Buy America refers to a set of federal procurement requirements aimed at promoting the use of domestic materials and products in federally funded projects[1]. The Buy America provisions mandate that a certain percentage of the components or materials used in these projects be manufactured or sourced within the United States[2]. These requirements primarily apply to transportation, infrastructure, and construction projects funded by the federal government through agencies such as the Department of Transportation (DOT), Federal Transit Administration (FTA), and Federal Highway Administration (FHWA)[3].

The purpose of the Buy America provisions is to support the U.S. economy, create jobs, and strengthen domestic industries by ensuring that federal funds are spent on American-made goods and services[4]. This, in turn, helps to reduce reliance on foreign suppliers and contributes to the nation's economic growth and security[5].

It is important to note that Buy America is distinct from the Buy American Act[6], which is another set of domestic preference requirements that apply to the procurement of goods for direct use by the federal government[7]. While both Buy America and Buy American share similar goals, they have different scope, applicability, and specific requirements[8].

Under federal procurement law, contractors working on federally funded projects must comply with Buy America provisions[9]. Failure to do so can result in penalties, contract termination, or disqualification from future bidding opportunities[10]. It is crucial for businesses involved in federal procurement to understand and adhere to these domestic content requirements to ensure a successful partnership with the government[11].

[1] Federal Transit Administration. (n.d.). Buy America. U.S. Department of Transportation. https://www.transit.dot.gov/regulations-and-guidance/buy-america/buy-america [2] Ibid. [3] Federal Highway Administration. (n.d.). Buy America. U.S. Department of Transportation. https://www.fhwa.dot.gov/construction/cqit/buyam.cfm [4] Federal Transit Administration. (n.d.). Buy America. U.S. Department of Transportation. https://www.transit.dot.gov/regulations-and-guidance/buy-america/buy-america [5] Ibid. [6] Buy American Act of 1933, 41 U.S.C. §§ 8301–8305. [7] Ibid. [8] Congressional Research Service. (2020). The Buy American Act—Preferences for “Domestic” Supplies: In Brief. https://fas.org/sgp/crs/misc/R43140.pdf [9] Federal Transit Administration. (n.d.). Buy America. U.S. Department of Transportation. https://www.transit.dot.gov/regulations-and-guidance/buy-america/buy-america [10] Ibid. [11] Ibid.