Buy American Act Compliance
A comprehensive overview of the Buy American Act, including requirements, certifications, and exceptions. Explore how to ensure products are made in the USA and meet federal government contract standards.
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Presentation Transcript
Understanding Buy American Presentation Title Goes Here Feb 2011
I need a letter stating that the fiber, patch panels etc. everything on the quote is made in the US. I need a statement on OCC letter head that these products are made in America. The distributor specified that the requirement is for the cable to be made in America. There is no requirement for where the materials came from. I have a new requirement for a letter that states we are 100% made in America or at the very least we adhere to the made in America act I have a customer that is requiring documentation that the following cables are Made in the USA before they issue a PO. They need a letter from you stating that the part numbers I m requesting are made in America. Can you please Provide that? Actual Requests Simple, Right? 2
Some Similar But Different Terms Buy American Act Buy America Act ARRA Section 1605 Buy American Clause Made In USA Country of Origin Domestic End Product 3
Is it Made In USA? A marketing term not usually seen in contract language Usually not sufficient for a certification Find out the real certification requirement FTC language is somewhat vague on what it means and open to interpretation 4
Buy American Act Buy American FARs and DFARs Part of the Federal Acquisition Regulations System (FAR), Part 52, Subpart 2, Section 25, identified as FAR 52.225 Used on many federal contracts often with flow-down to suppliers Amendments, treaties, and trade agreements create a complicated list of exceptions 5
Buy American Act Buy American Act requires or creates a preference for "domestic end products" on U.S. federal government contracts, including: Manufactured products in which: The product is manufactured in the USA, and The cost of its U.S. components exceeds 50% of the cost of all components of the item Excludes components of certain COTS items 6
Buy American Act for COTS Items The component test is waived for a COTS item manufactured in the US if it is: A commercial item (as defined in FAR 2.101), and Sold in substantial quantities in the commercial marketplace, and Offered to the Government under a contract or subcontract, without modification, in the same form in which it is sold in the commercial marketplace (GSA, IDIQ, etc.) 7
Buy America Act, AAFI Act Buy America (no n) Act is applied to transit-related procurements grants Federal Transit Authority (FTA) Federal Highway Administration (FHWA) Airport and Airways Facilities Improvement Act grants administered by the FAA Both Acts require specific % content of certain construction supplies Not often used for our product sets 8
ARRA Section 1605 Buy American American Recovery and Reinvestment Act of 2009 (the Stimulus Bill) requires use of domestic end products Used on current infrastructure projects Domestic manufactured goods may contain materials from another country if: Substantially transformed in the US into new and different goods distinct from the materials from which it was transformed 9
Qualifies as substantial transformation: Yes to Q 1, or Yes to any of Q 2a, 2b, 2c, or Yes to at least two of Q 3a, 3b, 3c, 3d, 3e Most OCC products qualify! 11
ARRA Buy American Certification A few OCC products may not pass the ARRA substantial transformation test, so if certification is needed always ask before ordering Often customers do not request certification until after the product is shipped or installed! So be on the lookout for typical ARRA Certs candidates and ask if it might be needed: Water Projects: WTP, WWTP, Dams BTOP-Broadband Technology Opportunities Program Transportation: Mass Transit, Traffic Control, Airports 13
Look for ARRA Clues Is this order a candidate for ARRA Certification? 14
How Requests are Handled Buy American Act representations are handled just like any other special Terms and Conditions during the bid process Certification to ARRA Section 1605 Buy American are handled like any other customer requested Certification Appropriate company resources are assigned to each T&C or Certification as needed 15
Summary Things you can do to help: Provide basic information: Quote or order? Shipped yet? Installed yet? Part number? Order number? Ask for specific contract flow-down requirements Always alert Manufacturing before items are made Allow QC to keep a record of all customer certifications Arriving at correct answers can sometimes be complicated, requiring advice from outside experts which can take time, so please help manage our customer s expectations 16
