Overview of the 'Buy American' Requirement for Foreign Contractors

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Buy American Requirements There are various provisions and conditions that contractors willing to work in the USA must comply with. Some of those requirements are covered in the "Buy American" requirements that each contractor has to comply with in order to continue getting jobs that are sponsored by American Recovery and Reinvestment Act (ARRA). The contracts that involve construction, alteration, maintenance or even repair of the public buildings must source the materials like steel, iron and any other manufactured goods from the American manufacturers. The contractors taking up these jobs must also adhere to the Buy America Act (BAA). This requires all the contractors executing federal procurement contracts to use domestic construction materials in their construction work. However, the ARRA rule does not consider in its definition the source of the material used to manufacture the goods to be used in the construction. The ARRA concentrates on whether the manufacture of these goods to be used in the construction is done within the USA or not. Indeed the provisions of ARRA allow the external sourcing of such materials as long as the manufacturing takes place within the USA. This is a less strict policy than the BAA which requires that there must be more than 50% of the cost of a product that is manufactured, mined or produced in the USA coming from the USA. ARRA also excludes unmanufactured materials and these remain to be covered within the BAA (Gail D. Zirkelbach,

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