EO on "Buy American" brings change
On July 15, President Trump signed Executive Order 13881 to strengthen Buy American provisions in federal contracting. While the changes do not have an immediate effect, they could bring significant new requirements in early 2020.
The order calls for the Federal Acquisition Council to increase the required percentage of domestic-made content to at least 55% of a procured item, and reduce the percentage of foreign-made components to 45%. It also proposes raising the price preference for domestic-made products sold by a small business to 30%, up from 12% currently.
It requires the FAR Council to consider issuing a proposed rule by January 2020, with a final rule as soon as spring 2020. Contractors, including small vendors, are being urged to prepare for the possible changes.
More information:
Husch Blackwell blog entry: https://bit.ly/35y2nRP
PilieroMazza blog entry: https://bit.ly/2VI7GJI