BOP Program Statement 8270.02 § 6

customer service activities shall follow the procedures and meet

the standards set forth in the accompanying Manual.

Staff who write, review, and approve program review guidelines

for the Central Office, Regional Offices, and institutions may

include objectives and steps to ensure compliance with this

directive.

/s/

Kathleen M. Hawk

Director

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Chapter 1

ORDER ENTRY AND SPECIAL ORDER MANAGEMENT PROCEDURES

This chapter specifies guidelines and procedures regarding order

management, delivery dates, lead times, factory loading issues,

and the processing of Federal Prison Industries (FPI) orders with

the goal of eliminating all delinquencies.

The Customer Services/Marketing Productions Branch is responsible

for ongoing communication with customers on ordering from FPI

(i.e., catalogs, customer handbook, newsletters, etc.). The

Sales Branch assists in this endeavor by educating and advising

customers on ordering from FPI through on-site meetings and trade

shows.

Order numbering and order entry shall be standard for all Product

Groups. Exceptional handling and systems furniture procedures

are detailed below.

1.1 Order Numbering

A universal customer master numbering system has been

established, based on the requirement to provide accurate sales

reporting across Product Groups. Sales placed through an

intermediate agency (GSA or DOD) need to be tracked by the actual

ordering customer to improve system performance and marketing

accessibility.

The numbering scheme used in SYMIX is an 8-digit, all-numeric

"smart number" that assigns an i.d. number to a customer based on

the department or agency and any bureaus under that department.

Following is a breakdown of the customer master numbering system.

Digits Definition

1,2 identifies department/agency

3,4 identifies a bureau/office within a

department/agency

5,6,7,8 assigned sequential number

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1.2 Order Processing

Order entry shall be performed at the Customer Service Center

consistent with its internal management procedures.

Note: Veterans Administration (VA) customers are assigned a

number based on a list the VA provides. Also, overseas "Ship To"

destinations are recorded differently (see "Customer Addresses").

1.3 Textiles

When a Blanket Purchase Agreement (BPA) is received from another

UNICOR entity, the purchase order (P.O.) number (BPA#) is entered

into the contract field. The Purchase Request number is entered

into the P.O. field. The requisition number is used as the P.O.

number because it is the only number that changes on each

release. The BPA number would be the same on each release since

BPA's are regarded as contracts.

AMTRAK and Fleet Industrial Supply also have contracts that issue

P.O. releases. The releases have either delivery order or

requisition numbers that are to be used in the P.O. block.

All other Order Entry procedures for Textiles would be the same,

except military orders in which the "blanket" format would be

used.

1.4 Electronics

When a contract is received and the NSN is not in the Item

Master, submit an Engineering Request to Englewood immediately.

A work order number will be assigned even if the NSN is not in

the system.

TACOM (U.S. Army Tank Command) issues delivery orders against

their contracts. The delivery order numbers are too simple to be

entered as the P.O. numbers, so these orders are entered per the

example below:

Example: Contract #: DAAE07-92-G-A003

Delivery Order#: 0016

P.O. # is to be entered as follows: DAAE0792GA003/16

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If the First Article is called out but it has "No Separate

Price," enter it as a separate line item with quantity specified

and the price entered as 00.00001. The extended price reflects

00.00, because the number is so small that the system will not

recognize it as being greater than zero.

If a fee is charged for a modification and the unit prices are

not affected, but the total is altered, the fee is entered into

the miscellaneous field of the Order Header. This allows the

total price to be accurate without affecting the unit prices

shown on the contract.

1.5 Systems Furniture

1.5.1 Space Planning Orders

Ë An order header is created/entered in SYMIX.

Ë The order is verified and sent to the mailroom.

Ë CSC express mails the original order to the Systems Group

at Central Office (or, if the order pertains to the Social

Security Administration [SSA], to the Project Management Team at

FCI Schuylkill).

Space-planned systems furniture projects and estimates are

downloaded into the Customer Service Database from OEI. The

computer automatically loads all Bills of Materials (BOM) data

into the Systems Furniture Product Group's Estimating Module.

OEI uses the space planning work order number (site code) for

transmitting the BOM via Electronic Data Transfer (EDT). The

downloaded BOM is automatically given a sequential estimate

number.

Reports. A downloaded report is generated with each

transaction within the estimating module. The report is

automatically printed at the CSC and Central Office. The

designated Central Office Systems Representative gathers all

printed estimated module data and distribute it to the assigned

Project Coordinator, who reviews and monitors each BOM

estimate/revision for pricing.

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Estimate BOM Project/Price Review. Upon reviewing the

Estimate BOM report, the assigned Project Coordinator verifies

all line items. The Project Coordinator must identify all

Unknown and Special items, verify the price, and enter the

correct price into the appropriate area within the BOM.

Unknown/Special Item: Any item that shows up on the

downloaded BOM, including Systems items (specials), other UNICOR

products (freestanding, ADP, etc.), and transaction errors.

The Project Group Manager must review and approve all

systems furniture specials (OEI Special Product Authorization

form). Approved specials are then submitted to the Engineering

Division (Request for Entry of Finished Goods) to be incorporated

into the Engineering Corporate Item Master (ECIM), which will

automatically be downloaded into the CSC Item Master as well as

the factories' database. CSC will also need a copy of this

request to add the appropriate work centers and pricing data.

