domestic products | The Contracting Education Academy

March 4, 2021 By cs

How new ‘Made in America’ Executive Order could impact federal contractors

The full impact of President Biden’s “Made in America” executive order compelling federal contractors to purchase more U.S.-manufactured products won’t be clear for some time, according to experts.

Five days after taking office, Biden issued an executive order on January 25 to push federal agencies to buy more products made in the United States. It builds on current laws—the Buy American and Buy America statutes, passed in 1933 and 1982, respectively. The federal government spends about $600 billion annually in contracting and current laws giving preference to American companies are not always followed and haven’t been “substantially updated since 1954,” said a fact-sheet from the White House.

“The [executive order] directs the [Federal Acquisition Regulatory Council] to consider proposing rules to tighten up the [Buy American Acts] requirements,” so “there are no immediate changes,” said Adelicia Cliffe, partner at the law firm Crowell and Moring, who is part of the firm’s government contracts and international trade group. This is because any new rules will have to go through the formal rulemaking process.

Specifically, the executive order said that within 180 days, the FAR Council should consider: replacing the “component test” (which says that over 50% of a product’s cost must have a domestic origin), increasing the numerical threshold for domestic content requirements for construction materials and end products, and increasing the price preferences for domestic construction materials and end products.

Keep reading this article at: https://www.govexec.com/management/2021/02/how-bidens-made-america-executive-order-could-impact-federal-contractors/172259/

February 26, 2021 By cs

Future uncertain for industrial base as pandemic spreads

While the United States continues to deal with challenges posed by the COVID-19 pandemic, it is still too early to know how the health of the defense industry will fare in the long run, according to analysts.

“The magnitude of the virus … it’s really unknown, a lot of this just has to do with when the virus is going to go away, … how quickly [a vaccine] can be deployed,” Nick Jones, the National Defense Industrial Association’s director of regulatory policy, said in an interview. “COVID-19 is going to continue to be an issue until the virus is at very low levels, which may be who knows how long,” he added.

Jones’ comments echo sentiments expressed by Ellen Lord, the Pentagon’s undersecretary of defense for acquisition and sustainment. During a virtual Defense News conference in September, Lord said many of the effects of COVID-19 may be yet to come.

“All the reports that have come out in large part don’t reflect the hits that were taken by business,” she said. “There have been mixed reports in terms of revenue and profitability. I would contend that most of the effects of COVID haven’t yet been seen, because most companies gave their employees time off — they stretched out production, paid a lot of people for working 100 percent when, perhaps, they were only getting 50 percent of the hours in, and so forth.”

Keep reading this article at: https://www.nationaldefensemagazine.org/articles/2021/2/3/future-uncertain-for-industrial-base-as-pandemic-spreads

The National Defense Industrial Association’s second annual Vital Signs report on the health of the U.S. defense industrial base was released on Feb. 2, 2021. To download a copy, please click HERE.

February 8, 2021 By cs

White House orders agencies to buy more American-made products and publicly post exemptions

An executive order signed Monday pushes federal agencies to buy more American-made products and services, and comes with new reporting requirements, a new top-level oversight position and a new website.

Since being inaugurated last week, the Biden administration has been issuing a slew of executive orders—many with direct consequences for federal agencies and contractors. Included in Monday’s signings was an order strengthening existing laws that favor U.S.-based manufacturers in federal contracts.

“With this order, President Biden is ensuring that when the federal government spends taxpayer dollars they are spent on American-made goods by American workers and with American-made component parts,” according to a factsheet released ahead of the order. “This executive order fulfills President Biden’s promise to make Buy American real and close loopholes that allow companies to offshore production and jobs while still qualifying for domestic preferences.”

The factsheet notes federal agencies spend $600 billion annually in contract spending. Independent analysis suggests 2020 spending could have been as high as $630 billion.

Keep reading this article at: https://www.nextgov.com/policy/2021/01/biden-orders-agencies-buy-more-american-made-products-and-publicly-post-exemptions/171613/

January 29, 2019 By AMK

Domestic sourcing requirement doesn’t fit DoD’s gloves

The Government Accountability Office (GAO) recently issued a bid protest decision regarding the application of the Berry Amendment’s domestic sourcing requirement to a U.S. Department of Defense (DoD) solicitation for leather combat gloves with touchscreen capability.

In that decision, the GAO found that the nonavailability exception to the Berry Amendment applied to the glove’s kidskin leather even though the agency determined, through market research, that this type of leather was available domestically. Importantly, this decision provides an opportunity for stakeholders to consider the nuances associated with the Berry Amendment’s nonavailability exception and to reflect upon the complex regulatory landscape of domestic sourcing requirements.

Federal Government Domestic Sourcing Regimes and the Nonavailability Exception

Over the last 100 years, the U.S. government has enacted myriad domestic sourcing laws. For example, during the Great Depression, Congress enacted the Buy American Act (BAA) to “create jobs for American workers and protect American industry” by requiring the U.S. government, under certain circumstances, to procure items that have been mined, produced or manufactured in the United States. As implemented through the Federal Acquisition Regulation (FAR) and agency supplemental regulations, like the Defense Federal Acquisition Regulation Supplement (DFARS), the BAA generally requires executive agencies to purchase “domestic end products” unless an exception or waiver applies.

Keep reading this article at: https://www.insidegovernmentcontracts.com/2019/01/domestic-sourcing-requirement-doesnt-fit-dods-gloves/

July 10, 2017 By AMK

Agencies must be in compliance with ‘Buy America’ order by September

The Office of Management and Budget and the Department of Commerce released guidance on June 30, 2017 to instruct agencies how to enforce President Trump’s “Buy America” executive order.

The April 18, 2017 executive order required agencies to review and assess free trade agreements with foreign government contractors, closing loopholes in those agreements that might provide a competitive edge over domestic competition.

The guidance outlines statutory exemptions, including:

Domestic non-availability of procurements.
Unreasonable cost of domestic procurements.
The purchase of commercial IT.
The resale of a procurement.
If there is a public interest determination.

Keep reading this article at: http://www.federaltimes.com/articles/omb-guidance-for-buy-american-order-calls-for-september-compliance-reports

Read OMB’s guidance at: https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2017/M-17-27_assessment_enforcement_domestic_preference_buy_american_laws.pdf