July 14, 2003

The Honorable Colin L. Powell
Secretary
Department of State
2201 C Street, N.W.
Washington, D.C. 20520

Dear Secretary Powell:

I am deeply concerned by reports that the State Department has waived the requirements of the Buy America Act for the purchase of motor vehicles that are being used in the reconstruction of Iraq. The U.S. Government has an obligation to support American businesses and American workers by promoting their goods and services abroad. Waiving the requirements of the Buy America Act without a well documented and compelling justification is an abdication of this Government’s responsibility to its workers.

American companies and American workers produce the world’s finest products. In particular, the American automobile has been a symbol of our Nation’s freedom and ingenuity throughout the twentieth century. The domestic auto industry’s importance to this country, however, extends well beyond its symbolic value. Ford, General Motors, and Chrysler have contributed their resources and technology to every U.S. military engagement since World War I. The aircraft, tanks, ambulances, and other transportation vehicles built by American auto workers have served our troops well. I find it particularly ironic, and unfortunate, that this Administration would keep the vehicles that helped win the war from becoming the vehicles that will help win the peace in Iraq.

A principle means by which American commerce is promoted across the globe is by U.S. officials and contractors proudly using American made products. The Buy America Act requires the U.S. Government to purchase only products made by its citizens, and the requirements of this Act should be waived only under the most extrordinary of circumstances. During a briefing with Members of Congress, Assistant Secretary of State Paul Simons explained that the State Department waived the requirements of the Buy America Act because the presence of American vehicles in Iraq presented a "security risk." While protecting the lives of American citizens is of the utmost importance, I fail to see how driving a Japanese-made truck provides more protection on a battlefield than one built in this country.

I am not satisfied with the State Department’s formal explanation of this waiver. I am disturbed by the apparent absence of any documentation indicating that actual evidence was considered and that the affected companies were afforded due process under the law. At a time of economic hardship across the country for manufacturing workers and their families, unsubstantiated waivers of the Buy America Act are particularly troubling.

As the reconstruction of Iraq proceeds, the American people have a compelling interest in knowing under what circumstances, and through what processes, this Administration intends to waive the requirements of a law that protects the interests of American citizens. Accordingly, please respond to the attached questions by no later than Monday, July 28, 2003. If you have any questions, please contact me or have your staff contact Jonathan Cordone, Minority Counsel to the Committee on Energy and Commerce, at 202-226-3400.

Sincerely,

JOHN D. DINGELL
RANKING MEMBER

Attachment

cc: The Honorable W. J. "Billy" Tauzin, Chairman
        Committee on Energy and Commerce

        The Honorable Donald L. Evans, Secretary
        Department of Commerce

Attachment

1.    For each contractor who requested a waiver from the Buy America Act for the reconstruction of Iraq, please provide the following information:

1. The name of the contractor.
2. A list of products for which waivers were requested.
3. A copy of each request for a waiver.
4. A copy of the State Department’s grant or denial for each requested waiver.
5. A narrative describing the circumstances under which the request was made.
6. A narrative describing the circumstances under which the request was granted or denied.

2.    For each instance when an Administration official suggested, advised, recommended, or otherwise persuaded a contractor to purchase a product other than an American-made product for the reconstruction of Iraq, please provide the following information:

1. The name of the contractor.
2. A list of products to which such recommendations relate.
3. Documentation of each communication between the State Department and the contractor with respect to purchasing American made products.
4. A narrative, and any supporting documentation, describing the State Department’s role in the contractor’s decision not to purchase an American product.
5. A copy of each request for a waiver.
6. A copy of the State Department’s grant or denial of each requested waiver.

3.    When the State Department waives the requirements of the Buy America Act for an initial purchase of goods used in the reconstruction of Iraq, is a contractor required to resubmit its waiver request for each subsequent purchase? Please provide a detailed narrative, and any supporting documentation, describing the State Department’s policies with respect to subsequent purchases of goods used in the reconstruction of Iraq, including the criteria by which the State Department evaluates waiver requests for subsequent purchases.

4. Please provide all documentation relating to the rules and procedures under which the State Department grants waivers of the Buy America Act and the following information:

1. The criteria used by the State Department, USAID, and other federal agencies operating overseas to determine whether a waiver of the Buy America Act is appropriate.
2. A narrative, and any supporting documentation, describing how the current rules were developed and the process through which the existing rules can be modified.
3. A narrative, and any supporting documentation, describing each instance when the State Department waived the requirements of the Buy America Act using the current procedures. Please provide any documentation, communication, and correspondence that would substantiate the granting of each waiver.
4. The State Department’s policy regarding future purchases by a contractor that has already been granted a waiver for a previous purchase.
5. The number of, and rationale for, each Buy America Act waiver granted between January 21, 1993, and January 20, 2001.
6. The number of, and rationale for, each Buy America Act waiver granted between January 21, 2001, and the receipt of this letter.

5. The State Department is the representative of the U.S. Government, and by extension the American people. Employees and contractors of the Department are employed in every nation that has diplomatic relations with the United States. To that end, please provide the following information:

1. The make and model of all vehicles used by State Department officials in each country for which the State Department has issued a travel warning for American visitors.
2. The make and model of all vehicles used by State Department contractors operating in countries for which the State Department has issued a travel warning for American visitors.
3. The make and model of all vehicles used by United States embassy and consulate staff in each country where an embassy or consulate of the United States is in operation.
4. The make and model of the official vehicle of every United States ambassador that is currently serving our country overseas.