Federal investigators are investigating London Bridge Trading, a local tactical gear manufacturer, under suspicion of passing off foreign products as "Made in the USA."
Every year, thousands of American companies place bids to fulfill contracts for the federal government. While many of the larger contracts -- such as in defense or aerospace -- require a large partner, many of the bids are actually won by small-to-medium businesses. One tool that the federal government uses to level the playing field between large and small companies is the Berry Amendment. Added to an obscure Department of Defense appropriations bill in 1941, this amendment stipulates that the Pentagon must give preference to American companies and American-made products when purchasing food, clothing, and fabrics. Even in 1941, as the American government was gearing up for war, foreign-sourced products threatened to undercut American industries. While the provision has been altered over the years to provide exceptions for certain essential components not made in America (such as magnets), any clothing or gear that the Department of Defense purchases has to be American-made. This regulation has now placed a Virginia Beach company under increased scrutiny. London Bridge Trading won a contract to provide tactical gear to the Pentagon. While the company's website touts that its products are "100 percent made in America and always will be," the DoD is no longer certain about that. Federal investigators are now looking into whether the company tried to sell the Pentagon foreign goods passed off as American-made.
Investigators are specifically looking at the company's manufacturing partners in Peru and Mexico. A London Bridge Trading fact sheet lists that less than 10 percent of the company's revenue comes from these foreign manufacturing partnerships. The question the Feds are asking is whether any of that revenue is connected to the company's U.S. Government contract. If the tactical gear that London Bridge Trading sold to the Department of Defense was in fact made overseas, then the company would be in violation of federal law.
Most of the tactical gear that London Bridge Trading sells is nylon-based. These include backpacks, armored-plate carriers, pistol holsters, patches, and pouches for military and police use. It is unclear through the company's fact sheet which product lines are made in the United States and which are sourced abroad. Even a tiny foreign component being passed off as "Made in America" could put the company in violation of the Berry Amendment.
Doug McDougal, London Bridge Trading's founder and chairman, released a written statement on the allegations and investigation: "We have always taken our compliance obligations under the Berry Amendment seriously and we are fully cooperating with the authorities in this matter."
Homeland Security investigators have referred all questions to the U.S. Attorney's Office for the Eastern District of Virginia, which has refused to publicly comment on the investigation.
Back in April, Homeland Security agents served a search warrant at London Bridge Trading's Virginia Beach headquarters, located at 585 London Bridge Road. At the time, investigators did not publicly release the purpose behind the search. With these new developments, the Berry Amendment investigation appears to be the reason behind these previous searches.
London Bridge Trading has been in business in the Virginia Beach area since 1985. The company currently employs more than 250 people and has manufacturing facilities both in Virginia Beach and El Paso, Texas.
What do you think? Does it matter whether the Pentagon buys gear that is made in America? Let us know in the comments below.
