Coordinators. . . . . . . . . . . . . . . 1.2

CHAPTER 2 - FACTORY DESIGN PROCEDURES

Factory Design Assessment. . . . . . . . . . . . . . . . . . 2.1

Standard FPI Design Program. . . . . . . . . . . . . . . . . 2.2

General Requirements. . . . . . . . . . . . . . . . . 2.2.1

Factory Production Area. . . . . . . . . . . . . . . 2.2.2

Square Foot Requirements. . . . . . . . . . . . . . .

Electrical Power Requirements. . . . . . . . . . . . .

Production Area Lighting Requirements. . . . . . . . .

Telephone/Data Line Requirements. . . . . . . . . . .

Ceiling Height. . . . . . . . . . . . . . . . . . . .

Plumbing Requirements. . . . . . . . . . . . . . . . .

HVAC Systems. . . . . . . . . . . . . . . . . . . . .

Pneumatic Systems. . . . . . . . . . . . . . . . . . .

Fire Protection. . . . . . . . . . . . . . . . . . . .

Loading Docks. . . . . . . . . . . . . . . . . . . . .

Requirements for the MCS Computer Room. . . . . . . . 2.2.3

Physical. . . . . . . . . . . . . . . . . . . . . . .

Environment. . . . . . . . . . . . . . . . . . . . . .

Electrical. . . . . . . . . . . . . . . . . . . . . .

Telephone. . . . . . . . . . . . . . . . . . . . . . .

Inter-Communication (Work Stations within Administrative and

Production areas). . . . . . . . . . . . . . . . . . .

Intra-Communication (access to the FTS2000 data network,

Factory, warehouse, camp, and other

Buildings. . . . . . . . . . . . . . . . . . . . . . .

Specifications. . . . . . . . . . . . . . . . . . . .

SENTRY Communication. . . . . . . . . . . . . . . . . 2.2.4

Security. . . . . . . . . . . . . . . . . . . . . . . 2.2.5

Factory Administrative Areas. . . . . . . . . . . . 2.2.6

FPI Warehouse Area. . . . . . . . . . . . . . . . . . 2.2.7

Loading Docks. . . . . . . . . . . . . . . . . . . . .

Fire Protection. . . . . . . . . . . . . . . . . . . .

CHAPTER 3 - POST-DESIGN MODIFICATIONS (RETROFITTING FACTORIES)

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Design Modifications During Project Construction. . . . . . 3.1

Post-Construction Modifications. . . . . . . . . . . . . . . 3.2

Alterations to Existing FPI Facilities. . . . . . . . . . . 3.3

Space Diverted for Non-FPI Purposes. . . . . . . . . . . . . 3.4

CHAPTER 4 - FPI CONSTRUCTION CONTRACTING AND BILLING

The Construction Contract. . . . . . . . . . . . . . . . . . 4.1

FPI Construction Cost Estimates. . . . . . . . . . . . . . . 4.2

Use of Bureau B&F Funds. . . . . . . . . . . . . . . . . . . 4.3

Use of FPI B&I Funds. . . . . . . . . . . . . . . . . . . . 4.4

Construction Modifications. . . . . . . . . . . . . . . . . 4.5

Contractor Requests For Payment. . . . . . . . . . . . . . . 4.6

Bureau Reimbursement for FPI B&I Funded Project. . . . . . . 4.7

Construction Settlement Claims. . . . . . . . . . . . . . . 4.8

CHAPTER 5 - THE FACTORY ACTIVATION PROGRAM

The Project Review Group. . . . . . . . . . . . . . . . . . 5.1

The Factory Activation Date. . . . . . . . . . . . . . . . . 5.2

Factory Activation Plan. . . . . . . . . . . . . . . . . . . 5.3

The Factory Activation Team. . . . . . . . . . . . . . . . . 5.4

Updating and Tracking The Factory Activation Plan. . . . . . 5.5

The Factory Business Plan. . . . . . . . . . . . . . . . . . 5.6

Business Plan/Activation Budget Elements. . . . . . . 5.6.1

General. . . . . . . . . . . . . . . . . . . . . . . .

Sales. . . . . . . . . . . . . . . . . . . . . . . . .

Capital Requirements. . . . . . . . . . . . . . . . .

Expense Data Source Report. . . . . . . . . . . . . .

Activation Budget. . . . . . . . . . . . . . . . . . 5.6.2

Product Support Center Responsibilities. . . . . . . . . . . 5.7

CHAPTER 6 - EVALUATING THE ACTIVATION PROCESS

Post-Activation Survey. . . . . . . . . . . . . . . . . . . 6.1

Post-Activation Review. . . . . . . . . . . . . . . . . . . 6.2

CHAPTER 7 - DEACTIVATING A FACTORY OPERATION

The Factory Deactivation Plan. . . . . . . . . . . . . . . . 7.1

Scope of Deactivation. . . . . . . . . . . . . . . . . . . . 7.2

Notification Process. . . . . . . . . . . . . . . . . . . . 7.3

Staffing and Personnel Issues. . . . . . . . . . . . . . . . 7.4

Transfer of Customer Orders. . . . . . . . . . . . . . . . . 7.5

Disposition of FPI Assets. . . . . . . . . . . . . . . . . . 7.6

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CHAPTER I

LIAISON WITH BUREAU FACILITIES COMPONENTS

Planning, Research and Activation (PRA) is the Federal Prison

Industries (FPI) branch that communicates with other Bureau

components regarding FPI construction, activation, facilities,

and deactivation issues.

The PRA Manager is the primary FPI contact and coordinator for

Bureau facilities programs and initiatives such as Architectural

Barriers and Federal Accessibility Standards, Seismic Safety, and

Facility Physical Plant Review Program (PPRP), formerly known as

Facility Space Utilization Study.

The Facilities Program Coordinator for each of these initiatives

shall notify the PRA Manager when any of these programs are

implemented at locations with FPI facilities. Additionally,

the PRA Manager, in association with the Product Support

Center (PSC), shall review any plans developed under these

programs that require FPI funding or modifications to FPI

buildings or facilities.

1.1 BUREAU DESIGN AND CONSTRUCTION BRANCH

In order to insure that FPI’s design requirements are included in

the overall design, PRA shall work closely with Bureau's Design

and Construction Branch Project Managers during the design and

construction of a new institution and activation. This close

association is recommended from the onset of the project. The

Bureau Project Manager will act on behalf of FPI and coordinate

FPI-related construction issues with project contractors

(Architect Engineer and General Contractor) including FPI design

changes, contract modifications and monthly progress payments.

They will also evaluate contractor proposals and claims. PRA and

the Product Support Center shall meet with the contract Architect

and Engineering Firm, along with Bureau Project Managers, during

the design and development phase to ensure the design criteria

for FPI is being followed.

