Federal Prison Industries

{{Short description|United States government corporation}} {{Multiple issues| {{Promotional|date=April 2020}} {{Update|part=|date=December 2024}} }} {{Infobox company | name = Federal Prison Industries, Inc. | logo = UNICOR logo.svg | logo_size = | logo_alt = | logo_caption = | logo_padding = | image = | image_size = | image_alt = | image_caption = | trade_name = UNICOR | native_name = | native_name_lang =  | romanized_name = | former_name = | type = State-owned enterprise | traded_as = | ISIN = | industry = Penal labor | genre = | fate = | predecessor =  | successor =  | founded = {{Start date and age|1934|06|23}}<ref>{{cite web|url=https://www.unicor.gov/FAQ_General.aspx|title=UNICOR - FAQs: General|website=Unicor.gov|access-date=14 October 2017|archive-date=2 May 2022|archive-url=https://web.archive.org/web/20220502223330/https://www.unicor.gov/FAQ_General.aspx|url-status=dead}}</ref>  | founder =  | defunct =  | hq_location = | hq_location_city = Washington, D.C. | hq_location_country = U.S. | num_locations = | num_locations_year =  | area_served =  | key_people = David D. Spears, Chairman<br/>Donald R. Elliott, Vice Chairman<ref>{{cite web|url=https://www.unicor.gov/BoardMembers.aspx|title=UNICOR - Board of Directors|website=Unicor.gov|access-date=14 October 2017|archive-date=14 September 2022|archive-url=https://web.archive.org/web/20220914151901/https://www.unicor.gov/BoardMembers.aspx|url-status=dead}}</ref> | products = | brands = | production = | production_year =  | services = | revenue = $531,453,000 | revenue_year = 2019 | operating_income = | income_year =  | net_income = $61,166,000<ref>{{cite web|url=https://www.unicor.gov/publications/reports/FY2019_AnnualMgmtReport.pdf|title=FEDERAL PRISON INDUSTRIES, INC. : Fiscal Year 2019 Annual Management Report|website=Unicor.gov|access-date=30 January 2020}}</ref> | net_income_year = 2019 | aum =  | assets = | assets_year =  | equity = | equity_year =  | owner = Federal Bureau of Prisons | members = | members_year =  | num_employees = 10,896 | num_employees_year = 2016 | parent = | divisions = | subsid = | module =  | ratio =  | rating =  | website = {{URL|www.unicor.gov}} | footnotes = | intl =  }}

'''Federal Prison Industries, Inc.''' ('''FPI'''), doing business as '''UNICOR''' (stylized in all lowercase) since 1977, is a corporation wholly owned by the United States government. It was created in 1934 as a prison labor program within the Federal Bureau of Prisons.

Under US federal law, all physically abled inmates who are not a security risk or have a health exception are required to work, either for UNICOR or at some other prison job.<ref name="CRS"/><ref name="ReferenceA">Title XXIX, §2905 of the Crime Control Act of 1990 (P.L. 101-647) required that all offenders in federal prisons must work (the act permitted limitations to this rule on security and health-related grounds).</ref> As of 2021, inmates earned between $0.23 to $1.15 per hour.<ref name=":2">{{Cite web |title=BOP: UNICOR |url=https://www.bop.gov/inmates/custody_and_care/unicor_about.jsp |access-date=2021-03-31 |website=Federal Bureau of Prisons}}</ref>

As a "mandatory source" for federal departments (having priority over all other sources, including JWOD sources from blind or severely disabled persons), FPI receives priority in any purchases of its products.<ref name=":12">{{Cite web|last=Kim|first=Whizy|title=White Supremacists Attacked The Capitol. Now, Prison Labor Will Clean Up The Mess|url=https://www.refinery29.com/en-us/2021/01/10255564/prison-labor-furniture-capitol-attack|access-date=2021-01-23|website=www.refinery29.com|language=en}}</ref>

UNICOR is entirely self-sustaining and has no cost to US taxpayers.<ref name=":2" />

