Berry Compliance - Who is Berry Anyway?
The Berry Amendment might sound more like a game show than government compliance, but the requirements of the Berry Amendment apply to all procurement (including non-Department of Defense contracts, such as Federal Supply Schedules) in which the contract action is funded by money appropriated or otherwise made available to DoD keep an eye out for this stamp of approval when purchasing equipment.
In 1941, in order to protect U.S. industry during war and adversity, the Department of Defense Appropriations Act was implemented and in 2001 became a permanent part of the United States Code. Although there has been some controversy surrounding the policy due to the contradiction of free trade, the Amendment has been key to certain U.S. sectors.
The Berry Amendment applies only to a specific list of end products (which includes synthetics and specialty metals) Over the years, items have been added to the list of products that the Amendment applies to. There have also been bills that provide more freedom to the Secretary of Defense to use items that do not comply. The Department of Defense plans to decrease restrictions on certain metals, hardware, or other items whose resources may not be abundant in the States.
Here are a few key points to help clarify the differences between the Buy American Act and the Berry Amendment. Enacted in 1933, the Buy American Act is the primary domestic governing preference of the federal government, while the Berry Amendment governs the Department of Defense only. Giving preference to domestic goods and labor, the Buy American Act is used in government purchases with certain expectations. The Berry Amendment overrides some of these exceptions, primarily for metal, clothing, and food.
Two main differences between the Berry Amendment and the Buy American Act will help when trying to decipher which applies to you and your corporation.
1. The Berry Amendment is used only for contracts funded by the Dept of Defense, and is not limited to contracts just within the U.S., while the Buy American Act only applies to federal government contracts within the U.S.
2. The requirement for the Berry Amendment is that the items be 100% domestic content. The Buy American Act however, only requires that only 50% of the cost of the components come from the United States or the following qualifying countries: Austria; Belgium; Canada; Denmark; Egypt; Federal Republic of Germany; France; Greece; Israel; Italy; Luxembourg; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Turkey; United Kingdom of Great Britain; Northern Ireland.
The relevance of the Berry Amendment today is still believed to be important to the U.S. economy and may lessen dependence on foreign sources. Some items are less critical however, and may make it more difficult for the Department of Defense to purchase items that are needed. Although there may be arguments for and against the Berry Amendment, at present time, maintaining its current capacity will benefit in outfitting the military forces.
For additional information regarding if and how the Berry Amendment might apply to you, and for implementation guidance, you can research DFARS 225.7002 and DFARS Procedures Guidance and Information 225.7002.