The Buy American Act in general, Restricts the purchase of supplies, that are not domestic end products, for use within the United States.
If you have a question
or doubt about the "Buy American Act Clause in a contract, Do not
hesitate to contact The Procurement Officer and clear it up by text or
e-mail and keep a record.
"2017 - Buy American Act is a big deal within Defense Contract Management Agency (DCMA).
Companies and People are going to legal and investigations are going on all over the industry with Fines and/or Jail."
One of the biggest mis-perceptions about the Buy American Act is that it forces the government to "buy American."
Always ask the Procurement Office in Charge of the Government contract if you have any questions concerning the Buy American Act in the solicitation.
The Buy American Act imposes a two-part test:
(1) The end-product must be manufactured in the United States, and
(2) more than 50 percent of the cost of all the component parts must also be manufactured in the United
The waiver allows a commercial off-the-shelf (COTS) item to be treated as a domestic end product if it is manufactured in the U.S., without tracking the origin of the item’s components.
Exceptions that allow the purchase of a foreign end product are listed at FAR 25.103 and DFARS 225..
Under certain conditions, federal and/or DoD procurements may be waived:
Information Technology that is a commercial item.
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
The restrictions in the Buy American Act are not applicable in acquisitions subject to certain trade agreements."
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).
For the reporting requirement at FAR Subpart 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.
If the construction material consists wholly or predominantly of iron or steel, the iron or steel must be produced in the United States.
The Buy American Act does not necessarily mean you have to buy in America.
The Buy American Act restricts the purchase of supplies that are not domestic end products it uses a two-part test to define a domestic end product . The two tiered test under the Buy American Act is listed in FAR 25.1.
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.. 431. this component test of the Buy American Act has been waived for acquisitions of Commercially available off-the-shelf (COTS) items.
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.
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.
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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The Buy American Act—Preferences for “Domestic” Supplies:
Congressional Research Service,