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B-116193 1 (1978-04-13)

handle is hein.gao/gaobadtlh0001 and id is 1 raw text is: 373 • COMPTROLLER GENERAL OF THE UNITED STATES p ~~WA'HINGTON, D.C. 205 -• B-I1 6193 APR 13 1978 The Honorable Jack Brooks Chairman, Committee on Government Operations House of Representatives Dear Mr. Chairman: This is in reply to your letter of March 1, 1978, requesting our comments on H.R. 11108, 95th Congress, 2d Session, to amend the Buy American Act. As presently written, the Buy American Act, 41 U.S.C. SlOa-d, and its implementing Executive Order 10582, 41 U.S.C. SlOd, require that the Government buy 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. 11108 would amend title III of the Act of March 3, 1933, (41 U.S.C. S lOa-c) by redesignating sections 4 and 5 as sections 6 and 7, respectively, and incorporating new -sections 4 and 5. Section 4 of H.R. 11108 would require the head of each department or independent establishment to issue regulations which would adjust the bid or offered price of foreign- produced items either by excluding any duty from the bid or offered price and adding not less than 50 per centum of the bid or offered price (exclusive of duty) to the remainder, or by adding to the bid or offered price (inclusive of duty) a factor of not less than 6 per centum of that bid or offered price, whichever re'sults in the greater bid or price. If H.R. 11108 were enacted, section 4 would allow the various departments and independent establishments to adjust a foreign-produced item's bid or offered price by an indefinite amount. We believe that, without more definitive criteria on - the factor to be used in the procurement of specific items or classes of items, the agencies are unlikely to be consistent in their application of the Buy American Act. Consistency-

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