Domestic Sourcing: The Buy American Act and TAA Explained (with Karri Palmetier)

August 4
57 mins

Episode Description

Karri Palmetier is a legal expert on one of the fastest evolving subjects in government contracting: domestic-sourcing requirements. She joined me after her well-attended session at NCMA World Congress in Orlando, and we started our discussion with a new Executive Order. The Order prioritizes domestic sourcing in the military supply chain. Underlying that Order is a combination of complicated laws, the Buy American Act and the Trade Agreements Act (or TAA).

This is an area where knowing the caselaw is critical. Neither the FAR nor the statute provide much guidance on how those laws operate in real-world situations. Karri and I talked through some of the biggest cases. Then I couldn’t let Karri leave Orlando without asking her about an important SBIR case about national security reviews.

If you’re watching this on YouTube or listening to the podcast, you can find the full auto-generated transcript at http://www.govconintelligence.com.

Links

* Karri Palmetier on LinkedIn https://www.linkedin.com/in/karri-palmetier-93094736

* Palmetier Law https://palmetierlaw.com/

* Executive Order on “Securing America’s Defense Supply Chains and Ensuring Domestic Sourcing of Critical Materials” https://www.whitehouse.gov/presidential-actions/2026/07/securing-americas-defense-supply-chains-and-ensuring-domestic-acquisition-of-critical-materials/

* Buy American Act https://uscode.house.gov/view.xhtml?path=/prelim@title41/subtitle4/chapter83&edition=prelim

* Trade Agreements Act https://uscode.house.gov/view.xhtml?path=/prelim@title19/chapter13&edition=prelim

* FAR Part 25, Foreign Acquisition https://www.acquisition.gov/far/part-25

* OMB’s Made in America Office https://www.madeinamerica.gov/

* The DaVinci Company LLC v. United States (COFC) https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2024cv1238-54-0

* Energizer Battery LLC v. United States (CIT) https://law.justia.com/cases/federal/appellate-courts/cit/13-00215/13-00215-2016-12-07.html

* Cyber Power Sys. (USA) Inc. v. United States (CIT) https://law.justia.com/cases/federal/appellate-courts/cit/20-00124/20-00124-2022-02-24.html

* Acetris Health LLC v. United States (CAFC) https://www.cafc.uscourts.gov/opinions-orders/18-2399.opinion.2-10-2020_1529718.pdf

* Kayvan Space Corp. v. United States (COFC) https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2025cv0104-79-0

Chapters

* 00:00 - Introduction to GovCon Intelligence and Karri Palmetier

* 01:58 - The Securing America’s Defense Supply Chains Executive Order

* 05:44 - Balancing Supply Chain Requirements and Small Business Burdens

* 10:57 - Demystifying the Buy American Act Pricing Preference

* 14:00 - The Made in America Office and the Waiver Process

* 18:00 - Defining Manufacturing and the Component Test

* 22:12 - The Trade Agreements Act (TAA) and the Da Vinci Case

* 28:33 - The Substantial Transformation Test Under the TAA

* 36:52 - Bid Protests vs. Customs Cases: The Acetris Decision

* 44:55 - Compliance Tips for Prime Contractors and Subcontractors

* 48:36 - Knowing Your Competition and Pricing Trade-offs

* 52:19 - SBIR Contracts and Foreign Ownership, Control, or Influence (FOCI)

* 57:10 - Conclusion and Contact Information

With over 20 years of Federal legal experience, Sam Le counsels small businesses through government contracting matters, including bid protests, contract compliance, small business certifications, and procurement disputes. Sam received his law degree from the University of Virginia and formerly served as SBA’s director of procurement policy. His website is http://www.samlelaw.com.

This video is for informational purposes only and does not constitute legal advice.



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