d. However, there are 3 exceptions to using State or local civilian inmate labor from off–post corrections facilities—
(1) Section 1065, PL 103–337, allows the Army to conduct a demonstration project. This demonstration project tests
the feasibility of providing prerelease employment training to nonviolent offenders in a State corrections facility. The
demonstration project is limited to 3 Army installations. The 3 Army installations participating in the demonstration
project may use inmates from an off–post State corrections facility.
(2) Army National Guard units leasing facilities from the Army or occupying State–owned land or facilities may use
inmates from an off–post State and/or local corrections facility.
(3) The prohibition against use of State and/or local civilian inmate labor from off–post corrections facilities does
not apply to Civil Works projects where the Army has statutory authority to accept voluntary contributions in the form
of services from State or local governments. If contributed, inmate services are combined with materials or services
paid for with Federally appropriated funds; the use of civilian inmate labor must also comply with the provisions of EO
11755. The use of civilian inmate labor under these exceptions must still comply with the requirements of this
regulation.