Domestic Preferences in Federal Contracts and What It Can Mean for Your IDIQ Contract Opportunities
Big changes are coming to the world of IDIQ contract bids, thanks to the Trump Administration. On April 18, President Trump signed an executive order which will bring significant changes to how Federal contracts are given out, with a specific emphasis on “Buy American” initiatives.
Anyone who is involved in IDIQ contract bids or business development training should keep themselves informed on how this will likely impact contractors in the years to come.
Key Points to Take Away From “The Presidential Executive Order on Buy American and Hire American”
The executive order calls for sweeping changes to the Federal Acquisition Regulation (FAR), Part 25, which will eliminate a lot of loopholes in how contractors adhere to the Buy American Act (BAA).
Some of the main points covered in the EO include:
- All government agencies are ordered to reassess their implementation and compliance with Buy American laws and implement policies intended to maximize the use of domestic materials and labor.
- Requiring any waivers to Buy American laws based on cost-cutting to factor in foreign protectionist efforts such as product-dumping or injurious subsidies to their own companies.
- Ordering the Secretary of Commerce to create a full report recommending ways to strengthen Buy American laws, including new policies or procedures for encouraging domestic procurement.
- Ordering all agencies to submit yearly reports to the Secretary of Commerce detailing their own efforts to incorporate domestic-focused procurement policies.
It’s important to keep in mind that Executive Orders cannot create law, but they can issue guidance to all relevant executive-branch agencies as well as to the Justice Department.
While some aspects of April 18 Executive Order could theoretically require Congressional action, it would be unwise to assume it will go unheeded. To the contrary, it’s likely that the Trump Administration will be tenacious in pursuing these Buy American goals, which still seem achievable.
Possible Outcomes from This New EO
Nothing will change immediately, and it’s likely that some time, at least a year, will pass before major changes begin to occur. None the less, now is the time for those seeking IDIQ contract opportunities to start making strategic shifts to begin to qualify.
Obviously, those contractors using primarily domestic sources will benefit greatly here. Those who are already comfortable in their domestic focus may want to start reaching out to their government contacts and making this known.
However, be prepared for extra scrutiny. It is extremely likely that these orders will be taken as a reason to pry into your procurement procedures, supply lines, and other aspects of your business. It is also likely that agencies will err in favor of strict interpretation of Buy American laws, even in gray areas where some leeway was previously allowed. When in doubt, attempt to reach out to your contacts for guidance or more information on how they interpret the Trump EO.
For more advice, contact contact Asher Government Strategies for workshop and training information.
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