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On Jan. 25, 2021, President Joseph R. Biden signed an executive order aimed at strengthening “Buy American” rules to increase the federal government’s procurement of American-made goods.
According to the White House, this order makes several significant changes to the implementation of the laws requiring federal government agencies to procure materials and products domestically.
The order aims to increase domestic content requirements and close existing loopholes upon which many government contractors currently rely. To accomplish this, the order instructs the Federal Acquisition Regulatory Council to amend the FAR to (1) replace the “component test” in Part 25 of the FAR that is used to identify domestic end products; (2) increase the numerical threshold for domestic content requirements for products; and (3) increase the price preferences for domestic end products. It also updates how agencies decide if a pr
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Articulates Administration Policy And Creates New Made In America Office To Review Proposed Waivers Of “Made In America Laws”
On January 25, 2021, President Joseph R. Biden Jr. signed an Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers (the “Made-in-America E.O.”). According to the White House, the Made-in-America E.O. “directs a process for updating domestic preferences to fit the current realities of the American economy” and is designed to ensure “that when the federal government spends taxpayer dollars, they are spent on American made goods by American workers and with American-made component parts.” In remarks at the signing ceremony, President Biden stated that the Executive Order is designed to “get to the core issue with a centralized, coordinated effort.”
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:
Section 1. Policy. It is the policy of my Administration that the United States Government should, consistent with applicable law, use terms and conditions of Federal financial assistance awards and Federal procurements to maximize the use of goods, products, and materials produced in, and services offered in, the United States. The United States Government should, whenever possible, procure goods, products, materials, and services from sources that will help American businesses compete in strategic industries and help America’s workers thrive. Additionally, to promote an accountable and transparent procurement policy, each agency should vest waiver issuance authority in senior agency leadership, where appropriate and consistent with applicable law.
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