Buy American Requirements
Saturday, August 9, 2014
In our first assignment we described the creation of the new company “Remote Control Unlimited.” Remote Control Unlimited builds navigation systems for drone and regular airplanes, for the government, public and private enterprises. VectorCal is our major competitor, but as a research and development company as well as aerodynamics defense contractor we are far ahead of VectorCal. One of those reasons is our contracts manager utilizes the Buy American Act, and knows how to use the Buy American Requirements to our advantage, and in doing so putting American people to work, using American products to build our navigation systems, and supplying the defense department with a superior product in the end. While the Buy American Act and Requirements are not easy to put into use to begin with if used correctly they can catapult a company into the limelight to the people of America as well as the government. The Requirements are located on “Code of Federal Regulation” (2002). Part 661. The Buy American requirement is a regulation of the Federal Government with relation to contracts which are funded by the federal government, the regulations apply to construction, maintenance, repair of public buildings, and products bought by the government. All products should be 100% manufactured in the United States, mainly steel and iron used for such projects. As a leader in the navigation and aerodynamics research and development for the Defense Department Remote Control Unlimited uses this Act in products made or in production to honor our company, country and the families that work for us. Buy American Requirements
The Buy American Act was passed in the year 1933 and it is applicable to all the United States Federal Government Agencies purchasing goods valued more than the threshold of micro purchase. According to this act all the goods used for public purpose should be produced in US and the product should be manufactured only in US. They prefer only the domestic product to be the end product. The main purpose of this Act is to increase the sales of American manufactured products, protecting the jobs in America, protecting American investment and finally to protect the manufacturing industry of U.S. According to the US federal government and the Buy American Act will contract only: The un-manufactured products that are mined or being produced in US. Manufactured product should meet the following condition:
More than 50% of the component cost should originate in the U.S. End Products should be manufactured in the U.S.
There are some exceptions and waivers being provided by federal departments or an agency which depends upon the product, technology, issue, requirements and the review process of another product. This act does not provide for any restriction to foreign purchases completely. Substantive means
The Buy American Act gives more incentive to build and buy from American manufacturers. This actually eliminates competition from the international market, and provides more opportunity to domestic manufacturers. The fact that all the required materials cannot be manufactured in the same country is due to various factors. Some technologies are patented with other country’s manufacturers. In this case, one cannot use the same technology which is essential for manufacturing the product in other country. This results in the import of the required materials like engines, technology, and any other patented parts. In this case the U.S. government would not have enforced the Buy American Act, those countries have the advantage in bringing in parts that would have an established market in U.S, and the domestic manufacturer would not get an opportunity to grow and develop. This paved a new way for American companies to develop, learn and invent new technology which will make the country a world leader. This Act does...
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Hirschman, K. A. (1998). THE COSTS AND BENEFITS OF MAINTAINING THE BUY AMERICAN ACT. Retrieved from NAVAL POSTGRADUATE SCHOOL website:
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