Final BOM Review. The Project Coordinator reviews the Final

BOM for accuracy. All pricing must be checked and verified;

installation and pre-installation costs must also be incorporated

into the Final BOM costs. The Final BOM's are then forwarded to

the customer for approval.

1.5.2 Order Entry Transaction. The Project Coordinator must

have the customer-approved Final BOM, purchase order, or written

authorization before the Final BOM is copied to the order entry

module. If any changes occur to the final BOM, a modification

must accompany all paperwork, reflecting any changes to the Final

BOM such as price discounts, special handling instructions, and

progress payments. The Project Coordinator has all

delivery/installation dates for systems and non-systems items

coordinated/negotiated with the customer and the appropriate

Program Manager or designee, if applicable, before the Production

Controller copies the BOM from the estimate module to the order

entry module.

The Project Coordinator then sends a Request for Order

Processing (RFOP) sheet to the CSC Production Controller. The

request must include the following before processing:

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Ë Customer P.O. or written authorization to proceed with

the P.O. with appropriate modifications, if necessary. (Penciled

or verbal changes cannot be accepted.)

Ë Estimate number to be copied.

Ë Hard copy of the Bill of Material (BOM).

Ë Factory Destination (Work Center/Master Scheduler)

signoff for systems factory only; all factories are designated by

the CSC Production Controller.

Ë Delivery/Installation/Date (verified by Master

Scheduler).

1.5.3 CSC Responsibility. When the RFOP sheet is received

with all required attachments, the following steps are taken:

Ë The Production Controller transfers the Final BOM to the

order entry module; a new work order is assigned with reference

to the original space plan work order number.

Ë The unit prices, TPN/NSN numbers, and item descriptions

for the non-systems items are verified on the BOM.

After review and clarification, the non-systems items are

loaded to the closest factory to the Ship To location on the

purchase order, keeping in mind current factory loading

parameters, and, most importantly, the customer's requested due

date. Items are then entered in the corresponding Product Groups

databases with all cross-references noted.

If there are any discrepancies in the non-systems items, the

CSC Production Controller shall contact the Project Coordinator

for clarification or resolution. The Production Controller then

returns the signed RFOP sheet, with a confirmation letter, to the

Project Coordinator, providing non-systems work order number(s)

and corresponding job sheets for the BOM. A confirming copy of

the entire package is sent to the appropriate systems

manufacturing location. The Production Controller ensures that

all field locations receive their respective work order numbers

and the appropriate documentation.

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1.5.4 Systems Projects Multiple Phases/Sections. When space-planned systems projects have multiple sections, each section has

a separate estimate number, resulting in multiple work order

numbers for one project. The CSC Production Controller assigns a

new work order number for each section. All order processing is

handled as specified in the Customer Service Center's internal

procedures with appropriate notations in the header text of all

corresponding work order numbers.

1.5.5 Social Security Administration (SSA) Orders. Since the

SSA program has been moved to FCI Schuylkill, the following

procedures are applicable to all SSA systems/split orders. The

project management staff sends all requests for space-planning

work orders to the CSC Production Controller, who follows all

procedures for such orders.

When the OEI/BOM load report is received at the CSC, the

Production Controller either express mails or faxes the load

report to the SSA Project Coordinator for review and approval.

All procedures in "Estimate BOM Project/Price Review and Final

BOM Review" apply, with the exception of the approval of the

systems special items (approved by the Associate Warden).

The SSA Project Coordinator sends the RFOP sheet authorizing

the Production Controller to copy the estimate to the order entry

module. Once the estimate is copied, the Production Controller

signs the RFOP sheet and faxes it to the SSA Project Coordinator.

OEI sends the Final Bill of Materials to the assigned Project

Coordinator, who forwards a final copy of all paperwork,

including the acquisition order, so that updates can be done.

Any changes to an SSA order are handled by the SSA Project

Coordinator, who shall ensure that CSC has copies of

modifications and corresponding documents for record purposes.

The field location enters all shipping information into SYMIX

once the order has been shipped.

1.5.6 Modifications for Systems Furniture Orders. Any systems

furniture modifications received directly at the CSC are

distributed to the Central Office Project Coordinator. Upon

receipt at the CSC, the corresponding work order number(s) are

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identified; the modification is then given directly to the

Production Controller. The Production Controller verifies the

modification to see if it pertains to any non-systems items. If

non-systems items are involved, the Production Controller makes

appropriate changes and informs the factory.

If the modification pertains only to systems furniture, it is

noted in the header text that the modification was received at

the CSC and forwarded to the Project Coordinator and designated

systems manufacturing factory (Note: only if systems project has

already been downloaded into order entry).

In all cases, a copy of the modification is kept at the CSC and

forwarded to the factory. The original is forwarded to the

Project Coordinator.

1.5.7 Dollar Capacities/Factory Load Procedures. The CSC

Production Controller maintains and updates Systems Furniture

dollar capacities (buckets) monthly. Factory loading shall be

under the direction of the Central Office Master Scheduler

through the Production Controller.

1.5.8 Verification Reports. Each month, a factory

verification report shall be sent to systems factories for

verification of receipt of orders. Any discrepancies are

reported to the Support Services Specialist for action.

