Increases domestic content preferences on federal construction projects
On July 29, a prosed rule was released to amend to the FAR to add Buy American Act Requirements. The proposed rule increases the domestic content required to 60% with increases in two years to 70% and then 75% in five years. It permits acceptance of products and construction materials up to 6 years after publication of the rule which are unavailable at an acceptable cost. It also states that a higher price preference may be identified for critical end products and construction materials. However, the new requirements will not apply to Commercially Off The Shelf (COTS) items. A virtual public meeting will be held on August 26 from 9:00 AM – 12:00 PM Eastern. Comments are due in roughly 60 days.
The rule was initiated based on President Biden’s Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers. That executive order directs the Federal Acquisition Regulatory (FAR) Council to consider proposing for notice and public comment amendments to the Federal Acquisition Regulation to promote enforcement of the Buy American Act of 1933. Shortly after this Executive Order was signed the White House staff briefed AGC on the direction of proposed rulemaking and AGC gave feedback to inform the FAR Council’s process. AGC will comment on this proposed rule and continue to advocate for the construction industry to ensure that policy makers are well informed about the uniqueness of construction.
For more information, contact jordan.howard@agc.org or (703) 837-5368.