The United States government spends billions of dollars each year in contracts with private sector businesses, including $645.5 billion in 2021, according to Bloomberg Government.
One key aspect of some of these arrangements is that winning firms must contract with an outside entity on some of the work they’ve won. In those cases, many manufacturers have found a solution in UNICOR.
Some federal contracts might require a private company, for instance, to subcontract the manufacturing of materials. These companies often turn to UNICOR, whose subcontracting program allows private firms to purchase manufacturing time and subcontract parts and services.
Established in 1934 as a federal government corporation, UNICOR manufactures products for government, commercial, and nonprofit customers, while also preparing inmates to earn a productive living through job training. Entirely self-sufficient, it receives no funds from Congress and operates at no cost to taxpayers.
UNICOR operates out of 80 modern factories across the country, offering a diverse range of products and services, including textiles, electronics, metals, wire and plastics, wood, and vehicle repair and remanufacturing.
Under the subcontracting program, any company that enlists UNICOR to manufacture products is required to certify that the end product is going to the federal government. For federal contracts that are a full or partial small business set-aside, federal contractors must comply with applicable limitations on subcontracting.
“UNICOR’s subcontracting program can help manufacturing companies meet the requirements of their federal contracts,” says Patrick O’Connor, CEO of UNICOR. “And at the same time, companies can take advantage of our factories, our commitment to quality, our cost-effectiveness, and our dedicated, skilled workforce.”
“The benefits extend far beyond the job too,” he adds. Indeed, UNICOR uses this job and life-skills training to increase inmates’ chances of securing meaningful post-release employment. Research has shown that inmates who participate in UNICOR programs are 24% less likely to return to criminal activity and 14% more likely to obtain employment after their release.
The subcontracting program is one of several ways in which companies can work with UNICOR. Other programs and initiatives include:
- The PIE Program: Congress created the Prison Industry Enhancement Certification Program, or PIE Program, in 1979 with the goal of motivating state and local governments to establish employment opportunities for people in prison. The program also exempts certified prison industry programs from the normal restrictions that are usually applied to the sale of inmate-made goods across state lines. Businesses can tap into PIE Program opportunities by contracting with UNICOR.
- Reshoring: UNICOR can help support a company’s reshoring efforts, thanks in part to legislation passed in 2012. That’s when Congress included in the Consolidated and Further Continuing Appropriations Act a provision that encouraged private sector collaboration with UNICOR. Section 221 gave UNICOR repatriation authority, allowing it to engage in approved projects to manufacture or assemble items that are currently or would otherwise be produced outside the United States.
To learn more about working with UNICOR, contact UNICOR Business Development at [email protected] or 202-305-3490.
