July 4, 2017

The 'Buy American' Act

 

ABOUT THE "BUY AMERICAN" ACT

Buy American Act resources:
Included on this page are tools designed to help clarify questions that may arise when quoting jobs requesting information regarding the Buy American act. The information found in the multi-page sales bulletin can be used as a quick resource, but please check back frequently as it will be updated periodically as products become available that meet the necessary requirements. This document can be used as an initial resource for compiling the necessary information but should not be used as the only resource.

If there are any questions, please contact Darren at Darren.Donnelly@SKF.com or
(613) 968-6761.

Buy American sales bulletin (July 2017)
General CSI submittal sheet

Scope of Buy American:
The Buy American statute restricts the purchase of supplies that are not domestic end products. For manufactured end products, the Buy American statute uses a two-part test to define a domestic end product:
(1) The article must be manufactured in the United States; and
(2) The cost of domestic components must exceed 50 percent of the cost of all the components.

Buy American Act
This act typically pertains to direct purchases by the federal government of products or materials or when a federal building or facility is being constructed (such as US highways, federal prisons, etc.). The Domestic Requirement requires that 51% of the components of the final product to be made in the US.

Buy America
This legislation is generally applicable to state and local government projects. This typically involves projects funded by the Federal Transit Authority (FTA). The Domestic Requirement here requires 100% of the components of supplies or onstruction materials to be made in the US.

Definitions
The Buy American Act is federal legislation (BAA - 41 U.S.C. §§ 10a–10d) passed in 1933 by Congress and signed by President Hoover that requires the U.S. government to prefer U.S. made domestic products over foreign goods. Domestic end product means an un-manufactured end product mined or produced in the U.S., if the cost of its components mined, produced, or manufactured in the U.S. exceeds 50% of the cost of all its components.

The Buy American Act is not to be confused with the very similarly named Buy America Act, which came into effect in 1983. The latter, a provision of the Surface Transportation Assistance Act of 1982, is 49 U.S.C., section 5323 (j), and applies only to mass-transit-related procurements valued over US $100,000 and funded at least in part by federal grants.