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Biden to sign executive order raising federal contractors minimum wage to $15 an hour
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FAR Council s Key Buy American Act Changes for Gov t Contractors
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[Webinar] The First 100 Days: Deciphering Key Provisions in the Buy American Act for Government Contractors - April 27th, 2:00 pm - 3:00 pm ET | PilieroMazza PLLC
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The United States Government is the world’s biggest single buyer, spending approximately $600 billion a year on purchases. Since 1933, with the passage of the Buy American Act, the federal government has, with varied degrees of success, attempted to eliminate or at least significantly reduce, purchase of foreign products and construction materials.
On January 25, 2021, by signing an executive order (“Order”) that strengthens the Buy American Act provisions, President Biden became the latest American president to target the use of foreign products and materials in federally-funded projects.
The final impact of the Order is still unknown, but it is expected that it will significantly reduce the purchase of foreign-made end products and construction materials by federal and state governments.
Brent is a senior fellow for naval warfare and advanced technology at The Heritage Foundation. U.S. President Joe Biden holds a semiconductor during his remarks before signing an Executive Order on the economy on February 24, 2021 in Washington, D.C. Doug Mills / Pool / Getty Images
Key Takeaways
Today the United States relies on other foreign-sourced strategic materials that will have to be secured in times of crisis or conflict.
Failure to manage the supply of these critical components can bring an entire industry to a standstill as is playing out today in the auto industry.
While the U.S. government has come to realize in recent years the danger posed to the defense supply chain, more is needed.