U.S. House Approves Manzullo Provision to
Require Department of Defense to Buy American
(WASHINGTON) The U.S. House today approved
legislation to help create jobs in America and preserve our
industrial base by requiring the U.S. Department of Defense
to make more than 50 percent of their purchases from companies
operating in the United States. The provision, part of an
en bloc amendment to the Department of Defense Authorization
Act, was authored by House Small Business Committee Chairman
Don Manzullo (R-IL).
Specifically, the provision requires more
than 50 percent of the components in any end product procured
by the Department of Defense to be mined, produced or manufactured
inside the United States. The amendment reaffirms the “Buy
American Act,” a law passed during the Great Depression
to restore America’s industrial base. To qualify under
Buy American, a company must have “substantially all”
of a product made, grown, or mined in the United States. Federal
agencies have generally interpreted “substantially all”
to mean 50 percent or more of U.S. content and labor.
The original intent of the Buy American Act
has been further undermined by memoranda of understanding
(MOU) among the United States and various foreign countries
that permit the substitution of foreign components for components
mined, produced, or manufactured inside the United States.
The Pentagon has MOUs with 21 developed countries that waive
the Act because the Defense Department (DoD) has determined
that for these countries, complying with the Act is “inconsistent
with the public interest.” Basically, a company winning
a contract from the Pentagon can claim compliance with the
Buy American Act without having to actually make anything
in the United States as long as the components come from one
of the 21 countries.
The Manzullo provision prevents the Department
of Defense from waiving the 50 percent Buy American content
restrictions through MOUs without an affirmative vote by Congress.
"For years, the Pentagon has flouted
the original intent of the Buy American Act by using memoranda
of understanding to bypass U.S. manufacturers and spread our
taxpayer dollars around the world,” Manzullo said. “This
legislation closes the loopholes and ensures more than 50
percent of the Pentagon’s purchases must come from within
the United States, which will help restore the struggling
U.S. industrial base and create jobs for Americans.”
Last week, the House passed a similar Manzullo
amendment to the Homeland Security Authorization Act that
requires the Department of Homeland Security to buy more than
50 percent of its products from American manufacturers.
