The Buy American Act: Requiring Government Procurements to Come from Domestic Sources

John R. Luckey
Legislative Attorney

The Buy American Act is the major domestic preference statute governing procurement by the federal government. Essentially it attempts to protect domestic labor by providing a preference for American goods in government purchases. Enacted in 1933, it has only been substantively amended four times. In determining what are American goods, the place of mining, production, or manufacture is controlling. The nationality of the contractor is not considered when determining if a product is of domestic origin.

There are five primary exceptions to the Buy American Act. The act does not apply to procurements to which application would be inconsistent with the public interest or unreasonable in cost. The act does not apply to procurements of products for use outside the United States or of products not produced or manufactured in the United States in sufficient and reasonably available commercial quantities and of satisfactory quality. Lastly, the act does not apply to procurements under $3,000.

The Department of Defense is required to report annually on its foreign purchases. In 2007, an additional reporting requirement was added to the Buy American Act. Under P.L. 110-28, the head of each federal agency was required to annually report to Congress concerning procurements from non-domestic sources. This reporting requirement expired at the end of September 2011.

The American Recovery and Reinvestment Act (ARRA; P.L. 111-5) did not amend the Buy American Act. It did, however, include a provision (§ 1605) attaching domestic content considerations to the funds disbursed under the act.


Date of Report: January 11, 2012
Number of Pages: 9
Order Number: 97-765
Price: $19.95

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