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Buy American Requirement

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Assignment 3: Buy American Requirements
Vicki Gaston
BUS315: Cost and Price Analysis
Professor Larry Murphy
May 15, 2016

The Buy American Act was established in 1933 by the federal government. According to the website, USLegal, the definition of The Buy American Act is a “federal legislation that requires the United States government to prefer U.S. made domestic products over foreign goods. However, in certain government procurements, the reliance of domestic products may be waived if the domestic product is more expensive than an identical foreign product.” In other word, all federal construction contracts are to be made with U.S. construction material. The purpose of the Buy American Act is to create and protect American made jobs, to increase the purchase of American made products, to protect American manufacturing industries, and American investments. The Subpart 25.2-Buy American-Construction Material website mentions four exceptions to the Buy American requirements that permit foreign material to be used are: If “(1) the material is impractical or inconsistent with the public interest; (2) the material is not available. The head of the contracting activity may determine that a particular construction material is not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities of a satisfactory quality; (3) unreasonable cost. The contracting officer concludes that the cost of domestic construction material is unreasonable in accordance with 25.204; (4) information technology that is a commercial item.”

REFERENCES

Murphy, J. E. (2009) GUIDE TO CONTRACT PRICING. Cost and Price Analysis for Contractors, Subcontractors, and Government Agencies (5th ed., pp 29 and 47). Management Concepts, Inc.

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