1.1.1 Design Phase. FPI design criteria shall be requested by

the Project Manager when the process begins to solicit an

architectural and engineering (A&E) firm. The Bureau Project

Manager shall notify PRA of the announcement to solicit an A&E

firm.

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Once completed and reviewed by the Product Support Center, PRA

shall forward the FPI design package to the Project Manager to

include in the initial project design. FPI design criteria must

be submitted to the Bureau Project Manager prior to A&E fee

negotiations. Specific factory design procedures are located in

Chapter 2 of this Manual.

PRA staff shall meet with the Bureau Project Manager and

representatives from the A&E firm during the Conceptual Design

Phase and the Design Development Phase to discuss FPI-related

design issues and ensure all parties involved in the design are

clear on FPI's construction requirements. Typically, the reviews

with the A&E and Bureau Project Manager involving FPI personnel,

shall occur at the 10%, 50%, and 90% stages of Design

Development/drawing completion.

The Bureau Project Manager shall provide PRA with two complete

sets of design drawings at the completion of the Conceptual Phase

and at the 50% Design Development stage and at the 90% Design

Development stage. During the Design Development Phase, PRA

shall work with the PSC to identify product-specific design

requirements. Early identification of design changes may

eliminate expensive modifications at a later date.

The Bureau Project Manager shall provide PRA with construction

cost estimates for FPI's segment of the project as soon as they

become available. These will be used to develop funding

projections for presentation to the FPI Board of Directors. As

estimates become available throughout the project, the Project

Manager shall ensure that FPI-related estimates are provided to

PRA.

1.1.2 Construction Phase. Once the design process has been

completed, PRA shall maintain contact with the Bureau Project

Manager throughout construction. The Project Manager shall

provide PRA with two complete sets of final construction drawings

and specifications.

Informal progress meetings shall be held to provide an

opportunity to exchange information concerning construction.

Details regarding progress, delays, and design issues require

regular updating. All site questions that emerge during the

construction phase shall be forwarded to FPI (PRA) from the

Project Manager, for review and decision.

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1.2 BUREAU ACTIVATION COORDINATORS

PRA staff shall periodically exchange updated construction and

activation information with Regional and Central Office Bureau

Activation Coordinators both telephonically and via the bi-monthly Corporate Factory Activation/Deactivation Update.

PRA shall use information obtained from Bureau Project Managers

and Activation Coordinators to update the Factory Activation

Plan, the Activation Team, and Corporate Management.

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CHAPTER II

FACTORY DESIGN PROCEDURES

FPI construction presents situations not common to other areas of

project development, which have significant influence on a

specific facility design. Market forecasts, the number of inmate

jobs needed, and the space required by the manufacturing process

ultimately affect factory design.

Ideally, product selection would be made early enough to be

considered during the design of the new institution, permitting

the design and construction of a product-specific factory.

Factors influencing product selection, however, often prevent FPI

from committing to a specific product in advance. Thus, the

design of new facilities must maintain flexibility.

2.1 FACTORY DESIGN ASSESSMENT

Following approval of a new or expanded product, PRA shall

forward an industrial design assessment to the PSC and

appropriate staff.

The design assessment shall be used to develop any special design

requirements the specific manufacturing process may have, and to

provide accurate information during the design process.

PRA shall use the assessment as a guide when assembling a

recommended factory design package. Criteria identified in the

assessment shall be included in the design package submitted to

the Bureau Project Manager and shall include at a minimum:

Ë Main factory area square footage.

Ë FPI warehouse square footage.

Ë Factory HVAC requirements.

Ë Modifications (if any) to the standard design program.

Ë Basic computer/MIS requirements.

Ë Basic utility requirements.

Ë Program and Architectural Accessibility Requirements.

Square footage requirements for the main factory floor shall be

determined by the PRA based on projected inmate employment and

the product proposed for the new institution.

2.2 STANDARD FPI DESIGN PROGRAM

For accreditation purposes, all institutional work, industry, and

vocational education programs shall meet minimum applicable

federal, state, or local work, health, and safety standards. In

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addition, documentation is required that the programs are

inspected by federal, state, or local health and safety officials

at least annually. The programs also shall be inspected weekly

by qualified departmental staff and monthly by a safety officer.

2.2.1 General Requirements. The FPI factory shall be designed

as a pre-engineered metal building. Factory designs shall comply

with Bureau policy regarding Seismic Safety, accessibility

standards outlined in the Uniform Accessibility Standards (UFAS),

and with requirements of the most current edition of the Life

Safety Code (NFPA 101) requirements for Industrial Occupancies.

The basic factory size shall be no less than 47,500 square feet,

with the option to expand the factory to 60,000 square feet, and

maintain the specified 100 feet to the perimeter fence. The

facility shall be designed as a generic factory.

All FPI utilities, air compressors, etc. shall be configured to

use as minimal amount of floor space as possible so as

to maximize the remaining floor space for factory usage.

The factory must have the capability of securing inmates in the

factory during non-traditional working hours and during periods

of fog or inclement weather. The design shall comply with

Bureau policy on locked doors as a means of egress and property

protection. This requires pressure release locking devices in

lieu of panic hardware on all exit doors. Doors and door frames

must meet all specifications as defined by the Bureau

Correctional Services Manual.

Inmate restrooms shall be provided on the main factory floor

and designed to accommodate the number of inmates to be employed

at that facility (information to be provided by PRA).

Approximately three percent of these facilities shall be handicap

accessible. The inmate restroom area shall emphasize privacy

without a closable door. Inmate restrooms shall include 1/2

height individual stalls with 1/2 height closable doors. If

possible the inmate restroom is to be equipped with a Bradley

type hand washing station. Staff restroom facilities shall be

provided in these areas as well. Staff restrooms shall have

closable, locking doors and must be handicap accessible.

Note: Staff restrooms shall be located in the business

office area and the inmate restrooms shall be located off

the production floor.

The inmate entrance to the factory shall include adequate space

to process inmates through a metal detector and perform searches

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as inmates enter and leave. A small private area of about 45

square feet shall be accessible from the entrance area for strip

searches.

Close attention shall be given to using energy efficient

equipment and materials. Significant savings can be realized if

energy efficient cooling/heating systems, lighting, etc., are

installed during the construction phase. Separate utility meters

for each utility shall be included in the design. Whenever

possible, all utilities, air compressors, etc., shall be in a

configuration that minimizes use of production floor space.

2.2.2 Factory Production Area

Ë Square Footage Requirements. Square footage for the

factory shall be approximately 47,500 square feet, with the

option to expand to 60,000 square feet, should FPI decide

that additional space is required for that specific factory.

Building design shall maximize free space between support

columns. Support column spacing shall provide minimum

spacing of 20' in one direction and 30' in the other

direction.

