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B-116193 1 (1978-04-25)

handle is hein.gao/gaobachlv0001 and id is 1 raw text is: -7- COMPTROLLER GENERAL OF THE UNITED STATES VASHIN4GTON, D C 2*05 B-116193 APR 2-5. * The Honorable Jack-Brooks Chairman, Committee on ( Government Operations House of Representatives Dear Mr. Chairman: This is in reply to your letter of February 16, 1978, requesting our comments -on bill H.R. 10881, 95th Congress, 2d Session, to amend the Act of October 29, 19492 .-lru tt e v my As presently written, the Buy American Act, 41 U•S•C• S 10a-d, and its implementing Executive Order a domestically produced item rather than a comparable foreign-produced item unless the price of the foreign- produced item, adjusted by a specified percentage, is less. H.R. 10881 would amend section 633 of title VI of the Act-of October 29, 1949, (41 U.S.C. S 10d) by adding, the cost of articles, materials, or supplies manufactured in the United States shall not be deemed unreasonable if such cost does not exceed by more than 10 per centum the cost of like articles, materials, or supplies manufactured elsewhere. Currently, the Federal Procurement Regulations and the Armed Services Procurement Regulation provide evaluation procedures for determining if a domestic end product is unreasonable in cost or inconsistent with the public interest. This determination is made by comparing the cost of a domestically produced item to an adjusted cost for a-foreign-produced item. A for- eign bid is adjusted by adding a factor of 6 percent. of that bid inclusive of duty. If a domestically .nro- duced item is produced by a small business concern 6r' a labor surplus area concern, a factor of 12 percent is added to the foreign bid. The Armed Services Pro- curement Regulation provides, as an alternative to the 6 and 12 percent adjustment factors, that each for- eign bid may also be evaluated by excluding any duty from the foreign bid and adding 50 percent of the remainder to the bid. The evaluation method resulting in the highest adjusted price for the foreign bid is then used. ................... .. . ...---- . . . , .... .. n.- .. . . . '..- -.- ... ..,.-- -. . :.' £:. . - ;>, , '• . .': ,;: . . - .

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