Buy American Act and Other Domestic Content Legislation

Book excerpt: Congress has broad authority to place conditions on the purchases made by the federal government or with federal dollars. One of the many conditions that it has placed on direct government purchases is a requirement that they be produced in the United States. The most well known of these requirements is the Buy American Act, which is the major domestic preference statute governing procurement by the federal government. The Buy American Act applies to direct purchases by the federal government of more than $3,000, providing their purchase is consistent with the public interest, the items are reasonable in cost, and they are for use in the United States. The act requires that "substantially all" of the acquisition be attributable to American-made components. Regulations have interpreted this requirement to mean that at least 50% of the cost must be attributable to American content. This book provides an overview of domestic content legislation with a focus on the Buy American Act; the Berry Amendment; and the Speciality Metal Clause.