The Buy American statute requires federal agencies to apply a price preference for domestic end products for contracts performed in the United States. Exceptions that DoD uses are as follows:
The Buy American statute does not apply to procurement below the micro-purchase threshold, or if the product will be used outside of the United States.
In addition, some of the restrictions may be waived pursuant to the Trade Agreements Act of 1979. Subject to the thresholds at Federal Acquisition Regulation (FAR) 25.402 and applicability at Defense Federal Acquisition Regulation Supplement (DFARS) 225.401-70, end products imported from a country that has a trade agreement with the United States are treated as domestic products. This includes countries that have signed the World Trade Organization (WTO) Agreement on Government Procurement (GPA), are signatories to the United States-Mexico-Canada Agreement or Free Trade Agreement, or have otherwise been designated by the President.
Further, for DoD, the The Buy American statute is waived in cases where DoD has a bilateral RDP agreement with a qualifying country. In these cases, the Secretary of Defense has signed a blanket public interest waiver applicable to 28 countries (DFARS 225.003, Definitions).
Summary of Buy American Statute Exceptions and Waivers
|Exceptions||Does not apply||Waivers|