[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.

                    (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.
                    (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

(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.

                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:

(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