Ë Electrical Power Requirements. Service to the factory

shall provide a minimum 1,000 amp, 480/277 volts, three -

phase service for manufacturing purposes. Electrical boxes

shall have the capacity for expansion and the capability to

support overhead bus ducts. A 208/120 volt overhead bus

duct shall be installed throughout the production floor.

All electrical access panels, boxes, and system equipment

must be located within secure closets or areas. These

itemsshall be secured in a caged mechanical area other than

on the production floor.

Ë Production Area Lighting Requirements. Lighting for the

production area shall be designed to support a generic

manufacturing environment. An average of 100 foot candles

when metered three feet from the factory floor is

recommended. Emphasis shall be placed on the use of natural

lighting, using skylights and windows around the upper level

of the exterior wall when possible. The lighting system

should be designed to maximize light dispersion to eliminate

shadow casting. Energy conservation measures should be

considered during design. Metal halide lighting fixtures

are preferred.

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Ë Telephone/Data Line Requirements. Telephone receptacles

shall be placed on two support columns in each support

column row throughout the main factory production area.

Placement shall provide uniform spacing between receptacle

locations throughout the factory. RJ-45 duplex

receptacles shall be installed adjacent to telephone

receptacles for data line accessibility. The factory

telephone system shall include an intercom and public

address/paging system.

Ë Ceiling Height. The main factory area ceiling shall

provide a 18-foot minimum clearance from the lighting, HVAC

units, and utilities. The ceiling shall be designed to

accommodate compressed air lines, electrical busbars/

feedrails, any special ventilation required, and the

mezzanine office configuration.

Ë Plumbing Requirements. Factory plumbing shall be based

upon the needs of a generic manufacturing environment.

Drinking fountains shall be designed along the perimeter of

the factory floor and shall utilize wall mounted equipment.

Eyewash stations shall be installed in conjunction with

drinking fountains.

An emergency shower with a floor drain shall be located in

the main factory area outside the inmate toilet area.

Provisions for adequate floor drains shall be included in

the basic factory plumbing package, including placement in

toilet facilities and throughout the main factory production

area. FPI shall be guided by the A&E firm regarding spacing

of floor drains for a light manufacturing environment.

Ë HVAC Systems. HVAC systems shall be designed to maintain

a light manufacturing environment, while remaining

compatible with the institution's systems. Air

conditioning, and/or evaporative cooling (depending on local

environmental conditions), shall be included in the design

for the main production floor. All factory support and

administrative areas shall be air-conditioned. The

temperature range shall be similar to other areas within the

institution. The factory shall be provided with its own air

handling unit to allow for localized temperature control and

ventilation. Heating shall be provided through this air

handling unit.

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Ë Pneumatic Systems. The factory design shall include an

air compressor system. There shall be two, 30 horsepower,

screw-type industrial air compressor units. Each shall be

capable of maintaining 250 scfm and 125

psi throughout the main factory area. This system shall

include cooling apparatus for the compressor and

dehumidifying capabilities for compressed air. The

compressors shall be located in a secure mechanical room to

minimize noise levels.

Air lines shall be run overhead between each support column

row. Hardware to accommodate drop lines shall be installed

at 10-foot intervals along the overhead air lines. Air

lines shall be extended down about 50 percent of factory

area support columns. Access hardware and shut-off valves

shall be installed on all support column air lines.

Ë Fire Protection. A fire protection system shall be

hydraulically designed to comply with all the requirements

of NFPA 13, 1994 edition. Fire protection coverage shall be

placed on the following:

a. Main Factory Floor: Extra Hazard

b. Load Dock Area: Ordinary Hazard Group 2

c. Office Areas: Light Hazard

d. M/E Rooms: Ordinary Hazard Group 1

Ë Loading Docks. The loading dock shall support trailer

loading/unloading at the factory floor. The width of the

dock shall be a minimum of 18 feet. The length of the

loading dock shall accommodate all the roll-doors with the

exception of the door offering “weather seal” protection. A

minimum of two automatic dock levelers shall be included. A

minimum of two overhead roll-up doors shall be included.

One door should measure a minimum of 12 feet wide and 16

feet high, the second door should be located just past the

end of the loading dock and be equipped with “weather seal”

protection and sized to accommodate a trailer backed up to

the door. A ramp providing forklift access from ground

level to the loading dock shall be provided.

A roof covering the loading dock area shall be included in

the design. Emphasis shall be placed in lighting the entire

loading dock area.

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The loading dock area shall be equipped to accommodate a

minimum of three trailers backed up to the dock an any given

time. Additionally, a staging area for approximately two

trailers shall also be included. The total space shall be

adequate for five trailers to be parked at any given time.

2.2.3 Requirements for the MCS Computer Room. The physical,

environmental, electrical, telephone and data communications

requirements are as follows:

1. Computer Room

Ë Physical. A separate secured 10' x 10' computer room

(per Bureau policy) shall be provided in the factory

administrative area. The computer room walls shall be of

masonry (B walls) or other non-penetrable materials. The

door shall be a security metal door without a window and

equipped with lock and key. The floor shall be constructed

of tiles for anti-static protection. The room will be

separated from water storage areas, electrical generators or

transformers, telephone services, janitorial areas or other

high traffic areas. No windows shall be included in the

design for this room.

Ë Environment. The temperature in the computer room must

be maintained between 60 and 80 degrees Fahrenheit at all

times (24 hours per day). The humidity level will be

between 20 - 40 noncondensing. Most central air

conditioning systems provide this, however with the heat

generated by the computer equipment in a closed room, this

temperature is harder to maintain.

To offset the extra heat, additional vents from the central

air conditioning duct shall be provided in the computer

room. The computer room must also have an intake for

exhausting warm air.

Ë Electrical. Six dedicated 110 volt grounded receptacles

(duplex receptacles) on 30 amp circuits. One dedicated 220

volt single phase, 30 amp circuit terminating in the

computer room on a female L14-30R receptacle.

Ë Telephone. The computer room shall be equipped with four

telephone connections: a standard office telephone for

voice, and three direct four-wire voice and data lines

(a.k.a. measured business line) from the institution's main

communication room/De-marc area to the FPI computer room,

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bypassing any PBX system.

All circuits are to terminate on an RJ11 wall plate jack.

2. Inter-Communication (Work stations within Administrative

and Production areas

Ë Run a three inch conduit from the computer room to a

centrally located support pillar in the factory. Leave a

“pull-string” in the conduit, FPI will pull the necessary

cable at a later date.

Note: All cable must be in conduit.

Ë Wiring Termination: All wiring into the computer room

shall terminate on a RJ45/66 punch block.

