Washington ( CNN ) -- The company that made 44,000 helmets recalled by the Army has stopped all helmet manufacturing . Federal Prison Industries , the company that made the potentially defective combat helmets , was subcontracted to make the helmets by ArmorSource , the company named in the recall . Federal Prison Industries , also known as UNICOR , has also agreed to waive preferential status that gives it right of first refusal on U.S. government contracts . The Army recalled the helmets two weeks ago , when officials said the advanced combat helmets failed ballistic testing standards . Many were used by troops in Iraq and Afghanistan . Troops have been instructed to exchange the helmets for ones made by another company , but the Army is still trying to find all the recalled helmets . The company 's decision comes after the Justice Department launched an investigation into its helmet manufacturing and an amendment was proposed to the Defense Authorization Bill . That amendment would have forced the company to submit to competitive bidding . The author of the amendment , Rep. Chris Carney , D-Pennsylvania , said , `` Our military men and women deserve only the best equipment and it has become clear that Federal Prison Industries can not meet the standards required in manufacturing helmets . '' The Federal Bureau of Prisons overseas Federal Prison Industries , which uses prisoners in some of its work . Traci Billingsley , the bureau 's chief public information officer , said , `` Federal Prison Industries has always strived to make a quality product that meets or exceeds the needs and expectations of our customers . '' She said if the company resumes helmet production , it will voluntarily submit to competitive bidding . The company is one of several major manufacturers of combat helmets . A competitor , BAE , laid off some of its staff earlier this year . Josh Drobnyk , a spokesman for Carney , said , `` Absolutely there 's a jobs element to it . I do n't think it 's widely known that prisoners are making the most basic part of a soldier 's gear . And this company has quit making helmets right in the midst of an investigation by the Department of Justice . '' Army officials said the Justice investigation helped trigger the testing on the helmets that determined they did not meet standards . In addition to the 44,000-helmet contract , Federal Prison Industries had an Army contract to produce 600,000 helmets and a contract to deliver 100,000 lightweight helmets to the U.S. Marine Corps . Rep Carney said , `` FPI has not met protective standards , nor has it met required deadlines in its production of these crucial helmets ... and we ca n't wait any longer to protect our troops . '' Carney is a U.S. Navy Reserve commander , who also served in the Pentagon as an intelligence analyst .
Federal Prison Industries uses prisoners in some of its work . Helmets fail to meet Army standards during tests . Justice Department investigating company , which has other defense contracts . Comment: