BOP Program Statement 8520.05 § 2

RSAs are required to be approved prior to acquiring the following classes of items:

a. Machinery and Equipment (M&E). Authorization is required for any acquisition,

restoration, or repair of M&E that has an anticipated cost of $10,000 or greater. This applies not

only to individual items but also to groups, programs, or equipment projects involving similar or

like items.

Example: A Cut and Sew Factory plans to modernize its equipment by replacing its sewing

machines. The first phase of the modernization calls for replacing 10 machines at a total cost of

$99,000. Although each individual machine costs less than $10,000, the total project is well

above that amount. Authorization from FPI corporate management for the project is required.

b. Computer Hardware and Software. Authorization by FPI’s Chief Information Officer is

required for purchasing any computer hardware or software with a value greater than $10,000.

c. Motor Vehicles. Authorization is required for all motor vehicles leased, purchased, donated,

or transferred from other Bureau or FPI locations. Authorization to acquire forklifts is subject to

the requirements for M&E in Section 2.a.

d. Building and Improvement (B&I) Projects. Authorization is required for any B&I project

having a total cost, including staff and inmate wages, in excess of $10,000.

e. Factory Activations. Authorization is required by the FPI Board of Directors for all major

B&I or M&E projects associated with factory activation.

f. Lease or Rental. Authorization is required for all leases and rentals, regardless of the cost.

g. Pre-Industrial Programs. Authorization is required for all FPI pre-industrial programs.

h. Inventory Purchases Without Customer Demand. FPI’s inventory purchases must be in

response to a demand for the inventory that is supported by a firm customer order. Inventory

purchases that do not meet these criteria, and are in excess of $10,000, must be authorized in

advance through an approved RSA. This requirement exists regardless of whether a factory is

within its inventory targets on the current operating plan.