Federal Manager's Daily Report

Rules that would affect agency procurement practices have been proposed under the administration’s Buy American initiative, including immediately raising the threshold for domestic content for certain products from 55 to 60 percent and phasing that requirement up to 75 percent.

“With $600 billion in annual procurement spending, almost half of which is in manufactured products from helicopter blades to trucks to office furniture, the federal government is a major buyer in a number of markets for goods and services, including the single largest purchaser of consumer goods in the world,” said a White House statement.

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The notice of proposed rulemaking also would apply enhanced price preferences to select critical products and components identified by the critical supply chain review, and require more detailed reporting by suppliers of the content of their products.

The notice is the latest step in carrying out an executive order issued early after Biden took office that established a Made in America Office in OMB to oversee related procurement policies including granting of waivers from general requirements.

The statement also cited steps under the initiative already taken by individual agencies including the Energy Department’s procurement of electric vehicles manufactured in the U.S. or whose batteries were produced at U.S. facilities; and the GSA’s procurement of energy efficient technologies for federal buildings through U.S. small businesses.

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