Guest Blogger: Rep. David Dreier (R-CA) on Buy American

Rep. David Dreier / October 22, 2009

When it comes to legislative PR, it doesn’t get much better than “Buy American.” What could possibly be more patriotic than buying American-made products? During tough economic times, mandating that government contractors use only goods with the Made in the USA label doesn’t just sound like good policy, it seems like plain old common sense. We all want to create American jobs and promote American manufacturing.

So when a dramatic expansion of Buy American regulations was included in the “stimulus” bill, it may have sounded like a great idea on its face. The challenges with this policy only become apparent when we look beyond what sounds good and examine how these provisions actually work in the real world.

While federal agencies are accustomed to and equipped to deal with the substantial bureaucratic red tape that comes along with complying with the Buy American Act, few states and no local governments have any experience with the administrative and legal implications of these complicated regulations. The resulting confusion and uncertainty have caused a number of state, county and municipal projects to grind to a halt. In many cases, project managers have had no choice but to shut down badly needed construction and infrastructure projects while the lawyers work out the mess. Even those projects that have resumed work have faced escalating costs. (more…)