Buy America Act (BAA) Trade Agreement Act (TAA)

Purpose

Federal government must prefer U.S.-mined, produced, or manufactured goods for use in the United States.

Domestic End Product Test (Two-Part Test)

1. Manufactured in the U.S.

• Product must be completed in the form required for government use within the United States.

• GAO interpretation: manufacturing = final completion happens domestically.

2. Component Cost Requirement

• Domestic components must exceed a set percentage of total component cost.

Component Thresholds

Products NOT predominantly made of iron or steel

• Domestic components > 60% of total component cost.

Products made wholly or predominantly of iron or steel

• Foreign iron/steel must be < 5% of total component cost.

COTS (Commercially Available Off-The-Shelf) Items

• Components test is waived for COTS items.

• Exception: The waiver does NOT apply to products wholly or predominantly made of iron/steel.

When Does the Buy American Act (BAA) Apply?

General Applicability

BAA applies to federal acquisitions over $10,000.