Buy American Act
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The Buy American Act was a piece of United States federal legislation passed in 1933 that mandates preference for the purchase of domestically produced goods over foreign goods in U.S. government procurement. The President has the authority to waive the Buy American Act within the terms of a reciprocal agreement or otherwise in response to the provision of reciprocal treatment to U.S. producers. Under the 1979 GATT Government Procurement Code, the U.S.-Israel Free Trade Agreement, the U.S.-Canada Free Trade Agreement, and the WTO Agreement on Government Procurement, the United States provides access to the government procurement of certain U.S. agencies for goods from the other parties to those agreements. Other "buy-national" legislative provisions exist separately from the Buy American Act requirements.
The Act requires that a product be manufactured in the U.S. of more than 50 percent U.S. parts to be considered Made in USA for government procurement purposes.
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On certain government requirements, the purchase order will be awarded to the domestic firm given that the price does not succeed a certain percentage (usually 6%) of the price offered by the foreign supplier.
