The Buy American Act

The Buy American Act (BAA) was enacted during the Depression in 1933 to encourage the federal government to buy from American companies. To qualify as a domestic product the manufactured product must meet two requirements. First the end product must be manufactured I’m the United States, and second, the end product must be made of substantially all U.S. sourced components. This percentage threshold has increased to 65%. Some companies are following the new Buy America preferences, while others may need to make significant adjustments to their supply chain and domestic manufacturing processes to meet the stringent “produced in the U.S.” requirements.