Congress passed the fiscal 2021 National Defense Authorization Act in December 2020 with a change USA textile and apparel makers had long sought: a lower threshold for Berry Amendment requirements on Defense Department purchases, Sourcing Journal reported on December 14.
What changed
- The bill sets the threshold back to $150,000 and adjusts it for inflation every five years.
- The fiscal 2018 NDAA had raised the Simplified Acquisition Threshold to $250,000. NCTO said that put more than $50 million a year in Berry contracts at risk of going to China and other countries.
- It bars splitting contracts to stay under the threshold.
- The American Apparel & Footwear Association pointed to Section 817 as ensuring more military textiles are bought in full compliance with the Berry Amendment.
The Berry Amendment requires the Defense Department to buy certain items, including textiles and clothing, made in the USA from USA materials.
“U.S. textile, apparel, and footwear manufacturers who proudly equip U.S. soldiers with uniforms rely on the Berry Amendment.”
Steve Lamar, president and CEO, AAFA
At the time, President Trump had threatened to veto the bill over unrelated provisions. The House and Senate each passed it by more than two-thirds.
FAQ
What is the new threshold?
$150,000, indexed to inflation every five years.
What was it before?
The fiscal 2018 NDAA had raised it to $250,000.
Who supported the change?
NCTO and the American Apparel & Footwear Association.
Source & credit
Source: Sourcing Journal, December 14, 2020: “Fashion Applauds Defense Bill’s Key ‘Made in America’ Provision”.