COLORIZE SOLAR LIGHTS UPDATE
Solar lighting manufacturers will have to review this update to see whether certain items have been added or removed from the nonavailable articles list.įinally, there is a new requirement before agencies grant a public interest waiver. The update is to help determine whether there is still a reasonable basis to conclude that the listed articles are not mined, produced, or manufactured in America in sufficient quality and quantities.
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Specifically, this test measures domestic content through “the value that is added to the product through U.S.-based production or U.S.-job supporting economic activity.” Even though the BAA does not define how to measure “value,” this change may force some solar lighting manufacturers to take a hard look at whether they are out of compliance.įrom this new country of origin test, there has been an update to the Federal Acquisition Regulation (FAR) list of “nonavailable articles.” These articles are exempt from the BAA. Third, the executive order replaces the BAA’s “cost of component test.” This long-standing test was replaced with a new test for determining the country of origin under the BAA. Notably, this change does not affect Department of Defense procurements (and their 50% evaluation preference). Now, the price evaluation preference has been bumped up to 20% for domestic offerers and 30% for domestic offerers that are small businesses, like SOL. That 6% preference doubled to 12% if the offerer was a small business. Before the change, these offerers received a 6% evaluation preference in civilian procurements, as compared to offerers of foreign end products. That 50% threshold is being raised to 55%, meaning that solar lighting suppliers may need to find new domestic suppliers to comply with this update.įrom the increase of the “domestic end products” threshold, President Biden’s executive order increased the price evaluation preference that was enjoyed by offerers of domestic end products. Looking at the long-standing rule, an end product would be deemed domestic if at least 50% of the cost of components had an American origin. The first significant change centered on the qualifications for “domestic end products” under the BAA. Many of the Solar Lighting players in North America import components form abroad and these recent changes are likely to affect their products compliance with the Buy American Act. Important Changes to the BAA that could impact Solar Lighting ManufacturersĪt the end of January, President Biden initiated an executive order to maximize the purchase of American-made supplies. It reflects positively on the US technology leadership and the “Made in USA” brand. Reinforce America’s position as a technological leader: Highly technical made in America products such as SOL’s EverGen-M are sold everywhere around the world.economy as a whole: money spent in the manufacturing process, payroll, and taxes stays in the US and is reinjected in the economy to produce more wealth. Lower environmental impact: manufacturing in America means fewer miles to travel to reach the installation site and reduced carbon footprint.
Higher-quality production: BAA compliant products must respect the strict US regulation relating to manufacturing quality.
In SOL’s case, our EverGen systems are made in Houston, TX. Increased domestic job creation: Goods that are made in the USA are manufactured and assembled by American workers, in facilities located in the US.The BAA traces its origins to the 1930s, yet it continues to have a substantial impact on the US economy today, for the following reasons: At its core, the BAA is designed to protect American labor and businesses by restricting the acquisition and use of end products that are not considered “domestic.” In other words, the BAA makes federal government agencies purchase certain goods that are manufactured and produced in the United States. The Buy American Act (BAA) has been a significant piece of legislation that has impacted American companies and workers for decades.
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