A. Three cables of shielded, plenum, Cat. 5, eight

conductors (twisted pair - four pairs) shall be

installed and terminated on a RJ45 triplex jack

directly from the FPI computer room to each

staff office. Pinning for the RJ45 connector is a

standard asynchronous DTE-DCE using IEEE RS-232

electrical interface.

B. Two cables of shielded, plenum, Cat. 5, eight

conductors (twisted pair - four pairs) shall be

installed and terminated on a RJ45 flush jack

directly from the FPI computer room to each

inmate desk and/or work area in the administrative

area of the factory. Pinning for a RJ45 connector

is a standard asynchronous DTE-DCE using IEEE

RS-232 electrical interface.

3. Intra-Communication (access to the FTS2000 data network,

factory, warehouse, camp, and other FPI buildings).

Note: All cables (fiber) must be in conduit.

(i) Install six (3 pair) fiber optic cable strands and

six pairs of copper wires (data rated, cat. 5) from the

main communications room to the FPI computer room. See

specifications below.

(ii) Install six (three pair) fiber optic cable strands

and four pairs of copper wires (data rated, cat. 5)

from FPI’s computer room to FPI’s warehouse, office area.

See specifications below.

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Note: If the installation is being made at a complex, or if

there are any other FPI buildings, the object is to insure

that all of the different FPI locations within a complex are

tied together by fiber optic cable, for computer access.

Consequently, the fiber optic cable requirement, described

above, must be installed among all FPI facilities at the

complex.

Specifications

* Fiber strands shall be multi-mode;

* Operating wavelength is 850nm;

* Fiber strands will be water resistant, gel filled, on-

metallic underground, "D" type 62.5/125 micron;

* Operating temperature at -40 degrees Celsius;

* End-to-end fiber loss of no greater than -1db (after

interface unit);

* Fiber strands shall be terminated on secure wall interface

cabinet (WIC) with connectors and jumper cables;

* Fiber strands shall be terminated on ST connectors;

* Bit Error Rate of 1 in 10 better;9

* Fiber to electrical interfaces for RS-232 using DB25 and

V.35 using Winchester DB34;

* Attenuation of electrical interface to fiber is to be no

greater than 2db;

* Optical output level from electrical interface is to be no

greater than +/- 6db; and

* Data rate clocking mechanism is to be bi-directional and

controlling.

2.2.4 SENTRY Communication. Per Bureau specifications and

policy, the institution LAN system and SENTRY computer access

shall be located in the AW(I&E)/SOI’s office and the Business

Manager’s office in the administrative area.

2.2.5 Security. All requirements shall comply with Bureau

computer security policy. Any computer which has access to

BOPNet should be connected to BOPNet with a distinct and separate

connection for the FPI network.

2.2.6 Factory Administrative Areas. The administrative area

shall consist of approximately 3,000 square feet, located in a

mezzanine area above the production floor. The design of this

area shall include one office for the Superintendent of Industry

(approximately 200 square feet) and may have up to six private

offices of approximately 150 square feet, a computer room

measuring approximately 100 square feet, open office area of

approximately 1,000 shall be included for inmate clerks and file

storage.

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A staff conference/break room shall also be included in this

design. If possible these rooms should be adjacent, with an

accordion wall dividing the rooms. Windows and/or glass

storefront shall be included in the offices and the conference

room. Placement of the glass should allow for observation of the

factory floor while providing modesty panels for staff. Two

staff rest rooms (handicapped accessible) shall be provided. In

addition a “janitor” closet with a mop sink shall be provided on

the mezzanine level. Two stairways shall be included in the

design. One of the stairways shall include an electric chair

lift, to meet UFAS requirements. The stair well shall lead

directly to the factory floor. The doors leading to the

mezzanine office area shall include locks.

Offices located in the administrative area shall be equipped

with telephone and computer data line capabilities. RJ-45 duplex

receptacles shall be installed adjacent to telephone receptacles

for data line accessibility. Offices shall be designed to

facilitate supervision of the factory floor and open office area.

Window configurations shall maximize visibility of factory

operations.

An additional office for the Factory Manager shall be located

on the factory floor consisting of approximately 150 square feet

and equipped with telephone and computer data line capabilities.

RJ-45 duplex receptacles shall be installed adjacent to telephone

receptacles for data line accessibility. Offices shall be

designed to facilitate supervision of the factory floor. Window

configurations shall maximize visibility of factory operations.

There will be two tool rooms located on the factory floor. The

rooms will be adjoined by a high security steel door. One room

will be a Class A tool room and the other room will be a Class B

tool room. To gain access to the Class A tool room, the staff

member must first enter the Class B tool room and then unlock the

separating high security steel door within the Class B tool room

interior wall. The Class B tool room shall be equipped with two

pass-through windows sized 12 inches high by 18 inches wide,

including service counters. These windows shall be located side

by side and equipped with roll-up doors. Note: Toolroom

construction must comply with the Correctional Services Manual.

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2.2.7 FPI Warehouse Area. On a case-by-case basis, the

decision shall be made whether the FPI warehouse shall be

designed as a stand-alone building free from common walls with

other buildings, or shall be shared with the institution

warehouse. Where the FPI warehouse is a stand-alone unit, it

shall be near the institution warehouse. Construction shall

generally be similar to a pre-engineered structure (steel frame

and shell) on a suitable concrete pad. The warehouse area shall

be constructed to be approximately 13,500 square feet of floor

space, unless otherwise specified in the addendum. The warehouse

should be designed to allow FPI the option to expand the building

up to 10,000 sq. ft., should a larger warehouse be required.

Utilities shall be compatible with general institution systems.

The utility equipment rooms should be configured to use the

minimal amount of floor space possible so as to maximize the

floor space for warehouse usage. Air conditioning shall be

included in the warehouse office area. The warehouse office

shall be approximately 300 square feet, with a glass walled

office-within-an-office of approximately 10' X 10', included in

one corner of the warehouse. The office will require the same

telephone and computer requirements as the offices in the

factory.

Metal halide or similar lighting shall be installed in this

area. Approximately one quarter of the fixtures shall include an

instant strike feature. There shall be a minimum ceiling

clearance of 20 feet, after installation of lighting, HVAC units,

and utilities. Building design shall maximize free space between

support columns.

A chain link fenced-in storage area of approximately 300 square

feet for “hot” storage shall be included in the design. Access

to this area shall be wide enough to accommodate a forklift and

loaded shipping pallets.

A drinking fountain, eyewash station, and emergency shower

meeting UFAS requirements shall be installed in the FPI

warehouse, near the inmate restrooms. Approximately five inmates

will be working in this area. A separate unisex staff restroom,

meeting UFAS requirements, and a janitor’s mop closet, with mop

sink, will also be included in the FPI warehouse.

