Buy American
Buy American
Buy American Requirements
The Buy American Act (41 U.S.C. 10a-10d) was enacted in 1933 to encourage the federal government to buy from American companies it does not apply to professional or personal services. There are some requirements that listed under the Buy American Act (BAA) that companies need to pay attention to. The Act requires all iron, steel, and manufactured goods that are incorporated into a public building or public work be produced in the United States (U.S.). This does not require individual components and raw materials that comprise a manufactured good originate in the U.S. Only the final manufactured product, must be assembled or manufactured into it final form in the United States, that will be incorporated into the public building or public work. It also does not require machinery and tools used by project laborers be produced in the U.S. It does require you to maintain adequate records documenting all procurement in their compliance with the Buy American Act. The restrictions are not applicable in acquisition subject to certain trade agreement. Under “Foreign Acquisitions” in the Federal Acquisition Regulations (FAR) Part 25 where most of the rules are located, it list some exceptions that Congress over the years have modified the law to justify buying foreign product when need be. Some exceptions are: if the products acquired are for use outside the U.S., if the product is not reasonable available in sufficient commercial quantities in the domestic market, the cost of the domestic product is unreasonable, and if the products are commercial information technology items. The Buy American Act does not apply to procurements under the micro purchase threshold according to the Federal Acquisitions Act of 1994. The Trade Agreement Act (FAR 52.225-12) waives the “Buy American Act” for eligible products purchased form countries that have signed an international trade agreement
Buy American Requirements
The Buy American Act (41 U.S.C. 10a-10d) was enacted in 1933 to encourage the federal government to buy from American companies it does not apply to professional or personal services. There are some requirements that listed under the Buy American Act (BAA) that companies need to pay attention to. The Act requires all iron, steel, and manufactured goods that are incorporated into a public building or public work be produced in the United States (U.S.). This does not require individual components and raw materials that comprise a manufactured good originate in the U.S. Only the final manufactured product, must be assembled or manufactured into it final form in the United States, that will be incorporated into the public building or public work. It also does not require machinery and tools used by project laborers be produced in the U.S. It does require you to maintain adequate records documenting all procurement in their compliance with the Buy American Act. The restrictions are not applicable in acquisition subject to certain trade agreement. Under “Foreign Acquisitions” in the Federal Acquisition Regulations (FAR) Part 25 where most of the rules are located, it list some exceptions that Congress over the years have modified the law to justify buying foreign product when need be. Some exceptions are: if the products acquired are for use outside the U.S., if the product is not reasonable available in sufficient commercial quantities in the domestic market, the cost of the domestic product is unreasonable, and if the products are commercial information technology items. The Buy American Act does not apply to procurements under the micro purchase threshold according to the Federal Acquisitions Act of 1994. The Trade Agreement Act (FAR 52.225-12) waives the “Buy American Act” for eligible products purchased form countries that have signed an international trade agreement
References: Murphy, J. (2009) Guide To Contract Pricing: Cost And Pricing Analysis For Contracts, Subcontracts, And Government Agencies (5th ed.) Vienna, VA Management Concepts Retrieved October 28, 2011 from https://www.jacksonkelly.com/JK/pdf/zirkelbach.pdf Retrieved October 28, 2011 from http://www.nytimes.com/2007/08/02/business/02toy.html