In an article published in RealClearDefense, Bass, Berry & Sims attorney Richard Arnholt provided insight on the impact of the April executive order highlighting the Trump administration’s intention to renew the focus on sourcing domestic resources and employees for government contracts. The order requires increased enforcement of current “Buy American” laws, which date back to the Depression-era statutes Congress passed in 1933. The Office of Management and Budget (OMB) and the Commerce Department released follow-up guidance in late June requiring all federal agencies to prepare a compliance plan by September 15, 2017.
The order comes at a time when defense supplies are more international than ever before. Defense bidders will be expected to use at least 50% of domestic goods as part of their contract projects. “Given the executive order’s widespread support among labor unions, it is possible that even congressional Democrats could support an effort to enhance the protections afforded to American businesses under the Buy American Act,” said Richard.
The full article, “‘Buy American’ Rules Have Major Implications for Defense,” was published July 13, 2017, by RealClearDefense and is available online.