New Buy American Executive Order: Supply Chain, Compliance Policies, Waivers, Component Test, Price Preferences

Description

On Jan. 25, 2021, President Biden issued Executive Order 14005 entitled "Ensuring the Future is Made in All of America by All of America's Workers," which sets forth the new Administration's policy of utilizing the federal procurement process to maximize the use of goods, products, and materials that are U.S.-origin.

The Order emphasizes consideration of market research and analysis to determine whether a reasonable basis exists to conclude the article, material, or supply is not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and satisfactory quality. The pandemic and other factors on the supply chain can have a significant impact on the Order's viability.

There are also significant changes to prior Buy American standards. Under Section 4, the Order directs the OMB to establish a Made in America Office to oversee agency Buy American waivers. Section 6 provides for the creation of a website that will publish proposed waivers and whether they have been granted.

Section 8 suggests replacing the component test (i.e., over 50 percent of a product's cost must have a domestic origin), increasing the numerical threshold for domestic content requirements for end products and construction materials, and increasing the price preferences for domestic end-products and domestic construction materials.

Listen as our expert panel discusses the details of the Biden Buy American Executive Order and what changes to enforcement and testing may have on the availability of goods and the global supply chain.