The Whay Law Firm, BAA Compliance Law Firm, Assists Government Contractors in Hawaii

Learn More About TAA & BAA Compliance

The Buy American Act (BAA) and supporting procedures include complex exceptions and product manufacturing rules. Businesses risk penalty damages and serious financial loss if a product procured for a contract subject to the BAA is determined to be non-compliant. Also, projects can result in lower margins if the business over-certifies. The Whay Law Firm focuses entirely on government contract law and assists Hawaii businesses in determining product compliance with the Buy American Act and related Hawaii state or local regulations.

How BAA Exceptions Affect Hawaii Government Contractors

The BAA (41 U.S.C. §§ 8301–8305) was passed into law in 1933. It established a general preference by the U.S. Government in acquiring materials manufactured in the United States when procuring the materials for public use. Contractors, sub-contractors and 3rd parties involved in a contract subject to BAA regulations and procedures must prove compliance.

There are exceptions to the BAA. Three common exceptions are known the Trade Agreements Act (TAA), Price Reasonableness, and Department of Defense (DoD) contracts.

• TAA: The President may waive BAA requirements for certain materials from designated countries. BAA requirements are generally satisfied if procured products are subject to and compliant with the Trade Agreements Act requirements.
• Price Reasonableness: When the U.S.-made product is significantly more expensive than a similar foreign product and other conditions are met under Price Reasonableness, the agency may be permitted to purchase the foreign product. Other conditions may be based, for example, on the size of the contracting business. Small businesses may have different requirements than large businesses.
• DoD procurements are subject to significantly different requirements than civilian agencies. For example, DoD procurements may require that 50% of the component costs of end products be from the United States or a Qualifying Country.

Each is managed differently, and applying these exceptions may not preclude other exceptions or case law from applying to the prime contract/solicitation.

Engage The Whay Law Firm To Assist With Government Contracts in Hawaii

Companies in Hawaii may run the risk of over-certifying or under-complying when bidding on a government contract. It takes the extensive legal experience of a full-service law firm to authenticate the specific product for a specific RFP. After providing us with specific manufacturing and other product details, we will analyze the product components and parts, review the relevant FAR clauses included in the prime contract/solicitation and assess all applicable exceptions to the BAA. Contact us today.