Buy American

In: Business and Management

Submitted By charw
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“Buy American” Requirements

On March 31, the Federal Acquisition Regulation (“FAR”) Council issued an interim rule implementing the Buy American provision of the American Recovery and Reinvestment Act (ARRA) of 2009, also known as the Stimulus Package.

The Buy American provision of the Stimulus Package requires, with certain exceptions, that regardless of size or duration, none of the funds made available under the Act be used on projects for a “public building or public work” unless all of the iron, steel, and “manufactured goods” used in the project were “produced” in the United States. “The interim rule implements three exceptions to the Buy American requirement that permit foreign material to be used: If (1) a particular construction material is not mined, produced, or manufactured in the United States “in sufficient and reasonably available commercial quantities of a satisfactory quality,” (2) the cost of domestic construction material is unreasonable, or (3) applying the Buy American restriction to a particular construction material “would be inconsistent with the public interest.” FAR 25.603(a). These are determinations for the government to make, not the contractor. “

The regulations do not apply to Recovery Act Designated Countries (“RADC”) and nations who are bound by a signed document such as a treaty, free trade agreement or contract with the World Trade Organization Government Procurement Agreement who produce construction material. However, some countries such as the Caribbean Basin countries have been excluded from designated countries and are treated the same as domestic products if the estimated contract value is $7,443,000 or more.

The Stimulus Package Buy American provision is an interim rule that should be made permanent in order for the U.S. to remain viable and competitive with the world market. In addition, the U.S. should…...

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