Download Locations:
Summary:
In order to protect the U.S. industrial base during periods of adversity and war, Congress passed domestic source restrictions as part of the 1941 Fifth Supplemental Department of Defense (DOD) Appropriations Act; these provisions later became the Berry Amendment. The Berry Amendment requires DOD to give preference in procurement to domestically produced, manufactured, or home grown products, notably food, clothing, fabrics, and specialty metals. The Berry Amendment (Title 10 United States Code (U.S.C.) Section 2533a, Requirement to Buy Certain Articles from American Sources; Exceptions) contains a number of domestic source restrictions that prohibit DOD from acquiring food, clothing, fabrics (including ballistic fibers), specialty metals, stainless steel, and hand or measuring tools that are not grown or produced in the United States. Some experts recommend changes in the Berry Amendment. The Gansler Commission has studied the state of defense acquisition and made a number of recommendations, among them loosening some provisions like the Berry Amendment. In February 2008 DOD announced that the Undersecretary of Defense for Acquisition, Technology, and Logistics is considering a change to Title 10 that would broaden the exceptions provided under the Berry Amendment during so-called emergency operations. Such emergency operations may include military action taken against U.S. adversaries, military action in response to an attack with weapons of mass destruction, or military action resulting from national emergencies declared by the President. The FY2008 National Defense Authorization Act (P.L. 110-181) contains a provision (Section 803) which requires the Strategic Materials Protection Board to perform an assessment of the viability of domestic producers of strategic materials, the purpose of which is to assess which domestic producers are investing, or plan to invest on a sustained basis, in the development of a continued domestic production capability of strategic materials to meet national defense requirements. Such an assessment may affect the granting of future waivers for certain items. Some policymakers believe that policies like the Berry Amendment contradict free trade policies, and that the presence and degree of such competition is the most effective tool for promoting efficiencies and improving quality. On the other hand, others believe that key U.S. sectors need the protections afforded by the Berry Amendment. The debate over the Berry Amendment raises several questions regarding the viability of the Berry Amendment, among them: (1) If the U.S. does not produce a solely domestic item, or if U.S. manufacturers are at maximum production capability, should DOD restrict procurement from foreign sources, and (2) to what extent do U.S. national security interests and industrial base concerns justify waiver of the specialty metal restriction? This report examines the original intent and purpose of the Berry Amendment, legislative proposals to amend the application of domestic source restrictions, as well as options for Congress. The report will be updated as events warrant.
