President Joe Biden signed an executive order on January 25, 2021, to push federal agencies to buy more goods made in the USA. The order is titled “Ensuring the Future Is Made in All of America by All of America’s Workers.”
It was published in the Federal Register on January 28 as Executive Order 14005.
What the order does
- It creates a “Made in America Director” post at the Office of Management and Budget. That office reviews agency requests to waive domestic preference rules.
- It requires the General Services Administration to build a public website listing proposed waivers and whether they were granted.
- It gives the Federal Acquisition Regulatory Council 180 days to consider changes to the Federal Acquisition Regulation. These include how domestic content is measured, a higher threshold for domestic content, and a larger price preference for domestic products.
- It asks agencies to use the Manufacturing Extension Partnership to find USA suppliers.
Context
The federal government spends about $600 billion a year on contracts, according to an administration official quoted by Reuters. The official said the goal was to stop contractors from importing mostly foreign-made goods and selling them as USA-made after minor changes.
Under the Buy American Act rules in place at the time, an item had to be manufactured in the USA, and more than 50 percent of its component cost had to be domestic. A Trump-era rule issued on January 19, 2021, had proposed raising that share to 55 percent, and to 95 percent for iron and steel products.
“I don’t buy for one second that the vitality of American manufacturing is a thing of the past.”
President Joe Biden, as quoted by Roll Call
FAQ
What is Executive Order 14005?
A January 25, 2021, order that tightens Buy American rules for federal purchases.
Who reviews waivers?
A new “Made in America Director” at the Office of Management and Budget.
Will waivers be public?
Yes. GSA must post proposed waivers on a public website.
Source & credit
Source: Federal Register, January 28, 2021: Executive Order 14005.
Also: CNBC/Reuters, January 25, 2021: Buy American report; Roll Call: “Biden turns to ‘Buy American’ law”.