Buy American Act(BAA)
A federal law requiring the U.S. government to prefer domestic products and materials in its procurement.
Overview
The Buy American Act (BAA), enacted in 1933, requires the federal government to give preference to domestically produced goods when making purchases. It applies to direct federal procurement of supplies and construction materials, ensuring that taxpayer dollars support American manufacturing and jobs.
Why It Matters in GovCon
If you sell products or materials to the federal government, BAA compliance is not optional — it is a fundamental requirement baked into most solicitations. Failing to meet domestic content thresholds can disqualify your bid entirely. Understanding these rules is critical for manufacturers, distributors, and construction firms.
Key Details
- Domestic End Product: A product must be manufactured in the U.S. and the cost of domestic components must exceed a certain percentage of all components (currently 60%, increasing to 75% by 2029).
- Price Preference: Domestic offers receive a price evaluation preference — typically 20% for large businesses and 30% for small businesses — making them more competitive against foreign alternatives.
- Waivers: Exceptions exist when domestic products are unavailable, unreasonably expensive, or when a public interest determination is made.
- Distinct from Trade Agreements Act (TAA): BAA applies to purchases below certain thresholds; above those thresholds, the TAA governs and allows products from designated countries.
Related Terms
- Federal Acquisition Regulation (FAR)
- Trade Agreements Act (TAA)
- Made in America
More Regulations Terms
A federal law requiring contractors on federally funded construction projects to pay workers prevailing local wages.
The supplement to the FAR that contains acquisition regulations specific to the Department of Defense.
The primary set of rules governing how the federal government purchases goods and services, covering everything from competition requirements to contract administration.
A federal law that gives the public the right to request access to federal agency records, subject to exemptions.
The acquisition regulation that supplements the FAR for the Department of Homeland Security.
U.S. regulations that control the export and import of defense articles, services, and technical data.
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