Outsourcing Essay

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As we see more and more of manufacturing jobs outsourced to foreign countries like India, China, and Malaysia, the procurement of specific goods by prime and sub-contractors of the U.S. Military and DOD (Dept. of Defense) becomes more difficult. Like most Americans you may have heard about the Buy American Act, which was enacted by President Herbert Hover in 1933. The Buy American Act required that all material purchased for military and DOD must exceed 50% of goods purchased in the U.S. In addition to the Act, the Berry Amendment, signed into law in 1941, but not completely used until around 2001,within the amendment is a clause called (DFARS) Defense Federal Acquisitions Regulation, requires all material used for U.S. military be produced in the U.S. The Value Stream Procurement Manager, who is responsible for purchasing all specialty metals for a prime defense contractor states, the Berry Amendment is named as a clause on every purchase requisitation. Due to (ITAR) International Trade and Arms Regulations, his company is forbidden from outsourcing any of their manufacturing operations. (Archer) also states that he has seen U.S. Manufacturing facilities set up off shore operations to offset manufacturing costs, then import these goods to their own facilities, and sell as U.S. made. One of the largest risks to the military contractors is to, verify, or authenticate the validity of such products. (R.Archer, personal communication, September 10, 2010) Although the U.S. requires defense contractors to Buy American, the U.S. military outsources most of its mundane jobs to private contractors. Nearly 15,000 to 20,000 private contractors work for the U.S. military in Iraq and Afghanistan currently. Of these contractors who perform tasks like, translators, maintaining computer systems, cleaning facilities, and washing clothes, there are nearly 30 different

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