1.6 Blanket Purchase Agreements (BPA) and Requirements Contracts

The CSC Order Processing Group maintains copies of all BPA's,

requirements contracts, or other Memorandums of Agreement (MOA)

that include negotiated arrangements involving UNICOR products or

services. The CSC shall follow terms and conditions of a signed

contract (prices, delivery schedules, FOB point, etc.). Program

Managers and factories must inform the CSC of any modifications

to existing contracts or agreements, and include support

documentation.

All Product Groups, except Textiles orders, are entered as

regular orders, since no other Product Groups have fixed-quantity

BPA. BPA's with no fixed-quantity orders are entered with one

work order; each call is annotated in text with corresponding

line items by order entry group.

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1.7 Customer Initiated Changes (Modification and Amendments)

Customer initiated changes include:

Ë cancellations;

Ë change in item;

Ë change in quantity;

Ë changes of due dates;

Ë change in "ship to"; or

Ë change in invoicing "bill to."

Any change the customer initiated requires approval by the Center

(in concert with the factories and Program Management). For

cancellation or changes, a factory and/or Program Manager may

negotiate with a customer for restocking fees. Official

modification is not required for change to a "ship to" and/or

"bill to" address.

The CSC handles modifications dealing with minor errors requiring

clarification (color, price, NSN). Modifications involving

considerations or pricing renegotiation are primarily handled by

the Program Managers (who will work with the Production

Controllers for ultimate loading).

1.8 Order Verification Reports

The CSC prints an order verification report for each factory

weekly. It is the Factory Manager's responsibility to reference

this list against actual orders received, and report any

discrepancies to the CSC within five working days.

1.9 Reassignment of Orders

Once an order is loaded in a factory, it may not be arbitrarily

changed. Any reassignment of work center (factory) locations

must have the concurrence of the factories, the CSC, Program

Managers, etc.

1.10 Monthly Production Plans

Factories submit a status of orders report to the CSC by the 5th

day of each week. Information included shows backlogs and

projected production plans by product family. This requirement

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will be waived once the Factory Loading system is fully

operational for all factories.

1.11 Entry of Shipping Status

Until all factories are linked with their respective Program

Manager database via EDT, the CSC enters all shipment activities

manually. It is imperative that the Program Manager and factory

databases are synchronized so that the CSC accesses the most

current order status information and to ensure the integrity of

Corporate summary reports. When the EDT link has been

established, the factory will be relieved of the requirement to

report shipment activity. However, it is critical to identify

orders that were earmarked for a factory, but have not been

received, and to verify that order information the CSC enters

agrees with the purchase order or contract. Delinquencies due to

lost, incomplete, or inaccurate orders shall be avoided at all

costs. To serve these purposes, the Factory Job Verification

Report shall be used to synchronize the distributed databases

even after EDT hookup.

Each month the Support Services Specialist mails a Job

Verification Report to each location. Each non-EDT factory uses

the Verification Report to detail all shipment activities,

including partial shipments. Required information is: quantity,

date, GBL or UPS reference, and carrier. The report is submitted

to the CSC each week.

Each factory, including those linked via EDT, reviews the report

to verify the accuracy of order information and ensure that all

orders assigned to the factory have been received. Discrepancies

and missing orders need to be clearly indicated on the report.

The DEU follows up on such cases within three working days of

notification.

Upon receiving the completed report, the DEU attaches a route

slip to the document so that it can be tracked through the data

entry process. The route slip is initialed and dated by each

data entry clerk who handled the order, and used to document

problems or questions concerning report contents.

The Data Entry Specialist maintains a log designed to track

factory reporting performance. Any factory not submitting the

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Verification Report by the 10th of the month is contacted

immediately by telephone. If reports are not received by the

15th of the month, a written request is sent to the factory with

a copy to the Program Manager. Continued non-responsiveness must

be brought to the Order Processing Group Manager's attention for

follow-up.

All information that can be processed is entered. If

discrepancies are encountered during data entry, the clerk

clearly outlines the problems(s) on the route slip and highlights

the report. Reports requiring follow-up are placed in a Problem

Resolution file. Otherwise, the report is sent to the Data

Review Unit for 100 percent verification.

1.12 Order Document Control

Each manufacturing location is sent a copy of the order and

supporting documents (including drawings and specifications).

Program Managers are not normally be sent a copy unless they

specifically request it. Work order files are retained in the

electronic filing system for two years after completion. After

this period, file contents may be discarded.

A check received log is maintained for all checks received at the

Center. A fax received log is also maintained. A log is

maintained, by Product Group, for orders over $50,000.

1.13 Purchase Card Order Processing

1.13.1. Agency Participation Agreement. The Chief, Material

Management Branch, is FPI's Purchase Card Coordinator (PC). This

official approves and oversees the technical administrative

aspects of the Master Agreement with the Department of Treasury.

The PC is FPI's point of contact between the Treasury Department

and the financial institution.

Administration of government purchase card orders from FPI

shall be the joint responsibility of the Business Manager and the

Administrator for the CSC located at FMC Lexington.

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1.13.2. Definitions.

# Cardholder. The individual government employee granted a

written delegation of cardholder authority to use the commercial

purchase card for federal government purchases.

# Financial Institution. A depository and financial agent of

the U. S. Government authorized by the Department of Treasury

Financial Management Service to perform card collection services

for FPI.

# Authorization Center. A business entity contracted by the

financial institution to verify the validity and or limitations

of a cardholder's purchase card.

