ANNOUNCED AS TEMPORARYNo
Public procurement localisation
On December 16, 2014 President Obama signed into law the 'Consolidated and Further Continuing Appropriations Act, 2015' (H.R.83). This omnibus spending bill provides (among many other things) for subsidies to the U.S. merchant marine and for Buy-American requirements in naval construction.
Title V of Division C of the bill provided $485,012,000 for the National Defense Sealift Fund and for the National Defense Reserve Fleet, as well as to 'to maintain and preserve a U.S.-flag merchant fleet to serve the national security needs of the United States' (i.e. provide subsidies for the merchant marine fleet). One provision of this line-item required that 'none of the funds ... be used to award a new contract that provides for the acquisition of any of the following major components unless such components are manufactured in the United States: auxiliary equipment, including pumps, for all shipboard services; propulsion system components (engines, reduction gears, and propellers); shipboard cranes; and spreaders for shipboard cranes.'
The Secretary of the military department responsible for such procurement was nevertheless given the authority to 'waive the restrictions ... on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made in order to acquire capability for national security purposes.'
Note that a separate provision of the bill further provides $186,000,000 "For necessary expenses to maintain and preserve a U.S.-flag merchant fleet to serve the national security needs of the United States."
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