Buy America Act v. Buy American Act

Winning a government contract is great but that’s when the hard work begins. Working for government entities means detailed regulations and the purchase of materials to fulfill the contract is no exception. We have to understand the fine print.

Two of the most commonly confused sets of regulations are those of the Buy America and the Buy American Acts. Even their names are almost identical. But, mistaking one requirement for the other can result in contract termination, suspension, and much more – that’s why it’s important to understand the differences.

Below is a guide to help clear the air around these two government regulations.

Buy America Act

The Buy America Act is applicable to state and local government jobs since they are funded through the FTA – Federal Transit Authority. When that is the case the following is applicable:

• Domestic Requirement – 100% of supplies and material must be made in the USA.
• Cost Based Waiver – Domestic must cost more than 25% of foreign materials.
• Price Premium – 25% price premium IF domestic requirement is not met

Buy American Act

The Buy American Act is applicable when the government is directly purchasing products/materials OR a federal project is being worked on – highways, government building, etc. When that is the case the following is applicable:

• Domestic Requirement – 51% of the final components must be made in the USA.
• Cost Based Waiver – Cost of domestic material must be 6% (12% for small business) more than foreign materials.
• Price Premium – 6% price premium added IF domestic requirement not met.

To recap Buy American = 51% domestic materials, Buy America = 100% domestic materials.

For More Information, Contact Us

For more information on how to source domestic product, look no further than Allfasteners. We’ve been sourcing US made jobs for decades – don’t believe us, check out our made in the USA timeline.

To get the required domestic products for your job, call us at 888.859.6060 or send us an email – we’ll be glad to help.