ANNOUNCEMENT 16 Dec 2014In December 2014, 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
Congress approved, and the president signed into law (December 16, 2014), the 'Consolidated and Further Continuing Appropriations Act, 2015' (H.R.83). The bill is both a continuing resolution (i.e., provides primarily for the continuation of spending for government agencies at their current levels for a specific period), often called a CR, and an omnibus bill (i.e., a bill to which many other items are attached), and hence has come to be called a 'cromnibus' bill. Many of the items that have been attached as part of its omnibus nature are related to Buy American policy, as summarized below.
Naval construction: The bill provides $15.95 billion for U.S. Navy shipbuilding, provided however that 'none of the funds ... for the construction or conversion of any naval vessel to be constructed in shipyards in the United States shall be expended in foreign facilities for the construction of major components of such vessel' and 'none of the funds provided under this heading shall be used for the construction of any naval vessel in foreign shipyards.'
Procurement agreements: Section 8028 provides that, 'If the Secretary of Defense, after consultation with the United States Trade Representative, determines that a foreign country' with which the United States has a reciprocal defense procurement memorandum of understanding 'has violated the terms of the agreement by discriminating against certain types of products produced in the United States that are covered by the agreement, the Secretary of Defense shall rescind the Secretary's blanket waiver of the Buy American Act with respect to such types of products produced in that foreign country.'
Bermuda or Cayman Islands firms: Under section 627, 'None of the funds made available by this Act may be used to enter into any contract with an incorporated entity if such entity's sealed bid or competitive proposal shows that such entity is incorporated or chartered in Bermuda or the Cayman Islands, and such entity's sealed bid or competitive proposal shows that such entity was previously incorporated in the United States.'
Foreign assistance funds: Under section 7086, foreign assistance funds generally may not be used to provide 'any financial incentive to a business enterprise currently located in the United States for the purpose of inducing such an enterprise to relocate outside the United States if such incentive or inducement is likely to reduce the number of employees of such business enterprise in the United States because United States production is being replaced by such enterprise outside the United States' or 'to an entity outside the United States if such assistance is for the purpose of directly relocating or transferring jobs from the United States to other countries and adversely impacts the labor force in the United States.'