1.13.3. Order Limitations. FPI's acceptance of the government

purchase card as a payment method is subject to the provisions

outlined in the Agency Participation Agreement between Treasury's

Financial Management Service and the designated financial

institution.

# Purchase Card Authorization. The acceptance of the

purchase card as a method of payment for a customer order

requires CSC staff to comply with the provisions outlined in the

master agreement relating to all card transactions. CSC staff

shall obtain pre-authorization for QuickShip orders through the

purchase card processing center (authorization center) upon

initial receipt of the customer order. For all other orders, the

card shall not be pre-authorized.

# Cardholder Purchase Limits. CSC staff shall not accept

orders for an amount in excess of the cardholder's purchase

limit. If authorization difficulties occur, CSC staff shall

contact the National Data Center to determine if there is a

problem with the customer's card or purchase limit.

# Products/Late Deliveries/Discounts. A cardholder may

purchase any FPI product or service with a government purchase

card. Products that are included in FPI's QuickShip catalog will

be shipped within 30 days of the order receipt or a 10 percent

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discount credit of the total amount of the order shall be given

to the customer. The discount amount shall be charged to the

factory responsible for the delinquency. The discount amount

shall be equally divided among all factories responsible should

more than one factory be involved.

# Inter-Industry Orders. FPI locations shall not use the

purchase card for products ordered from other FPI factories. The

existing Form 5 process shall be used to properly record and

account for inter-industry sales to avoid purchase card

processing fees.

1.13.4. Processing Customer Orders. Most customer orders are

processed at the CSC. Purchase cardholders may order FPI

products by telephone, facsimile, EDI, mail and via the

electronic catalog. Orders received directly at factories shall

be routed through the SYMIX Order Entry Module before processed

at the factory.

# Security of Purchase Card Numbers. Inmates shall not have

access to purchase card numbers under any circumstances.

Regardless of the mode of submission, most orders are processed

through the CSC. To ensure the integrity of purchase card

numbers, customers calling the CSC's automated answering system

shall be advised to connect with the appropriate civilian staff.

Customers are also advised, through catalogs and other FPI

publications, to send purchase card orders to a separate

facsimile and/or post office box located in a secured area.

# Data Entry. CSC staff shall input the customer order into

the SYMIX Order Entry Module in accordance with established CSC

procedures. The purchase card number shall not be entered into

the SYMIX system under any circumstances. Civilian CSC staff

shall enter other data for telephone orders into the SYMIX system

while the customer is on the phone. A card swipe reader shall be

used to obtain purchase authorization from the financial

institution's authorization center. CSC staff shall enter the

purchase card number, sales price, and the card expiration date

into the reader. Upon receiving authorization from the center,

CSC staff shall give the customer the order number the SYMIX

system assigned and the delivery date.

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The same data entry procedures for mail or facsimile purchase

card orders shall be followed. Notification of mail or facsimile

order confirmation shall be accomplished in writing.

# Rejection of Purchase Card Orders. The authorization

center shall reject a purchase card order if the card is found to

be invalid or the customer's specified monthly card limit has

been exceeded. The customer shall be notified immediately if

authorization is rejected (if ordering by phone) or in writing if

the order was received by mail or by facsimile. If the phone

number is available on the written order, CSC staff shall notify

the customer telephonically. The CSC staff person shall request

an alternate payment method from the customer to complete order

processing.

# NETS PLUS Software Package. The system used by the

authorization center for the authorization, processing, and

settlement of purchase card orders is referred to as NETS PLUS.

The NETS PLUS software package also includes a history file of

completed purchase card transactions. After authorization of a

purchase card purchase through the authorization center, CSC

staff shall print one copy of the Transaction Form which is

forwarded to the local safe deposit box monthly. This form

(generated by NETS PLUS) is FPI's documentation for each

completed sales transaction submitted to the financial

institution for collection. The Transaction Form contains the

following information:

! Purchase Card Number

! Expiration Date

! Card Type

! Transaction Type

! Approval Code

! SYMIX Order Number

! Selling Price

# Transfer of Purchase Card Orders to the Factory. Purchase

card orders entered into the SYMIX Order Entry Module are

transferred to individual factory locations via electronic data

transfer (EDT) daily. This ensures that purchase card orders are

received at the factory 24 hours after the CSC actually received

the order. Transfer of purchase card order hard copies is not

required (except for Graphics orders where a proof, sample,

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drawing, or other supporting documentation is attached and/or

required). Systems Administrators at factory locations shall

forward the transmission to the appropriate Factory Manager/

Production Controller, who shall place the order in the

production schedule in time to meet the scheduled delivery date.

# Modified Purchase Card Orders. When a customer wishes to

modify an existing purchase card order, the CSC shall contact the

factory to verify that shipment has not yet occurred and shipping

transactions have not been entered into SYMIX. If a customer

requests to modify a line item on an existing purchase card order

(i.e., to increase or decrease the quantity or change the color,

etc.), and the original order has not yet been shipped, the CSC

shall cancel the original order in the SYMIX Order Entry Module

and establish a new delivery date to reflect the modification of

the order.

If the order has been shipped and the customer still wishes to

modify the order, CSC staff shall negotiate an appropriate order

modification with the customer. Factory staff shall also be

notified via established SYMIX customer order entry procedures

for modified orders.

