On 25 January, President Biden issued a “Made in All of America by All of America’s Workers” executive order. (Government Executive, February 24, 2021)
Before the executive order takes effect:
- New rules mandating the executive order must go through the formal rule-making process
- Within 180 days, the Federal Acquisition Regulatory Council should consider replacing the “component test” (50 percent of a product’s cost must have a domestic origin)
- The threshold for domestic content requirements for construction materials and end products will be increased, as well price preferences for domestic construction materials and end products
The order directs the FAR Council to assess exceptions from the Act for commercial information technology (IT). Recommendations will likely influence solution strategies. A Made in America office within the Office of Management and Budget (OMB) will be created, which will review waivers to purchase goods from outside the United States. Additionally, the Order mandates a list of actions to be performed within 45 days of the office director’s appointment. (ibid)
Biden’s EO also proposes that GSA create a public website for proposed waivers. Justification for all waivers will be publicly available, giving competitors the ability to weigh-in on waiver requests, likely diminishing the issuance of waivers. Contractors should consider this when determining their sourcing approach. (ibid)
Questions concerning your current as well as future government contracts and how the new order will affect them? Give us a call.