President Trump signed Executive Order 13881, “Maximizing Use of American-Made Goods, Products, and Materials,” on July 15, 2019, at the White House’s third annual Made in America Product Showcase. The order calls for stricter domestic content rules under the Buy American Act.
What the order directs
Within 180 days, the Federal Acquisition Regulatory Council was to consider proposing rules that would:
- Iron and steel: Treat iron and steel end products as foreign if foreign iron and steel make up 5% or more of the cost of their components. That means a 95% USA content requirement.
- Other products: Treat other end products as foreign if foreign content reaches 45% or more of component cost. That raises the domestic content bar from 50% to 55%.
- Price preferences: Add 20% to the price of foreign offers from large businesses and 30% for small businesses when agencies compare bids.
The Associated Press reported that Trump said the order would gradually raise the USA component threshold for qualifying products to 75%. “If we can build it, grow it or make it in the United States, we will,” he said.
What came next
The FAR Council issued a final rule on January 19, 2021. It set the 95% threshold for iron and steel and 55% for other products, and raised the price preferences to 20% and 30%. A week later, Executive Order 14005 superseded EO 13881, covered in our January 2021 post.
FAQ
When was the order signed?
July 15, 2019. It was published in the Federal Register on July 18, 2019.
What threshold did it set for iron and steel?
It directed rules treating iron and steel products as foreign if foreign iron and steel make up 5% or more of component cost.
Is the order still in effect?
No. Executive Order 14005 superseded it in January 2021.
Source & credit
Source: Federal Register, July 18, 2019: Executive Order 13881.
Also: Associated Press via Chicago Tribune, July 15, 2019: report; Federal Register, January 19, 2021: FAR final rule.