U.S. SHIPBUILDING SUPPLIER INDUSTRIAL BASE EXPRESSES DISAPPOINTMENT IN OMB’S SAP FOR HR 6395
Washington, D.C. July 23, 2020 - The American Shipbuilding Suppliers Association (ASSA) released a statement today expressing the organization’s disappointment to see OMB’s Statement of Administrative Policy (SAP) for HR 6395, the House-passed National Defense Authorization Act for Fiscal Year 2021, include opposition to Sec. 825, the Buy American provision introduced as an Amendment by Congressman Donald Norcross of New Jersey.
Just last week, ASSA released a statement of policy in support of the work of House Armed Services Committee (HASC) lawmakers who are working to pass legislation that will gradually strengthen existing “Buy American” requirements on the Defense Department’s largest Programs of Record (PoR). The legislation would include language directing that major defense acquisition programs include more domestic content to be considered compliant with current “Buy American” laws. Currently, for the PoR to be considered compliant with the “Buy American” law the PoR only needs to be made up of 50% American components. The Norcross amendment would increase that to 75% in October 2021 and then to 100% by 2026.
The SAP specifically called out the process for reaching domestic independence for Major Defense Acquisition Programs, stating the year 2026 deadline of reaching 100 percent domestic manufacture is “arbitrary.”
“We believe the provision strikes the fine balance of supporting the domestic defense industrial base through a phased-in, achievable process,” said George Williams, ASSA CEO. “While we are disappointed by the opposition to the specific process, we are pleased the Administration did not back away from the underlying Buy American policy, which it endorsed in its 2018 Report on “Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States.” In the absence of clear direction from the Navy on domestic sourcing of critical components, ASSA believes that Congress must provide such direction through provisions like the Norcross amendment and the Visclosky-led appropriations bill that require key critical components to be designed, engineered, manufactured and assembled in the U.S. “ASSA strongly supports the Buy American provisions in both of these bills. It’s time to make Buy American America’s priority,” said Williams.
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ASSA is a member driven, national organization, advocating for the American Shipbuilding Supplier Base to the U. S. Congress, Navy, Coast Guard and shipbuilders to ensure the long term stability of the U. S. national maritime industry. For a complete statement of policy on this issue go to www.shipbuildingsuppliers.com