Last reviewed on May 12, 2026.
Three regimes, one contract
Country-of-origin rules in federal contracting come from three separate statutory regimes that apply in different combinations depending on the contract, the agency, and the dollar value:
- Buy American Act (BAA). The base statute. Applies broadly to federal procurements of supplies and construction materials. Establishes a domestic content preference, with exceptions.
- Trade Agreements Act (TAA). Implements trade agreements with designated countries. Applies above specific dollar thresholds. Overrides BAA for purchases from designated country sources.
- Berry Amendment. DoD-specific statute. Applies to specific categories of goods (food, clothing, textiles, hand tools, special metals). Much stricter than BAA — requires 100% U.S. source for covered items.
A given contract may be subject to any combination. The contract clauses identify which regime applies. The compliance work is reading the clauses carefully and verifying supply chain compliance accordingly.
Buy American Act
The Buy American Act dates to 1933 and is implemented through FAR Part 25 and FAR clauses including 52.225-1 (Buy American — Supplies) and 52.225-9 (Buy American — Construction Materials). The basic structure:
- Two-part test. An "end product" must be (1) manufactured in the United States and (2) consist of "substantially all" domestic components, evaluated by component cost.
- Domestic content threshold. The threshold has increased in recent years and continues to increase on a schedule. The threshold for the cost of domestic components has moved from 50% historically toward higher percentages.
- Price evaluation preference. When BAA applies, foreign-origin offers receive a price evaluation penalty (typically 20% for large business offers, 30% for small business offers) when compared to compliant domestic offers.
- Exceptions. Public interest, non-availability of domestic products, unreasonable cost, and resale exceptions exist. The most important practical exception is non-availability when the product simply isn't made in the United States.
Recent executive orders and FAR amendments have tightened BAA — increasing domestic content thresholds, narrowing exceptions, and adding reporting requirements. The direction of policy travel has been toward stricter BAA compliance over time.
Trade Agreements Act
The TAA implements the U.S. obligations under the WTO Government Procurement Agreement, NAFTA/USMCA, and bilateral agreements with various countries. Implemented through FAR clause 52.225-5 and related provisions. The structure:
- Threshold-based application. TAA applies to procurements above specific dollar thresholds (different thresholds for goods, services, and construction; thresholds adjust periodically).
- Designated countries. Products from designated countries (TAA-designated countries include WTO GPA signatories, FTA partners, Caribbean Basin countries, and least-developed countries) are treated as eligible.
- "Substantial transformation" test. A product is the product of the country where it last underwent substantial transformation — the manufacturing step that gave it its essential character. Cosmetic finishing does not constitute substantial transformation.
- Non-designated country prohibition. When TAA applies, products from non-designated countries (most prominently including China, India, and Russia among large economies) are generally prohibited.
- Override of BAA. Above the TAA threshold, TAA generally displaces BAA — designated country products are treated as if they were domestic.
TAA compliance is particularly consequential for IT products. Many federal IT solicitations exceed the TAA threshold; products manufactured in non-designated countries cannot be offered, even if components or final assembly happen elsewhere.
Berry Amendment
The Berry Amendment is a DoD-specific statute codified at 10 U.S.C. § 4862. It requires that DoD procure certain categories of items entirely from U.S. sources, with no foreign content. Categories covered include:
- Food
- Clothing and textiles
- Tents, tarpaulins, and covers
- Hand or measuring tools
- Specialty metals (covered separately under DFARS 252.225-7008/7009)
- Cotton and other natural fibers, certain wool, certain other items
Berry Amendment compliance is binary — covered items must be 100% U.S.-source, including raw materials in many cases. Limited exceptions exist for non-availability, but they require formal determinations.
How the regimes interact
| Procurement scenario |
Likely regime |
Notes |
| Civilian agency, below TAA threshold |
BAA |
Domestic content threshold applies; price evaluation preference for non-compliant offers |
| Civilian agency, above TAA threshold |
TAA (displaces BAA) |
Designated country products eligible; non-designated prohibited |
| DoD, covered items |
Berry Amendment |
100% U.S.-source required |
| DoD, other items, below TAA threshold |
BAA with DFARS overlays |
Domestic content rules apply |
| DoD specialty metals |
DFARS specialty metals clause |
Steel, titanium, aluminum, and others have specific source rules |
Practical compliance steps
- Read the solicitation clauses. Identify which BAA / TAA / Berry / specialty metals clauses are included. The clauses determine which regime applies.
- Verify country of origin for each item. Trace products back to manufacturer. White-label and rebadged products require special diligence — the brand is not the country of origin.
- Apply the substantial transformation test. For TAA, the country where the product was last substantially transformed is the country of origin. Finishing or kitting elsewhere does not change the determination.
- Document the analysis. Keep records of country-of-origin determinations, supplier certifications, and substantial transformation rationale. Audits and protests frequently turn on documentation.
- Update SAM representations. Buy American and TAA representations are in SAM.gov. Update them when business operations change.
- Flow down to subcontractors. Country-of-origin obligations flow to subcontractors. Get written certifications from suppliers.
How this interacts with other compliance topics
- Section 889 is a separate prohibition on specific Chinese telecommunications equipment that operates independently of BAA/TAA. A product can be TAA-compliant and still violate Section 889.
- CMMC addresses cybersecurity controls, not country of origin, but covered equipment often interacts with both.
- Subcontracting flow-down through small business subcontracting plans often carries country-of-origin obligations forward.
Common mistakes
- Assuming TAA overrides BAA in all cases. TAA only applies above the threshold. Below it, BAA still applies with its lower domestic content requirement.
- Confusing "country of origin" with "country of brand." A U.S.-branded product manufactured in China is a product of China, not the United States, for procurement purposes.
- Misreading substantial transformation. Kitting, repackaging, or final assembly typically don't transform origin. Component manufacturing usually does.
- Forgetting specialty metals. DoD specialty metals rules apply across many DoD contracts and have their own country-of-origin requirements separate from Berry.
- False BAA / TAA representations in SAM. Misrepresenting compliance is a False Claims Act risk separate from contract performance issues.
- No supplier certifications. Compliance ultimately depends on what suppliers tell you about their products. Without written certifications, you have no defense in an audit.