President Trump Strengthens Buy American Requirement for Government Contracting

A Federal Register notice scheduled to be published September 14, 2020, implements President Trump's Executive Order increasing the minimum domestic content required for most government acquistions and increasing the financial incentive for using domestic content.

On July 15, 2019, the President signed E.O. 13881, Maximizing Use of American-Made Goods, Products, and Materials (84 FR 34257, July 18, 2019). This E.O. changes regulkations implementing the Buy American statute by increasing the—

1. Domestic content requirements; and

2. Price preference for domestic products.

Under E.O. 13881, the domestic content requirement for iron and steel end products increases to 95 percent. For everything else, the domestic content requirement increases from 50 percent to exceeds 55 percent of the cost of all components.

The Buy American statute does not prohibit the purchase of foreign end products or use of foreign construction material. Instead, it encourages the use of domestic end products and construction material by imposing a price preference for domestic end products and construction material.The Buy American statute does not prohibit the purchase of foreign end products or use of foreign construction material. Instead, it encourages the use of domestic end products and construction material by imposing a price preference for domestic end products and construction material. E.O. 13881 increases the price preference from 6 percent to 20 percent for large businesses and from 12 percent to 30 percent for small businesses.