The 21st Century Buy American Act
Posted by scapozzola on 06/25/2010
Lobbyists are assembling to defeat HR 4553, the 21st Century Buy American Act introduced by the Congressman Chris Murphy (D-CT). The legislation would require more American weapons and defense systems to be manufactured in the United States.
Murphy’s fear is that off-shoring of key components for U.S. weapons systems will make the U.S. more dependent on foreign supplier. In addition, Murphy and other backers of the Act, adhere to an America First philosophy and maintain that U.S. tax dollars must be used to employ Americans in American manufacturing firms first, particularly at a time when Americans are suffering an unemployment rate close to 10 percent.
A supporter of the legislation is Connecticut-based Integro. Company president John Bogart says Integro sales nearly doubled since the Federal Aviation Administration reviewed and improved its compliance to the Buy American Preference Act of 1990, which governs the FAA’s procurement process. As sales increased, Integro added 16 workers. Co-owner Richard Knight said he expects the company to continue to increase its staff of skilled workers. These would be new, good-paying jobs during the worst recession since the Great Depression. And it’s because the FAA began following existing Buy American regulations.
Representative Murphy’s 21st Century Buy American Act would close loopholes that federal agencies like the Department of Defense have used to spend U.S. tax dollars overseas, which as a result creates jobs there and makes the U.S. dependent on foreign countries for weapons and defense systems.
The legislation limits exemptions to buying American by requiring federal agencies to give priority to contract bidders who commit to using a large portion of American-made products for the project. Furthermore, the legislation toughens past legislation by increasing the minimum percentage of a product that must be made in the U.S. from, 50 to 60 percent.
The 21st Century Buy American Act also designates assistance to American companies who provide a product only to the federal government to ensure that they can stay in operation. Finally, the legislation increases transparency of waivers given to corporations who side-step the domestic sourcing law by requiring that agencies report waivers issued. The information will be organized in a public database, which enables American manufacturers to better compete for contracts.
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