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Diane Publishing Books
Domestic Content Legislation: The Buy American Act and Complementary Little Buy American Provisions
John R. Luckey (au)
Congress has broad authority to place conditions on the purchases made by the federal government or with federal dollars. The Buy American Act is the major domestic preference statute governing procurement by the federal government. It 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 U.S. The act requires that ńˇýsubstantially allńˇŁ 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. Other domestic preference statutes, known as ńˇýLittle Buy American Acts,ńˇŁ either impose a higher domestic content requirement on procurements that are covered by the Buy American Act or apply to indirect purchases (i.e., purchases not made by a federal entity, but which are made with federal funds). This report summarizes (1) the Buy American Act, what it does and does not cover; (2) the Little Buy American Acts found in permanent law, emphasizing what they govern, major exceptions and why Congress felt them necessary in light of the requirements of the Buy American Act; and (3) the temporary Little Buy American provision found in the Am. Recovery and Reinvestment Act. This is a print on demand report.
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