Whay Law Firm Helps You Understand how the Buy American Act Impacts your Government Contract Bid Proposal in New Mexico
Learn More About TAA & BAA Compliance
Companies regularly engage the Whay Law Firm to assist with understanding the Buy American Act (“BAA”, 41 U.S.C. §§ 8301–8305). Our close proximity to federal buildings in New Mexico and our extensive experience as government contract attorneys lends us an upper hand in helping contractors across the nation comply with government contract regulations. This is a brief overview of the Buy American Act and the exceptions that exist within the BAA itself and elsewhere.
What is the Buy American Act?
The BAA was passed in March 1933 during the height of the depression, and on Herbert Hoover’s final day as President. The BAA requires the US government to favor products made in the United States on purchases in which funds appropriated by or otherwise made available by Congress are utilized, and when the materials are for public use in the United States. Similar requirements extended to third-party purchases, such as contractors’ purchases for highway and other government-funded transit programs.
Determining Country-of-Origin According to the BAA
Country-of-origin procurement requirements vary based on: (1) the buying agency; (2) what is being bought; and (3) the value of the contract. To test if a product can be considered a “domestic end product” the end product must be both:
- Manufactured in the United States
- More than 50 percent of the cost of all the component parts must also be manufactured in the United States.
The exceptions that allow the purchase of a foreign end product are listed at FAR 25.103 and DFARS 225. BAA requirements may be also waived in certain circumstances. Generally, these waivers are granted:
- In favor of public interest (determined by the head of a government agency)
- Non-availability (listed in FAR 25.104 and DFARS 225.104)
- Unreasonable costs, burdening the government if purchased domestically (determined by the Contracting Officer as an unreasonable cost in accordance with FAR 25.105 / Subpart 25.5 and DFARS 225.105 / Subpart 225.5)
- If foreign products are purchased specifically for commissary resale.
- For commercial Information Technology (IT).
Also, the TAA allows the President to waive Buy American Act (“BAA”) requirements for certain goods from designated countries. The BAA is not applicable when procurement is subject to the TAA.
If you are bidding on a state or local New Mexico contract, federal government funds may warrant compliance with BAA and these government agencies may impose additional Buy American Act regulations with which you must comply. The Whay Law Firm’s lawyers will assist you with understanding the implications of the Buy American Act on your New Mexico government contract bid.