== History == {{expand section|date=March 2023}} A statute in May 1930 provided for the employment of prisoners,<ref>{{USStatute|71|271|46|391|1930|05|27}}</ref> the creation of a corporation for the purpose was authorized by a statute in June 1934,<ref>{{USStatute|73|461|48|1211|1934|06|23}}</ref><ref name=":1" /> and the Federal Prison Industries was created by executive order 6917 on 11 December 1934 by Franklin D. Roosevelt.<ref name=":1">{{Cite web |date=May 11, 2016 |title=Federal Prison Industries: Background, Debate, Legislative History, and Policy Options |url=https://crsreports.congress.gov/product/pdf/RL/RL32380 |access-date=January 11, 2025 |website=Congressional Research Service |format=PDF}}</ref><ref>{{Cite web |title=Executive Order 6917—Creating a Body Corporate to be Known as Federal Prison Industries, Inc. {{!}} The American Presidency Project |url=https://www.presidency.ucsb.edu/documents/executive-order-6917-creating-body-corporate-be-known-federal-prison-industries-inc |access-date=2025-01-20 |website=www.presidency.ucsb.edu}}</ref> It officially began operations on 1 January 1935 as a wholly-owned corporation of the US Government.<ref>{{Cite web |date=2024-06-20 |title=UNICOR's 90 Years of Impact |url=https://www.bop.gov/resources/news/20240620-unicor-s-90-years-of-impact.jsp |access-date=2026-01-25 |website=www.bop.gov |language=en}}</ref><ref name=":3">{{Cite web |title=About UNICOR |url=https://www.unicor.gov/about.aspx |access-date=2026-01-25 |website=www.unicor.gov}}</ref>

Its mandate according to the UNICOR.gov website is to, "protect society and reduce crime by preparing inmates with job training and practical work skills for reentry success."<ref name=":3" />

In 1977, the trade name UNICOR was adopted.<ref name=":0">{{Cite web |title=Federal Prison Industries, Inc. {{!}} Encyclopedia.com |url=https://www.encyclopedia.com/books/politics-and-business-magazines/federal-prison-industries-inc |access-date=2025-01-19 |website=www.encyclopedia.com}}</ref>

In 1983, UNICOR contracted Booz-Allen & Hamilton Inc. to conduct a study to figure out the marketing needs of UNICOR and set up a marketing department. This was done to explore untapped markets and seek new products that UNICOR could produce.<ref name=":0" />

By the mid-1980s, UNICOR had included 47 prisons with a total amount of 32,000 inmates.<ref name=":0" />

In 2017, UNICOR had $483.8 million in net sales.<ref name=":2" /> In 2024. UNICOR celebrated its 90th anniversary.<ref>{{Cite web |date=2024-06-20 |title=UNICOR's 90 Years of Impact |url=https://www.bop.gov/resources/news/20240620-unicor-s-90-years-of-impact.jsp |access-date=2026-01-25 |website=www.bop.gov |language=en}}</ref>

==Activities== Under current law, all physically able inmates who are not a security risk or have a health exception are required to work, either for UNICOR or at some other prison job.<ref name="CRS" /><ref name="ReferenceA"/> Inmates typically earn between US$0.23 and US$1.15 per hour,<ref name=":2" /> and all inmates with court-ordered financial obligations must use at least 50% of this UNICOR income to satisfy those debts.<ref name="CRS" />

Deductions are then taken for taxes, victim restitution, program costs and court-imposed legal obligations.<ref name="CRS">{{citation | title= Federal Prison Industries RL32380 | publisher= Congressional Research Service | date= July 13, 2007 | url= http://www.fas.org/sgp/crs/misc/RL32380.pdf}}</ref> In fiscal year 2016, FPI's business were organized, managed, and internally reported as six operation segments based upon products and services. These segments are Agribusiness, Clothing and Textiles, Electronics, Office Furniture, Recycling, and Services.

alt=Prisoners sit at sewing machines, sewing military uniforms|thumb|421x421px|Prison labor in a UNICOR program producing uniforms.

UNICOR currently produces the Interceptor body armor vest, primarily for foreign sales and international customers.<ref>{{cite web|url=https://govtribe.com/contract/award/w91crb08d0045-0015|title=Department of the Army W91CRB08D0045-0015 To Unicor $42.5k|last=GovTribe|website=govtribe.com}}</ref><ref>{{cite web|url=https://govtribe.com/contract/idv/w91crb08d0045|title=Department of the Army W91CRB08D0045 To Unicor $265.8m|last=GovTribe|website=govtribe.com}}</ref><ref>[https://www.federalcompass.com/award-task-order-bpa-call/0001-W91CRB08D0045 Award of Interceptor OTVs] federalcompass.com, 29-Sept-2008</ref>{{Update after|2024|12|26}}

As of November 2025, UNICOR had 76 Active and 77 Available UNICOR locations. The active locations included fields such as: textiles, agribusiness, recycling, optics, furniture, and electronics.<ref name=":3" />

