US Government Agencies Not Buying American?

With the economy in turmoil and jobs being lost at an alarmingly dizzying rate all across the nation, corporations, government agencies and families have had to become much more frugal and leaner to survive. Families have started becoming more diligent about clipping coupons and eating in more often. Corporations have had to scale back on luxury items and lay off workers. Churches have been forced to cut out ministries altogether and tighten up those remaining. Government agencies have had to deal with trimmed down budgets and, in some cases, look abroad for cheaper supplies and services. According to the Kansas City Star, this is exactly what happened with the U.S. Agency for International Development (USAID) and an American company.

USAID is responsible for the mass distribution of condoms to third-world countries all across the globe. Due to the troubling economy, this agency felt the need to end their contract with the U.S. company, Alatech, that has been supplying those condoms for years. USAID will instead be purchasing these contraceptives from companies with headquarters in China and South Korea because the cost per condom is lower with these foreign companies. This decision will ultimately cost Americans approximately 300 jobs, according to the Star.

In recent years, USAID stuck to the “Buy American” regulations and purchased condoms only through Alatech, the American manufacturer. However, with the recent stimulus bill that has now passed through Congress, there is nothing in there that states condoms need to be bought in America. An official speaking on behalf of USAID told the Star that much thought was put into this decision and they understood that jobs would be lost if the American contract was stopped; however, the savings of three cents per condom between foreign and American-made condoms was undeniable. Alatech is based in Alabama and had been the only supplier to USAID up until the change; they made a complaint to the Government Accountability Office, but the GAO had to reject the complaint because there is nothing in the regulation saying that USAID could not choose to buy the contraceptives from abroad.

Naturally, those factory workers for Alatech are disappointed about the sudden contract change with USAID. Fannie Thomas, an employee of forty years with Alatech, stated, “We pay taxes down here, too, and with all this stimulus money going to save jobs, it seems to me like they should share this contract so they can save jobs here in America.” Another Alatech employee, Cindy Robinson, told the Star, “I’ve made condoms here for 20 years. I understand why they bid the contract overseas, but they should buy American first, and I feel they are going back on their word.”