Today, U.S. Senators Charles E. Schumer and Kirsten Gillibrand announced that they have written a personal letter to the State Department questioning its decision to award a no-bid contract for glassware for U.S. embassies worldwide to a company that immediately outsourced all the glassware manufacturing work to a foreign manufacturer. The Senators said that American manufacturers of the formal stemware were not even invited to bid for the contract – leaving companies like New York’s Steuben Glass out in the cold. Schumer and Gillibrand requested that the State Department immediately explain their decision.
“Right here in Steuben County we’ve got a world-renowned glass manufacturer that employs hundreds of people, and they at the very least deserve a chance to compete for this work,” Schumer said. “At a time when so many of our friends and neighbors are out of work, we should be making every effort to ensure that our government procures and showcases American-made products, not foreign-made goods.”
“If we’re going to rebuild our economy and create jobs in the Southern Tier, we need to make sure businesses here are getting a fair chance at federal contracts,” Senator Gillibrand said. “We can’t afford to outsource a single contract and a single job. Supplying glassware to more than 400 embassies and residences would open new markets worldwide and American companies like Steuben Glass deserve to have that opportunity.”
Schumer and Gillibrand said the contract was awarded without any competition, without any public notification, and without any formal bid process. As a result of this non-public process, the stemware contract was awarded to a small design firm – a firm that itself appears not to manufacture anything. A company press release indicates that the design firm has subcontracted the contract for the manufacture of the stemware to a company that will produce the stemware in Sweden. Supplying glassware for over 400 American embassies and embassy residences would be a huge boost for a New York based company like Steuben Glass and the entire community in Steuben County. Having Steuben’s glassware used worldwide will only increase the reputation of its business and has the potential to bring the company’s goods to new markets.
Schumer and Gillibrand said that awarding a manufacturing contract to a firm that obviously could only fulfill the contract by outsourcing all the manufacturing work was wrong headed and the process by which the contract was given out, as well as how the contract is consistent with federal procurement rules on subcontracting, needs to be explained
New York’s Steuben Glass, which has a long and rich history as a renowned art glass manufacturer, should have had an opportunity to bid on this high-profile contract. Steuben Glass has had a relationship with every Presidential Administration going back to Truman Administration. It is known the world over as a prominent leader in the field of high end art glass design and has been producing glassware in Corning, New York, for over 100 years. Steuben Glass also is a major contributor to the workforce in the Steuben County region, as well as a huge source of pride for its workers and those who call the region home.
The full text of the letter is below.
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March 4, 2010
The Honorable Hillary Rodham Clinton Secretary of State U.S. Department of State 2201 C Street NWWashington, DC 20520
Dear Secretary Clinton,
We write today to ask your assistance in helping us understand the process by which the State Department decided to buy formal stemware from Sweden for our over 400 U.S. embassies and embassy residences around the world. We are deeply concerned that American glassware manufacturers were not even invited to bid on the State Department contract. Wherever possible, our embassies and embassy residences should be showcases for American-made products, not foreign-made goods.
New York’s Steuben Glass, for example, which has a long and rich history as a renowned art glass manufacturer, should have had an opportunity to bid on this high-profile contract. Steuben Glass has had a relationship with every Presidential Administration going back to Truman Administration. It is known the world over as a prominent leader in the field of high end art glass design and has been producing glassware in Corning, New York, for over 100 years. Steuben Glass also is a major contributor to the workforce in the Steuben County region, as well as a huge source of pride for its workers and those who call the region home. We would appreciate an explanation as to the process by which federal procurement rules allowed the State Department to bypass Steuben Glass and other U.S. glassware manufacturers as potential bidders for such a highly-visible contract.
We understand that the contract was awarded without any competition, without any prior public notification, and without any formal bid process under the Section 8(a) Program for small businesses. We gather that as a result of this non-public process, the stemware contract was awarded to a small design firm – a firm that itself appears not to manufacture anything. And, in fact, a press release indicates that the design firm has subcontracted the contract for the manufacture of the stemware to a company that will produce the stemware in Sweden. We would appreciate your assistance in helping us understand the facts at issue here and how the federal procurement rules, including the rules on subcontracting of manufacturing contracts (or service contracts, if applicable), address this situation.
Our understanding is that Section 8(a) limitations on subcontracting require that small businesses receiving a contract perform a minimum percentage of the contract work. With respect to supply contracts, employees of the small business are required to perform at least 50 percent of the costs of manufacturing. Does this limitation apply with respect to the stemware supply contract? Does the State Department anticipate that employees of the design firm will perform at least 50 percent of the costs of manufacturing? If possible, we would appreciate your assistance in helping us understand the specific calculations for this contract.
Thank you for your prompt attention to this matter. We look forward to hearing from you on this issue. We would also like to take this opportunity to request a copy of the stemware contract.
Sincerely,
Charles E. Schumer Kirsten E. Gillibrand United States Senator United States Senator