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GGD-86-6 1 (1985-11-01)

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BY THE U.S. GENERAL ACCOUNTING OFFICE


Report To The Honorable William Proxmire

United States Senate









UNICOR Products: Federal Prison Industries

Can Further Ensure Customer Satisfaction




Federal Prison Industries (trade name UNICOR) is a profitable
government owned corporation which sells many different
products to federal agencies and employs thousands of fed-
eral prisoners. GAO was asked to determine if improvements
were needed in UNICOR's efforts to (1) set and maintain
prices, (2) stay abreast of and deal with customer problems,
and (3) grant clearances for agencies to buy elsewhere.

The customers GAO included in its review reported few prob-
lems with UNICOR. Overall, UNICOR customers appeared
satisfied with its prices, although some believe the corpora-
tion's prices are too high. Because UNICOR is not doing
market checks as required, neither GAO nor UNICOR knows
to what extent UNICOR is complying with the law to price its
products and services within current market prices. UNICOR
is taking actions to stay abreast of customer satisfaction and
does respond to customer complaints. Overall, UNICOR's
clearance process seems to be working well. However, the
process could be avoided in many instances by improving
UNICOR's product catalogs. GAO recommends actions which
UNICOR should take to ensure its prices comply with the law
and to improve its customer clearance process.







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 71. OGAO/GGD-86-6
   Ic.c.OU K                                               NOVEMBER 1. 1985