Lean, Green , and Made in the USA…Doing Business with UNICOR

1. GSA Expo 2010 Lean, Green, and Made in the USA…Doing Business with UNICOR Jan Hynson and Rudy Szollar Marketing, Research and Corporate Support Branch UNICOR/FPI

2. … Impressions of UNICOR! Refreshed Outlook Renewed Senses Long Lasting Green 5

3. Tell Us What YOU Know about UNICOR… Many people believe that UNICOR… makes furniture is a required source to buy furniture uses inmate resources to make furniture is a mystery !

4. UNICOR is SO Much More! 1 Reduces government spending 2 Positive impact upon US economy 3 Impacts viability/health of communities 4 Promotes safety/security in our facilities 5 Provides a fresh start for a brighter future 5

5. More than 75 Years of History ! • 1934 Executive Order 6917 signed by President Franklin D. Roosevelt

6. A Tireless Advocate • Warren E. Burger, our nation’s 15 Chief Justice, extolled the merits of “factories with fences” • Believed that prison industrial work programs would set the course for a productive future …

7. A pioneer in modern prison industries. “We must accept the reality that to confine offenders behind walls without trying to change them is an expensive folly with short term benefits…. It is wrong. Its is expensive. It is stupid.”

8. Today’s Realities… ! By the time you leave this session… 5more federal inmates will be released from prison He or she may become your neighbor The kind of neighbor he or she becomes will likely be influenced by the experiences, life skills and marketable jobs training acquired in prison. 2.5 million people are incarcerated in the USAand 98% will, one day, be released.

9. What’s Your Impression ? • When you think of prison factories and inmates, what picture comes to mind?

10. Early Prison Industries Early federal inmate workers were contracted out to states and localities to earn their keep

11. UNICOR Inmates are… • Less likely to cause prison disturbances • Able to acquire “real life” work skills • 24% less likely to return to prison • 14% more likely to find jobs

12. Today’s Prison Industries Today’s Inmate workers produce hundreds of products and services While adhering to increased educational and social demands.

13. A “Business” Like Any Other… • Must cover expenses • Sales by catalogs/website/sales team • An active Board of Directors • Factory Workers • Meet industry quality/performance stds. • Must be competitive

14. A “Business” Unlike Others… +/-17,000 factory workers… commute on foot to their jobs 100+ factories; 70+ locations… inside federal correctional facilities 150+ diverse products/services… with production ceilings Customers… limited segments Sales goals… but not profit-driven

15. UNICOR is… • a solid investment in America’s future

16. Inside Skills / Outside Possibilities Sewing/Garment Construction Electronics Manufacturing and Testing Vehicle Component and Engine Repair Pre-Press/Graphics Arts Design Tele-Servicing & Response Carpentry & Upholstering Computer-Aided Design Tool & Die Fabrication Data Entry and Conversion Recycling Materials Processing Solar Panel Production… and more 15

17. The “At Home” Advantage! 79.7% purchases of materials and supplies from private sector businesses 16.7% Staff salaries 3.6% Inmate pay 16

18. Strengthened by our Core Values INTEGRITY RESPECT CORRECTIONAL EXCELLENCE We ARE Government (BOP/DOJ) We KNOW Government Held to a STRICT CODE of ETHICS We have been around for 75 YEARS We EARN the public’s TRUST every day HIGHEST STANDARDS of business practices

19. Beyond Social Responsibility ! If You Need it ? We’veGot what you need ! Doing business with UNICOR

20. Ready, Set, Go! unicor.gov hassle-free/easy Order 24/7 Green designated schedule of products On-line answers to questions No need to compete your requirements Customer Hot-Line 800-827-3168

21. Quality and Manufacturing Excellence Rigorous performance testing to meet or exceed industry standards; A robust SAP manufacturing system ISO 9001:2000 and 2008 certified factories Lean Six Sigma standard methodology to improve efficiency, reduce waste, enhance customer satisfaction 20

22. GREEN before it was COOL ! And we mean Green! We don’t “Greenwash!” Should you care?

23. Purchase Responsibly ! • Executive Order 13423 requires: use of sustainable, environmental practices and environmentally preferable, energy-efficient/recycled content products • Executive Order 13514 set sustainability goals, increased energy efficiency, waste reduction; leveraged federal purchasing power to promote green products/technologies

24. UNICOR “Walks the Talk” For 25+ years, UNICOR has engaged in green practices! And we’re growing in the right direction Senior level task force to steer 5-year Environmental Plan Judicious vendor selection Roof-top headquarters solar panel system go to View, Header and Footer to set date 23

25. Office Furniture • GREENGUARD certification • 100% Recycled fabrics • 100% Recyclable foam cushioning • Water-based finishes/glues since 1998 • North American vendors – strict enviro-safety standards

26. Clothing and Textiles • Life extension • Scrap baling/ material resold • Recycled cotton fill in mattresses • Packing boxes and pallets

27. Industrial Products • Powder coat paint since 1985 - Non-toxic - Reusable • Recycled plastic signs • Air filters

28. Fleet Solutions • Bio-degradable cleaners • Recycled water • Cost savings

29. Services • Soy-based / chemically-inert inks • Convert 10,000s of pages • 100% recycled paper

30. Recycling • Eight processing centers • ISO certified • 185 million pounds of computers / electronics recycled since 1985 • 37 million tons of scrap • We like plugs!

31. We’re Plugged In!A Commitment to Renewable Energy

32. A Few “Stamps of Approval” • Federal Times (4/09 article) “One way to ensure proper recycling: “Hire federal prison inmates.” • EPA certification of compliance guidelines • Interior Dept. engages UNICOR to perform electronics recycling • GREENGUARD certification in UNICOR’s leading furniture product lines

33. The Most Notable Recycling Initiative We recycle lives!

34. A Culture of CollaborationUNICOR through GSA contract: • For 20 years, FPI has provided military lockers • Upfit tactical vehicles to Federal Protective Service • Produced / installed signs at Andrews and Lackland Air Force Bases

35. A Culture of CollaborationUNICOR through GSA contract: • Produced millions of calendars, forms and appointment books • All three UNICOR print plants provide material for GSA

36. A Culture of CollaborationUNICOR through GSA contract: • Provides box springs and mattresses throughout the world • Provides gloves to USDA, Forest Service, enabling sufficient emergency inventory

37. A Culture of Collaboration: BlSM • Blind Industries and Services of Maryland • Provided cut material UNICOR • Three locations supplying “ready to sew” goods to seven UNICOR factories • Alternative to non-domestic sources

38. A Culture of Collaboration Woolrich Inc. • Army combat trouser uniforms • Preserves U.S. jobs • CEO “UNICOR carried the same standards… that has made Woolrich successful for well over 175 years”

39. A True Story Former inmate Jonathan Queen is the quintessential success story. 38

40. Bringing it Home “Then vs.Now” Raised by drug-addicted mother Sold drugs at 14 years old Arrested 3rd time at age 23 Sentenced to 10 years in federal prison No money; $1,100 fine; minimal familysupport Had a choice to make: “Fall in”; Pursue a better path Devoted husband, father and community leader Employed citizen; government contract manager Runs GED program Started publishing company; accomplished author Motivational speaker and Deacon-Elect Life is good! 39

41. Does the Program work? • Let’s hear what some UNICOR inmates have to say…

42. It’s the right thing to do! Purchase responsibly. Come see our Exhibit for the rest of the story Doing Business with UNICOR:Simply Put…