Domestic Preference Program

The federal domestic preference program is the collective framework of statutes, regulations, and executive orders requiring or favoring the purchase of American-made goods and materials in federal procurement, with the Buy American Act as the central pillar.

What is the Federal Domestic Preference Program?

The domestic preference framework encompasses several distinct but related authorities:

Buy American Act (41 U.S.C. §§ 8301-8305): Applies to direct federal purchases of goods. Requires that end products (and for construction, construction materials) be manufactured in the United States and meet domestic content thresholds (rising to 75 percent by 2029 under E.O. 14005 rulemaking). Implemented in FAR Part 25.

Buy America provisions (23 U.S.C. § 313, 49 U.S.C. § 5323): Apply to federally-funded infrastructure (highways, transit, airports). Require that steel, iron, and manufactured products used in federally-assisted projects be produced in the United States. Distinct from the Buy American Act and administered by modal agencies (FHWA, FTA, FAA).

Infrastructure Investment and Jobs Act (IIJA) domestic content requirements: The 2021 infrastructure law strengthened Buy America requirements for all federal financial assistance programs, extending domestic content requirements to new categories of infrastructure investment.

Berry Amendment (10 U.S.C. § 4862): Requires DoD to buy certain items (textiles, apparel, food, hand tools, measuring tools) entirely from domestic sources, with limited exceptions.

Trade Agreements Act (TAA): Waives Buy American Act restrictions for purchases above the Trade Agreements Act threshold for products from countries that have qualifying trade agreements with the U.S. (under the WTO GPA or bilateral FTAs). Below the TAA threshold, Buy American Act preferences apply to all sources including trade agreement countries.

Why the Domestic Preference Program matters for government contractors

Product suppliers and construction contractors must understand which domestic preference authority applies to their specific procurement - the Buy American Act for direct federal purchases, Buy America for federally-assisted infrastructure, or the Berry Amendment for DoD-specific items. Each has different domestic content standards, waiver procedures, and compliance documentation requirements.

Example

A manufacturer supplies both direct federal procurement contracts (subject to the Buy American Act) and state DOT highway contracts funded with federal transportation grants (subject to FHWA's Buy America requirements). The manufacturer must track compliance separately: Buy American Act domestic content for direct federal contracts and FHWA Buy America documentation (steel and iron mill test reports and certifications) for highway projects. The two programs have different thresholds, waiver procedures, and agency contacts.

Frequently Asked Questions

What is the difference between "Buy American" and "Buy America"?

These are two distinct statutory programs. "Buy American Act" (BAA) applies to direct federal purchases of goods. "Buy America" (without "Act") applies to federally assisted infrastructure projects funded through grants to states and localities. They have different domestic content standards, waiver procedures, and administering agencies, and the terms are not interchangeable.

How do contractors obtain waivers from domestic preference requirements?

Buy American Act waivers are requested through the contracting officer and, for significant waivers, reviewed by the Made in America Office. Common grounds are non-availability (no domestic source exists), unreasonable price (domestic cost is unreasonable), and public interest (waiver is in the national interest). Buy America waivers for infrastructure grants are processed by the modal agency and FTA/FHWA.

Does the domestic preference program apply to services?

The Buy American Act applies to goods, not services. Service contracts are not subject to BAA domestic content requirements. However, some service contracts with a product component (a construction contract that also procures steel, for example) apply domestic preference to the product component while the service work itself is not restricted by source.

Are there specific reporting requirements for domestic preference compliance?

Contractors must certify compliance with applicable domestic preference requirements, either through FAR certifications in SAM.gov or contract-specific representations. For construction and infrastructure, contractors typically must submit mill certificates and certificates of compliance for steel and iron products. For direct federal supply contracts, product origin representations are made at the contract level.