A-88684, SEPTEMBER 11, 1937, 17 COMP. GEN. 244

A-88684: Sep 11, 1937

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CONTRACTS - FOREIGN PRODUCTS - DOMESTIC MANUFACTURE FROM FOREIGN MATERIAL ARTICLES MANUFACTURED IN THE UNITED STATES FROM FOREIGN RUBBER ARE ENTITLED TO PREFERENCE IN THE AWARD OF GOVERNMENT CONTRACTS OVER SIMILAR ARTICLES PRODUCED BY A FOREIGN MANUFACTURER. UNLESS THE COST OF THE DOMESTIC ARTICLES IS ADMINISTRATIVELY DETERMINED TO BE UNREASONABLE. SUPPLIES AS HAVE BEEN MINED OR PRODUCED IN THE UNITED STATES. SUPPLIES AS HAVE BEEN MANUFACTURED IN THE UNITED STATES SUBSTANTIALLY ALL FROM ARTICLES. MATERIALS OR SUPPLIES FROM WHICH THEY ARE MANUFACTURED. ARE NOT MINED. YOUR ATTENTION IS INVITED TO THAT PART OF SECTION 2. SUPPLIES AS HAVE BEEN MANUFACTURED IN THE UNITED STATES SUBSTANTIALLY ALL FROM ARTICLES.

A-88684, SEPTEMBER 11, 1937, 17 COMP. GEN. 244

CONTRACTS - FOREIGN PRODUCTS - DOMESTIC MANUFACTURE FROM FOREIGN MATERIAL ARTICLES MANUFACTURED IN THE UNITED STATES FROM FOREIGN RUBBER ARE ENTITLED TO PREFERENCE IN THE AWARD OF GOVERNMENT CONTRACTS OVER SIMILAR ARTICLES PRODUCED BY A FOREIGN MANUFACTURER, UNLESS THE COST OF THE DOMESTIC ARTICLES IS ADMINISTRATIVELY DETERMINED TO BE UNREASONABLE.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE ADMINISTRATOR OF VETERANS' AFFAIRS, SEPTEMBER 11, 937:

THERE HAS BEEN RECEIVED YOUR LETTER OF AUGUST 30, 1937, AS FOLLOWS:

SECTION 2, TITLE III, PUBLIC, NO. 428, 72D CONGRESS (APPROVED MARCH 2, 1933, 47 STAT. 1520, 1521), READS AS FOLLOWS:

"NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AND UNLESS THE HEAD OF THE DEPARTMENT OR INDEPENDENT ESTABLISHMENT CONCERNED SHALL DETERMINE IT TO BE INCONSISTENT WITH THE PUBLIC INTEREST, OR THE COST TO BE UNREASONABLE, ONLY SUCH UNMANUFACTURED ARTICLES, MATERIALS, AND SUPPLIES AS HAVE BEEN MINED OR PRODUCED IN THE UNITED STATES, AND ONLY SUCH MANUFACTURED ARTICLES, MATERIALS, AND SUPPLIES AS HAVE BEEN MANUFACTURED IN THE UNITED STATES SUBSTANTIALLY ALL FROM ARTICLES, MATERIALS, OR SUPPLIES MINED, PRODUCED, OR MANUFACTURED, AS THE CASE MAY BE, IN THE UNITED STATES, SHALL BE ACQUIRED FOR PUBLIC USE. THIS SECTION SHALL NOT APPLY WITH RESPECT TO ARTICLES, MATERIALS, OR SUPPLIES FOR USE OUTSIDE THE UNITED STATES, OR IF ARTICLES, MATERIALS, OR SUPPLIES OF THE CLASS OR KIND TO BE USED, OR THE ARTICLES, MATERIALS OR SUPPLIES FROM WHICH THEY ARE MANUFACTURED, ARE NOT MINED, PRODUCED, OR MANUFACTURED, AS THE CASE MAY BE, IN THE UNITED STATES IN SUFFICIENT AND REASONABLY AVAILABLE COMMERCIAL QUANTITIES AND OF A SATISFACTORY ALITY.'

YOUR ATTENTION IS INVITED TO THAT PART OF SECTION 2, SUPRA, WHICH PROVIDES IN EFFECT, WITH RESPECT TO MANUFACTURED ARTICLES, THAT UNLESS THE COST BE UNREASONABLE, ONLY SUCH MANUFACTURED ARTICLES, MATERIALS, AND SUPPLIES AS HAVE BEEN MANUFACTURED IN THE UNITED STATES SUBSTANTIALLY ALL FROM ARTICLES, MATERIALS, AND SUPPLIES MINED, PRODUCED, OR MANUFACTURED, AS THE CASE MAY BE, IN THE UNITED STATES,SHALL BE ACQUIRED FOR PUBLIC USE, AND IT IS REQUESTED THAT YOU ADVISE UNDER WHAT CIRCUMSTANCES, IF ANY, THIS PROVISION MAY BE CONSTRUED TO MEAN THAT PREFERENCE SHALL BE GIVEN TO AN ARTICLE MANUFACTURED IN THE UNITED STATES FROM FOREIGN RAW MATERIAL WHEN OFFERED IN COMPETITION WITH AN ARTICLE MANUFACTURED IN A FOREIGN COUNTRY. TO ILLUSTRATE, THE VETERANS' ADMINISTRATION PURCHASES CATHETERS WHICH ARE MADE FROM RUBBER AND RUBBER IS NOT PRODUCED IN THE UNITED STATES, BUT BIDS ARE RECEIVED FOR SUPPLYING CATHETERS MADE IN THE UNITED STATES AND FOR SUPPLYING CATHETERS OF FOREIGN MANUFACTURE. IN BOTH CASES THE CATHETERS ARE MANUFACTURED FROM RAW MATERIAL NOT PRODUCED IN THE UNITED STATES.

THE SECOND SENTENCE OF THE ABOVE-QUOTED SECTION 2 OF THE ACT OF MARCH 3, 1933, PROVIDES, IN EFFECT, THAT SAID SECTION SHALL NOT APPLY IF THE ARTICLES, MATERIALS, OR SUPPLIES FROM WHICH THE ARTICLES REQUIRED ARE MANUFACTURED "ARE NOT MINED, PRODUCED, OR MANUFACTURED, AS THE CASE MAY BE, IN THE UNITED STATES.' HOWEVER, THE SECTION AS A WHOLE CLEARLY INDICATES THAT THE INTENT IS TO PROTECT NOT ONLY THE DOMESTIC MINER OR PRODUCER BUT ALSO THE DOMESTIC MANUFACTURER. IN THE INSTANCE YOU PRESENT, WHILE THE MATERIAL--- RUBBER--- IS NOT PRODUCED OR MANUFACTURED IN THE UNITED STATES, THE FINISHED RUBBER PRODUCTS ARE MANUFACTURED BOTH WITHIN AND WITHOUT THE UNITED STATES AND, IN THE CIRCUMSTANCES, THE DOMESTIC MANUFACTURER'S FINISHED RUBBER PRODUCTS FROM FOREIGN RUBBER ARE ENTITLED TO PREFERENCE IN THE AWARD OF GOVERNMENT CONTRACTS OVER THE SAME PRODUCTS PRODUCED BY THE FOREIGN MANUFACTURER, UNLESS THE COST OF THE DOMESTIC ARTICLE IS UNREASONABLE-- A MATTER FOR ADMINISTRATIVE DETERMINATION. COMP. GEN. 601.