1Stateprisonindustryprogramsareadministeredbythestates,arenotassociatedwithUNICOR,and are not discussed in this report.Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code 96-892 GOVUpdated July 17, 2003Federal Prison Industries: UNICORJoAnne OBryantDomestic Social Policy DivisionSummaryUNICOR, the trade name for Federal Prison Industries, Inc. (FPI), is thegovernment corporation that employs offenders incarcerated in federal prisons.1Establishedin1934,UNICORprovidesjobtrainingopportunitiestofederalinmatesbyproducing goods and services for federal agencies. By statute, UNICOR products andservices must be purchased by federal agencies (a requirement often referred to as“superpreference,”“mandatorysource,” or “sole source”) and are not availableforsalein interstate commerce or to non-federal entities. Federal agencies can obtain productsfromtheprivatesectorthroughawaiverissuedbyUNICORifthecorporationisunableto make the needed product or provide the required service.ThedebateonUNICORs impact onthefreemarket has beenaffectedbytensionsbetween competing interests that represent two social goods the employment andrehabilitatio
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