Loading Docks. Three loading dock doors shall be provided in

the warehouse design. When possible, two overhead roll-up doors

shall be positioned across the front of the warehouse, near the

office area. The doors shall measure a minimum of 12 feet wide

and 16 feet high. One of these doors shall be equipped with a

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“weather seal”. The loading dock shall include a minimum of two

automatic dock levelers. The third overhead roll-up door shall

be located at the opposite end of the warehouse to facilitate

simultaneous shipping and receiving. A ramp shall be included to

provide forklift access from ground level to the loading dock.

A roof covering the loading dock area shall be included in the

design. Emphasis shall be placed in lighting the entire loading

dock area. A concrete turnaround area shall be included in the

design to allow for tractor trailers to maneuver easily.

Fire Protection. A fire protection system shall be

hydraulically designed to comply with all requirements of NFPA

13, 1996 edition; NFPA 231, 1995 edition (General Storage); and

NFPA 231c, 1995 edition (Rock Storage). Fire protection coverage

shall be based on the following:

1. Warehouse: Extra Hazard

2. Distribution Center: Extra Hazard

3. Office Area: Light Hazard

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CHAPTER III

POST-DESIGN MODIFICATIONS (RETROFITTING FACTORIES)

Bureau construction projects use a standard design program when

developing FPI facilities. Ordinarily, this design accommodates

most product lines without major modifications.

Significant modifications are generally identified during the

design review process. This chapter outlines procedures to

initiate specific product-related modifications, as required by

FPI to accommodate specific product needs.

3.1 DESIGN MODIFICATIONS DURING PROJECT CONSTRUCTION

PRA shall provide FPI-related design drawings to the PSC and the

Associate Warden/Superintendent of Industries (AW/SOI) as soon as

they become available. The PSC shall develop a factory layout,

with assistance from the AW/SOI, based on these drawings.

Required modifications shall be identified as early as possible

during this process.

If significant modifications are identified prior to construction

completion, the PSC shall submit recommendations to PRA for

approval. PRA shall forward the modifications to the Project

Manager with a request for cost estimates, which will be used to

determine whether it is in FPI's best interest to pursue the

modifications with project contractors.

A decision to proceed with the modifications and to use project

contractors requires issuance of an amended Request for Special

Authorization (RSA) and Statement of Work as provided by the PSC,

that incorporates the additional costs. The RSA, prepared by the

PSC, is authorization for the Bureau Project Manager to initiate

a contract change order.

The PSC representative will be required to travel to each site to

be activated along with a specialist from that particular field.

The issues to be addressed while reviewing the site are varying.

Examples of items to be reviewed are square footage and factory

layout requirements, lighting, accessibility in and out of the

production area, air handling systems, electrical provisions,

warehouse capacity, pneumatic systems, factory support areas,

administrative design, and any other building modifications which

are required.

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3.2 POST-CONSTRUCTION MODIFICATIONS

Minor retrofitting of new factories to accommodate a specific

manufacturing process is to be anticipated. Most modifications

should be identified by the PSC and the AW/SOI well in advance of

construction completion. If modifications are required, the PSC

shall develop a Factory Modification Plan, which shall include:

Ë An outline of construction modification requirements.

Ë A scope of work assessment.

Ë Construction drawings.

Ë Cost estimates.

Ë A project timetable.

The PSC shall oversee post-construction modifications. This

shall include an assessment to complete modifications in-house.

If the PSC is unable to perform such work, they shall initiate

the paperwork to procure services and forward to PRA for

processing.

If A&E services are required to design the necessary

modifications, they shall be solicited by FPI. When necessary,

the PSC shall serve as the Contracting Officer's Technical

Representative (COTR).

Construction contracting, other than with project contractors,

shall be administered by the SOI, with assistance from PSC as

necessary.

3.3 ALTERATIONS TO EXISTING FPI FACILITIES

The following approval procedures shall be implemented whenever

modifications are proposed that will alter or affect any FPI

buildings or facilities--including modifications to doors and

doorways; walls, floors, or ceilings; or alterations that may

change the performance of a utility or mechanical system.

Routine maintenance and component replacements are exempt.

Any plan to alter FPI buildings and facilities shall be submitted

for review to PRA and the Product Support Center, then forwarded

to the Facility Manager for action. The approval process shall

include the PSC's assessment of the effects on current or future

manufacturing capabilities. Following the approval process, the

plan, with comments and recommendations, shall be submitted to

Corporate Management for consideration.

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If building or utility system alterations are required, the

AW/SOI, with the PSC's assistance and approval, shall develop an

"Alteration Proposal" that complies with UFAS requirements and

provisions in the Facilities Operation Manual, Chapters 2 and 3.

The proposal shall include:

Ë At a minimum, a complete written description of all building

alterations, number of square feet involved, type of

construction, fixed equipment needed, relationship of existing

utilities, or addition of new utilities. It shall indicate

whether the proposal is an addition, modification, or new

structure and whether unusual conditions might complicate the

construction process, such as drainage, rock, accessibility,

seismic, or life safety.

Ë A complete written justification indicating why the

alteration is necessary. It will have references to Program

Review findings, policy deficiencies, space study requirements,

additional product development requirements, or management

objectives.

Ë Drawings illustrating the proposed modifications in

relation to the existing facility. Enough details shall be

provided to give a complete understanding of the project

location, scope, and complexity.

Ë Total estimated funding requirements for design,

construction, and project supervision, based on the current

construction cost estimating guidelines.

Ë A project timetable showing estimated start and completion

dates and the length of time needed to complete the entire

project, allowing time for A&E services, procurement, and special

conditions.

Ë Documentation of Work Programming Committee action.

Ë A recommended method of compensation to FPI for any

diversion of space to non-FPI functions.

Ë Source of funding for construction costs associated with

executing the proposal.

3.4 SPACE DIVERTED FOR NON-FPI PURPOSES

Compensation to FPI for space diverted to non-FPI purposes shall

depend on the value of the space diverted, determined on a cost

per square foot basis. To obtain this figure, the total cost of

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construction shall be applied to the total square footage of the

building affected. This cost per square foot shall then be

applied to the total square footage diverted by the proposal.

If a proposal to divert FPI space is submitted and approved

during initial construction of the facility, FPI's proportionate

cost of construction shall be reduced by an amount established by

the cost per square foot formula. The Bureau shall assume costs

associated with architectural redesign or construction

modifications resulting from the diversion proposal.

Compensation for FPI space diverted following initial

construction shall be developed through an interagency agreement.

The value of the diverted FPI space shall be determined by the

cost per square foot formula. This value shall serve as the

basis for agreement. The interagency agreement shall focus upon

partial or total (depending on the total value of diverted space)

relief from FPI's portion of the institution's utility expenses.

The institution shall assume all costs associated with

implementing approved FPI alterations.

