“Buy U.S.” Statutes

With its main manufacturing plant in the Los Angeles area, MGM Transformer Company proudly complies with all “Buy U.S.” statutes such as Buy America, Buy American, ARRA, BAA and SPPA.

MGM Transformer Company can manufacture your units at our 120,000 square foot plant in the U.S. and source the raw materials solely from American companies if required. By doing so we can certify your units to be compliant with any of the various “Buy U.S.” statutes listed below (either state or federal). Please make sure to specify your requirements at the time of order.

Made in USA

The Made in USA mark is a country of origin label indicating the product is “all or virtually all” made in the U.S. The label is regulated by the Federal Trade Commission (FTC).

ARRA (American Recovery and Reinvestment Act)

The American Recovery and Reinvestment Act of 2009 (ARRA), is an economic stimulus package to respond to the late-2000s recession, the primary objective for ARRA was to save and create jobs almost immediately. Secondary objectives were to provide temporary relief programs for those most impacted by the recession and invest in infrastructure, education, health, and ‘green’ energy. The approximate cost of the economic stimulus package was estimated to be $787 billion at the time of passage. The Act included direct spending in infrastructure, education, health, and energy, federal tax incentives, and expansion of unemployment benefits and other social welfare provisions.

BAA (Buy American Act & Buy America Provisions)

Buy America and Buy American are separate legislation and regulation requirements. Buy America applies solely to grants issued by the Federal Transit Administration and Federal Highway Administration; Buy American may be applied to all direct U.S. federal procurement.

The Buy American Act applies to all U.S. federal government agency purchases of goods valued over the micropurchase threshold, but does not apply to services. Under the Act, all goods for public use (articles, materials, or supplies) must be produced in the U.S., and manufactured items must be manufactured in the U.S. from U.S. materials.

Buy America provisions are applied to transit-related procurements valued over US$100,000, for which funding includes grants administered by the Federal Transit Authority (FTA) or Federal Highway Administration (FHWA). Buy America provisions are a condition of U.S. federal government grants to state, municipal or other organizations including transit authorities.

TAA (Trade Agreements Act)

The Trade Agreements Act of 1979 (TAA), is an Act of Congress that governs trade agreements negotiated between the U.S. and other countries. The TAA can restrict procurement of goods and services for federal contracts, if the program management office decides to check TAA compliance. In many ways the TAA supersedes the Buy American Act, because the TAA allows the President to waive the Buy American Act under certain conditions. Federal Acquisition Regulations (FAR) Subpart 25.4 includes guidance for TAA compliance. In general, a product is “TAA compliant” if it’s made in the United States or a “Designated Country.”

SPPA 73 P.S. 1881 (Steel Products Procurement Act)

The Pennsylvania Steel Products Procurement Act, requires every “public agency” within the Commonwealth of Pennsylvania, which enters into a contract “for the construction, reconstruction, alteration, repair, improvement or maintenance of public works,” to include a contract provision that “only steel products as herein defined shall be used or supplied in the performance of the contract…” As defined by the Act, the comprehensive term “steel products” includes products rolled, formed, shaped, drawn, extruded, forged, cast, fabricated or otherwise similarly processed, or processed by a combination of two or more of such operations, from steel made in the United States by the open hearth, basic oxygen, electric furnace, Bessemer or other steel making process.