Federal Prison Industries Competition in Contracting Act of 2006

H.R. 2965, the Federal Prison Industries Competition in Contracting Act of 2006, sought to change how federal agencies purchase goods and services from Federal Prison Industries (FPI), a government-owned corporation that uses inmate labor. The bill proposed ending the "mandatory source" rule, which required government agencies to buy from prison workshops even if private businesses offered better prices or quality, instead requiring FPI to compete with the private sector for federal contracts.

For everyday citizens and business owners, this legislation aimed to create a more level playing field for small businesses and private manufacturers who previously could not bid on certain government work. Additionally, the bill included provisions to increase inmate wages over time and expanded vocational training and educational programs to better prepare inmates for employment after their release. While the House of Representatives passed the bill in 2006, it did not advance through the Senate to become law.