GSA and DOD Announce New Buy American Rule
On March 1, 2022, in his first State of the Union address, President Joe Biden pledged that the United States government would “buy American” when spending federal money on infrastructure and other procurements. To reach that goal, the General Services Administration and Department of Defense announced a rule on March 7 that changes federal rules around procurement to require more federal spending aimed toward American business.
The principal change in the law surrounds how much of federal products need to be made in the United States to be considered American. Before, products are considered made in America by federal procurement standards if 55% of their component parts are made in the United States. Under Biden’s change, products must consist of 75% American component parts to meet the threshold.
Additionally, the Small Business Administration has created a new office designed to help small businesses “access Federal contracts, financing, and business development support.” The office will be housed in the federal contracting division.