New DoD Rule increases the domestic content requirements for certain contracts

On February 14, 2024, the Department of Defense (DoD) issued a final rule that changes the domestic-sourcing requirements for DoD procurements subject to the Buy-America Act. When applicable, this final rule generally requires contractors to supply products that are made with components that comprise at least 65 percent of the product’s cost.

The final rule’s changes—which DoD has implemented through revisions to a number of DFARS’ clauses—largely track the FAR’s requirements for contracts subject to the Buy-America Act. Nevertheless, the DoD rule contains a number of exceptions, and contractors should be aware that the domestic-sourcing requirements that apply to DoD procurements are often much more complicated than the ones that cover non-DoD procurements.

Click here to read the final rule.

Please reach out to Josh Schnell if you have questions about the DFARS rule or any other issues related to the domestic-sourcing requirements that apply to federal contracts and grants.

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