More State 'Buy American' Laws Proposed

AGC is getting additional reports from multiple chapters across the country that state legislatures are considering establishing or strengthening their state government procurement laws regarding domestic sourcing. Many of these efforts would restrict access to well-established global supply chains and increase the administrative burden on contractors. To certify that products and materials used in the construction process meet requirements, it will often necessitate manufacturer certifications that are difficult or impossible to procure. This is compounded when Buy American legislation defines domestic sourcing in widely varying manners, making it confusing and difficult to comply with. Contractors who work across state lines will have an especially difficult time establishing a supply chain that meets each state’s different requirements. Additionally, these bills may leave the well-established waiver provisions of the federal Buy American laws off the table and currently do not grant access to products from countries we have trade agreements with, as is customary at the federal level. Chapters facing these law changes can look at AGC’s Buy American website for information on how these laws worked (or didn’t) during the American Recovery and Reinvestment Act (ARRA). AGC also maintains a database of all waivers granted for products that were not in compliance, which highlights exactly how the process was slowed to accommodate domestic sourcing laws and provides examples of products that would be unlikely to meet proposed laws. AGC will continue to assist chapters in analyzing their laws and helping them develop strategies where required. For more information, please contact Scott Berry at (703) 837-5321 or berrys@agc.org.