Res. No. 1380

Resolution calling upon the New York State Legislature to pass, and the Governor to sign, legislation removing Corcraft’s status as a preferred vendor in state and municipal contracting processes.

By The Public Advocate (Mr. Williams) and Council Member Kallos

Whereas, Corcraft is the manufacturing program of the Division of Industries, an entity within the New York State Department of Corrections and Community Supervision (DOCCS) that produces a variety of commodities; and

Whereas, According to DOCCS, Corcraft’s mission is to employ inmates in real work situations producing quality goods and services at competitive prices, delivered on time as required by its customers at a minimal cost to the taxpayers; and

Whereas, According to the New York State Office of General Services’ List of Preferred Source Offerings, May 2020, Corcraft produces approximately 300 products for office, institutional and educational markets across 30 shops in 15 New York State correctional facilities; and

Whereas, According to the New York State Office of the State Comptroller’ 2014 report, Corcraft’s Textile Procurement Practices, Corcraft annual sales averaged $49 million for New York State Fiscal Year 2012-2013, and employs approximately 2,000 incarcerated offenders; and

Whereas, Corcraft employees are paid a starting wage of 16 cents per hour and a maximum wage of 65 cents per hour, and can earn a bonus of up to $1.30 a day for productivity, according to a USA Today article dated March 9, 2020, New York's solution to hand sanitizer shortage: Prison labor, hourly wages below $1; and 

Whereas, Designated as a preferred source in Section 162 of the New York State Finance Law, Corcraft is required to sell its products to a specific customer base, which includes state and local governments, public entities and charitable not-for-profit organizations that receive tax dollars; and

Whereas, Customers can purchase products from Corcraft without having to comply with the competitive procurement provisions contained in the New York State Finance Law and other competitive procurement statutes and, in fact, are required to do so if an approved preferred source offering meets a customer’s requirements for form, function, and utility, and the price is at or below fair market price; and

Whereas, Corcraft’s preferred source designation helps it generate tens of millions of dollars in sales, according to the USA Today article; and

Whereas, Since purchases from preferred sources take precedence over all other sources of supply and competitive procurement methods municipalities, such as New York City, are required to contract with Corcraft, and further exploit New York’s prison labor system; and 

Whereas, Across New York, incarcerated workers generate billions in revenue for the prison system, making pennies on the dollar and in some cases nothing at all for their work, all while taking personal safety risks to produce products; and

Whereas, In order to correct the inequities that lie within the prison labor system, Corcraft’s status as a preferred source vendor should be removed; and

                     Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass, and the Governor to sign, legislation removing Corcraft’s status as a preferred vendor in state and municipal contracting processes.

SR

LS 14259

5/28/2020