BOP Program Statement 8260.03 § 5

a. Initial Competitive Risk Assessment (MRACS). Upon receiving the request from the

General Manager, MRACS determines if the product or service is “new” for purposes of the

Industry Guideline process, and whether there are implications for significant expansion of

current production levels. If there are such implications, MRACS identifies the issues and

conducts a preliminary market assessment. Next, MRACS performs a preliminary examination

of the potential impact on private industry, including assessing competition with the National

Institute of the Blind/National Institute of the Severely Handicapped.

b. Preliminary Technical Evaluation. The General Manager conducts a preliminary analysis,

including the following:

■ Analyzes product specifications and design requirements.

■ Defines manufacturing processes.

■ Identifies machinery/technological requirements.

■ Estimates investment required for materials and capital equipment.

■ Identifies inmate employment opportunities.

■ Prepares preliminary cost estimate or analysis to assess whether FPI can be competitive.

■ Determines minimum feasible production levels.

■ Estimates time and resources to conduct full product development (Phase II).

■ Estimates return on investment for capital expenditures.

■ Through the Health Services Division, evaluates processes and materials to identify potential

issues related to environmental management, safety, and occupational health.

At the conclusion of Phase I, a written determination of findings and recommendations

(including risk assessment and technical evaluation) is submitted to the Senior Deputy Assistant

Director by the General Manager.

c. Corporate Management Review. The Senior Deputy Assistant Director reviews the written

assessment from the General Manager and determines whether to move forward with product

development via memo to the General Manager.

The General Manager prepares a detailed business plan, including market analysis, sales plan,

financial projections, capital equipment costs, and environmental/occupational health (EOH)

issues. Financial projections include a five-year estimate of sales, earnings, and production costs.

The EOH review includes a written analysis from the Health Services Division. The business

plan is presented to Corporate Management by the General Manager for approval before

proceeding with any development efforts or expenditures on equipment or materials.

P8260.03 2/17/2012 4