Washington, DC, May 25, 2005 - The Electronic Industries Alliance (EIA) has created a Working Group on Competitive Procurement to fight legislation that would undermine the ability of the U.S. government to obtain the most competitive products and services necessary for national defense, homeland security and efficient government operations. Composed of leading U.S. high-tech firms, the EIA Working Group is one element in a multi-pronged strategy the Alliance has implemented to protect the free trade interests of Alliance member companies that face potential harm from protectionist "Buy America" legislation. EIA is also on the Steering Committee of a broader industry group known as the Coalition for Economic Growth and American Jobs.

Most recently, the U.S. House of Representatives included an amendment sponsored by Rep. Don Manzullo (R-IL) to last week's FY 2006 Department of Homeland Security Authorization Act (H.R. 1817), stipulating that DHS cannot purchase anything that does not have at least 50% of its components produced in the U.S. Rep. Manzullo has proposed a similar amendment to the FY 2006 National Defense Authorization Act (H.R. 1815), under consideration this week.

"The stated intent of the `Buy America' provisions is to protect the U.S. industrial base, but in reality, enacting the provisions proposed will detrimentally affect the competitiveness of the U.S. high technology and electronic industries, as well as undermine the ability of the Department of Homeland Security (DHS) to provide the best possible systems for our nation," EIA President Dave McCurdy argued in a May 18 letter delivered to House Committee on Homeland Security Chairman Christopher Cox (R-CA), Ranking Member Bennie Thompson (D-MS) and House Leadership.

EIA, which represents a broad spectrum of technology companies, including every leading defense contractor, has a longstanding opposition to "Buy America" legislation. The Alliance has argued that protectionist measures will cause more harm than good, hindering military capabilities and advances in next-generation technology, as well as increasing costs for federal agencies and diminishing competition.

"The U.S. technology industry operates in an increasingly global marketplace. Many products built and assembled in the U.S. include components sourced internationally, and the success of such systems has long been evident," McCurdy noted in EIA's letter to Representatives Cox and Thompson, as well as in a similar one to House Armed Services Committee Chairman Duncan Hunter (R-CA) and Ranking Member Ike Skelton (D-MO) ahead of this Friday's vote on the FY2006 National Defense Authorization Act (H.R. 1815).

If legislation that erects barriers to competitive procurement becomes law, the Alliance believes there will be far-reaching detrimental effects. "Protectionist measures run entirely contrary to the U.S.'s longtime efforts to promote open borders and open procurement markets in our trading partners around the world," said McCurdy. "Such a provision will work against U.S. interests in opening acquisition policies in other countries.

McCurdy and member companies who participate in EIA's Working Group on Competitive Procurement will continue to weigh in with members of Congress and voice opposition to legislation that hinders competitiveness and innovation in the government acquisition process.

About EIA: The Electronic Industries Alliance (EIA) is the leading advocate in Washington, D.C., for the U.S. high-tech industry. The Alliance, which traces its origins to the Radio Manufacturers Association (chartered in 1924), is a partnership of electronic and high-tech associations and companies whose mission is to promote the market development and competitiveness of the $400 billion U.S. high-tech and electronics industries through domestic and international policy efforts. EIA's corporate members - nearly 1,300 - provide products and services ranging from microscopic electronic components to state-of-the-art defense, space and industry high-tech systems, as well as the full range of telecommunications and consumer electronics products. Headquartered in Arlington, Va., the Alliance is made up of the Electronic Components, Assemblies & Materials Association (ECA); the Government Electronics & Information Technology Association (GEIA); JEDEC; the Telecommunications Industry Association (TIA); and leading consumer electronics companies who participate in EIA's Environmental Issues Council. EIA is also heavily involved in cyber security issues through the Internet Security Alliance (ISAlliance), and education issues, through the National Science & Technology Education Partnership (NSTEP).