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“Buy American” Rule Finalized for Federal Recovery Act Projects – Federally-Assisted Rule to Follow

The Federal Acquisition Regulation Councils have released the final version of the rule governing the Buy American provisions for direct-federal procurements under the Recovery Act. While this rule does not govern the federally-assisted work done through grants and loans (like those administered by the DOT and the SRFs), it does provide a preview of what to expect from those forthcoming regulations. AGC, in its comments on the interim rule, asked that the federal rule and the federally-assisted rules have the closest possible alignment to minimize the burden on contractors, and the government said "the Councils agree and note that the final rule was developed in close coordination with OMB grant officials." The rule does however concede that the two cannot be completely in sync because the Buy American Act of 1933 (which forms the basis of the rule) does not apply to grants, financial assistance, and loans. Furthermore, trade agreements do not apply uniformly. One clarification that AGC expects to be carried into the OMB guidance is the proclamation that in cases where there are mixed Recovery Act and non-Recovery Act funds, and the Recovery funds are not segregated by line item, the law requires the mixed-fund contracts to be treated as if they were entirely funded by the Recovery Act. AGC will continue to watch for the OMB guidance for federally-assisted work and will analyze and disseminate it when it arrives. Click here to read the final rule for federal contractors For more information on the interim rule for federally-assisted work or other AGC analysis on Buy American, visithttp://www.agc.org/buyamerican. For more information, contact Scott Berry at (703) 837-5321 or berrys@agc.org.