Quizzard: The Buy American Act Mr. Quizzard asked if a base officials insistence on replacing Canadian manufactured pipe under the Buy American Act was proper. In the particular case cited it wasnt. Why? Because the officials insistence was contrary to established international agreements. Heres some principles to keep in mind: Commercial items purchased by DoD are generally covered by the Trade Agreements Act (TAA) and subject to the World Trade Associations Government Purchase Agreements (GPAs). Canada is covered by the TAA, as well as by DoD MOUs (Memoranda of Understanding). Even under the Recovery Act, which was in effect at the time of project, replacement of the pipe wouldnt necessarily have been required. So the base official exceeded his authority, and may have simply been unacquainted with the Buy American Act requirements and influenced by misguided “Buy American” fervor. Nonetheless, the prime contractor complied rather than fighting the order, and likely didnt understand the Buy American Act either. The lesson? Know the requirements to which you are subject, and if in doubt, seek competent legal counsel. IS the BAA applicable to state and local contracts? The answer is it depends. In some cases state purchases (but not municipal) are subject to the WTO GPAs. There has also been cases where the courts have said states may require American made goods, and others where they said they couldnt. The prudent contractor would want to check before complying with any domestic purchase requirement. Your local AGC can help!
Posted on: Tue, 11 Nov 2014 17:30:31 +0000
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