# Canceled Purchase Card Orders. The individual factory

shall absorb any additional costs resulting from a canceled order

or a reduction in quantity ordered after production has occurred.

These items shall be placed into finished goods inventory and

made available for shipment on subsequent orders.

1.13.5. Security Requirements. Inmate access to any data file

or hard copy document that contains references to customer

purchase card numbers shall not be permitted.

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Chapter 2

PRICING

2.1 Price Quotes

It has been recognized that many of the Corporation's

delinquencies are due to price discrepancies on the customer

purchase order; a direct result of using outdated catalogs or

word-of-mouth practices. Corporate Management is reviewing the

current catalog production process and will evaluate the

resources available.

2.1.1 Price Quote Procedures. The Customer Service Center

refers the Request for Quotes (RFQs) for custom pricing requests

to Program Managers who coordinate pricing with the Product

Support Center, if necessary. Pricing adjustments in the Item

Master database are handled predominantly with the approval of

the Program Manager for that product and the Customer Service

Center will implement these adjustments. The Customer Service

Center handles special pricing, discounts, and contract items to

the extent possible. Some cases of special pricing, however, the

CSC may have to refer to Program Managers.

2.1.2 Reports of Current Prices. To reconcile all existing

SYMIX prices for catalog items, the Customer Service Center runs

a report of all current products and prices, and Program Managers

work with the factories to confirm/adjust the information. The

Management Information Systems Division develops any SYMIX price

screen enhancements, to clarify prices, discounts, special

"sales", etc.

2.1.3 Catalogs. A schedule will be set to ensure that all

catalogs are updated with the most current prices available.

Catalogs shall be updated regularly and price list inserts will

have expiration dates.

General lead times for FPI products shall be published in all

catalogs and other related communications.

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2.2 Quotes and Pre-Negotiated Contracts

When orders are received against existing quotes, the Production

Controller verifies its existence against the Estimating Module.

Lexington Estimate Transfer System (LETS) is used to convert the

quote to an order (refer to the LETS Manual for instruction). At

this stage, all pre-award negotiation should have taken place

between the Program Manager and the customer, with the quote

being a "best and final" offer. If any modifications are needed,

it is the Program Manager's responsibility to conduct

negotiations, inform the CSC, and provide support documentation.

When contracts are received against open solicitations, the

original contract is forwarded to the Program Manager for final

review and acceptance. The Program Manager provides the CSC

Order Processing Group Manager with a copy of the final signed

contract. If any modifications are made, it is the Program

Manager's responsibility to inform the CSC and provide support

documentation.

All loading, delivery schedules, and pricing are taken directly

from the final contract.

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Chapter 3

FACTORY LOADING AND ORDER MANAGEMENT

3.1 Factory Loading/Capacity Management

These procedures address how factory loading decisions are made.

Because of the integrated nature of factory loading and

manufacturing, close coordination and cooperation among the CSC,

factories, Program Managers, and the customer are required.

The responsible Production Controller reviews all orders for

accuracy and completeness. Orders that contain a discrepancy

will have an Order Header record created in "Planned" status by

the Factory Loading Unit, and line items will be added with

"HOLDWC" Work Center.

3.2 Requested Delivery Date

The CSC loads all FPI factories with orders and sets delivery

dates based upon information the field provides. Factories will

have three working days to accept or contest order loading

parameters and delivery establishment dates from the Center. The

factory manager or individual acting on his/her behalf, will have

the authority to accept or reject the order delivery dates the

Center sets.

The Center will assume that a factory has accepted set delivery

dates if the factory has not notified the Center within a three

working days response time, via fax or phone. This procedure

will be monitored through a SYMIX exceptions report that will

flag delivery date changes factories initiate within three

working days.

3.2.1 Setting a Delivery Date. The Production Controller will

make every attempt to accommodate the customer's desired delivery

date while recognizing the needs and abilities of the

manufacturing locations. Every order line item shall, therefore,

be checked against the following data:

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Ë Time Fence requirements for all work centers (factories)

identified in the Item Standard Routing are compared to the order

due date. If the requested due date violates the Time Fence, the

Controller contacts the appropriate Associate

Warden/Superintendent of Industries (AW/SOI) to determine whether

the factory can compress the procurement or manufacturing cycle

to meet the desired deadline.

If the factory of choice cannot meet the date, another

factory will be contacted (if multiple locations are included in

the Item Standard Routing). If no other factory produces the

item, or if no factory can meet the due date, the Controller then

contacts the customer to determine if a later date is acceptable.

If acceptable, the negotiated date becomes the due date entered

into the Order Entry Module. The Program Manager is contacted to

follow up with the contract modification process. If not

acceptable, an Order Header record will be created in "Planned"

status and the purchase order referred to the Program Manager to

either waive or renegotiate with the customer.

Ë Backlog and MOA Capacity levels for the product family

will also be compared to the order due date. After the MOA is

determined, the Time Fence requirement cannot be violated. The

next step is to determine whether the factory's capacity has been

booked beyond the requested date. If so, the Production

Controller contacts the AW/SOI and possibly the customer. If the

factory has sufficient capacity, the customer's due date is

entered into the Order Entry Module.

3.2.2 Changes to Memorandums of Agreement. Changes to a

factory's loading and scheduling will not need official

authorization if the changes are within the specific factory's

Memorandum of Agreement (MOA). Any factory loading changes that

conflict with the approved MOA will require a Program Manager's

written authorization.