A qualified Fire Protection Engineer shall review all design

drawings and mission change specifications for renovating

existing structures and factories or constructing new structures

and factories. The design review shall verify that the design

meets all current life safety and fire protection requirements

for the building(s) and the operations within.

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CHAPTER IV

FPI CONSTRUCTION CONTRACTING AND BILLING

4.1 THE CONSTRUCTION CONTRACT

The construction contract shall require the contractor to

maintain a separate cost and billing schedule for FPI-related

construction. Requests by the contractor for payment shall be

independent from requests regarding the overall project. This

procedure also requires separate documentation to support the

invoice. Generally, applications for payments are prepared on

AIA (American Institute of Architects) form G-702. A separate

form G-702 shall be prepared for FPI construction. Ordinarily,

FPI facilities are bid as add/deduct alternates. Bidding as an

alternate facilitates an independent FPI construction ledger from

the beginning of the project.

Once the contract has been awarded, copies of FPI-related

segments shall be forwarded to the FPI Controller. Subsequent

change orders or modifications to the contract that apply to FPI

shall also be forwarded to PRA.

4.2 FPI CONSTRUCTION COST ESTIMATES

The Bureau Project Manager shall provide PRA with estimates of

FPI's proportionate cost of construction as soon as they become

available from the A&E firm. These estimates shall be used in

preparing a FPI Board of Directors proposal for use of Bureau B&F

funds or a resolution authorizing FPI B&I funding.

4.3 USE OF BUREAU B&F FUNDS

There are two types of funding for FPI construction projects:

Bureau generic inmate work space B&F funds and FPI B&I Funds. In

most instances, FPI activations will be funded via the Bureau B&F

funds.

Upon bid opening, the Project Manager shall request PRA to submit

a memorandum authorizing the use of B&F funds in the amount of

FPI's proportionate cost of construction, based on the

construction bid. Signature authority for this memo rests with

the PRA Manager.

4.4 USE OF FPI B&I FUNDS

When the project is funded using FPI B&I funds, the Project

Manager shall request that PRA submit a Request For Special

Authorization (RSA) in the amount of FPI's proportionate cost of

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construction, based on the construction bid. The RSA, approved

by the PRA Manager, or for amounts exceeding $500,000, by the FPI

Deputy Assistant Director, shall authorize the expenditure of FPI

B&I funds. The Project Manager shall accept FPI-related

alternates based upon the approved RSA.

4.5 CONSTRUCTION MODIFICATIONS

Modifications that require additional funds must have prior

approval by FPI via memorandum for generic inmate work space B&F

funds or RSA for B&I funds. The Project Manager shall request a

cost estimate regarding the proposed modification from the A&E

firm or construction contractor. This estimate shall be

submitted to PRA, which shall ensure the proper means for funding

approval is submitted.

4.6 CONTRACTOR REQUESTS FOR PAYMENT

Contractor requests for payment regarding FPI-related

construction shall be certified through established verification

procedures. The Bureau shall make payments to the contractor

regarding FPI-related construction through the project and by

ordinary B&F project accounting procedures on FPI’s behalf.

If there is an indication that construction costs will exceed the

amount FPI originally authorized, the Bureau Project Manager

shall submit a request to PRA for additional funding in the

amount required to complete construction. The request shall

provide details outlining the need for additional funding.

4.7 BUREAU REIMBURSEMENT FOR FPI B&I FUNDED PROJECTS

For FPI funded projects, following the payment of an FPI-related

construction claim by the Bureau, a request for reimbursement

shall immediately be made to the FPI Controller. Copies of the

contractor's invoice, the AIA G-702, and supporting documentation

(including project staff certification) shall be made through the

On-Line Payment and Collection (OPAC) system.

4.8 CONSTRUCTION SETTLEMENT CLAIMS

The Bureau Project Manager shall notify PRA whenever a post-construction claim involves FPI construction. At no time shall

an agreement be made on behalf of FPI regarding a construction

settlement without authorization. Any additional funds required

by a construction settlement shall require FPI approval.

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CHAPTER V

THE FACTORY ACTIVATION PROGRAM

The PRA Branch was created to activate and deactivate factories

in the most cost-efficient manner. To achieve its mission, PRA

developed a program to standardize and document guidelines for

uniform, complete activations.

5.1 THE PROJECT REVIEW GROUP

Prior to Corporate Management's product approval for a new

factory, and prior to any capital expenditure, a project review

group, including representatives from the relevant components,

such as the PSC; Planning, Research, and Activation (PRA) Branch;

Financial Management Division; Quality and Engineering; and

Program Management, shall conduct a thorough, critical review of

proposed operations.

The Project Group shall conduct an objective review of the

proposed product line(s) and factory(s) in areas such as:

Ë Factory/warehouse square footage requirements.

Ë Civilian/inmate staffing requirements.

Ë Cost of construction.

Ë Overhead calculations.

Ë Feasibility studies.

A final report of the group's findings and recommendations shall

include a projected Business Plan for the new factory. The

project group shall ensure an objective review of proposed

factory operations by people with backgrounds in relevant market,

financial, and capital investment areas.

5.2 THE FACTORY ACTIVATION DATE

The factory activation date is defined as when FPI begins

receiving inmates. This date is initially established by adding

three months to the anticipated inmate arrival date to the

facility. The activation team may refine it during the

activation process, as it is dependent upon construction

progress.

5.3 FACTORY ACTIVATION PLAN

An individual activation plan shall be developed for each new

location, outlining the several tasks needing to be accomplished

for the successful activation in the factory. About 13 months

before the anticipated activation date, PRA shall distribute the

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general factory activation plan to the managers identified as

Factory Activation Team members. Team members shall review and

modify the general plan template to create an accurate, factory-specific activation plan on a "best information" basis. Changes

are to be anticipated as the project develops.

The initial review objective is to initiate activation planning

and identify those responsible for completing each task. Each

team member shall complete the following during initial review:

Ë Add additional tasks to the plan if they are essential to

opening the new factory. Delete tasks that do not apply.

Ë Assign resources (generally the branch/institution manager

or persons with primary responsibility for completing the

task). Make appropriate recommendations or changes.

Ë Indicate an estimated time frame (number of work days

required to complete each task).

Ë Develop an anticipated start date for each task.

Upon completing the review, team members return the schedule

(with changes noted) to PRA, which incorporates the changes into

an initial factory activation plan.

5.4 THE FACTORY ACTIVATION TEAM

The activation team develops and administers the activation plan,

and includes the following staff:

Ë Factory Activation Specialist (committee chair).

Ë Sr. Program Manager and Program Manager(s).

Ë Controller.

Ë Materials Management Branch Chief.

Ë Planning, Research, and Activation Branch Manager.

Ë FPI Personnel Management Specialist.

Ë Management Information Systems Branch Manager.