==Criticism== One report<ref>{{cite web|title=A Review of Federal Prison Industries Electronic-Waste Recycling Program|url=https://www.oig.justice.gov/reports/BOP/o1010.pdf|website=US Department of Justice|access-date=22 September 2016|archive-url=https://web.archive.org/web/20160628033039/https://oig.justice.gov/reports/BOP/o1010.pdf|archive-date=28 June 2016|url-status=dead}}</ref> detailed an FPI operation at a California prison in which inmates de-manufactured computer cathode-type monitors. Industry standard practice for this mandates a mechanical crushing machine to minimize danger from flying glass, with an isolated air system to avoid releasing lead, barium, and phosphor compounds to the workplace atmosphere. At the FPI facility prisoners de-manufactured CRTs with hammers. FPI initiated corrective action to address this finding, and claims to currently meet or exceed industry standards in its recycling operations.<ref>{{cite web|title=A Review of Federal Prison Industries Electronic-Waste Recycling Program, Attachments 4 and 5, pages 421-426|url=https://www.oig.justice.gov/reports/BOP/o1010.pdf|website=US Department of Justice|access-date=22 September 2016|archive-url=https://web.archive.org/web/20160628033039/https://oig.justice.gov/reports/BOP/o1010.pdf|archive-date=28 June 2016|url-status=dead}}</ref>

Combat helmets produced by FPI at one factory were at the center of a US Department of Justice lawsuit and $3 million settlement paid by ArmorSource, the prime contractor. The U.S. Attorney's Offices declined to criminally prosecute or file any civil action against FPI staff.<ref name="auto">{{cite web|title=DEFENSE CONTRACTOR ARMORSOURCE LLC AGREES TO PAY $3 MILLION TO SETTLE FALSE CLAIMS ACT ALLEGATIONS, page 7|url=https://oig.justice.gov/press/2016/2016-03-07.pdf|website=US Department of Justice|access-date=19 August 2016}}</ref> The helmets were produced for [https://armorsource.com/ ArmorSource] between 2008 and 2009 and failed to meet standards.<ref>{{cite web|title=Investigative Summary Findings of Fraud and Other Irregularities Related to the Manufacture and Sale of Combat Helmets by the Federal Prison Industries and ArmorSource, LLC, to the Department of Defense, page 2|url=https://oig.justice.gov/reports/2016/i1608.pdf|website=US Department of Justice|access-date=19 August 2016}}</ref> The recall of both helmets cost FPI $19 million. With Defense Contract Management Agency audit staff, FPI identified opportunities to improve its Quality Management System in areas including improved management staff oversight, proper control of quality procedures, training, and implementation of corrective action. FPI implemented new procedures to address these areas.<ref name="Dallas Morning News">{{cite news|last=Steele|first=Tom|title=Inmates at Texas prison produced faulty helmets for military, costing government $19M|url=http://www.dallasnews.com/news/state/headlines/20160830-inmates-at-texas-prison-produced-faulty-helmets-for-military-costing-government-19m.ece|access-date=22 September 2016|publisher=Dallas Morning News|date=30 August 2016|archive-date=23 September 2016|archive-url=https://web.archive.org/web/20160923040400/http://www.dallasnews.com/news/state/headlines/20160830-inmates-at-texas-prison-produced-faulty-helmets-for-military-costing-government-19m.ece|url-status=dead}}</ref>

== Leadership == FPI is governed by a six-man Board of Directors, all of whom are appointed by POTUS and who are supposed to represent, "Industry, Retailers and Consumers, Agriculture, the Secretary of Defense, and the Attorney General."<ref name=":4" /> The members of the Board serve without compensation.<ref>{{Cite web |title=18 U.S. Code § 4121 - Federal Prison Industries; board of directors |url=https://www.law.cornell.edu/uscode/text/18/4121 |access-date=2026-01-25 |website=LII / Legal Information Institute |language=en}}</ref> The following is a list of the leadership of FPI as of January 2026:<ref name=":4">{{Cite web |title=BOP: UNICOR |url=https://www.bop.gov/inmates/custody_and_care/unicor_corporate.jsp |access-date=2026-01-25 |website=www.bop.gov}}</ref>

* William K. Marshall III, FPI Commissioner and Director of the Federal Bureau of Prisons * Todd A. Plimpton, Chief Executive Officer & Corporate Secretary * David D. Spears, Chairman of the Board of Directors * Donald R. Elliott, Vice Chair of the Board * Jolene Ann Lauria, member of the Board of Directors * Lee Lofthus, member of the Board of Directors * Monty Wilkinson, member of the Board of Directors * By law there should be a sixth member of the board, but it is currently vacant.

==See also== {{Portal|United States|Politics}} * Penal labor in the United States * California Prison Industry Authority * Chain gang * Convict leasing * Incarceration in the United States * Labor camp * Title 28 of the Code of Federal Regulations * Skilcraft

==References== {{Reflist}}

==External links== * {{Commons category-inline}} * [http://www.unicor.gov/ UNICOR Federal Prison Industries] * [https://www.federalregister.gov/agencies/federal-prison-industries Federal Prison Industries] in the Federal Register

Category:Federal Bureau of Prisons Category:Penal system in the United States Category:Prison-related organizations Category:Penal labor in the United States Category:Government agencies established in 1934 Category:1934 establishments in Washington, D.C.