Manufacturing & Supply Chain

Industrial-base policy is actively trying to rebuild domestic manufacturing capacity — with funding, preferences, and programs behind it. For US manufacturers, this is a generational tailwind. How are you positioning for the reshoring wave?

Industrial-base policy is actively trying to rebuild domestic manufacturing capacity — with funding, preferences, and programs behind it. For US manufacturers, this is a generational tailwind. How are you positioning for the reshoring wave?

Nobody dreams of distribution contracts, but DLA and agency logistics buys are enormous, recurring, and winnable for disciplined operators. Keys: fill rates, delivery performance, and systems that prove it. Logistics contractors: what does it take to win and keep this work?

DFARS counterfeit-parts rules put real obligations on contractors: trusted suppliers, testing regimes, traceability, and reporting. One counterfeit escape can end a supplier relationship — or a contract. How are you hardening your supply chain?

DoD thinks in Manufacturing Readiness Levels (MRLs) — if you can't map your production maturity to their scale, you're not speaking their language. Understanding MRLs, producibility planning, and manufacturing risk is table stakes for defense production contracts. Where are you on the MRL scale?

Domestic content thresholds keep rising, waivers keep getting harder, and non-compliance is a False Claims Act risk — not a paperwork issue. Manufacturers: how are you tracking and documenting domestic content across your supply chain?

If you sell products to the federal government, domestic sourcing rules can decide whether your offer is even eligible. The Buy American Act (BAA), the Berry Amendment and the Trade Agreements Act (TAA) each apply in different situations. This guide explains the differences and how government suppliers can stay compliant.

The Buy American Act

The Buy American Act gives a price preference to domestic end products in federal supply contracts. Under the FAR, a manufactured product qualifies as domestic if it is manufactured in the United States and its domestic content meets a required threshold:

• 65% domestic content for items delivered in calendar years 2024 through 2028
• 75% starting in 2029

Products made predominantly of iron or steel have their own test, and higher price preferences apply to certain "critical items." Exceptions exist, including for commercially available off-the-shelf (COTS) items in some cases and nonavailability determinations.

The Trade Agreements Act

When an acquisition is above the applicable trade agreement threshold, the TAA generally replaces the Buy American preference. Under the TAA, agencies may only buy U.S.-made or designated country end products. Products from non-designated countries, including China, are generally not allowed. Country of origin is based on where the product was "substantially transformed." TAA compliance is required for GSA Schedule products regardless of order size.

The Berry Amendment

The Berry Amendment applies to the Department of Defense. It requires certain items to be entirely grown, reprocessed, reused or produced in the United States, including:

• Food
• Clothing and textiles
• Tents, tarpaulins and covers
• Certain fibers, yarns and fabrics
• Hand or measuring tools

Unlike the BAA, the Berry Amendment is a strict 100% domestic requirement with limited exceptions. DFARS also contains separate specialty metals restrictions for many defense items.

Quick Comparison

• Buy American Act: government-wide, price preference, domestic content test
• Trade Agreements Act: above trade thresholds and on GSA Schedules, U.S. or designated-country products only
• Berry Amendment: DoD only, specified items, 100% domestic

Supply Chain Compliance Best Practices

• Map every product's components and country of origin
• Get supplier certifications and keep documentation current
• Review the solicitation's clauses (for example FAR 52.225-1, 52.225-5 and DFARS 252.225-7012) to know which rules apply
• Train your sales team so it does not offer non-compliant products
• Re-check compliance whenever a supplier or manufacturing location changes

Mis-certifying country of origin can lead to contract termination, suspension and False Claims Act liability.

Frequently Asked Questions

Are products made in China TAA compliant?

Generally no. China is not a TAA designated country, so products substantially transformed in China usually cannot be sold under TAA-covered contracts.

Is "assembled in USA" enough for the Buy American Act?

Not by itself. The product must be manufactured in the U.S. and meet the domestic content threshold.

Does the Berry Amendment apply to civilian agencies?

No, it applies to DoD, though some agencies have similar rules for specific items.

How does your company manage sourcing compliance? Share your process below.