Ë Product Support Center Manager.

Ë Customer Services and Marketing Productions Branch Manager.

Ë Quality and Engineering Branch Chief.

Ë Associate Warden (I&E)/Superintendent of Industries. (To

join Activation Team once selected.)

Following review of the activation plan by team members, PRA

shall set a date for an initial meeting, generally 12 months

before the anticipated activation date. During this meeting, the

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activation plan shall be further refined; the team shall also

establish a new projected activation date based on construction

progress.

Support branch managers shall participate in the initial meeting.

Following the meeting, a staff member may be appointed to

represent the branch manager at planning sessions and

meetings. This appointee shall be the representative throughout

the activation process; however, the branch manager shall remain

the responsible resource.

5.5 UPDATING AND TRACKING THE FACTORY ACTIVATION PLAN

The schedule developed at the initial team meeting shall be used

to monitor progress. FPI shall use project management software,

maintained by PRA staff, to create and track each activation.

PRA staff shall update individual plans from information obtained

from team members and information provided by Bureau Project

Manager and Regional Activation Coordinators.

Periodically, the Activation Specialist shall distribute a

current copy of the plan to each team member, who shall review it

and update tasks for which he/she is responsible. These updates

can be in the form of percent complete, start date, completion

date, or duration. The updated schedule shall be returned to PRA

to incorporate into the plan. PRA shall provide guidance in plan

analysis and updating during team meetings.

Selection of the AW/SOI initiates several events in the

activation process. PRA shall forward an activation package to

the AW/SOI, including a FPI activation manual, the initial

activation plan, and a set of construction drawings. The FPI

Personnel Management Specialist shall include in this package an

outline of general personnel guidelines to assist the new AW/SOI

in hiring staff.

A team meeting shall include the new AW/SOI, once a selection has

been made. Following this meeting, updates to the plan are

required monthly. The Assistant Director, IE&VT, shall be

apprised of progress based on the activation updates.

The team shall place particular emphasis on the personnel section

of the activation plan. Staffing tasks require close monitoring,

as they reflect actual dates when personnel actions, including

reporting dates, occur. This section of the plan is directly

affected by changes in anticipated activation date and is

intended to minimize the factory's initial overhead by

maintaining staffing close to production start-up. Staff

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reporting dates should follow PRA-established general guidelines,

with exceptions made on a case-by-case basis. The following time

frames are to be used only as guidelines:

AW/SOI 9 months prior

BUSINESS MANAGER/PLANT CONTROLLER 8 months prior

FACTORY MANAGER 7 months prior

CONTRACT SPECIALIST 7 months prior

SYSTEMS ADMINISTRATOR 7 months prior

WAREHOUSE FOREMAN 7 months prior

ACCOUNTANT 6 months prior

FACTORY FOREMAN 5 months prior (2 per month)

QUALITY ASSURANCE MANAGER 5 months prior

ASSISTANT FACTORY MANAGER 2 months after activation

SECOND WAREHOUSE FOREMAN 2 months after activation

5.6 THE FACTORY BUSINESS PLAN

A new or revised Business Plan is required whenever a significant

change in operations is recommended or occurs at an individual

factory. Specific events that cause development or re-evaluation

of the factory Business Plan include:

Ë Activation of a new factory.

Ë Relocation, or in some cases the closure of an existing

factory.

Ë An expansion of current operations, necessitating

significant new equipment.

Ë Introduction of a new product line, or a substantial change

in the factory product mix.

The PRA Branch, in conjunction with the appropriate Program

Manager(s), shall prepare a Business Plan as part of the new

product development process. The PRA Branch, Financial

Management Branch, PSC, Program Managers, and factory staff shall

be used to prepare a Business Plan.

The PRA Branch has primary responsibility for developing the

Business Plan, which includes the Five-Year and Break-Even Income

Statements (with supporting documentation) when an existing

factory operation is relocated or significantly modified.

Development of a revised plan shall begin as soon as a product is

selected, a location is approved, or another significant change

is identified.

Both the Five-Year and Break-Even Income Statements follow the

same format and include essentially the same support information.

The Five-Year Income Statement presents information in annual

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increments, while the Break-Even Income Statement displays data

in quarterly segments. Elements necessary to develop a Business

Plan can be derived from financial reports from similar

operations as well as from knowledgeable staff.

5.6.1 Business Plan/Activation Budget Elements.

Ë General. Location, initialization date, and factory(s)

involved.

Ë Sales. Information related to estimated sales levels,

capacity utilization, and inflationary impact on the

periods displayed.

Ë Capital Requirements. Factory and warehouse space

requirements for each factory and support operation are

to be identified by the Product Support Center and the

costs involved indicated.

Pertinent information and the cost of capital equipment shall

be listed. Depreciation schedules indicating depreciation period

lengths and monthly and annual depreciation amounts to be charged

shall be established.

Ë Expense Data Source Report. Source and background

support information to explain the derivation of

overhead cost estimates and other factors affecting the

financial performance of the operation.

5.6.2 Activation Budget. Once the AW/SOI is selected, the

activation team shall consider and develop the actual costs

associated with the activation. During the first meeting with

the AW/SOI, general parameters shall be established, for which

the AW/SOI shall develop specific line item figures. The PRA

Business Plan shall be used as the baseline for the activation.

The FMB team representative shall provide PRA with a monthly

financial status report. PRA shall investigate any departures

from the budget and may seek justification from the AW/SOI.

5.7 PRODUCT SUPPORT CENTER RESPONSIBILITIES

Upon publication of the factory business plan from the Central

Office, the PSC representative will develop a production schedule

which is to support the inmate employment requirements, sales,

and profits. The schedule will include production output from

week one, first article through full production. Additionally, a

manpower analysis will be included for both staff and inmates.

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The PSC representative will identify various training activities,

either from existing factories or private industry, arrange

expert visits, MISB, and PSC on-site training. If required, a

visit to a factory producing similar products will be initiated.

The PSC will identify these sites; however, it is the

responsibility of the AW/SOI to schedule the visit.

Based upon the customer contract, the PSC's Product Development

Center will provide assistance with first article production and

work instructions, inclusive of Quality Assurance requirements

(ie. appropriate Mil-Specs, Federal Standards, etc.)

Upon retrieval of construction drawings and notification of

product from PRA, representatives from the Product Support Center

will conduct a site visit for all planned facilities.

Deliverables required for a complete activation plan are as

follows:

Ë PRA will supply the PSC an approved set of construction

blueprints from the Design and Construction Branch of the

Bureau.

Ë The Product Support Center will provide, upon notification

of product and retrieval of construction drawings from PRA,

an equipment listing and factory layout. This shall include

make, model, quantity, power requirements, costs, number on

hand, and a floor plan of factory with equipment placement.

