Buy American Restrictions

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Buy American Restrictions

A section of the American Recovery and Reinvestment Act prohibiting the use of most foreign iron, steel or manufactured items in projects sponsored by the Act. Proponents argued the restrictions were intended to stimulate American manufacturing and thereby to create American jobs. Critics contended they were inefficient and had the potential to incite retaliatory measures from other countries, which could have a net negative impact on the U.S. economy. See also: Trade War.
References in periodicals archive ?
The FAR should be reviewed and revised, as appropriate, to most effectively carry out the goals of the Buy American Act and my Administrations policy of enforcing the Buy American Act to its maximum lawful extent.
In recent years, the government has increased efforts to enforce the Buy American Act by bringing False Claims Act actions against those who have violated the statute.
The Buy American Act is distinguishable from the Buy America Act; (31) it applies to transit-related procurement valued at over $100,000, the funding for which includes grants administered by the Federal Transit Authority (FTA) and the Federal Highway Administration (FHWA).
Federal buildings and public works projects funded by the Recovery Act must comply with the Buy American Act. Essentially, it prohibits, with certain exceptions, the use of stimulus funds for the construction, alteration, maintenance or repair of a public building or work unless all of the iron, steel and manufactured goods used in the project are produced in the United States.
(48) In Customs Ruling HQ HO127620, Country of Origin of a Flashlight and Replacement Part, CBP determined that a military-grade flashlight and a replacement part were of U.S origin for purposes of the "Buy American Act" even though many of the parts were of foreign origin, including the lenses, circuit boards, lens reflectors, rubber gaskets, and plastic bodies.
As of 28 September 2006, the FAR "authorizes an exception to the Buy American Act for acquisitions of information technology that are commercial items." (7) When buying "[i]nformation technology that is a commercial item," (8) "the contracting officer may acquire a foreign end product without regard to the restrictions of the Buy American Act." (9) This is significant, as it opens up more sources of commercial IT to government buyers.
As NASA relies on FPDS-NG, which currently does not track information on subcontracts or Buy American Act exceptions used in foreign purchases, NASA officials stated that they cannot report on this information at this time.
Section 516 states: "More than 50 percent of the components in any end product procured by the Department of Homeland Security that contains components shall be mined, produced, or manufactured inside the United States." Section 516 provides for a waiver to this Buy American requirement under only two circumstances: (1) if any reciprocal procurement memorandum of understanding exists between the United States and a foreign country, pursuant to which the secretary of homeland security has prospectively waived the Buy American Act for certain products in that country; or (2) pursuant to any international agreement to which the United States is a party.
The Berry Amendment to 2004's Defense Federal Acquisition Regulation Supplement and the Buy American Act require the U.S.
The Buy American Act, for instance, encourages the growth and development of American businesses.
In the proposed Section 535 of the Consolidated Appropriations Act of 2004, US federal agencies will be able to purchase IT products and services from other countries, exempting them from the Buy American Act. It also enables agencies to purchase imaging peripherals and other security tools and services from foreign countries.