Maximizing Use of American-Made Goods, Products, and Materials

[Federal Register Volume 84, Number 138 (Thursday, July 18, 2019)]

[Presidential Documents]

[Pages 34257-34259]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 2019-15449]

Presidential Documents

Federal Register / Vol. 84, No. 138 / Thursday, July 18, 2019 /

Presidential Documents

[[Page 34257]]

Executive Order 13881 of July 15, 2019

Maximizing Use of American-Made Goods, Products,

and Materials

By the authority vested in me as President by the

Constitution and the laws of the United States of

America, and to promote the principles underlying the

Buy American Act of 1933 (41 U.S.C. 8301-8305), it is

hereby ordered as follows:

Section 1. Policy. (a) As expressed in Executive Order

13788 of April 18, 2017 (Buy American and Hire

American), and in Executive Order 13858 of January 31,

2019 (Strengthening Buy-American Preferences for

Infrastructure Projects), it is the policy of the

United States to buy American and to maximize,

consistent with law, the use of goods, products, and

materials produced in the United States. To those ends,

my Administration shall enforce the Buy American Act to

the greatest extent permitted by law.

Infrastructure Projects), it is the policy of the

United States to buy American and to maximize,

consistent with law, the use of goods, products, and

materials produced in the United States. To those ends,

my Administration shall enforce the Buy American Act to

the greatest extent permitted by law.

(b) In Executive Order 10582 of December 17, 1954

(Prescribing Uniform Procedures for Certain

Determinations Under the Buy-American Act), President

Eisenhower established that materials shall be, for

purposes of the Buy American Act, considered of foreign

origin if the cost of the foreign products used in such

materials constitutes 50 percent or more of the cost of

all the products used in such materials. He also

established that, in determining whether the bid or

offered price of materials of domestic origin is

unreasonable or inconsistent with the public interest,

the executive agencies shall either (1) add 6 percent

to the total bid or offered price of materials of

foreign origin, or (2) add 10 percent to the total bid

or offered price of materials of foreign origin less

certain specified costs as follows. Where the foreign

bid or offer is less than $25,000, applicable duty is

excluded from the calculation. Where the foreign bid or

offer is more than $25,000, both applicable duty, and

all costs incurred after arrival in the United States,

are excluded from the calculation.

certain specified costs as follows. Where the foreign

bid or offer is less than $25,000, applicable duty is

excluded from the calculation. Where the foreign bid or

offer is more than $25,000, both applicable duty, and

all costs incurred after arrival in the United States,

are excluded from the calculation.

(c) The policies described in section 1(b) of this

order were adopted by the Federal Acquisition

Regulatory Council (FAR Council) in the Federal

Acquisition Regulation (FAR), title 48, Code of Federal

Regulations. The FAR should be reviewed and revised, as

appropriate, to most effectively carry out the goals of

the Buy American Act and my Administration's policy of

enforcing the Buy American Act to its maximum lawful

extent. I therefore direct the members of the FAR

Council to consider measures that may better effectuate

this policy.

Sec. 2. Proposed Rules. (a) Within 180 days of the date

of this order, the FAR Council shall consider proposing

for notice and public comment:

(i) an amendment to the applicable provisions in the FAR that would provide

that materials shall be considered to be of foreign origin if:

[[Page 34258]]

(A) for iron and steel end products, the cost of foreign iron and steel

used in such iron and steel end products constitutes 5 percent or more of

the cost of all the products used in such iron and steel end products; or

(B) for all other end products, the cost of the foreign products used in

such end products constitutes 45 percent or more of the cost of all the

products used in such end products; and

n and steel end products, the cost of foreign iron and steel

used in such iron and steel end products constitutes 5 percent or more of

the cost of all the products used in such iron and steel end products; or

(B) for all other end products, the cost of the foreign products used in

such end products constitutes 45 percent or more of the cost of all the

products used in such end products; and

(ii) an amendment to the applicable provisions in the FAR that would

provide that the executive agency concerned shall in each instance conduct

the reasonableness and public interest determination referred to in

sections 8302 and 8303 of title 41, United States Code, on the basis of the

following-described differential formula, subject to the terms thereof: the

sum determined by computing 20 percent (for other than small businesses),

or 30 percent (for small businesses), of the offer or offered price of

materials of foreign origin.

(b) The FAR Council shall consider and evaluate

public comments on any regulations proposed pursuant to

section 2(a) of this order and shall promptly issue a

final rule, if appropriate and consistent with

applicable law and the national security interests of

the United States. The head of each executive agency

shall issue such regulations as may be necessary to

ensure that agency procurement practices conform to the

provisions of any final rule issued pursuant to this

order.

Sec. 3. Effect on Executive Order 10582. Executive

Order 10582 is superseded to the extent that it is

inconsistent with this order. Upon the issuance of a

final rule pursuant to section 2 of this order,

subsections 2(a) and 2(c) of Executive Order 10582 are

revoked.

to this

order.

Sec. 3. Effect on Executive Order 10582. Executive

Order 10582 is superseded to the extent that it is

inconsistent with this order. Upon the issuance of a

final rule pursuant to section 2 of this order,

subsections 2(a) and 2(c) of Executive Order 10582 are

revoked.

Sec. 4. Additional Actions. Within 180 days of the date

of this order, the Secretary of Commerce and the

Director of the Office of Management and Budget shall,

in consultation with the FAR Council, the Chairman of

the Council of Economic Advisers, the Assistant to the

President for Economic Policy, and the Assistant to the

President for Trade and Manufacturing Policy, submit to

the President a report on any other changes to the FAR

that the FAR Council should consider in order to better

enforce the Buy American Act and to otherwise act

consistent with the policy described in section 1 of

this order, including whether and when to further

decrease, including incrementally, the threshold

percentage in subsection 2(a)(i)(B) of this order from

the proposed 45 percent to 25 percent. The report shall

include recommendations based on the feasibility and

desirability of any decreases, including the timing of

such decreases.

Sec. 5. General Provisions. (a) Nothing in this order

shall be construed to impair or otherwise affect:

his order from

the proposed 45 percent to 25 percent. The report shall

include recommendations based on the feasibility and

desirability of any decreases, including the timing of

such decreases.

Sec. 5. General Provisions. (a) Nothing in this order

shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or

the head thereof, including, for example, the authority to utilize non-

availability and public interest exceptions as delineated in section 8303

of title 41, United States Code, and 48 CFR 25.103; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with

applicable law and subject to the availability of

appropriations.

[[Page 34259]]

(c) This order is not intended to, and does not,

create any right or benefit, substantive or procedural,

enforceable at law or in equity by any party against

the United States, its departments, agencies, or

entities, its officers, employees, or agents, or any

other person.

(Presidential Sig.)

THE WHITE HOUSE,

July 15, 2019.

[FR Doc. 2019-15449

Filed 7-17-19; 8:45 am]

Billing code 3295-F9-P