Federal Contract Law Firm Assists With Compliance Counseling
Washington, D.C. Government Contract Lawyers Help Clients Comply With Federal Law
Learn More About Government Contracts and Awards
Laws exist that require government funds to be used only for the purchase of domestic products, or at least provide a price preference for such products. The law implementing the U.S. government’s preference for domestic products is known as the Buy American Act (BAA).
But the BAA may not always be applicable due to the Trade Agreements Act (TAA), which allows for the procurement of products from certain countries other than the United States.
BAA and TAA Compliance
Understanding whether the BAA or TAA applies to your procurement, and whether your products are compliant with the applicable standard, is crucial to avoid liability under the False Claims Act and termination of a contract award.
The BAA applies to supply contracts exceeding the $2,500 threshold, but that are below the TAA threshold (currently at $193,000). To be BAA compliant, the product provided must qualify as a domestic end product. A domestic end product is either:
- An unmanufactured end product mined or produced in the United States
- An end product manufactured in the U.S. if the cost of components mined, produced, or manufactured in the U.S. exceeds 50 percent
Companies that fail to accurately identify whether their products are compliant or non-compliant with the BAA or TAA requirements are at great risk of having their contract award terminated and being liable to the U.S. Government under the False Claims Act. In the past few years, violations have cost companies tens of millions of dollars in fines and terminated contracts.
Contact a Federal Contract Law Firm Today
If you need legal advice regarding compliance with the laws that govern government purchases, contact the Whay Law Firm online or call (202) 448-9677 to schedule your initial consultation today.
