OMB Announces Pilot to Better Leverage Federal Acquisition to Strengthen America’s Critical Supply Chains
Since his first day in office, President Biden has relentlessly focused on an industrial strategy to revitalize our manufacturing base, strengthen critical supply chains, and position U.S. workers and businesses to compete and lead globally in the 21st century. Today, in an effort to advance this priority, OMB is announcing the next phase of the Federal Government’s strategy to better leverage Federal procurement dollars to strengthen domestic sourcing for critical products and supply chains. The policy memorandum, “Strengthening Domestic Sourcing for Critical Items,” is part of the Administration’s Better Contracting Initiative to buy as an organized entity to achieve better outcomes from Federal contracts.
Last year, with the support of OMB’s Made in America Office (MIAO), the Federal Acquisition Regulatory Council announced the most robust change to the implementation of the Buy American Act in almost 70 years. These actions provide new opportunities for small- and medium-sized manufacturers and their employees, including small and disadvantaged enterprises, from all parts of the country.
The MIAO and the Office of Federal Procurement Policy are jointly issuing this guidance to help agencies better leverage Federal procurement dollars to strengthen domestic sourcing for critical products and supply chains. These actions will allow agencies to manage and mitigate supply chain risks, as well as take a targeted approach to support competition and combat harm to domestic industries. Before an enhanced price preference (EPP) is used, agencies will provide public notice of their planned use on the MadeinAmerica.gov site and invite public comments on the plan.
A number of agencies—including the Departments of Energy, Health and Human Services, Defense, Homeland Security, and the National Aeronautics and Space Administration—have indicated their commitment to exploring EPP pilots, as warranted, to proactively advance the domestic manufacturing of critical items.
