House trims ‘Buy American’ provision

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House trims ‘Buy American’ provision

By Maureen Groppe

WASHINGTON — A requirement that all machine tools used in defense programs be made in the United States was one of several “Buy American” provisions watered down in a defense bill passed Friday by the U.S. House.

Instead, the bill requires only that the Defense Department offer incentives for contractors to buy U.S.-made machine tools.

“We didn’t get everything we wanted in there,” said U.S. Rep. Don Manzullo, the Egan Republican who had pushed for the provisions, “but I continue to press the Pentagon to make sure that they buy American stuff.”

Manzullo voted for the bill, which authorizes 2004 defense programs and passed 362-40. The bill is expected to be approved by the Senate next week.

Manzullo and others had argued that the United States is no longer on the leading edge of technologies critical to national defense, and the government needs to do more to support U.S. industry.

The Bush administration strongly opposed the “Buy American” requirements, arguing they would be burdensome and could degrade U.S. military capabilities.

The issue was debated for weeks before House and Senate negotiators agreed this week to the compromise.

The machine tool provision would have required that machine tools used in defense programs be 100 percent American-made within four years.

Manzullo said that would have helped the tool and die industry in Rockford and other parts of the country.

Opponents said it would have increased costs to manufacturers who would have had to retrofit their plants.

The final bill directs the Defense Department to set up an incentive program encouraging contractors to use U.S. machine tools. A contractor’s commitment to using U.S. machine tools would give him a small advantage in bidding.

“It could make the difference between a defense contractor getting the contract and not getting it,” Manzullo said.

The original House bill also would have increased the amount of U.S. content required in major defense purchases from 50 percent to 65 percent.

That provision was scrapped. Instead, the final bill directs the Pentagon to assess the ability of the U.S. industrial base to meet the nation’s defense needs and create a fund to help develop areas critical to military operations.

Manzullo, the chairman of the House Small Business Committee, has tried to add “Buy American” stipulations to the annual spending bills funding other government agencies. He has so far been unsuccessful, but said Friday his efforts have increased awareness of the issue and made it harder for the administration to get around current rules.

This information was provided by Maureen Groppe from Register Star Washington Bureau.

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