3.2.3 Order Acknowledgement. The order acknowledgement letter

will now clarify any price adjustments or changes in delivery

terms. Items will be shipped upon completion and this will be

stated on the order acknowledgement except when the customer

specifies that delivery of items should not occur earlier than

the requested date (i.e., new installations/buildings).

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3.2.4 Validating Product Leadtimes. Manufacturing, Program

Management and the Product Support Center will review, validate,

and adjust leadtimes (when necessary), for all products at all

factories.

3.2.5 FOB Point. This is to be checked to verify that it is

Origin, unless the Program Managers have made an exception for

certain customers to allow the FOB Point to be Destination. It

is the responsibility of Program Managers to inform the CSC of

all FOB Destination contracts and customers.

3.3 Split Order Coordination Procedures

The Production Controller must coordinate split orders so that

all affected manufacturing locations are aware of their

responsibilities and a single location is designated to handle

billing. (Single-location billing procedures are not identified;

currently, designated locations bill for their portion of the

order.) This information is reflected in the SYMIX text under

"special instructions" and an instruction sheet is attached to

all factory copies of the purchase order.

One of the main considerations is whether a customer will accept

partial shipments or requires complete shipment. If shipping

instructions are not included on the contract, it is assumed that

partial shipments are acceptable and so noted on the Order

Acknowledgement.

3.3.1 Split Orders Within a Product Group.

Ë Partial Shipments. The Production Controller coordinates

partial shipments. The due date for each location is used as the

due date for each respective line item of the order.

Ë Complete Shipments. The Production Controller assigns

one of the factories producing the order as the coordinating

location. This information is entered into the Order Header

Text. After coordinating with the Factory Managers, the

Production Controller establishes a shipping window of 72 hours.

Each factory involved is required to ship within this time frame.

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Ë Billing. Each factory records sales and the

corresponding receivable upon shipment of a partial or complete

order. An invoice is mailed to the customer from each location.

3.3.2 Split Orders Across Product Groups. The Production

Controller determines which Product Group is to be involved in

producing the order, and assign one factory as the order-

coordinating location. This information is entered into the

Order Header Text.

The order is entered in each affected Product Group's database

as though it were a separate order, with the line items to be

produced within that particular Product Group only. (This will

generate a work order number for each Product Group with line

items of products only that factory location will manufacture.)

3.3.3 Partial Shipments. The Production Controller ensures

each factory receives a copy of the entire purchase order.

Unless noted "Partial Shipments not acceptable," different due

dates shall be assigned, depending on manufacturing location.

3.3.4 Complete Shipments. After coordinating with the Factory

Managers, the Production Controller establishes a shipping window

of 72 hours. Each factory involved is required to ship within

this time frame.

3.3.5 Billing. Each factory records sales and the

corresponding receivable upon shipment of a partial or complete

order. Each location invoices the customer.

3.4 Factory Direct Orders (Self-Loading)

Procedures in this section apply to all factories except Butner

Optics, Boron Vehicular Repair, La Tuna Laundry and Refinishing,

Maxwell Laundry, Petersburg Refinishing, and McKean Furniture.

For orders received at the factory directly from an outside

customer, or from another UNICOR factory, a copy of the order is

sent to the CSC for assignment of CCM numbers and entry into

SYMIX. For non-EDT factories, the Support Services Specialist

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(Data Entry) notifies the factory when the order has been entered

and the work order number assigned. The factory maintains the

original purchase order.

For expedient processing, the factory reviews the order for

accuracy, contacting the customer for any clarifications or

modifications needed. This allows the CSC to respond within 24

hours of receipt.

With few exceptions (split orders, incorrect work center,

inability to meet delivery schedule), the factory receiving the

initial order is loaded to produce the product.

3.5 Inter-Factory Sales (Vertical Integration)

All inter-factory sales for finished goods are handled by

Purchase Orders and entered into the SYMIX Order Entry Module by

manufacturing location.

3.6 Delivery Date Adjustment

When establishing the due date, every attempt is made to meet the

customer's request, or the closest date thereafter. When

calculating the due date, the Production Controller factors in

the current date versus the receipt date of an order (to

compensate for any order processing backlog or customer delays).

Order delivery dates will be confirmed to customers in writing

via an Order Acknowledgment. If shipment terms cannot be

arranged within the customer's requested time frame, the

Production Controller, with guidance from the Factory Manager,

negotiates an acceptable alternative date or suitable outcome

within 10 working days of the order's receipt.

If the customer does not contest the alternative delivery date

within the 10-working-day requirement, the order is entered based

upon the alternate date established and confirmed to the

customer, in writing, by the CSC.

Once the delivery date has been confirmed to the customer in

writing, UNICOR may not change it arbitrarily. Should an

exceptional situation necessitate a shipment delay, it must be

agreeable to the customer.

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If the UNICOR-initiated delay is unacceptable to the customer,

negotiation will be required. The Production Controller, Factory

Manager, and potentially the AW/SOI and Program Manager shall be

responsible for resolution.

If the order includes items involving several product families,

with varying production Time Fences, the Production Controller

ascertains from the customer's purchase order or contract whether

complete shipments are required. If the contract specifies

complete shipments, the longest lead time is used for scheduling

all items. This will be stated on the Order Acknowledgement to

the customer.

