Legal Information is a Business Necessity Comparative Low Series THE DIVISION OF COMMERCIAL LAWS MAKE REMITTANCES TO SINGLE COPIES SUPERINTENDENT OF DOCUMENTS. WASHINGTON, D.C. U. S. DEPARTMENT OF COMMERCE HARRY L. HOPKINS, Secretary BUREAU OF FOREIGN AND DOMESTIC COMMERCE JAMES W. YOUNG, Director Comparative Low Series BRITISH GOVERNMENT CONTRACT REQUIREMENTS By Assistant Commercial Attache Homer S. Fox, London1 General Policy and Practice. Participation by American or other foreign concerns in British Government, or British Government sponsored, contracts for supplies or for construction or other services, is ordinarily possible only when the required supplies or services are not obtainable within the United Kingdom or from British Dominion or Empire sources. Because of the wide variety of goods and services required by or on behalf of the British Government, and because of the varying circumstances, American and other foreign concerns do in fact from time to time participate, sometimes to an important extent, in the supply of goods and, to some degree, with services to the Government. Under normal conditions of trade, however, purchases of foreign goods would usually be restricted to certain foodstuffs and raw materials not produced in the United Kingdom or the British Empire, or in the case of manufactured goods, to various specialties similarly unobtainable for the time being from British sources. In the latter category, except in emergencies, purchases of foreign articles are frequently (perhaps usually) made only on the condition that license to manufacture in the United Kingdom will be granted on reasonable terms and conditions and within a reasonable time (sometimes definitely specified). Furthermore, it is the usual practice when goods are to be purchased abroad, to procure them whenever practicable through established trade channels in the United Kingdom. Direct purchases from foreign firms not established in business or having resident representation in the United Kingdom are usually the result of exceptional and temporary circumstances or conditions. In such cases, the transaction is initiated by the Government and if the matter is one of importance, a special mission, or at least a purchasing agent, may be sent to the country from which the goods are to be purchased. This is treated at greater length under the heading "Procurement Procedure." In time of emergency, when urgency of delivery or other special considerations are of paramount importance, the situation is altered, and the extent to which foreign concerns may participate may be greatly increased. of course, In general, however, and as far as practicable, British Government purchases are restricted to goods of United Kingdom production or manufacture and to persons or concerns established in business in the United Kingdom (in the case of companies, those registered in the United Kingdom and not necessarily of British nationality or This article was prepared prior to the outbreak of war in Europe, and consequently the principles outlined may be modified by future developments. control). If unobtainable in the United Kingdom or unobtainable on acceptable conditions having regard to all the circumstances, then preference is given to Dominion and Empire sources of supply, and finally foreign sources may be called upon to the extent deemed necessary. In this general connection, the following statement made in the House of Commons on August 1, 1939, by the Secretary of State for War, in reply to a number of questions relating to food supplies for the army, is illustrative: As has been stated on previous occasions, financial and administrative considerations make it impossible to depart from the present policy of relying mainly on Dominion supplies of meat, and it is not practicable to make a new departure in the case of the Militia. The extra cost involved in supplying home-produced meat to the Army and the Royal Air Force would probably rise to approximately £1,000,000 a year. There was a recent trial of Argentine frozen meat in the Aldershot Command at Tidworth for 1 week only. Otherwise, supply of meat from South America is at present limited to preserved meat, and this is the only source from which it can be obtained with satisfaction as to quality, quantity, and price. The proportion of fresh to frozen beef supplied to the Army in the United Kingdom is about 1 to 1,000. Apart from small local purchases, notably for hospitals, the only home station at which fresh meat is supplied is Aberdeen. There are about 150 militiamen at this depot, and the amount of meat involved to date is some 2,000 pounds. It would be contrary to practice to disclose the price. The suggestion that units might be permitted to use the cash value of the meat in the ration scale for the purpose of buying home-produced meat is impracticable owing to the difference in cost. In the case of the other items in the ration scale, preference is given to home-produced supplies so far as this can reasonably be done. As regards eggs and milk, it has previously been explained that these are purchased by units from a cash allowance. Information as to the prices of the various commodities is available at the messing stores in all barrack and camp institutes, and it is not proposed to interfere with the discretion of units. I have no information as to purchases of milk, but the proportion of home-produced to imported eggs used for all purposes is about 1 to 2. The whole question of Government procurement is one of general policy and practice rather than of legislation or precise regulation. There is, in fact, no legislation bearing on the subject and few, if any, prescribed regulations of general application. Broadly speaking, however, the policy as described above is uniform, and while actual practice may vary in detail from time to time and as between the various purchasing departments, the practice also may be taken as reasonably uniform along the lines outlined. It should perhaps be added that differences in practice sometimes occur as between direct Government purchases and purchases by or in connection with Government sponsored or assisted enterprises. Somewhat more latitude in regard to the purchase of foreign goods or equipment may |