Buy American Overview

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This page is designed to provide a few resources for the various Buy American acts, legislation and rulings. As things continue to advance and change, please make sure you review the current standards and understand the full scope of any project you take on.

• KEY BUY AMERICAN QUESTIONS

• madeinamerica.gov:  This site provides relevant market intelligence to those interested in doing business with the U.S. government.

• BUY AMERICAN ACT: Typically applies when the federal government is directly purchasing products or materials or a federal building or facility is being constructed (such as US highways, federal prisons, etc.) Domestic Requirement: Requires 51% of the components of the final product to be made in the US. Cost-Based Waiver: Cost of domestic materials must be 6% (12% for small business) more than foreign materials. A price premium of 6% will be added for pricing evaluation by the contracting officer, if the domestic requirement is not satisfied.

• BUY AMERICA: Generally applicable to state and local government projects, typically when these projects are funded by the Federal Transit Authority (FTA). Domestic Requirement: Requires 100% of the components of supplies or construction materials to be made in the US. Cost-Based Waiver: Cost of domestic materials must be 25% more expensive than foreign materials. A price premium of 25% will be added for pricing evaluation by the contracting officer, if the domestic requirement is not satisfied.

• AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA): BUY AMERICAN or SECTION 1604 of AARA Application applies to all ARRA funded public buildings and works projects, which will include federal, state and local projects, if these projects receive funds from ARRA. Domestic Requirement: Requires 100% of the components of the final product to be made in the US. Cost-Based Waiver: Cost of domestic materials must be 25% more expensive than foreign materials. A price premium of 25% will be added for pricing evaluation, if the domestic requirement is not satisfied. While the three provisions above may be applicable to a various federal or state projects or projects funded by ARRA, many states have their own ‘domestic content’ laws that may be even more expansive than these federal provisions provide; however, with most of the projects funded by ARRA (which will likely be federal small business or public works projects of less than $7.4 million), these more expansive state laws should not be applicable. Nonetheless, it is important for stores to be aware of these provisions and understand the relative impact these provisions have on the products we supply to customers and contractors who are purchasing products in connection with government projects funded by the ARRA.

• EXECUTIVE ORDER 14005: Officially titled Ensuring the Future Is Made in All of America by All of America’s Workers, is an executive order signed by U.S. President Biden on January 25, 2021, which ensures that the federal government invests taxpayer dollars in American-owned businesses. The order additionally appoints a new senior leader in the Executive Office of the President in charge of the government’s Made-in-America policy approach. On October 4, 2021, the White House Made in America Office launched madeinamerica.gov; a public website where the waivers under Made in America laws will be easy to find for businesses seeking contracting opportunities with Federal agencies ensuring the Future Is Made in All of America by All of America’s Workers

• INFRASTRUCTURE INVESTMENT AND JOBS ACT (IIJA): The Infrastructure Investment and Jobs Act (IIJA), aka Bipartisan Infrastructure Law (BIL), was signed into law by President Biden on November 15, 2021. The law authorizes $1.2 trillion for transportation and infrastructure spending with $550 billion of that figure going toward “new” investments and programs. Funding from the IIJA is expansive in its reach, addressing energy and power infrastructure, access to broadband internet, water infrastructure, and more. Some of the new programs funded by the bill could provide the resources needed to address a variety of infrastructure needs at the local level.

• BUILD AMERICA BUY AMERICA ACT (BABAA): Enacted as part of the Infrastructure Investment and Jobs Act on November 15, 2021, established a domestic content procurement preference for all Federal financial assistance obligated for infrastructure projects after May 14, 2022. The domestic content procurement preference requires that all iron, steel, manufactured products, and construction materials used in covered infrastructure projects are produced in the United States. Each agency shall ensure that none of the funds made available for such a program may be used for a project unless all of the iron, steel, and manufactured products used in the project are produced in the United States, subject to waivers where inconsistent with the public interest, where not produced in sufficient quantities or satisfactory quality, or where such inclusion will increase the cost of the project by more than 25%.

• INFLATION REDUCTION ACT (IRA): A landmark United States federal law which aims to curb inflation by possibly reducing the federal government budget deficit, lowering prescription drug prices, and investing into domestic energy production while promoting clean energy. It was passed by the 117th United States Congress and signed into law by President Biden on August 16, 2022.