XL EagleBuy American Act (Buy American Act (BAA))
Buy American Act stands for Buy American Act (BAA). The Buy American Act is a 1933 law that requires federal agencies to give preference to domestic end products and domestic construction materials. A manufactured product generally counts as domestic if it is made in the United States and the cost of its domestic components meets a minimum percentage.
That domestic content threshold is 65 percent for items delivered from 2024 through 2028 and rises to 75 percent starting in 2029, with special rules for iron and steel. When a foreign product is offered, the agency adds a price penalty to it during evaluation. There are exceptions, and when trade agreements apply, products from designated countries can be treated like domestic ones.
Why it matters to a small contractor
If you supply products or construction materials, you will be asked to certify where they come from. Ask your distributor for the country of origin and keep it in writing. A wrong certification can create serious problems later, even if the price was right.
Example
A small supplier bids on replacement water heaters for a federal building. They confirm with the manufacturer that the units are made in the United States with mostly U.S. components, and certify them as domestic end products.
Buy American Act: common questions
What is the difference between the Buy American Act and the TAA?
The Buy American Act favors U.S. products. The Trade Agreements Act, when it applies to larger buys, allows products from designated countries and bars many others.
Does the Buy American Act apply to services?
No. It applies to supplies and construction materials, not to labor. But materials used on a construction job can be covered.
Want the contract without the paperwork? Send XL Eagle your price on an open government job. We write and submit the bid under our registrations, free to you. Find open jobs →