Buy American Act

The Buy American Act (BAA) of 1933 requires federal agencies to purchase domestic end products and use domestic construction materials in federal contracts, unless an exception applies. Under the BAA, products must be manufactured in the United States with more than 55% domestic component cost (increased from 50% in 2022 and scheduled to increase further). Exceptions include non-availability of domestic products, unreasonable cost (domestic products priced more than 20-30% higher), public interest waivers, and Trade Agreements Act coverage for qualifying countries. The BAA applies to direct federal purchases but not to purchases below the micro-purchase threshold or contracts performed entirely outside the United States. Contractors must certify compliance with domestic content requirements.