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Federal Prison Industries, also known as UNICOR and FPI, is a wholly owned United States government corporation created in 1934 that uses penal labor from the Federal Bureau of Prisons to produce goods and services. FPI is restricted to selling its products and services to federal government agencies.
Recently private companies gained some access to UNICOR workforce: companies can outsource call centers to UNICOR.
Under US laws and regulations, federal agencies, with the exception of the Department of Defense, are required to purchase products (but not services) offered by UNICOR, unless authorized by UNICOR to solicit bids from the private sector. This "mandatory source clause" has drawn controversy over the years, with allegations that UNICOR is unfairly competing with private businesses. From 2002 to 2004, Congress and the Bush Administration made several efforts to mitigate this competitive advantage held by UNICOR over the private sector. In 2003, UNICOR's board of directors eliminated the mandatory source clause for federal purchases under US$2,500, and mandated itself to approve waivers in all cases where the private sector provides a lower cost.
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 (Emphasis added)
....so despite these poor companies not being able to pay tax they do contribute to the economy(sarcasm)
My info came from www.globalresearch.ca/the-prison-industry-in-the-united-states-big-business-or-a-new-form-of-slavery/8289