Berry Amendment

Berry Amendment
Name	Berry Amendment
Enacted	1941 (codified changes through 1942–2010)
Jurisdiction	United States federal law
Statutory citation	10 U.S.C. § 2533a and related provisions
Subject	Defense procurement, domestic sourcing
Notable amendments	1944, 1950s, 1994, 2007, 2011

Berry Amendment

The Berry Amendment is a United States federal procurement requirement that mandates preference for domestically produced textile, clothing, and other specified articles in Department of Defense acquisitions. It originated during World War II and has been modified through legislation and executive implementation affecting the United States Department of Defense, United States Congress, and a broad array of United States defense contractors. The provision shapes sourcing practices across procurement programs managed by the Defense Logistics Agency, Army Materiel Command, and other acquisition agencies.

Background and Legislative History

The provision traces to wartime statutes and appropriation riders in the early 1940s, reflecting concerns similar to those addressed in the Buy American Act and later wartime procurement policy debates involving the War Production Board and the Arsenal of Democracy mobilization. Named after Representative Franklin Berry (note: name not linked per constraints), the requirement was enacted amid legislative actions such as the Second War Powers Act and amendments tied to World War II supply prioritization. Subsequent legislative landmarks including the Federal Property and Administrative Services Act of 1949 and revisions in the Defense Appropriations Act framework embedded domestic source preferences into defense acquisition law. Congressional committees, notably the House Committee on Armed Services and the Senate Committee on Armed Services, debated scope and exemptions through hearings in the 1990s and 2000s that produced statutory clarifications codified in titles of the United States Code and procurement regulations promulgated by the Department of Defense.

Key Provisions and Scope

Core text of the statute requires that specific categories—principally textile and clothing articles, hand or measuring tools, and parachutes—be produced in the United States or be sourced from designated domestic sources when acquired by the United States Department of Defense. The statute operates alongside the Federal Acquisition Regulation and Defense Federal Acquisition Regulation Supplement, which interpret coverage across items such as uniforms procured by the U.S. Army, boots for the U.S. Marine Corps, and shelter systems used by the U.S. Air Force. Statutory exceptions and thresholds intersect with procurement authorities in statutes like the Trade Agreements Act and specific appropriations riders, creating a framework where domestic preference applies unless waived under conditions enumerated by Congress or the Secretary of Defense. The statute’s applicability is determined by definitions in the United States Code and implementing guidance issued by the Office of the Secretary of Defense and the General Services Administration.

Impact on Defense Procurement and Industry

The requirement has influenced supply chain decisions by prime contractors such as Lockheed Martin, Boeing, Northrop Grumman, and many small- and medium-sized firms that supply textiles and equipment to the Defense Logistics Agency. It has bolstered domestic manufacturing hubs in states with significant apparel and textile history, including operations in North Carolina, South Carolina, and Georgia, while affecting procurement costs and lead times for programs like Soldier systems modernization and tactical gear acquisitions for the U.S. Special Operations Command. The mandate has prompted investment in domestic production capacity, vertical integration by suppliers, and the development of compliant supply chains monitored by contractors and agencies such as the Defense Contract Management Agency. At the same time, firms importing from nations with trade agreements—such as Canada, Mexico, and members of the World Trade Organization—have faced constraints when supplying covered items, shaping corporate sourcing strategies and industrial base resilience discussions in hearings before the Congressional Research Service and legislative staff.

Compliance and Enforcement

Compliance is enforced through contract clauses in solicitations and awards administered by contracting officers within the Defense Contract Management Agency and contracting offices at the Defense Logistics Agency. Certification, origin marking, and supplier attestations are typical administrative controls, supported by audits and inspections performed by entities including the Inspector General of the Department of Defense. Noncompliance can result in remedies ranging from contract price adjustments to termination and suspension proceedings overseen by boards such as the Civilian Board of Contract Appeals and the Defense Contract Audit Agency. Implementation guidance issued by the Under Secretary of Defense for Acquisition and Sustainment clarifies documentation requirements, waiver procedures, and the interaction with other procurement statutes.

Legal Challenges and Policy Debates

Litigation has addressed interpretation of covered articles, origin determination, and the scope of waiver authority, leading to decisions in forums including the United States Court of Federal Claims and the Federal Circuit. Debates in Congressional hearings and reports by the Government Accountability Office have weighed the law’s domestic industrial-base benefits against potential cost impacts and effects on readiness. Trade partners and multinational suppliers have raised issues when items traditionally sourced globally—such as certain textiles and parachute components—fell under the domestic preference, implicating provisions of the WTO and bilateral trade agreements. Policy discussions before the White House and Office of Management and Budget continue to evaluate modernization of acquisition statutes to reconcile supply-chain security with procurement efficiency.

Amendments, Exceptions, and Related Statutes

Over time, Congress has amended scope and exception authorities, carving out waivers for contingency operations, quantities not available domestically, or where domestic cost is unreasonable, often via provisions in Defense Authorization Acts and appropriations legislation. Related statutes and policies that interact with the requirement include the Buy American Act, the Trade Agreements Act, and statutes governing the Defense Production Act. Executive guidance and agency regulation in the Federal Acquisition Regulation and the Defense Federal Acquisition Regulation Supplement implement statutory exceptions and provide conduits for critical-item waivers, small-business considerations, and coordination with industrial-base sustainment initiatives led by the Office of the Under Secretary of Defense for Acquisition and Sustainment.

Category:United States federal defense procurement law