ANNOUNCEMENT 06 Aug 2010In August 2010, the government of the United States of America announced a change in the local input requirements for the participation in certain public purchases.
NUMBER OF INTERVENTIONS
Executive Order 2010-09S (Banning the Expenditure of Public Funds for Offshore Services), http://governor.ohio.gov/Default.aspx?tabid=1753, http://www.ohiodnr.com/Portals/0/pdfs/hr/directives/2011-12K-Governing-Expenditure-Public-Funds-Offshore-Services.pdf
Effective in August 2010, the governor of Ohio enforced a localization requriement for the state's public procurement expenditures on services. Governor Ted Strickland (Democrat of Ohio) issued an executive order on August 6, 2010 that prohibits the expenditure of public funds for services provided offshore. Designated as Executive Order 2010-09S (Banning the Expenditure of Public Funds for Offshore Services), it provides in part that --
"No Cabinet Agency, Board or Commission (Executive Agency) shall enter into any contract which uses any funds within its control to purchase services which will be provided outside the United States. This Order applies to all funds in the custody of an Executive Agency, be they from state, federal, philanthropic or private sources. It applies to all purchases of service made directly by an Executive Agency and services provided by sub-contractors of those providing services purchased by an Executive Agency."
The precipitating event for this order came in March, 2010, when the Department of Development contracted with Texas-based service provider Parago, Inc. to assist with the agency's implementation of the federal stimulus-funded appliance rebate program. The contract was then let with a company that ultimately used offshore labor.
The new policy build upon an earlier executive order (E.O. 2008-12S) that Strickland signed in June, 2008. It created a program known as Think Ohio First, which promotes economic development by maximizing the use of Ohio businesses when agencies conduct purchases. The order directed all state agencies to work together for cost savings and efficiencies when purchasing supplies and services. In addition, it directed the Department of Administrative Services to hire a chief procurement officer to oversee agency purchasing functions.
Governor John Kasich later rescinded this order on June 21, 2011, but replaced it with another (Executive Order 2011-12K) that had a similar effect. Governor Kasich's order provided that "No State Cabinet Agency, Board or Commission ... shall enter into any contract which uses any public funds within its control to purchase services which will be provided outside the United States."