On October 25, the domestic content threshold requirement for manufactured products and construction materials on direct federal construction projects rose from 55 percent to 60 percent.

On October 25, the Buy American Act domestic content threshold requirement for manufactured products and construction materials on direct federal construction projects (not federally assisted projects, such as federal aid transportation projects) increased from 55 percent to 60 percent. As AGC previously reported, the Federal Acquisition Regulation (FAR) Council issued a final rule expanding the Buy American Act requirements on direct federal construction projects (not federal-aid transportation projects).

The final rule increases to the domestic content threshold requirement to 70 percent by 2024 and then to 75 percent by 2029. The rule also holds that a higher price preference may be identified for critical end products and construction materials. It should be noted that the domestic content threshold requirement does not apply to commercially-available-off-the-shelf (COTS) items unless they include iron or steel. The rule was initiated as a result of President Biden’s Executive Order on Ensuring the Future Is Made in All of America by All of America’s Workers.

White House staff briefed AGC on the direction of the increase and AGC gave feedback to inform the White House. AGC of America continues to share its Construction Inflation Alert, a guide to inform owners, officials, and others about the cost and supply-chain challenges, with DoD and other federal decision makers.

For more information, contact [email protected] or (703) 837-5368. For more information, contact [email protected] or (703) 837-5368.