Federal Prison Industries

A statute in May 1930 provided for the employment of prisoners, the creation of a corporation for the purpose was authorized by a statute in June 1934, and the Federal Prison Industries was created by executive order 6917 on 11 December 1934 by Franklin D. Roosevelt. It officially began operations on 1 January 1935 as a wholly-owned corporation of the US Government.

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."

In 1977, the trade name UNICOR was adopted.

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.

By the mid-1980s, UNICOR had included 47 prisons with a total amount of 32,000 inmates.

In 2017, UNICOR had $483.8 million in net sales. In 2024. UNICOR celebrated its 90th anniversary.

Criticism

One report 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.

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. The helmets were produced for ArmorSource between 2008 and 2009 and failed to meet standards. 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.