On January 19, 2021, the domestic content restrictions of the Buy American Act (BAA) were significantly changed via a final rule (Final Rule) issued by the Federal Acquisition Regulation (FAR) Council. The Final Rule stemmed from a July 2019 Executive Order issued by President Trump, titled “Maximizing Use of American-Made Goods, Products, and Materials,” which sought to overhaul domestic content restrictions associated with federal procurement subject to the BAA.
It is more important than ever for government contractors subject to the BAA to understand the Final Rule’s updated requirements, especially as the Biden Administration turns its attention to further tightening the BAA’s restrictions. Soon after the publication of the Final Rule, President Biden issued another BAA-focused Executive Order that may result in even further significant revisions to the contours of the BAA. This alert will first outline the three key changes to the BAA that went into effect in January 2021, and will follow with an analysis of the potential impact of President Biden’s 2021 BAA mandates for the FAR Council.
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