BOP Program Statement 8400.04 § 3

“SERVICES”

Correctly defining “prison-made products” and “services” is particularly important when FPI is

performing work for a customer under FPI’s commercial market services authority. Under 18

U.S.C. § 1761(a), it is illegal to knowingly transport in interstate commerce “any goods, wares,

or merchandise manufactured, produced, or mined, wholly or in part by convicts or prisoners”

unless one of the exceptions in subsections (b), (c), or (d) of the statute applies. When FPI

manufactures products, it is either pursuant to one of the exceptions in this statute (i.e., federal

government end customer, agricultural commodities, Prison Industry Enhancement Certification

Program, or repatriation) or one of the authorities provided under 18 U.S.C. § 4130.

The prohibition in 18 U.S.C. § 1761(a) does not apply to services. However, because some

services involve a tangible product, it is critical for FPI to ensure work opportunities being

performed as a commercial market service are considered a service under federal law.

Accordingly, prior to agreeing to perform a new service or a service that could be construed as a

product for a non-federal government customer, FPI’s business groups must obtain approval

from FPI’s Office of General Counsel. For more information on FPI’s legal authorities, see the

Standard Operating Procedure Establishing Binding Agreements with Non-Federal Customers.