Biden's Economic Road Map Includes Benefits for Government Contractors

The Administration plans reflect that government contracts and grants will play a key role in its economic and domestic agendas, pandemic response, and proposals for global economic and technology leadership. Before making the news by signing an Executive Order requiring that all federal contractors receive the COVID-19 vaccine in September, Biden released a series of plans and proposals to address infrastructure challenges. The plans rely heavily on federal investments implemented through government contracting and grants to achieve their goals and objectives. These plans offer a roadmap to the future Biden administration's policy priorities and potential actions. During the election cycle, Biden announced his broad "Buy American" plan in a July 2020 speech in Pennsylvania, calling for $400 billion in new government procurement "to modernize our infrastructure, replenish our critical stockpiles and enhance national security," and $300 billion in new research and development "to sharpen America's competitive edge in new industries." (See, https://joebiden.com/made-in-america.) "American manufacturing was the 'arsenal of democracy' in World War II," Biden said, "and has to be part of the engine of new prosperity in America now." Following the election, Biden reiterated his broad economic plans, signing an "Executive Order on Ensuring the Future Is Made in All of America by All of America's Workers." Buy American proposals are central to his plan to invest in American products, services and supply chains. Biden's plan for a national commitment to Buy American says he will:

• "Tighten domestic content rules." Biden criticized so-called loopholes in the law and his plan pledges to require more legitimate American content.
• "Crack down on waivers to Buy American requirements." Biden criticized contracting officer waivers and proposed to publish waiver requests on a website for all potential bidders.
• Extend Buy American principles to R&D, which should support American manufacturing and sourcing.
• "Strengthen and enforce Buy America." Different from Buy American requirements, these provisions would require that "steel, iron, and manufactured products used in transportation projects are melted, mined, and manufactured in the U.S."
• "Update the trade rules for Buy American." Biden proposed to "work with allies to modernize international trade rules … to make sure that the U.S. and [its] allies can use their own taxpayer dollars to spur investment in their own countries."

Biden proposed a series of executive actions to strengthen Buy American principles. These executive actions would:

• "Use authorities under the Defense Production Act and the Federal Property and Administrative Services Act of 1949 to enforce Buy American rules [and] issue an executive order using the full extent of these powers."
• "Expand and tighten Buy America rules for public infrastructure projects."
• "Expand the scope of critical materials that must be made with U.S. origin components — beyond critical medicines."
• "Create a new 'Made in America' Office within the White House Office of Management and Budget [that] will manage American procurement policy to ensure compliance with Buy American rules."

Buy American principles were a notable aspect of Trump's 2016 and 2020 campaigns, and a subject of executive actions by his administration. The Trump administration increased agency attention to the Buy American Act, and this renewed government focus will continue to increase under the Biden administration.