Counterproductive Supply Chain Restrictions Rear Head Again

Washington, DC – TechAmerica, the nation’s leading technology association, again voiced the concern of the industry with a provision in the FY14 Commerce, Justice, Science (CJS) appropriations bill that prohibits the Departments of Commerce and Justice, the National Aeronautics and Space Administration (NASA) and the National Science Foundation from using federal dollars to acquire any information technology system if the system is produced, manufactured or assembled by one or more entities that are owned, directed or subsidized by the government of China regardless of the size or scope of the product.

Section 515 of the bill mirrors the language that was also included in the Continuing Resolution for Fiscal Year 2013.

“We applaud Congressman Wolf for his dedication to securing the supply chain, and we share this goal.  TechAmerica has already been working closely on several current ongoing efforts by the government to address these issues in partnership with industry.   Security comes from securing the production, maintenance and usage of a product, not by restricting where or who makes it,” said Trey Hodgkins, TechAmerica’s Senior Vice President of Global Public Sector and an expert in procurement.  “But this consistent effort to impose these restrictions has unintended consequences that will inevitably do more harm than good and delay acquisitions for these critical departments. We are urging the Appropriations committee to reject the provision.”

In a letter to the House Appropriations Committee leadership, Mr. Hodgkins urged the committee to reject the provision as the bill moves to full Committee consideration.  He also details the efforts already underway to secure the supply chain.

The full text of the letter can be found here: (FINAL).pdf