April 18, 2017

WASHINGTON—The IT Alliance for Public Sector, a division of tech trade group ITI, released the following statement today from Senior Vice President for Public Sector Trey Hodgkins reacting to President Donald Trump’s “Buy American, Hire American” executive order:

“Our companies share President Trump’s goal of creating jobs that put Americans to work and grow our economy,” Hodgkins said. “Buy American sounds good and is well-intentioned, but it will only help America if it is applied in a manner that reflects today’s reality, rather than cut off our nose to spite our face. For example, it makes no sense to reject the nearly $400 billion that foreign companies invest employing American workers in communities across our country, or to keep our government from buying the best technology to improve U.S. national security and help our citizens. As the administration goes forward implementing this order, we urge a more flexible approach when it comes to technology products because these kinds of restrictions can do more harm than good.”

ITAPS member companies compete globally and have supply chains, production, and consumers across the world. The group is concerned the order will:

  • Freeze technology: Government agencies will lose access to the everyday innovations that enable efficient delivery of government services.
  • Increase cost: Domestic preferences increase the price the government must pay and could lead to increased deficits. One estimate found that a domestic sourcing preference could cost the U.S. Government upwards of $2 billion per year.
  • Stifles Innovation: The U.S. is the center of innovation for the world with our ICT companies producing over $130 billion in gross value of IP Services Exports and filing approximately 540,000 patent applications annually. Localizing requirements stifle innovation as private sector partners struggle to provide solutions to meet the needs of government.

# # #

Public Policy Tags: Public Sector