‘Buy American’ gets boost

      President Joe Biden issued an Executive Order on Jan. 25 to strengthen implementation, oversight, enforcement and transparency of “Made in America” laws.

      The multi-pronged order, if fully implemented, is likely to have a substantial impact on covered federal contracts. It recommends applying Buy American rules to services as well as the usual products and materials. It also sets up a new office to enforce the rules.

      Biden, in his campaign, stated a goal of raising federal Buy American purchases by $400 billion over four years, along with $300 billion in new technology research and development.

      Biden’s EO both adds to, and subtracts from, many of the Trump Administration orders, and many impact a final rule issued Jan. 19 to raise the percentage of domestically-sourced material that defines American-made. That final rule may be suspended pending review. Biden’s chief of staff has ordered a freeze on all last-minute regulations by the previous administration so they can be reviewed.

Biden’s order

      Biden’s order immediately establishes a Made in America Office, with its own director, within the Office of Management and Budget to monitor enforcement of both “Buy American Act” and “Buy America Act” waivers:

      The Buy America Act of 1982 gives preference to domestic materials for federal transportation contracts.

      The Buy American Act, enacted in 1933, gives preference to domestic materials in all other federal procurements. Multiple exemptions and waivers have been granted over the years, including waivers if a trade agreement with a particular country is in place.

      The Made in America office will review all waivers; provide guidance on information needed for waiver requests; and publish all waiver requests and results publicly. Contractors say the new process adds clarity but also red tape.

Recommendations

      The Biden EO includes a number of recommendations and asks the FAR Council to rule on those recommendations within 180 days.

      The Biden EO recommends:

• That the Made in America office consider whether lower prices for foreign-made goods outweigh the policy objective of reducing reliance on foreign-made items and materials;
• That federal agencies identify U.S. manufacturers of materials and products that federal agencies need;
• That several EOs related to Buy American issued by President Donald Trump be canceled;
• That the Buy American Act’s “cost of component test” be replaced with a test for determining country of origin. The new test measures domestic content based on value added to the product through US production or activity;
• That the percentage of domestic content required as a domestic end product, and the price preference for such, both be increased;
• That the FAR Council recommend lifting the Buy American exception for commercial item IT;
• That the FAR Council update its list of exempt products;
• That Buy American should be maximized for federal contracts;
• That agencies should consider revising/canceling existing actions to carry out Buy American policy; and
• That agencies submit an annual report on Buy American, including waivers.

More information:
Biden EO: https://bit.ly/3oWRh1d
Wiley Client Alert: https://bit.ly/2MyMGoQ
Trump Administration final rule: https://bit.ly/3pVXE6d

‘Buy American’ gets boost

Guzman intends to prioritize underserved firms in PPP loans

$15 min wage for contractors

SBA entrepreneurial programs continue funding expansion

FBI HQs in play again

Biden cancels 73 rescissions

Using small firms in DPA

Column: Your Capability Statement

Washington Insider:

Coronavirus Update