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Chapter 4

PROBLEM RESOLUTION AND COMPLAINT MONITORING

4.1 Problem Resolution

Problem orders have been defined as orders that cannot be

processed due to missing information, pricing errors, other

errors/discrepancies, unrealistic delivery dates, etc. During

the review process outlined in Order Review Procedures, if a

problem is identified, CSC staff is to make every attempt to

reach a resolution directly with the customer. If contact is not

made with the customer within 24 hours, a letter is sent

requesting the required information. The pending order is then

placed in a tickler file so the customer can be recalled if no

response is received within 10 working days.

If the problem cannot be resolved within the allowed time, or is

complex enough to require renegotiation, the order is forwarded

to the Program Manager responsible for the products.

The nature of the problem is detailed on the file route sheet and

in the Order Header Text, along with the name of persons

contacted, date of contact, current status, and date of

resolution. Program Managers will address pre-award concerns.

This is considered typical contract negotiations or quoting. The

Contract Administrator addresses post-award concerns regarding

negotiated contracts, with notification and modifications

provided to the Production Controller at the CSC.

4.1.1 Pricing Problems. The Customer Service Center will

process pricing problem orders when the correct price does not

exceed the purchase order amount by more than five percent. The

Center will load the factory and advise the customer of the price

change as part of the order acknowledgement. If the actual price

exceeds the purchase order beyond five percent, the Center will

require written modification from the customer.

4.1.2 Other Problems. The following procedures apply to other

problem orders:

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Ë Single Factory. If the problem order involves one

factory, the Center will enter the order into the system and send

to the appropriate factory. The factory will then have the

responsibility to resolve the problem (i.e., contact the customer

if modifications are needed etc.).

Ë Multiple Factory. If the problem order involves more

than one factory, the following procedures are to be followed:

< The Center phones and/or faxes the customer

immediately, to attempt clarification.

< The order is entered into the system by the Center as

"HOLDWC" (hold work center), and by the problem code

which prevents the order from being loaded to any site

via EDT.

< If no clarification is obtained from the customer via

fax or phone within three working days, the Center

forwards a letter to the customer requesting

modification.

< The Customer Service Center mails a follow-up letter to

the customer and end user, if known, after five working

days have elapsed with no response. After 10 working

days from the second follow-up letter, the order is

returned to the customer with an explanation of why it

could not be accepted. For preferred customers,

however, the order will not be returned.

The order status in the SYMIX order entry module is changed

to "S" (stopped) status. If a modification is received at a

later date for this order, the status will be changed to "O"

(ordered) status and processed with a new delivery date, based

upon current loading parameters. Official modification is not

required for the due date change (it will be reflected in the

order acknowledgment letter as a change from the original

purchase order).

4.2 Complaints

All customer complaints are the result of not meeting the

customer’s expectations. There are a variety of ways a customer

complaint can be presented, including customer phone calls,

letters from the contracting officer, Quality Deficiency Reports

(QDR), Unsatisfactory Delivery Reports (UDR) and Quality

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Verification Rejections (QV) to name a few. Customer complaints

the CSC receives will be logged into the complaints database at

Lexington. Customer complaints the factory receives will be

logged into the complaints database by the Quality Assurance

Manager or his/her designee. The Quality Assurance Manager will

logon to the Lexington Customer Service Database. He/She will

access the complaints menu from the Customer Service Main Menu,

select (1) to add new complaint log entry and enter the required

information, including: description of complaint, investigative

results and action required.

4.3 Complaint Response Time

Factories are expected to enter complaint resolutions within 48

hours (two working days) from the time the complaint was logged

into the database. Printing, mailing, or faxing complaints to

each field location for resolution is to be eliminated.

4.4 Daily Review of Complaint Reports

Each morning, the designated field person runs a query to

determine if any customer complaints were added regarding the

factory site. A report is run by using the reports menu option.

After logging into the database, the user should select the

"Reports Menu", option 4, under the main menu.

Ë The next screen will describe the Complaints Data Base

Reports Options. Select, "Listings --- Complaints Data Base

Reports Options. Select, "Listings --- Complaint Log Records"

(1). Under this next listing, select (5) "Unresolved

Complaints".

Ë Select output; (T)erminal or (P)rinter. If (P)rinter is

selected, enter printer ID, then "return".

Ë Type in start date (yesterday's date), then "enter". Type

in end date (today's date), then "enter". Type in factory

abbreviation (AWFT = Allenwood Furniture), then "enter". The

number of log entries found will be displayed at the bottom of

the screen.

Ë The report will show the factory abbreviation, the date, and

the complaint number. Use the function key F9 to view all

individual screens. Use arrow key to select which complaint to

view and the "return" key to view the complaint.

Ë Send the report to either (T)erminal or (P)rinter with

printer selection.

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4.5 Reviewing Complaint Reports

The complaint record on screen will show all information entered

on that individual customer complaint. Use (T)ext to view

information on the complaint. Use (I)nvestigative results to

show results of the investigation. Use (A)ction to show what

action was taken. Use (U)pdate to fill in any of the above

fields and close out the complaint. Press (R)eturn to select

next complaint to view, repeat steps to close out the complaint

after action is taken.

4.6 Complaint Database Access

To obtain access to the complaint database in Lexington,

Kentucky, contact the Systems Administrator at FTS 355-7435 or

commercial (606) 255-2265. A login will be assigned to each user

and a printer for the field site will be identified and added to

the Lexington system.

