In a speech to the White House on Friday, the president is also expected to highlight an upcoming announcement by Siemens USA that it will expand its domestic production of electrical equipment, such as chargers for electric vehicles, with a new investment of $ 54 million, which will also created 300 jobs, according to one senior official.
The change to the rules, first announced in July 2021, will require all goods purchased with taxpayers’ money to contain 75% US-made content, up from the current 55% requirement, according to a second senior administration official. . The man added that the rule would be phased in to give companies time and space to change their supply chains. This process will begin this year by shifting the 60% requirement in October and then to 75% by 2029.
“The final rule will ensure that taxpayer dollars create well-paid jobs here at home, strengthen critical supply chains and position American businesses to compete in strategic industries,” he said.
The new rule will also include a “framework” for introducing increased price preferences for certain critical products and components in strategic industries, according to the official, who noted that this is important for both “national and economic security”. The exact details of this will be part of a second rule-making process.
It is unclear how many companies or products will be affected, as the new U.S. buying rule from the Federal Acquisition Regulatory Council does not include an update that allows the federal government to verify contractors’ claims about the percentage of in-house content. products. However, the official noted that the administration still expects to eventually introduce a reporting requirement for companies – something the president promised when he announced the proposal last year.
“First, 55% (US-made content) is not high enough, and second, contractors don’t have to tell us the overall internal content of their products. They just have to tell us that they have reached the threshold. Without anyone checking They have a new sheriff in town. We will check, “Biden said last July during a trip to Pennsylvania.
The process of the new rule began with Biden’s executive order, Made in America, which established a 180-day interagency review and established a Made in America office in the Office of Management and Budget. This position at OMB helps agencies enforce Made in America rules, monitors the process by which contractors can apply for exemptions, and updates the public about exemptions by publishing this information on a public website.