Berry Amendment vs BAA-what’s the difference?Randy Mitchell
Berry Amendment vs BAA-what’s the difference? The Berry Amendment was passed in 1941. The Berry Amendment applies only to the Department of Defense (DoD). It requires that DoD funds are spent on US manufactured items. This practice protects the US industrial market in times of war. Primarily, it covers tools, food, and textiles for use at home and abroad in military operations. The Berry Amendment is very specific in its coverage. The Berry Amendment requires 100% domestic content of covered items. It has no commercial exceptions for food, textiles, or hand and measuring tools. Contractors are not required to be certified under the amendment. The Berry Amendment applies to contracts performed worldwide. There are qualifying country exceptions for chemical warfare protective clothing.
Berry Amendment vs BAA-what’s the difference? The Buy American Act (BAA) applies to all US Federal Government agency purchases. BAA purchases are for public use within the United States. These purchases must be valued over the micro-purchase threshold, currently $10,000. When purchased by federal entities for public use, the goods must be produced in the US. Unlike the Berry Amendment purchases, which have to have 100% domestic content, items purchased under the BAA must have 50% domestic content. When BAA procurements are not covered by existing trade agreements, the BAA requirements may be waived to allow use of non-US goods. These waivers may be granted when:
- The use of a US product is impractical or inconsistent with the public interest; or
- The product is not mined, produced, or manufactured in the US in sufficient and reasonably available commercial quantities of a satisfactory quality; or
- The use of a domestic product would lead to an unreasonable increase of the total cost of the project.
Berry Amendment vs BAA-what’s the difference? You can see that both the Berry Amendment and Buy American Act are used in US Government purchasing. The Berry Amendment is concerned with Department of Defense Purchases. The Buy American Act is used for any government purchase. Both statutes demand some content of domestic goods in the purchased product. They both attempt to support the United States businesses, Industries, and companies. V Technical Textiles, Inc. draws from domestic companies and sources in manufacturing its products. VTT is proud to be able to work in compliance with the Berry Amendment and the Buy American Act!
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