FPI and nonprofit agencies participating in the AbilityOne Program under 41 U.S.C. chapter 85, Committee for Purchase from People Who Are Blind or Severely Disabled (see subpart 8.7), may produce identical supplies or services. When this occurs, ordering offices shall purchase supplies and services in the following priorities:

(a) Supplies.

(1) Federal Prison Industries, Inc. (41 U.S.C. 8504).

(2) AbilityOne participating nonprofit agencies.

(3) Commercial sources.

(b) Services.

(1) AbilityOneparticipating nonprofit agencies.

(2) Federal Prison Industries, Inc., or commercial sources.

[69 FR 16149, Mar. 26, 2004, as amended at 73 FR 53994, Sept. 17, 2008; 79 FR 24199, Apr. 29, 2014]