Disclaimer: The content on this page does not constitute professional financial guidance. Details/requirements may change based on additional guidance from the Federal Acquisition Regulatory Council. This page should not be used as the only source of information when making purchasing decisions, investment decisions, or when executing other binding agreements. Agencies should consult with their General Counsel prior to developing a project to confirm product eligibility and details.
The Buy American Act (BAA) directs federal agencies to prioritize American-made products in federal government procurements. The goals are to strengthen national security, promote domestic manufacturing, and support American jobs.
Procurement teams must follow BAA requirements (41 U.S.C. §§ 8301–8305) and associated implementing Federal Acquisition Regulations (FAR) to preferentially source American-made products, which are manufactured in the United States and, in some cases, composed of domestic materials as a percentage of cost.
Note: Reference recent FAR Council rulings for updates, as this regulatory landscape continues to evolve.
Domestic Preference Laws Governing Federal Procurement—How They Compare
The BAA is one of several laws that require U.S.-made products to be used in federally funded projects. Table 1 breaks down the key differences among these statutes, which are known as domestic preference laws.
Table 1. Overview of Domestic Preference Laws
| Law/Regulation | Purpose/Application |
|---|---|
| Buy American Act (BAA) (41 U.S.C. §§ 8301–8305) | A group of laws mandating that materials used for projects that are funded or financed by federal grants and loans be sourced domestically. |
| Buy America Sourcing Requirements (BAA Part I) | Applies to federal agency procurements undertaken with federal funds for supplies or construction projects intended for public use. |
| Build America, Buy America (BABA) | Part of the Infrastructure Investment and Jobs Act (2021); applies to materials and products used in federal grant recipients’ projects—not agencies’ procurements. |
| Trade Agreements Act (TAA) (19 U.S.C. § 2501-2581) | Gives preference to designated trading partners but has exceptions and dollar amount thresholds that often lead to use of BAA. Under TAA-governed contracts, a product from a World Trade Organization ally country does not take priority over an American-made item; both are considered compliant. |
| Federal Acquisition Regulation (FAR) Final Rule (2021-008) | Strengthens BAA rules to increase use of domestic end products and construction materials in federal agency procurements. |
| Berry Amendment (10 U.S.C. § 4862) The core clauses that cover implementation are Defense Federal Acquisition Regulation Supplement 252-7002 (1-2). | Part of the National Defense Authorization Act; requires the U.S. Department of Defense to procure certain items (like textiles and food) domestically. Does not apply to most commercial items, construction materials, or products substantially of iron and steel. |
Learn how federal contracting officers determine whether and how to apply the BAA to federal contracts procuring products and services for their projects.