Defense Industry Groups Oppose New "Buy American" Provisions Defense industry lobbyists are fighting a proposal that would expand “Buy American” provisions in military contracts. A House-passed amendment to the 2004 defense authorization bill would require that “critical” components of most military systems be bought from domestic sources. It would also require at least 65% domestic content in the department’s purchases, up from the current 50%. The amendment is backed by the House Armed Services Committee chairman, Rep. Duncan Hunter (R-CA). A cosponsor, House Small Business Committee Chairman Donald Manzullo (R-IL), said the provision was aimed at protecting the troubled U.S. manufacturing and industrial base. But several trade groups, including the National Defense Industrial Association, the Aerospace Industry Association and the Information Technology Association of America, said the restrictions would drive some companies out of the federal marketplace, reducing competition for defense work, placing new paperwork burdens on contractors and raising prices for the government. They also argue that some critical components, including many kinds of computer chips, are only made overseas. The defense authorization bill is now before a House-Senate conference committee. House Government Reform Committee Chairman Tom Davis (R-VA) used a parliamentary maneuver to block a similar amendment to the 2004 appropriation bill for the Department of Homeland Security. Rep. Manzullo offered the amendment. In response to a question from Davis, the House parliamentarian ruled it violated House rules because it was an attempt to insert a policy directive into an appropriation bill. Davis argued that Manzullo’s amendment “would impose financial and legal burdens on taxpayers and the commercial companies that sell to the department.” He said some the current Buy American Act restrictions have forced some companies to establish costly product-tracking systems to make sure they are complying with the law.