New Buy American Rule Released for Public Comment

On July 29, the Federal Acquisition Regulation (FAR) Council issued a proposed rule to add and expand Buy American Act requirements on direct federal construction projects (not federal-aid transportation projects). The proposed rule increases the domestic content required to 60% with increases in two years to 70% and then 75% in five years. It permits acceptance of products and construction materials up to six years after publication of the rule which are unavailable at an acceptable cost. It also states that a higher price preference may be identified for critical end products and construction materials. The rule was initiated as a result of President Biden’s Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers.  White House staff briefed AGC on the direction of the proposed rulemaking and AGC gave feedback to inform the FAR Council’s process. AGC will provide feedback on how this rule should not exacerbate continuing construction material shortages and price spikes.

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