The Biden Administration’s proposal on building materials rules used on federal construction and federally funded state and local buildings would significantly boost the made-in-America mandate.
In the past, products could qualify as domestically made if at least 55% of the value of their components were from the U.S. The administration intends to increase the percentage of value in stages from 55% to 60%, and then to 75%.
Implementing these rules will add complexity to sourcing materials for projects receiving federal funding. For example, a mix between U.S. and Canadian dimensional lumber for a project probably wouldn’t be allowed if the Canadian wood was processed outside the U.S. But domestically manufactured lumber made from Canadian logs would likely be acceptable.
The domestic mandate has raised concerns from construction industry groups. The National Association of Home Builders has urged exemptions for single-family and multifamily affordable housing projects. Kojo, a firm that makes materials management software for contractors, says that restricting the supply base to American-made is likely going to burden contractors who are already having difficulty sourcing materials at reasonable costs.
According to the Biden Administration, the proposed rule directs the following changes to strengthen Buy American requirements:
- “Make Buy American Real” and close loopholes by raising the domestic content threshold. The Buy American statute says products bought with taxpayer dollars must “substantially all” be made in the U.S. However, today, products could qualify if just 55%–just over half—of the value of their component parts was manufactured here. The NPRM proposes an immediate increase of the threshold to 60% and a phased increase to 75%. This proposal would close a problematic loophole in the current regulation, while also allowing businesses time to adjust their supply chains to increase the use of American-made components. If adopted, this change would create more opportunities for small- and medium-sized manufacturers and their employees, including small and disadvantaged enterprises, from all parts of the country. To support this work, the Small Business Administration has created a new manufacturing office in its federal contracting division.
- Strengthens domestic supply chains for critical goods with new price preferences. As the pandemic made clear, supply chain disruptions can impact the health, safety, and livelihoods of Americans—leaving us without access to critical goods during a crisis. Some products are simply too important to our national and economic security to be dependent on foreign sources. The NPRM proposes applying enhanced price preferences to select critical products and components identified by the Critical Supply Chain review, mandated under E.O. 14017, and the pandemic supply chain strategy called for under E.O. 14001. These preferences, once in place, would support the development and expansion of domestic supply chains for critical products by providing a source of stable demand for domestically produced critical products.
- Increases transparency and accountability in Buy American rules. Reporting challenges have hampered implementation of Buy American rules for decades. Currently, contractors only tell the government if they meet the content threshold rather than reporting the total domestic content in their products. The NPRM proposes to establish a reporting requirement for critical products. The new reporting requirement would bolster compliance with the Buy American Act and improve data on the actual U.S. content of goods purchased. More complete and accurate data would be used to target future improvements to support America’s entrepreneurs, farmers, ranchers, and workers— and along the way, create good jobs and resilient communities.
Learn more about the Buy American Rule at Whitehouse.gov.
Related Stories
Codes and Standards | Dec 18, 2023
ASHRAE releases guide on grid interactivity in the decarbonization process
A guide focusing on the critical role of grid interactivity in building decarbonization was recently published by ASHRAE. The Grid-Interactive Buildings for Decarbonization: Design and Operation Resource Guide provides information on maximizing carbon reduction through buildings’ interaction with the electric power grid.
Codes and Standards | Nov 10, 2023
Washington state building codes to protect structures from wildfire provoke controversy
New building codes in Washington state intended to protect structures from wildfires are provoking backlash from builders, cities, and environmentalists. Critics charge that the rules that are scheduled to take effect March 15 are confusing, will increase housing costs, and could cause too many trees to be cut down.
Mass Timber | Oct 27, 2023
Five winners selected for $2 million Mass Timber Competition
Five winners were selected to share a $2 million prize in the 2023 Mass Timber Competition: Building to Net-Zero Carbon. The competition was co-sponsored by the Softwood Lumber Board and USDA Forest Service (USDA) with the intent “to demonstrate mass timber’s applications in architectural design and highlight its significant role in reducing the carbon footprint of the built environment.”
Office Buildings | Sep 28, 2023
Structural engineering solutions for office-to-residential conversion
IMEG's Edwin Dean, Joe Gulden, and Doug Sweeney, share seven key focuses for structural engineers when planning office-to-residential conversions.
Codes and Standards | Sep 25, 2023
Modern codes, construction techniques saved structures in Maui wildfire
Modern building codes and construction techniques were effective in saving buildings from the devastating wildfire in Maui on August 9th, according to a recent report, IBHS Early Insights Lahaina Fire—2023, from the Insurance Institute for Business and Home Safety’s research division.
Data Centers | Sep 15, 2023
Power constraints are restricting data center market growth
There is record global demand for new data centers, but availability of power is hampering market growth. That’s one of the key findings from a new CBRE report: Global Data Center Trends 2023.
Engineers | Sep 15, 2023
NIST investigation of Champlain Towers South collapse indicates no sinkhole
Investigators from the National Institute of Standards and Technology (NIST) say they have found no evidence of underground voids on the site of the Champlain Towers South collapse, according to a new NIST report. The team of investigators have studied the site’s subsurface conditions to determine if sinkholes or excessive settling of the pile foundations might have caused the collapse.
Codes and Standards | Sep 13, 2023
New rule mandates annual parapet inspections for New York City buildings
In November 2021, New York City enacted Local Law 126 of 2021, which is well-known in the building industry for establishing new requirements for periodic parking garage inspections. At the same time, the legislation added a section to the NYC Administrative Code mandating periodic observation of building parapets. To allow owners time to prepare, the City set the start date for the new parapet observations for January 1, 2024.
Office Buildings | Aug 31, 2023
About 11% of U.S. office buildings could be suitable for green office-to-residential conversions
A National Bureau of Economic Research working paper from researchers at New York University and Columbia Business School indicates that about 11% of U.S. office buildings may be suitable for conversion to green multifamily properties.
Vertical Transportation | Aug 17, 2023
Latest version of elevator safety code has more than 100 changes
A new version of ASME A17.1/CSA B44, a safety code for elevators, escalators, and related equipment developed by the American Society of Mechanical Engineers, will be released next month.
