Buy American Act

The Buy American Act in general, Restricts the purchase of supplies, that are not domestic end products, for use within the United States.

A foreign end product may be purchased if the contracting officer determines that the price of the lowest domestic offer is unreasonable or if another exception applies.  (see FAR Subpart 25.1) 

The restrictions in the Buy American Act are not applicable in acquisitions subject to certain trade agreements. (see FAR Subpart 25.4).

In these acquisitions, end products and construction materials from certain countries receive nondiscriminatory treatment in evaluation with domestic offers.

Generally, the dollar value of the acquisition determines which of the trade agreement applies.

Exceptions to the applicability of the trade agreements are described in Subpart 25.4.

The test to determine the country of origin for an end product under the Buy American Act (see the various country “end product” definitions in 25.003) is different from the test to determine the country of origin for an end product under the trade agreements, or the criteria for the report on end products manufactured outside the United States (see 25.004).

Under the trade agreements, the test to determine country of origin is “substantial transformation”

For the reporting requirement at 25.004, the only criterion is whether the place of manufacture of an end product is in the United States or outside the United States, without regard to the origin of the components.

 When using funds appropriated under the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5), the definition of “domestic manufactured construction material” requires manufacture in the United States but does not include a requirement with regard to the origin of the components.

If the construction material consists wholly or predominantly of iron or steel, the iron or steel must be produced in the United States.

All vendors and subcontractors providing material to Government agencies which include the "BUY AMERICAN ACT" must adhere to FARs contained in the contract.

The Buy American Act does not necessarily mean you have to buy in America.

There is a two tiered test under the Buy American Act. FAR 25.1.

• The Buy American Act restricts the purchase of supplies that are not domestic end products.

• The Buy American Act uses a two-part test to define a domestic end product.

  • The article must be manufactured in the United States and

  • The cost of domestic components must exceed 50 percent of the cost of all the components. In accordance with 41 U.S.C. 431, this component test of the Buy American Act has been waived for acquisitions of Commercially available off-the-shelf (COTS) items.    (see 12.505(a)

The Buy American Act provides that the Government give preference to domestic construction material.

The Buy American Act has separate provisions for supply contracts and construction contracts and applies to small business set-asides.

The text of Buy American Act  can be accessed here http://www.acquisition.gov/far/current/html/Subpart%2025_1.html.
Material and equipment conforming to the Buy American Act Refer to FAR 25.1 and DFARS 225.1

When you fill out you ORCA certifications, or if the Solicitation contains Section L; Offeror Representations and Certifications, you will list materials and certify as manufactured in the USA.

Please refer to DFAR Subpart 225.872-1 which states that it is inconsistent with public interest to apply restrictions of the Buy American Act to the acquisition of defense equipment which is mined, produced or manufactured in the below designated countries.

Consistent with the above, it is allowable to use equipment which is purchased from the following designated countries,

The listed countries do not necessarily constitute compliance with Buy American Act, so carefully check contract to be sure.

The Buy American Act  was passed by U.S. Congress in 1933.

The purpose of the Buy American Act is to provide preferential treatment for domestic sources of unmanufactured articles, manufactured goods, and construction material for public use unless a specific exemption applies.
 

The act requires the federal government to purchase domestic supplies for use in the United States, if:

• The supply contract exceeds the micro-purchase threshold; or

• The supply portion of a contract for services that involves the furnishing of supplies exceeds the micro-purchase threshold. In determining what are domestic goods, the place of mining, production, or manufacture is controlling.

Remember to always ask the Procurement office in Charge of the Government contract if you have any questions concerning the Buy American Act in the solicitation.

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