4.7 Complaint Monitoring

The Deputy Assistant Director, Industries, Education and

Vocational Training, shall review complaints in the database

weekly.

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Chapter 5

WAIVER PROCESSING PROCEDURES

5.1 Introduction

Because Federal Prison Industries, Inc. is a mandatory source

provider for items listed in its Schedule of Products, an

ordering office must receive UNICOR's written authorization for

clearance prior to placing an order for similar items through

outside sources.

Waiver approval is given to government agencies when UNICOR

cannot meet their needs for reasons identified below:

Ë Delivery: UNICOR deliveries will be consistent with the

deliveries for comparable products on the Federal Supply Schedule

(FSS), or with good commercial practice when the product does not

appear on the schedule. When customers request delivery times

shorter than those quoted for comparable products on the FSS, or

than is available under good commercial practice, a letter from

the contracting officer is required stating the reason for the

shorter delivery and attesting to the fact that the products

required are, in fact, available from an alternative source in

the time frame required. Waivers will not be issued when UNICOR

can meet this delivery criteria, unless an acceptable reason for

the shorter delivery date is provided.

Ë Performance Characteristics: When a waiver is requested

based on an assertion that UNICOR's product will not perform as

well as another or in the manner the customer desires, the

contracting officer must provide in writing, details describing

the non-conformance characteristics of the UNICOR product.

Ë Aesthetics or Matching Existing Item: Generally, this is

not an acceptable reason to grant a waiver request. However,

discretion will be used. For example, when additions are being

made to a building in which competitive products are installed

and new products would be in close proximity to existing items,

waivers may be justified. Also, waiver requests will be

considered installation compatibility, as in the case of systems

furniture and shelving.

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5.2 Responsibilities

5.2.1. Customer Service Center. The waiver process involves

many levels of the corporation. Inmates at the Customer Service

Center enter waiver requests into the database as they are either

mailed or faxed into the Center. If a waiver is received without

all information necessary to process it, the inmates enter the

information into the clearance database, with a note in the text

stating that the waiver request lacks information to process.

The incomplete waiver request is then forwarded to the Marketing

Consultant responsible for the geographical region of the

customer.

The Consultant has the responsibility to retrieve all

information to complete the request from the customer. The files

are maintained in the filing system CAN-O-FILE for back-up or

appeal purposes. Once the appropriate decision maker decides to

approve or deny the waiver, inmates or Customer Service Center

civilian staff notify the customer of the decision by fax or

mail. Customers can inquire of their request by calling

(800)827-3168.

5.2.2. Marketing Consultants. The information from the

requests are entered into a database accessible to the Marketing

Consultants in the field and Central Office. The Marketing

Consultants are responsible for reviewing these requests,

contacting the customer if needed, and deciding to approve or

deny the requests for waivers. If the waiver request is denied,

the Marketing Consultant must contact the customer by telephone

or fax, to provide reasons to the customer and document this in

the clearance database. This procedure is followed for all

waiver requests except for systems furniture requests valued at

over $100,000.

5.2.3. System Furniture Division. The Systems Furniture

Division is responsible for reviewing and deciding on waiver

requests for systems furniture projects over $100,000. The

filing procedures and customer notification procedures, as well

as the appeal process, remain the same.

5.2.4. Management Information Systems Division (MISD). MISD

is responsible for providing user manual instructions for those

needing to use the waiver database. MISD writes and implements

programs which automatically deny or approve waivers.

5.2.5. Ombudsman. The Ombudsman for Federal Prison Industries

is responsible for handling all waiver appeals received at

Federal Prison Industries. Appeals should be transmitted no

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later than 30 days after receipt of the original decision and the

appeal should reference the original waiver identification

number. Waiver files need to be complete and the decision-maker

on the appealed waiver requests should be available for the

Ombudsman should questions arise. The Ombudsman will make every

attempt to respond to appeals and contact the customer within 10

working days.

5.3 Timeframes

5.3.1. Initial Entry into the Waiver Database. The inmate

agents at the Customer Service Center are responsible for

initially entering the waiver request within 48 hours (two

working days) after receipt.

5.3.2. Decisions. The Marketing Consultants and system

furniture decision makers have three weeks (15 working days) to

make a decision on a waiver. If a decision is not entered into

the database by an inmate agent, marketing consultant, or the

systems furniture group, within the timeframe specified, the

database automatically approves the waiver, with some exceptions.

For example, if a marketing consultant has contacted the customer

and is researching and negotiating the waiver request, the

consultant can inform MISD and the waiver will not be

automatically approved.

5.3.3. Notification to the Customer. The Customer Service

Center is responsible for notifying the customer by fax or letter

of the waiver decision, once entered by the decision maker,

within 48 hours (two working days). Staff at the Center run a

daily report that prints letters for the waiver requests that

decisions have been entered for that day.

5.3.4. Waiver Appeals. The customer has one month

(approximately 20 working days) to appeal the waiver decision.

Appeals are written documents addressed to the Ombudsman, Central

Office. The Ombudsman has two weeks to notify customer of either

waiver appeal decision or discuss with customer reasons why the

appeal might take longer to resolve. The Ombudsman also needs to

apprise the Waiver Processor Coordinator in Central Office of the

final decision so that the database can be updated.