House chairman resists efforts to ban contracts with foreign firms

A senior Republican lawmaker said Monday that the federal government should not limit its procurement efforts to American companies.

House Government Reform Committee Chairman Tom Davis, R-Va., described himself as an "acquisition purist" and said taxpayers will suffer if agencies are cut off from contracting with foreign-owned firms. He derided proposed legislation that would limit the federal government from purchasing products and services from other countries, calling it "one of the goofiest things that I've seen."

Earlier this month, the Senate approved a measure that would ban most civilian federal agencies from outsourcing jobs to contractors working outside the United States. The measure-an amendment to a corporate tax bill-also would prohibit agencies from procuring goods or services from companies that send work abroad, with some exceptions.

Although the measure received broad bipartisan support, a senior lawmaker said recently that the effort would have to be modified to be signed into law by President Bush.

"Government, when they go out and buy things, ought to get the best deal for the taxpayer," Davis said Monday. "We are in a global economy, like it or not."

Davis said an exclusionary procurement policy could lead to reprisals from overseas competitors. Such a policy would provide instant benefits to some American companies, but in the long run would hurt the overall economy, he said. Davis cited the steel tariffs implemented by the White House, which brought the country to the brink of a trade war with competitors who were upset that a large market had been closed to their products. In the interest of open markets and taxpayers' savings, Davis said procurement officials must seek the best deal, regardless of location.

"Sometimes you go to France, as distasteful as that may be," he said. "Sometimes you go to China."

Davis, who was sporting a shorter-than-usual haircut, acknowledged that many Americans do not want to see their tax dollars spent overseas.

"If any of you are in the House barbershop," he said, "and the barber starts talking about outsourcing, don't argue with him."