Ë The Product Support Center representative will provide a

Request for Special Authorization (FPI Form 27) and Request

for Contract Action (FPI Form 89b) for both the A&E firm and

equipment. Included with the PSC's submission will be a

phase timetable (e.g. 3 months, 6 months, 12 months) for

acquisition of equipment in a just-in-time basis, which

shall facilitate minimizing of factory start-up costs.

Ë The Product Support Center representative will develop a

production plan upon publication of the factory business

plan.

Ë Manpower analysis.

Upon notification of deactivation of factory and identification

of activation at a new site, the PSC representative and PRA

specialist shall conduct a site visit to each location involved.

An estimate for cost and time required will be provided by the

PSC representative for transfer of equipment. Additionally,

identification of equipment in idle status will be performed.

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CHAPTER VI

EVALUATING THE ACTIVATION PROCESS

The FPI activation process is not unlike other strategic planning

procedures the Bureau uses. Its success largely depends upon an

ability to incorporate improvements learned from staff actually

involved in activating new factories. The process is frequently

subject to revision to remain abreast of industry standards and

changing operational environments.

The process assumes the activation program can be improved with

each new activation. Staff involved in developing the new

factory to production and ultimately to a break-even point or

point of profitability will have significant insights into areas

that may improve activation. To capitalize on this experience,

the FPI Post-Activation Survey has been developed.

6.1 POST-ACTIVATION SURVEY

About six months after the factory has reached significant

operation, PRA shall forward a Post-Activation Survey to the

Warden, AW/SOI, and factory Department Heads. The survey should

be completed with absolute candor, as its sole purpose is to

identify improvements to the activation process.

6.2 POST-ACTIVATION REVIEW

Soon after receiving the completed surveys, PRA shall assemble a

Post-Activation Review Team (ordinarily, the same as the

Activation Team). Results of the survey shall be distributed to

each team member to guide a final review of the activation

process.

The objectives are to learn the experiences of staff and identify

areas that may be improved. The process shall include

discussions with line staff, Department Heads, the AW/SOI, and

the Warden.

Through this process, recommendations and constructive criticism

obtained from factory activations will be incorporated into the

planning process, in order to improve the effectiveness of future

activations.

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CHAPTER VII

DEACTIVATING A FACTORY OPERATION

Periodically, FPI is faced with circumstances that require the

closure or relocation of existing factory operations. When this

occurs, the Deactivation Specialist works directly with the

affected AW/SOI to develop a deactivation plan, which shall be

used to monitor a factory closure or relocation. It shall

encompass FPI staffing and personnel issues, disposition of FPI

assets, and the transfer of customer orders.

In addition, a Deactivation Team, consisting of the Deactivation

Specialist, AW/SOI, Chief of Quality and Engineering, and Program

Manager, shall be created to facilitate the deactivation process.

The sensitive nature of this activity requires complete integrity

in communications. Thus, all communications regarding a

deactivation must be coordinated through the Deactivation

Specialist.

7.1 THE FACTORY DE-ACTIVATION PLAN

These guidelines were developed to assist the AW/SOI and

Deactivation Specialist during deactivation planning. The

AW/SOI, with the assistance of the Product Support Center and

Program Manager, shall draft a transition plan. This plan shall

be submitted to the Deactivation Specialist, who shall

incorporate it into the project schedule.

7.2 SCOPE OF DE-ACTIVATION

Corporate Management shall decide the nature of deactivation at

the affected factory. This decision shall dictate personnel

procedures to be followed and help set a date for factory

closure/transfer. When the operation will be relocated, this

date shall normally correspond with the new factory's activation

date. If the product line is to be phased out permanently, the

AW/SOI and Program Manager shall estimate this date based on the

factory's remaining backlog.

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7.3 NOTIFICATION PROCESS

Once Corporate Management determines the nature of deactivation

and a date is established, the Deactivation Specialist shall

ensure that proper officials are notified in writing: Labor

Management Relations officials, Bureau Personnel Director,

Regional Director, Warden, National and Local union officials,

and Congressional representatives.

7.4 STAFFING AND PERSONNEL ISSUES

The Deactivation Team shall review existing staffing and develop

a revised staffing plan to meet the needs of the corporation. A

number of steps shall be followed to minimize any negative impact

on staff, including:

Ë Notifying institution FPI staff of plans to close/relocate

the factory as early as possible. Ordinarily, the Deputy

Assistant Director, Program Manager, and Deactivation Specialist

make a personal visit to the affected institution shortly after

the announcement to close/relocate the factory to give staff the

opportunity to ask questions.

Ë Establishing a list of affected staff and developing a

projected time frame over which individual positions will be

abolished/relocated. The AW/SOI shall develop this list with the

assistance of the Deactivation Team.

Ë Exploring potential opportunities, including those at other

FPI locations, for affected staff. The Deactivation Team shall

work closely with Corporate Management, the Warden, and affected

staff to ensure all options are exhausted before any adverse

personnel action is taken.

7.5 TRANSFER OF CUSTOMER ORDERS

The AW/SOI shall identify any customer orders that cannot be

completed prior to deactivation, ensuring their timely transfer

to other FPI factories or providing a waiver to the customer.

The highest priority shall be placed on satisfying customer needs

while deactivating a factory.

7.6 DISPOSITION OF FPI ASSETS

The deactivation plan shall list all major equipment items in the

affected factory and recommend a disposition for each.

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Major equipment shall ordinarily be relocated to the institution

receiving the product line. If a product is being phased out

permanently, or the receiving institution does not need the

equipment, the AW/SOI, with the assistance from the Program

Manager, and Product Support Center (PSC) shall recommend a

disposition in the de-activation plan.

The PSC representative in conjunction with the Program Manager,

is required to perform various tasks with the deactivation of

factories. These assignments include, disposition of FPI assets,

developing a transition schedule (including cost and timeliness

for the transfer of inventory and equipment), and ensuring the

equipment will be used for production purposes at another site to

be activated or an existing FPI factory. If, upon review of the

existing equipment, it is understood the machinery is of no

value, PRA will be notified and will also be notified of

subsequent advisement of disbursement.

Raw materials, supplies, and operational inventories shall be

exhausted during the phase-down of production. Remaining

inventories shall ordinarily be transferred to the new location

with major equipment and the product line. The AW/SOI shall list

significant inventory items and recommend a disposition in the

deactivation plan.

Planning for the disposition of buildings and facilities shall

begin immediately following a decision to deactivate. If no

replacement operation is planned, negotiations shall begin with

the institution regarding possible acquisition of FPI facilities,

including transfer of FPI facilities-related overhead.

This format shall be used to guide the development of a

deactivation plan. Each location presents unique issues that may

require additional tasks. It is not the intent to limit a

deactivation plan to only the issues addressed here.