The Issue:
Under the “Berry Amendment,” the law that governs the Department of Defense’s (DOD) procurements of clothing, footwear and other textile-based items for America’s military, DOD must purchase all uniforms, combat boots, tents, parachutes, etc, from American companies who use 100% domestic material. These companies form the backbone of America’s apparel manufacturing base and range from small businesses to large corporations and can be found in across the country.

AAFA on the Issue:
With the support of its Government Contracts Committee, AAFA vigilantly defends against efforts that seek to place burdensome, unneeded requirements against the military’s uniform, footwear and other textile-based equipment producers.

Status:
On October 14, President George W. Bush signed the $531.4 billion defense authorization bill for Fiscal Year 2009, which provides a 3.9 percent military pay raise and also includes $68.6 billion for military operations in Iraq and Afghanistan. A provision mandating the disclosure of privately-held companies top five officers’ salaries found in the House version of the bill was not included in the final package.

What's Next:
With the new Administration and new Congress, the Defense budget could see some changes, which could have direct impact on the military uniform manufacturing sector.

For More Information: Kurt Courney, Manager, Government Relations, 703-797-9034

The Latest News:

09.22.08
The US Senate approved the 2009 Defense Authorization Bill last week after a contentious debate over earmarks potentially stalled the measure for the year. As a result, Senate Democrats had to drop a package of amendments that included provisions seeking further oversight over government contractors. Lobbyists for contractor groups said elimination of the Senate amendments will help them to pare down in conference negotiations many proposed reforms they believe would be ineffective and costly for the industry. The bill now moves to conference committee, where House and Senate staff must work out the differences between the two bills before it can go to the President for final approval.

09.15.08
Senators hope to finish the FY09 Defense (DOD) Authorization Bill this week, although a fight over earmarks may further stall final passage of the measure. Senator Jim DeMint (R-SC) has blocked debate on other amendments until he is guaranteed a vote on his amendment to remove a provision that allows the inclusion of earmarks in report language. Senate Armed Services Chairman Carl Levin (D-MI) has indicated that the chamber must hear the DeMint amendment if the DOD Authorization bill has any chance of passing. Meanwhile, Senate Majority Leader Harry Reid (D-NV) filed cloture on the bill last Friday, which if successful would line up the bill for a vote tomorrow, September 16. The House version contained a controversial amendment by Congressman Henry Waxman (D-CA) that mandates that any private company, which has 80 percent of its business contracted with the US Department of Defense and receives more than $25 million in annual revenue from those contracts, must disclose the salaries of the five highest paid officers of that company (Section 4501). The Senate bill does not have a comparable provision.

09.08.08
In an effort to prevent illegal logging, Congress inserted a provision in the massive farm bill it approved June 15 that amends the Lacey Act. The provision requires that importers of any product containing any input made of wood or plants make a paper-based declaration at the time of the product’s entry into the United States of the genus, the species and the country of origin of that wood or plant-based input. The new declaration requirement is scheduled to go into effect on December 15. While the scope of products covered by the new requirements remains unclear, it appears that products containing paperboard, rayon and bamboo will be covered under the new rules. Furthermore, products containing cellulose and possibly cotton could also be subject to the new requirements, although cotton may be exempted. Finally, any product containing a paper hangtag or label or accompanied by an instruction booklet could be subject to the new declaration requirements. AAFA is working with a growing business coalition that is trying to obtain clarification from the US government regarding the scope and implementation of the new rules.

08.11.08
Do any particular regulations bother you? Do you think some are just plain silly? If so, the US Small Business Administration Office of Advocacy is once again asking small businesses to vote on which regulations are outdated or simply no longer effective. This is part of the Advocacy Office’s Small Business Regulatory Review and Reform (r3) Initiative to draw attention to federal regulations that are a big burden on small businesses and the need for government agencies to be more effective in reviewing their rules. The Office of Advocacy will review the nominations and select a list of 10 rules that it will ask government agencies to review.

07.28.08
The House Defense Appropriations Subcommittee will mark-up its 2009 funding bill on Wednesday with an anticipated full committee vote in September, after returning from Congress’s August recess. However, Hill insiders are saying that the measure will be used as a vehicle for a continuing resolution that will fund the entire government at current levels through next year. At this rate, the final passage of the bill (as with other appropriations measures) may be delayed past the elections, forcing Congress into a post-election “lame-duck” session. At the same time, the 2009 Defense Authorization bill may also see action in the Senate during September, largely because Senate Majority Leader Harry Reid (D-NV) has filled this week’s schedule with other measures relating to energy, tax extenders and product safety.

05.27.08
On the final night of session before the week-long Memorial Day Recess, the House of Representatives passed the annual defense bill, which sets next year’s fiscal targets and policies for our armed services. In the midst of debate on the more than fifty amendments, Congressman Henry Waxman (D-CA) introduced a lengthy amendment that would make some substantial changes to the way businesses contract and work with the Department of Defense. The Waxman Amendment would require that all businesses who have more than eighty percent of their workload with the government publicly disclose the salaries of their company’s top five highest-paid employees. While it passed by voice vote, Congressman Tom Davis (R-VA), ranking member of the Oversight and Government Reform Committee, expressed concern for this and other provisions in the amendment and agreed to work with Rep. Waxman to improve it during conference with the Senate. When Congress returns the first week of June, the bill will move to the Senate for further consideration. The bill should come to a final vote before the month-long August Recess, though President Bush has already stated that he would veto the measure if it contains a number of contentious provisions that are found in other parts of the legislation.

01.22.08
The House of Representatives passed the National Defense Authorization bill again last week after the President refused to sign the bill two weeks ago due to a provision in the legislation that would have allowed victims of state-sponsored terrorism to sue foreign governments in U.S. courts. It was widely rumored that the Democratic leadership was planning to override the veto, but instead they decided to remove the provision and just pass the bill without it. The Federal Prison Industries reform provisions that AAFA has been supporting will be in the final version.

News Archive: Government Contracts