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Oversight and Investigations Chairwoman Kiggans Forces Biden Administration to Answer the Mail on VA Buying American Made Products

Today, Rep. Jen Kiggans, (R-Va.), the Chairwoman of the House Committee on Veterans’ Affairs Subcommittee on Oversight and Investigations, delivered the following remarks, as prepared, at the start of the Subcommittee’s Oversight Hearing to shed light on VA’s compliance with Buy American legislation:

 

Good afternoon.

 

Thank you all for being here today as this subcommittee conducts this important oversight hearing.

 

In fiscal year 2021, VA ranked fourth among federal agencies in procurement dollars obligated at $34.3 billion and second in number of contact actions at 1.8 million.

 

To put it simply, VA buys a lot of stuff.

 

From Personal Protective Equipment to pharmaceutical drugs, hearing aids, and much more – VA’s mission to care for our veterans comes with tremendous purchasing power.

 

Congress, and both this Administration and the Trump administration, made it a priority to ensure that the federal government is buying American made products to the greatest extent possible.

 

Buying from manufactures in Virginia’s 2nd congressional district, Indiana’s 1st, and every other district in America, not only supports American workers, but makes VA’s supply chain more secure.

 

As we saw during the COVID pandemic, a large percentage of medical supplies are manufactured overseas, and VA is extremely vulnerable to shortages if global supply chains are interrupted. 

 

We can’t afford to ignore this glaring weakness.

 

In response, Congress passed the Make PPE in America Act which changed how VA buys PPE by requiring VA to buy from domestic manufacturers on a minimum two-year contract.

 

I am concerned that a year and half after this law was enacted there appears to be very little that has changed.

 

I understand that new legislation takes time to implement, but issues at VA don’t normally get better with time.

 

A recent Inspector General report highlighted significant issues with VA’s compliance with decades old made in America laws.

 

I recently heard from industry leaders that as of a few months ago, VA didn’t even seem to have a plan to implement the law!

 

That’s incredibly concerning.

 

I am eager to hear from our witnesses on what progress VA has made in the past 18 months and what we can expect going forward, because American companies and the veterans they hope to serve don’t have decades to wait.

 

Many American companies have overhauled their production lines to meet VA’s demand for world class goods and supplies.

 

VA must similarly change their procurement process to step up their outreach and market research to identify opportunities to work with American companies.

 

I am concerned many of these companies will be forced to close down their operations if VA doesn’t immediately follow the law and take a more proactive approach to buying American.

 

That being said, I know that there are occasions when VA needs to buy critical supplies from outside our borders.

 

VA has many waivers and exceptions at their disposal. If VA is unable to buy the materials they need from domestic manufacturers quickly and at a reasonable price, they can use them.

 

Waivers are stop-gaps that allow VA to serve veterans even when American supplies aren’t available.

 

I support having waivers as an option because even when supply chains fail, veterans must come first.

 

While I have no issue with VA using waivers, I am concerned that reports show that they are sometimes a crutch for VA bureaucrats to cut corners, rather than buy American.

 

The waiver process needs to be transparent - so the public can be confident that VA is following the law and buying quality American supplies whenever possible.

 

Waivers must also be limited so American companies can invest with the confidence that VA will buy from domestic sources whenever it is practical, not just when it’s convenient.

 

I would also like to note my concern with our over reliance on foreign-manufactured pharmaceuticals, especially those made in China. As a nurse practitioner, I know firsthand that many Americans, especially our older population, rely on live saving drugs. VA alone cannot fix this issue, but I look forward to hearing how VA intends to help incentivize onshoring pharmaceuticals and solve this dangerous situation.

 

Ultimately – as the Chair of the oversight arm of this Committee it is my job to ensure that VA is spending its procurement dollars wisely and in compliance with Made America Laws.

 

I take this matter seriously – and I trust that the witnesses do as well.

 

With that, I now recognize Ranking Member Mrvan for his opening comments.

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